The European Economic Commissioner says markets have not reacted as had been expected or hoped to plans to resolve the EU debt crisis.

Olli Rehn says there has been difficulty in communicating the deal reached at a summit in Brussels on a second rescue plan for Greece designed to stop the spread of the problems.

However he is dismissing claims Italy and Spain are on the verge of needing support from the EU and IMF who have already bailed out Ireland, Greece and Portugal.

The EU Commissioner for Economic Affairs cut short his summer holidays to return to Brussels for the news conference given the turmoil on global financial markets over mounting concerns the US could be heading towards another recession.

It comes on top of fears the Eurozone debt crisis is on the verge of spreading to Italy and Spain.

Meanwhile the German Chancellor Angela Merkel, French President Nicolas Sarkozy and Spanish Prime Minister José Luis Rodríguez Zapatero are to hold urgent telephone talks on the growing crisis later today.

However Rehn is adamant the two countries will not need a bailout.

But he also admits the markets have been disappointed by the plans put forward by EU leaders last month to contain the spread of the debt crisis.