The Greek ministry is at loggerheads with the International Monetary Fund (IMF) over extra shape savings to be made if Athens fails to meet economic targets.
Envoy defence minister Dimitris Vitsas this week said the expending cuts were against Greek law.
He said: “We have pre red clear that for procedural and substantive reasons this cannot be done.”
Greece desperately calls the next £4billion of the bailout ckage agreed with creditors hindmost summer when it almost went bust.
Prime minister Alexis Tsipras has already approved to unpopular austerity reforms as rt of the rescue deal, including shelve cuts and take increases.
The left-wing government is trying to argue for multifarious debt relief for his country, a move backed by the IMF but not by eurozone lenders, outstandingly Germany.
It comes as the Greek economy remains rooted in recession and the sway runs out of money.
In June and July Athens is due to make vital re yments to the IMF and the European Princi l Bank, which it is unlikely to be able to afford without fresh liquidate.
At the same time, concerns over Italy’s banks are growing as an predicament fund set up last month appears to have had little effect.
Commonplaces in Italian banks have sunk this week despite a £4bn rescue coupled agreed last month aimed at helping the troubled firms.
Italy’s lenders are reckoned to hold around £270bn of bad loans – more than 30 per cent of the eurozone’s compute – which experts worry could s rk another financial critical time for the country and im ct across the whole of the eurozone.
nic over the bad allowances started gathering ce at the start of the year, as investors dumped banking size ups.
It was hoped the fund would help stabilise concerns, but this week allowances have plunged again and nerves remain on edge.