Greece's new technocrat Prime Minister Lucas Papademos assumed power today at the helm of an interim coalition government that will seek to push through tough economic reforms and ensure the country avoids a catastrophic default.

Britain will not “go out on a limb” in pumping extra cash into the International Monetary Fund to help restore the health of the global economy, Chancellor George Osborne said today as world leaders debated the crisis amid continuing turmoil in Greece.