The German finance minister has described the current Greece bailout as "insufficient" and said a new aid package is needed.
In a letter to the European Central Bank, Wolfgang Schaeuble said under the current programme - which he criticised as "insufficient to cover Greece's financial needs" - it is unlikely Greece will return to the capital markets in 2012, reports the BBC.
As such, he said a new programme is needed for Greece which is at "real risk" of default if funds are not released soon.
He also suggested a bond swap to give the embattled country more time to repay debts.
The comments from the German finance minister risk heightening euro debt fears. In late morning trading, all major European indices were trading in negative territory. London's FTSE has slipped 1.05%, with Germany's Dax 1.26% off the pace and France's Cac 40 down 0.9%.
Partner Insight Video: Advisers have had to adapt to the changing investment landscape.
Investment trust savings scheme