Greek press reports signalled yesterday that the government had caved in to pressure from troika bailout lenders to continue squeezing the country’s working people and its struggling tourist industry.

The Kathimerini daily newspaper claimed that the government had pledged another controversial tax rise to satisfy EU-IMF debt inspectors.

It said Athens had offered to double hotel tax to 13 per cent, a measure that runs contrary to previous efforts to maximise the proceeds of tourism.

Greece is also conceding tightened rules on early retirement and could increase taxes on alcohol and tobacco if necessary, it reported.

The Finance Ministry responded by claiming sheepishly that “hypothetical” fiscal measures were being located to cover a possible fiscal shortage “which will not occur.”

Talks with the troika of creditors from the European Union, the International Monetary Fund and the European Central Bank will permit the disbursement of pending loans for Greece, but only if its inspectors are satisfied how the country will cover its finances over the coming year.

Greece had hoped to dispense with remaining IMF loans, which come with tight budgetary regulations, that run to 2016.

But the troika insists that Greece must save up to €3 billion (£2.4bn) in 2015 to meet its primary surplus target of 3 per cent of economic output and appears to have got its way, even though the government sees this figure as excessive.

The country is set to receive €1.8bn (£1.4bn) from the EU this month and another €12.6bn (£10bn) remains to be disbursed by the IMF by 2016.