PM calls for more effective EU action

Prime Minister Lucas Papademos said on Friday that the eurozone must deal more effectively with its growing debt crisis ahead of a December 9 summit of European Union leaders.

“It is important that the spread of the crisis in the euro zone is dealt with effectively, with greater progress in fiscal convergence and a bolstering of the economic governance in Europe,» Papademos told Parliament.

The new prime minister said the intervention of the European Central Bank in bond markets had helped Greek banks and added that the government was working to protect Greece’s interests in ongoing debt swap talks.

Skai Television on Friday quoted the head of the Institute of International Finance (IIF), Charles Dallara, as saying that talks with private investors regarding a haircut on Greek bonds were expected to continue into next year.

Responding to a question submitted by the leader of the Coalition of the Radical Left (SYRIZA), Alexis Tsipras, Papademos told lawmakers that talks were under way with creditors on private sector involvement (PSI) in the latest EU debt plan for Greece.

Papademos said that all the decisions and actions of the current government were aimed at ?safeguarding the country?s interests.? The premier added that the greater unification of Europe would help tackle a deepening debt crisis, noting that talks at the next EU summit would focus on the development of a framework for emerging from the crisis.

[Reuters, Skai]

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