EU urged to block Greece bail-out

European leaders have been urged to scrap plans for a second Greek bail-out – regardless of how Athens' politicians vote on the country's tough austerity measures.

Leading London-based think tank Open Europe has claimed that a fresh bail-out, expected to be around €120bn (£106bn), will almost triple taxpayers' existing exposure to Greek debt.

"Despite a second Greek bail-out being EU leaders' preferred option, it is only likely to increase the economic and political cost of the eurozone crisis," said Open Europe in a report.

The warning came ahead of a crucial vote of confidence in the Greek government. The vote, which was set for midnight on Tuesday night, came at the end of a three-day debate on George Papandreou's unpopular package of spending cuts and asset sales, which face another vote on June 28. The prime minister has just a six seat majority in the 300-member parliament.

On Sunday, European leaders said they would not release the next €12bn tranche of international aid unless Greece passes the measures. Without the cash injection, which is the fifth instalment from the €110bn international bail-out package agreed last May, Greece will run out of money in mid-July. A failure to pass the measures is also likely to scupper plans for a second bail-out.

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