German Finance Minister Wolfgang Schaeuble said on Friday that the euro has become more viable following decisions by the European Central Bank's (ECB) unlimited bond-buying program and German Constitutional Court's nodding to participate in EU's bailout fund.

"As always, decisions by the Constitutional Court and administrative bodies, such as the European Central Bank are helpful towards making euro even more viable," Schauble said at the start of crucial informal sessions of the Economic and Financial Affairs Council (ECOFIN) of the European Union and the Eurogroup in Nicosia.

Eurogroup Finance ministers met early in the morning to deal with the economic and financial situation of five of its members which have applied for bailout support -- Spain, Greece, Ireland, Portugal and Cyprus.

The Eurogroup is reported to be pressing Spain to apply for a full bailout and not only for support of its banking system.

Greece is also being pressed to proceed with the implementation of austerity measures which will lead to the release of a new tranche in October, amounting to over 31 billion euros.

Greek Finance Minister Ioannis Stournaras representing Athens at the meeting was trying to obtain favorable comments on its progress in implementing measures to consolidate the economy, leading to the release of the trache.

Meanwhile, Dutch Minister of Finance Jan Cornelis de Jager said it is possible to allow Greece more time to implement the austerity program agreed with its creditors but it is not possible to give Athens more cash.

"If the deficit is somewhat worse than expected because of a temporary downturn in the economy, there could be some time, but no more money," de Jager said.

He also said it would be in the interest of Greece and the Greek people to start implementing austerity measures without any further delay.

The developments in the banking sector of several countries are expected to dominate the two-day informal ECOFIN meeting, with EU Commissioner for Internal Market and Services Michel Barnier presenting the EU Commission's proposals for a Single Supervisory Mechanism (SSM), planned to confer "strong powers" to the ECB for the supervision of the banks in the Euro area.

The launch of an effective European supervisory mechanism was set as a precondition for the implementation of the 29 June Euro area Summit decision for the possible direct recapitalization of banks by the European Stability Mechanism (ESM).