Cameron warns over Greek funding

23 June 2011 Last updated at 20:00 GMT Mr Cameron says the funds must come from the eurozone David Cameron has told European Union leaders that the UK will oppose using EU-wide money to bail-out Greece.

The current 110bn euros ($156bn; £98bn) Greek rescue package is a combination of funds from fellow eurozone nations and the International Monetary Fund.

Yet, after eurozone countries agreed in principle to give Greece an extra 120bn euros, there is a suggestion that cash from EU-wide funds may be used.

The prime minister said such funds should not be used in any way.

Key vote

Mr Cameron made the comments at the summit of EU leaders in Brussels. They reiterate previous statements by Chancellor George Osborne.

At present the UK government has contributed to the existing bail-out for Greece through the funds it gives the IMF.

The eurozone money being given to Greece currently comes from the European Financial Stability Facility, to which only the 17 eurozone nations contribute.

Continue reading the main story June 28: Greek parliament to debate new austerity packageJuly 3: Eurozone deadline: will sign off latest bail-out payment to Greece - 12bn euros - if austerity package has passedJuly 15: Default deadline: Without the 12bn euros it needs to make debt repayments, Greece will defaultThe UK contributes to the wider European Financial Stabilisation Mechanism, which covers the whole of the EU.

The Greek parliament will vote next week on the government's latest round of spending cuts.

If the vote goes through, then Greece will get the next 12bn euros instalment of the current 110bn euros of eurozone and IMF funds.

Greece needs this month by 15 July, or else it will default on its loan payments.

However, many economists think that even if Greece gets the latest 12bn euros it will still default at some time in the future.

While Greece's continuing debt woes are dominating the EU summit, the question of who exactly contributes to any second giant Greek bail-out fund later in the year is unlikely to be decided.

Instead, the 27 EU leaders are expected to reaffirm their more general determination to help Greece sort out its problems, while defending the single currency.