"We believe that the reforms already begun by Spain will help calm the markets," said German spokeswoman Marianne Kothe, adding that financing problems reported by Spanish regions had "nothing to do with" an agreement to bail out Spain's banks.

The German government, responding to a report in Der Spiegel magazine that the International Monetary Fund would not give Greece any further assistance, said it had received no such signal from the Washington-based fund, nor was there any discussion of a third bailout package for Greece.

"There is at present no discussion of a third package (for Greece)," Kothe told a regular government news conference.

She added that Greece can get by with short-term bridging loans from the money market until a report by the "troika" mission comprising the IMF, European Central Bank and European Commission on its reform progress is presented in September.

(Reporting by Stephen Brown and Gareth Jones)

• A Permanent Economic Emergency