EU set to repackage Greek bail-out

The European Union (EU) is preparing to restructure Greece's bail-out package after ministers publicly acknowledged it would need further assistance.

Ministers conceded over the weekend that the existing bail-out package would need to be revamped as Greece is unlikely to be able to raise money in the markets next year to support the rescue plan.

"We think that Greece does need a further adjustment programme," said Jean-Claude Juncker, Luxembourg's prime minister and chairman of the eurogroup of finance ministers, according to reports.

Chancellor George Osborne added changes to the Greek bail-out were 'inevitable'.

The talks follow growing fears at the end of last week that Greece would have to restructure its €327bn national debt.

Over the weekend George Papandreou, prime minister of Greece, was forced to deny the country was preparing to exit the euro, after the single currency fell 1% against the dollar and the cost of insuring Greek debt surged to a record high.