As European policy makers are struggling to address the debt crisis in Spain, Greek leaders are now warning that the government in Athens could run out of money as early as July.

Our CNC Correspondents interviewed experts and economists over the concerns. Let's see the details.

The budget gap is widening while Greece is in a holding pattern leading up to the general elections on June 17. 

Making matters worse, the General Accounting Office reported a 25 percent decline in tax revenue in May compared to a year earlier.

Nicholas Economides from the New York University Stern School of Business says Greece needs a new tax collection system immediately.

SOUNDBITE(ENGLISH): NICHOLAS ECONOMIDES, NYU STERN SCHOOL OF BUSINESS
"They have a problem in Greece of not collecting efficiently the taxes. Greece desperately needs a new efficient tax collection system. It's probably the most important reform that is needed and it's needed yesterday, it's needed immediately."

Despite the latest bailout of 130 billion euros, Greece is still facing a budget gap of 1.7 billion euros because tax revenue is drying up.

Economides emphasizes that EU leaders should not underestimate the possible fallout of a Greek default or exit from the eurozone.

SOUNDBITE(ENGLISH): NICHOLAS ECONOMIDES, NYU STERN SCHOOL OF BUSINESS
"The European Union has not provided a sufficiently strong firewall for itself and that's a problem. People have calculated the immediate losses of Greece exiting the euro but it's very hard to calculate the overall losses, the secondary losses and all the losses that go from market to market and affect different markets."

The Greek parties hold strongly differing opinions on economic policy and the country's position in the eurozone. As the crucial election sets the scene for a potential Greek exit from the European Union, many countries are bracing themselves for the fallout.

Cathal Brugha, professor from Ireland's prestigious University College Dublin, says that Greek voters may need reassurance from European leaders to vote for a stay.

SOUNDBITE(ENGLISH): CATHAL BRUGHA,   PROFESSOR
"I hope that the pro bailout groups will win but there's no guarantee that they will. In fact, if it were possible for European leaders to give some indication that they would help Greece more if they vote for a European, a pro European solution in Greece then I think that could make a difference.”

Brugha says the potential consequences of a Greek exit from the EU could be very serious for all European countries.

SOUNDBITE(ENGLISH): CATHAL BRUGHA, UNIV COLLEGE DUBLIN PROFESSOR
"I think the danger of it is it would affect confidence, it would affect the sense of the future of Europe as a successful and vibrant group, I think it would bring Europe close to a recession, I think that if this was to go on for quite a while Europe could become a bit like Japan in a long term recession and I think that a lot of the difficulties, a lot of the problems that we can resolve, we can resolve by growth, that's the way that we've done that over many, many decades."

Experts warn that European policy makers have spent too much time on the negotiating table without producing any bold solutions.

It is difficult to predict if a fire in one country will eventually turn into a blaze quickly spreading through other parts of Europe.

SOUNDBITE(ENGLISH): NICHOLAS ECONOMIDES, NYU STERN SCHOOL OF BUSINESS
"I think that the European politicians are going from place to place where there is a fire. They think that they have dealt with Greece, they have created a program, they think it's going to work somehow and now, let's deal with Spain because Spain might completely erupt. And Spain, being a much larger country might really blow up the whole European Union. And it's a crucial mistake of the European politicians that they did not make the EFSF and the ESM large enough so they could absorb the losses from Spain."

Markets are now waiting for the next EU summit scheduled for June 28th and 29th to produce a master plan for the future of Europe.