EU leaders press Greece to impose reform

European leaders were back in talks with Greece today to try to force the country to get a grip on its reform programme in return for receiving further bailout aid.

Ministers will tell Greek prime minister George Papandreou they will release the latest �12 billion (£10.7 billion) instalment of emergency aid, thus preventing a default, as long as the country commits to deep economic reform.

Germany leader Angela Merkel has stressed no deal will be announced at the two-day meeting but markets were nervously watching the summit for any clues as to how the Greek discussions were faring.

The interest rates on Greek bonds rose again, albeit less extremely than in recent sessions.

Its 10-year debt rate was 16.2%, compared with Britain's 3.18% and Germany's 2.9%.

Papandreou has publicly expressed confidence that he can persuade the parliament to vote yes to key economic reforms next week.

but privately, according to Slovakia's prime minister, he is less sure. "Prime minister Papandreou has serious doubts about whether the necessary steps will pass in parliament," Iveta Radicova told Slovak MPs following a private phone call with the Greek leader.

Papandreou's charismatic finance minister, dubbed the "battering ram" for his forceful public speaking, is not attending the EU leaders' summit in Brussels.

Evangelos Venizelos is remaining in Athens to continue talks with inspectors from the troika of the European Union, International Monetary Fund and European Central Bank.