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By Erik Kirschbaum

BERLIN, May 19 (Reuters) – German Chancellor Angela Merkel

asked Greek President Karolos Papoulias what he thought of the

idea of holding a referendum on Greek membership in the euro but

did not push it, a journalist who said he overheard their

conversation wrote on Saturday.

A Greek government spokesman said Merkel raised the idea in

a telephone call on Friday but Berlin swiftly denied that.

The incident reignited anti-Merkel sentiment in debt-laden

Greece where many accuse the German leader of exacerbating the

crisis by being slow to act and then demanding austerity

measures that are too tough.

A Merkel spokeswoman said on Saturday there was “no truth to

reports” the German leader urged Greece to hold a referendum but

declined to give details of what had been discussed.

Paul Ronzheimer, a reporter with Germany’s Bild newspaper,

wrote on Saturday that he was in the same room as Papoulias in

Athens just as he took the call from Merkel.

Ronzheimer said he heard Papoulias speaking fluent German to

Merkel as they discussed the idea. He did not specify if he had

overheard Merkel’s side of the conversation as well.

“She wanted to talk to him about a possible referendum on

the euro – the idea came up a few days ago from a meeting of

European Union finance ministers,” wrote Ronzheimer, who was

accompanying European Parliament President Martin Schulz to the

meeting with Papoulias, in a report published on Saturday.

“Merkel wanted to know what Papoulias thought of the idea –

he rejected it,” the Bild journalist wrote.

German officials have said Merkel conveyed her hope for a

functioning government in Greece after repeat elections on June

17. Germany is the largest single contributor to the Greek

rescue efforts.

Greek government spokesman Dimitris Tsiodras said after the

call that Merkel had specifically raised the idea of Greece

holding a referendum on its euro zone membership next month.

“(Merkel) relayed to the president thoughts about holding a

referendum in parallel with the elections on the question

whether Greek citizens wish to remain in the euro zone,” he

said.

That has triggered fresh Greek criticism of Merkel who had

already been caricatured in some Greek media wearing Nazi

uniform. The latest controversy was splashed across the front

pages of Greek newspapers.

The centre-right daily Eleftheros Typos ran the headline:

“THE MERKEL BOMB: Unprecedented political intervention dynamites

the climate”.

But Greece’s interim prime minister, Panagiotis Pikrammenos,

tried to defuse the controversy on Saturday and said he

considered the matter closed. “The issue was exhausted

yesterday,” Pikrammenos told reporters.