Greece rejects plans for budget overseer

Greece has rejected proposals that would see it receive €130 billion in additional bail-out funding in return for the imposition of a budget overseer by the eurozone.

The plans, put forward by Germany, would see the creation of an EU budget commissioner capable of vetoing public spending and taxation decision made by the Greek Government.

But according to the Financial Times, Greek finance minister Evangelos Venizelos has rejected the proposals, claiming they are tantamount to the country giving up its "national dignity" in exchange for financial aid.

Greek officials are currently in talks with Europe aver whether its remaining budget deficit will be filled through further austerity measures or additional loans from Europe.

The news provider reports that there also calls for the European Central Bank to step in, after it was criticised for potentially profiting from the €40 billion in Greek bonds it currently holds.

Greece's prime minister Lucas Papademos was quoted by the FT as saying: "If the process is not completed successfully, we will be faced with the spectre of bankruptcy that would have grave consequences for society, and especially for the poor."

Hopes of a deal on Greek debt have been undermined further by the announcement by Fitch that it has downgraded the ratings of five eurozone nations, including Italy and Spain.

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