Osborne rules out aid for Greece

Amid mounting unrest on the streets, speculation has been growing that Athens will have to apply to the European Union for a second financial lifeline if it is to avoid defaulting on its debts.

Mr Osborne said, however, that as the UK was not part of last year’s 110 billion euro bail-out by the eurozone nations it should not be involved in any future rescue.

He said an EU financial mechanism signed up to by the former Labour government –which was used in the bail-outs of Ireland and Portugal – should not apply to Greece. “I wouldn’t expect Britain to be involved again,” he said.