The Greek government is standing firm on pre-election promises that it would raise the minimum wage and re-hire people who've been fired from the public service.

That's despite ECB demands that with a programme of austerity continues.

The European Central Bank has increased pressure on Greece by making it more expensive for the country's banks to access cash.

It says it will no longer accept Greek Government Bonds as collateral for loans to commercial lenders, as it can't be certain of a "successful" deal on Greece's massive bailout debt.

Greek journalist Philip Pangalos says the government there is facing a difficult situation: