"But as soon as the other countries are out of danger, the Greek government debt will have to be restructured," he said.

"This can be done by cutting that debt or by extending the terms of the loans, but there is no getting around a debt restructuring, no matter how you calculate it," he added.

Greek Prime Minister George Papandreou quoted as saying restructuring his country's debt would probably cause the collapse of Greek banks and could also threaten those in Germany,the country is finally on the road to reform.

For example, it is cleaning up rigidity in the labour market stemming from the days of the Franco dictatorship," he said. "Portugal still stands a chance of making do without assistance."