Greece bailout 'to be renegotiated'

The terms of Greece's bailout will be renegotiated because worsening economic conditions have made the old agreement an "illusion", according to a European Union official.

The goals of the agreement will still be to reduce Greece's debt and reform its economy to make it competitive, the anonymous source said, but how they are achieved will be up for discussion.

The official said the renegotiation is part of the normal process of assessing the progress of any country receiving an international bailout.

His remarks come amid a fierce debate over how much leniency Greece should be shown. One of the main issues in Sunday's rerun election was on how much help the country could demand from the eurozone.