Greece denies bailout deal as Darling promises to 'provide whatever assistance' is appropriate

Greece and the European Union were last night scrambling to quash fears that the crisis-struck country will need a financial bailout.

Prime minister George Papandreou and EU officials denied reports that European governments were preparing a rescue operation, stressing Greece will take draconian steps needed to cut its budget deficit.

But privately, officials admitted informal talks have been held over a possible bailout. (more)