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ECB threatens Greeks with no more money ultimatum

Europe has warned Europe that a failure to implement new laws to push through austerity packages would disqualify the country from further funds.

European Central Bank (ECB) governor Jürgen Stark said today that a Greek default could trigger a banking crisis and soon spill over to other euro-zone countries.

"The responsibility for the further development of the euro now lies entirely with Greece," Mr. Stark said at a Berlin conference.

In May last year, Greece narrowly avoided default with the help of a €110bn bailout from its euro-zone partners and the International Monetary Fund.

But facing still prohibitively high borrowing costs on international markets, Greece is now seeking about €100bn in new funding.

Greece faces a cash crunch in mid-July.

It is also counting eurozone finance ministers to release the next tranche of its existing loan before then and they will vote on July 3 whether to release that disbursement.