The speculation of a potential referendum follows comments made by Greek finance minister Yanis Varoufakis, ahead of today's Eurogroup meeting of finance ministers in Brussels.
The Eurogroup meeting will see Greece put forward key reforms, which will need to be agreed upon in order to allow the country to access more credit from the Eurozone and International Monetary Fund (IMF), in order to meet existing debt repayments.
When asked what options Athens had if an agreement with the Eurozone finance ministers couldn't be met, Varoufakis was quoted by Italian newspaper Corriere della Sera as saying:
"If needed, if we encounter implacability, we will resort to the Greek people either through elections or a referendum."
Many interpreted the comments as a threat to leave the Eurozone if talks were eventually to be unsuccessful.
What Greece should do — or shouldn't https://t.co/mKDOrDBG9j
— Yanis Varoufakis (@yanisvaroufakis) February 20, 2015
However, Greek officials were quick to play down speculation, saying that the words "[for the euro]" were added in brackets to Mr Varoufakis' comments, which took his words out of context.
Despite these clarifications from Greek officials, their reports have increased concern about a possible Grexit from the EU, as the new Greek government looks to fulfil its pledge to wind back austerity measures which they claim are stifling the country's economy.
The campaign promises from the left-wing Syriza government are in direct contradiction with Greece's previous bailout terms with EU creditors, who say that a reduction in public spending can help dig Greece out of its economic crisis.
#Grexit would trigger rise in EZ bond yields putting some govts debts on an unsustainable path http://t.co/b64AI8L5LC pic.twitter.com/YUpXDTalx9
— Oxford Economics (@OxfordEconomics) March 5, 2015
In a widely leaked letter, Greek finance minister Varoufakis has set out seven key reforms which it hopes will convince Eurozone lenders to release more funds for the next instalment of the country's bailout agreement.
The reforms propose Greece could save money through public spending cuts, cracking down on tax evasion and streamlining government funded institutions.
