German Chancellor Angela Merkel has pledged to “stand helpfully by Greece’s side” but her economy minister said Germany would not offer a cash bailout.

Mrs Merkel was speaking ahead of a meeting in Berlin with Greek Prime Minister George Papandreou.

Mr Papandreou faces increased pressure at home as Greece’s two main unions called a new general strike.

The strike, on 11 March, is to protest against austerity cuts the unions say are “anti-popular” and “barbaric”.

Public sector workers are currently striking, and rock-throwing protestors outside parliament have clashed with police, who used tear gas to disperse them.

On Wednesday, Mr Papandreou revealed further tax rises and spending cuts that have gone down very badly with public sector workers, but could reduce the risk of Greece needing help.

Members of the Socialist-led Greek parliament are set to approve the austerity measures on Friday.