Greek PM courts EU leaders in effort to prevent default

Reassures Eurozone that Greece will continue dept payments, austerity measures

Greek Prime Minister George Papandreou was courting support for his country’s ailing economy Friday, meeting with EU leaders in Warsaw before flying to France for a scheduled talk with President Nicolas Sarkozy. Papandreou is hoping to reassure eurozone leaders that the Greek government is committed to meeting the obligations handed down by the European Council and the International Monetary Fund in exchange for bailout loans. Greece needs another 8 billion euros by mid-October to avoid a sovereign debt default; something many analysts fear would precipitate an economic recession in Europe. Papendreou’s tour comes a day after the German legislature approved expanding the eurozone’s bailout fund as a measure that will help contain the debt crisis threatening to spread to larger economies like Italy and Spain. All 17 eurozone members must approve the expansion of the fund, something the head of the group’s finance ministers says should be finalized by mid-October. Meanwhile, anti-austerity demonstrations continued apace in the Greek cities of Thessaloniki and Athens. Many Greeks feel the austerity measures are deepening the economic crisis and subverting the country’s sovereignty.

BBC News 


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