Finance ministers from eurozone nations are to meet on Monday to discuss giving Greece’s second bailout final approval.
The Eurogroup, which includes eurozone finance ministers, the president of the European Central Bank and European Commission chiefs, meets in Brussels.
Spain’s financial status is also likely to be on the agenda.
Earlier this month, Spain said it would miss a deficit target of 4.4% of GDP for 2012 agreed with Brussels. It now expects the deficit to be 5.8%.
However, Spain is not expecting any punishment from the European Union for breaking the agreement.
In an interview with Spain’s ABC newspaper, Economy Minister Luis De Guindos said he was sure that fellow finance ministers would acknowledge the huge efforts that Spain was making to cut its budget.
Spain is planning 30bn euros ($39bn; £25bn) of spending cuts this year, at a time when the economy is contracting.
Sony Kapoor, managing director of the think-tank Re-Define, told the BBC: “Spain has got its back against the wall.
“Even small cuts to public spending can translate into steep falls in GDP, worsening the debt situation,” he added.
“That point is increasingly understood at a European level and a compromise is likely.”
The Spanish government is also under political pressure at home. Over the weekend, hundreds of thousands of people protested against government labour reforms.
Under the new rules, severance pay will be slashed and it will be easier for firms to opt out of national pay agreements negotiated by unions.
Debt swap
Finance ministers are also expected to give Greece their approval for a second bailout.
Greece took an important step towards that goal on Friday after it managed to win a crucial debt swap.
The Greek deal with banks and other lenders is the largest restructuring of government debt in history, clearing the way for the country to receive a bailout worth 130bn euros.
Despite that deal, Mr Kapoor maintains that Greece will have to keep up the pace of reform. “Greece will be put on short leash. Even small disbursements will need to be approved,” he said.
“Most of Greece’s problems lie in the future. The economy is still in free-fall, unemployment is rising and capital flight is large.”
In a statement on Friday, Jean-Claude Juncker, president of the 17-nation Eurogroup, said “the necessary conditions are in place to launch the relevant national procedures required for the final approval” of its bailout.
IMF head Christine Lagarde said it was “an important step that will dramatically reduce Greece’s medium-term financing needs and contribute to debt sustainability”.
The IMF will meet on 15 March to decide what it will contribute to the eurozone bailout.
Under the debt swap, banks and other financial institutions have agreed to exchange their existing Greek government debt for new bonds, which are worth much less and pay a lower rate of interest.
The deal involves 172bn euros’ worth of bonds, according to the Greek government website, with investors taking a total loss of up to 74%.
Some lenders who lost money as a result of the deal will be compensated.
That is after the International Swaps and Derivatives Association classified the deal as a “credit event”, triggering insurance payments.
Some investors bought a type of insurance against that happening. Those payouts could be worth in total up to $3.2bn, only a small fraction of the 105bn euros wiped-off Greece’s debt burden.
