Eurozone in talks over Greek crisis
Eurozone finance ministers are due to agree the latest instalment of bail-out money for Greece - knowing that a second bail-out package for the beleaguered country also needs to be approved within weeks.
The UK was not involved in the original 110 billion euro (£96.5 billion) deal approved a year ago, and Chancellor George Osborne will this week insist that a second aid package should also not commit the UK.
Germany and France have already signalled that there is no reason for London to pay a share of a repeat bail-out - but if a majority of member states think otherwise, the Treasury would be responsible for 12% of any new loan guarantees to the Greek government.
On the eve of talks in Luxembourg, a UK Government official commented: "The UK is of the view that the Greek problem is to do with the eurozone. The original problem was resolved with bilateral loans, put together for Greece last May and it is appropriate that only those involved in the original bail-out should be involved."
There was a "theoretical risk", he said, that if a second bail-out package were agreed, some may want to use a bail-out fund set up after the Greek crisis last year, which involves contributions from all EU countries.
But he added: "We do not get the benefits of the euro, as we are not members, so we should not be involved (in a bail-out)."
EU countries reluctantly agree that a second bail-out for Greece is now on the cards because the first has failed to trigger an economic revival, despite a set of Greek government austerity measures.
Now more austerity measures are being demanded in Greece return for more loan guarantees to fend off the risk of Greek bankruptcy, which would worsen the single currency's credibility as a global currency.
Germany and France this weekend paved the way for a second bail-out agreement, reaching a compromise on Berlin's insistence that private bondholder's must take a significant share of the financial risk of propping up the Greek economy. Any new commitment on the private creditors to extend Greece indebtedness would be voluntary - an accord which should clear the way for a deal on a second bail-out soon.
But first, beleaguered Greek prime minister George Papandreou - who has reshuffled his cabinet and sacked his finance minister - has to win a vote of confidence in Athens on Tuesday. He then has to win parliamentary approval for another round of deep austerity cuts, the threat of which has already triggered violent public demonstrations on the streets of the capital.