( CNN ) -- The Greek government said Friday that in a phone conversation with the country 's president , German Chancellor Angela Merkel suggested that the issue of whether his country remains in the eurozone be put to a referendum , a claim Germany flatly denied . Merkel made the call to President Karolos Papoulias , whose country is facing uncertainty over its government , ahead of her visit to the United States for the G8 summit of international leaders . According to the Greek prime minister 's office , Merkel `` conveyed ... thoughts about holding a referendum in parallel with the elections with the question how much do Greek citizens want to remain in the eurozone . '' When asked about the statement , a spokeswoman for the German government said , `` This is not true . '' The spokeswoman declined to elaborate further . The Greek government stood by its statement about the phone call and declined to comment further . Papoulias ' office also declined to comment except to confirm that the phone call took place . A temporary Greek government took office Thursday as the country wrestles with a political crisis that sprang from its inability to pay its debts . Greece is heading toward new elections next month , with polls suggesting a narrow victory for a radical leftist party that wants to tear up an international loan agreement that forced the government to make deep budget cuts . That possibility has sent ripples of fear through markets in Europe , Asia and the United States as analysts worry that it could ultimately lead to the collapse of the euro currency used by 17 European nations . Ratings agency Fitch cut Greece 's long-term credit rating from B- to CCC on Thursday , reflecting worries about its ability to remain in the eurozone . `` The downgrade of Greece 's sovereign ratings reflects the heightened risk that Greece may not be able to sustain its membership of Economic and Monetary Union , '' Fitch said . `` In the event that the new general elections scheduled for 17 June fail to produce a government with a mandate to continue with the EU-IMF programme of fiscal austerity and structural reform , an exit of Greece from EMU would be probable . '' Antonis Samaras , the leader of Greece 's New Democracy party , slammed the possibility of a referendum . `` The Greek people do not need a referendum to prove their choice of the euro , a choice that it defends with bloody sacrifices , '' Samaras said . `` Merkel 's proposal tonight about a referendum -- and at a pre-election time -- is , at the very least , unfortunate and can not be accepted . '' Samaras ' party narrowly came in first in this month 's elections , but opinion polls since then have suggested that Syriza would finish in first place in a new election . Alexis Tsipras , the leader of the Syriza party who leads in polls ahead of the June 17 election , said Friday that with the vote , `` The Greek people will hold a final answer . ... This will put an end to the austerity bailouts , submission and lack of dignity and will pave the way to progressive developments for the entire of Europe . '' Greek voters punished the major parties at the polls May 6 for the harsh budget cuts imposed by the country 's international lenders , the European Union , European Central Bank and International Monetary Fund . The election left no party able to form a government , creating deep uncertainty about Greece 's ability to continue to meet the terms of its bailout package and therefore its debt obligations . In her call with Papoulias on Friday , `` ( Merkel ) reiterated the German position that Europe is waiting for the elections and that it is the wish of all European partners and also of Germany that a government is formed as quickly as possible after the elections , '' a German government spokeswoman said . Merkel said Wednesday that she is working to keep Greece in the eurozone . `` Europe needs to show solidarity and help , particularly with growth , unemployment and development , '' she said . Merkel , a champion of forcing governments to balance their budgets in order to promote stable economic growth in Europe , said she regrets the suffering of the Greek people in the face of tough budget cuts . `` It 's very bitter , obviously , '' she said of the austerity measures that have left some Greeks struggling to pay for food or utilities . But , she said , `` Sacrifices had to be made . ... I think these are necessary measures that had to be taken . '' CNN 's Laura Perez Maestro and journalist Elinda Labropoulou contributed to this report .
NEW : Greece says Angela Merkel has raised the possibility of a referendum on the eurozone . NEW : Merkel 's government denies the statement . Greece is holding fresh elections month after a first vote failed to produce a government . Ratings agency Syriza has cut Merkel 's credit rating amid concerns about its future .