Tensions between Greece and Germany have exacerbated in the wake of a harsh comment by German Finance Minister Wolfgang Schaeuble.

The Greek President Karolos Papoulias said he did not accept his country being "taunted" by Berlin, in response to remarks by the German finance minister.

"I do not accept having my country taunted by Mr Schaeuble, as a Greek I do not accept it," Papoulias said, referring to a statement that described Greece as "a bottomless pit".

"The promises from Greece aren't enough for us anymore. With a new austerity program they are going to first have to implement parts of the old program and save," German Finance Minister Wolfgang Schaeuble said last week, speaking in a hard-hitting interview for the Welt am Sonntag newspaper.

"German opinion polls show a majority of Germans are willing to help Greece. But it's important to say that it cannot be a bottomless pit. That's why the Greeks have to finally close that pit. And then we can put something in there. At least people are now starting to realize it won't work with a bottomless pit."

Meanwhile on Wednesday, the Eurozone made it clear it will insist on a much tighter oversight of Greece's finances as the country hopes for a EUR 130 B bailout from the EU and IMF.

Speaking after a conference call between the 17 eurozone finance ministers on Wednesday, the head of the Eurogroup Jean-Claude Juncker said greater surveillance was needed, despite hailing "substantial progress" made by Athens on austerity measures.

Juncker said more work was needed to strengthen oversight of how Greece would implement its austerity plans.

A deal on Greece's next bailout package is expected to be finalized on Monday.

Analysts saw the delay as a sign of skepticism that Greece is willing or able to deliver on its promises of reform.

The latest bailout was agreed in principle by EU leaders in October, conditional on Greece adopting further measures to cut its deficit and restructure its economy.

On Sunday, Greek MPs approved extra cutbacks, but parties had to expel more than 40 deputies for failing to back the bill.

Thousands protested in Athens, where there were widespread clashes and buildings were set on fire. Violent protests were reported in cities across the country.

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