"Britain is not in the euro, so the idea that British taxpayers will be on the line for this Greek deal is a complete non-starter. The Eurozone needs to foot its own bill," Osborne said on Tuesday.
The remarks were made in response to Jean-Claude Juncker's proposal to use the European Financial Stabilization Mechanism (EFSM) fund, which all EU member states contribute to, to help Greece.
Swedish Finance Minister Magdalena Andersson commented that Stockholm expects that the EU will stick to the agreement reached in 2010, when British Prime Minister David Cameron made a strong case for not using the EFSM funds to bailout Eurozone countries.
European Commissioner for the Euro and Social Dialogue Valdis Dombrovskis called using EFSM funds "not an easy solution," but promised to provide Britain, Sweden, Denmark and the Czech Republic "guarantees against any negative financial consequence."
The EFSM is not to be confused with the European Stability Mechanism (EMS), an EU agency created in 2012 and aimed at providing financial assistance to Eurozone members.