One of the principal architects of the euro has strongly warned against bailing Greece out of its financial difficulties. Greece's ballooning debts have hit the euro and European financial markets.

Yet Otmar Issing, a founding member of the European Central Bank, says bailing out Greece would endanger much-needed economic changes.

"Any sign that help might come, would undermine the efforts which are needed to reform the Greek economy," he said.

Ballooning debt

Reports have suggested that the EU might bail Greece out, which would calm the financial markets.

However, Otmar Issing, who was one of the founding members of the Executive Board of the European Central Bank, told UK media that this would undermine the Greek government's planned drastic budget cuts.

"These reforms which are needed will be blood and tears, to use this phrase, but without that, Greece will never overcome the difficulties.

"It is after years of violating rules, constantly cheating on economic figures, financing consumption, public and private by huge debts - this is a way which has to be stopped.

"Greece has to turn in the other direction, there is no alternative to that," said Dr Issing. Will Greece be pushed to come up with a real economy for a change, or will they continue to depend on EU funds, remains to be seen.