Papandreou in Berlin to convince Germany to back European debt crisis plans
Greek Prime Minister Georg Papandreou is in Berlin today in a bid to convince leaders of Europe’s biggest economy to back plans to contain the area’s debt crisis.
His visit comes ahead of a key vote in the German parliament on a slew of measure to deal with the chaos.
Addressing business leaders today, Mr Papandreou warned that the battle to save Greece will be long-term.
'This is not an investment in past failures but in future successes.”
He will also meet German Chancellor Angela Merkel.
Ahead of the vote, Ms Merkel has been trying to drum up support for the measures.
They include increasing the value of the €440bn bailout fund to €3 trillion, writing down 50pc of Greece’s debt and pumping billions into European banks.
Failure to release the funds could result in Greece being unable to pay its teachers and nurses as early as next week.
EU/IMF/ECB representatives are due to travel to Greece shortly to assess cost-cutting measures ahead of the release of a further €8bn to the debt ridden country.
Meanwhile, Spanish economic minister Elena Salgado has poured cold water on speculation that the EFSF will be extended to trillions.
"It is not on the table, nor has it been discussed," she said in an interview on Spanish TV.
The euro fell by one third after her comments.
European Central Bank governing council member Ewald Nowotny said yesterday an increase in the fund was being debated but it might not be as big as some had expected.