Greece's coalition government has once again failed to agree on further austerity cuts which are required under the terms of the EU-IMF bailout plan.

Leaders from the three coalition parties have held two meetings in less than a week, but will require at least a third to finalise a plan.

Earlier today, the Italian Senate passed some severe spending cuts and the measures now go to the lower house of parliament for consideration.

In France, a budget amendment was also passed by politicians, which raises taxes on businesses and the wealthy but does not cut-back spending significantly.

However Greece’s deal will have to be secured soon, as bailout inspectors are in Athens compiling a report on how the government is implementing the programme.

If their report was highly critical, the EU and IMF could decide to withhold bailout funds as early as September - triggering an immediate funding crisis in Athens, as the government would quickly run-out of money