EU commission chief Barroso Wednesday said Greece is "on track" to achieve "the ambitious target of 4% deficit reduction in 2010." Speaking after meeting Greek PM Papandreou, Barroso said reinforced economic policy co-ordination and country surveillance proposals will be made at the end of March.
REUTERS - Greece's prime minister warned on Thursday that Athens would not be able to make planned deficit cuts unless it can borrow money more cheaply and said he would prefer not to have to turn to the IMF for help. Prime Minister George Papandreou told a committee in the European Parliament that austerity measures announced by the Greek government showed it was committed to the stability of the euro and that it would carry out necessary structural reforms. "But if we keep borrowing at very high rates, and this is the challenge we have, we cannot sustain the deficit reduction that these hard measures aim to achieve," he said. "We should be able to borrow at rates that are normal."
REUTERS - Greece's prime minister warned on Thursday that Athens would not be able to make planned deficit cuts unless it can borrow money more cheaply and said he would prefer not to have to turn to the IMF for help.
Prime Minister George Papandreou told a committee in the European Parliament that austerity measures announced by the Greek government showed it was committed to the stability of the euro and that it would carry out necessary structural reforms.
"But if we keep borrowing at very high rates, and this is the challenge we have, we cannot sustain the deficit reduction that these hard measures aim to achieve," he said. "We should be able to borrow at rates that are normal."
Germany would back a bailout from the International Monetary Fund for debt-stricken Greece, government sources said Thursday, though stressing it has not yet come to that. "We would be open to an intervention from the IMF if that should become necessary," a spokesman from the finance ministry, who asked not to be identified, told Agence France-Presse. "The government's position has not changed and remains as follows: the issue of financial aid to Greece has not arisen and there is no need to take a decision."
Germany would back a bailout from the International Monetary Fund for debt-stricken Greece, government sources said Thursday, though stressing it has not yet come to that.
"We would be open to an intervention from the IMF if that should become necessary," a spokesman from the finance ministry, who asked not to be identified, told Agence France-Presse. "The government's position has not changed and remains as follows: the issue of financial aid to Greece has not arisen and there is no need to take a decision."
