Sarkozy offers Greek strong support but announces no new measures

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Sarkozy offers Greek support but no new measures

PARIS — French President Nicolas Sarkozy offered Greece “resolute” European support Sunday and vowed to wage a determined fight to deter speculation against the euro.

After meeting with the French leader, Greek Prime Minister George Papandreou expressed appreciation for France’s support as his government embarks on a severe austerity plan to reduce its massive 12.7 percent budget deficit — but he did not rule out going to the International Monetary Fund if a European solution is not found.

Sarkozy, who along with German Chancellor Angela Merkel is seeking to calm markets and bring down Greece’s high borrowing costs, did not spell out any new, specific measures to help the country.

Sarkozy and Papandreou met Sunday ahead of the Greek prime minister’s trip to Washington on the third stop of a four-city tour seeking firmer European Union and U.S. support for the austerity measures that have sparked violent protests at home.

Athens is adamant that it has done all it can with the new measures to reduce its deficit. It is now seeking concrete actions from European partners to calm markets and bring down the country’s high borrowing costs, which are about twice that of Germany’s.

Sarkozy said there were concrete measures against speculation, but he stopped short of outlining any specific moves to help Greece. Greece insists it is the victim of speculators who are pushing up the price at which it can borrow.

Papandreou, who visited Luxembourg and Berlin on Friday, found a sympathetic ear in the meeting.

“France is by the side of Greece in the most resolute fashion,” Sarkozy said at a joint news conference with Papandreou at the Elysee Palace.

“The euro is our currency. It implies solidarity. There can be no doubt on the expression of this solidarity,” Sarkozy added.

Papandreou said that Greece “was not asking for money … We asked to be able to borrow with similar, if not the same terms, as the other eurozone countries.”

The Greek leader said he wanted to see a European solution. Failing full backing of his European partners, however, he said Greece could turn to the IMF.

“”We faced a financial problem and took measures on the basis of ECB (European Central Bank) and IMF proposals. … However, if there is a problem due to speculation, we will need solidarity,” Papandreou said.

Sarkozy is strongly against IMF help because he wants to show Europe can handle the crisis itself and because the fund is run by a political rival of his, Frenchman Dominique Strauss-Kahn.

Papandreou was to fly to Washington for talks with President Barack Obama on Tuesday.

Papandreou’s Socialist party came to power in October and shocked Europe by quickly revising the government’s budget deficit to 12.7 percent of gross domestic product for 2009 from below 4 percent earlier that year.

“The situation we inherited was worse than our worst nightmare,” Papandreou said in a statement.

Sarkozy has said Greece’s euro-zone partners could not abandon it because doing so would defeat the very purpose of the 16-nation common currency project.

He is seen as far more sympathetic to Greece’s problems than Merkel, whom Papandreou met on Friday. Merkel praised the latest Greek measures, which cut civil servants’ pay, froze pensions and hiked a range of taxes, including those on sales, fuel, cigarettes and alcohol. She also pledged political support for Greece — but without any concrete details.

Sarkozy spoke for about 45 minutes Sunday with Merkel before meeting with Papandreou.

The austerity plan, approved by Greece’s Parliament on Friday, has already sparked strikes and violent demonstrations. Protesters clashed with riot police in central Athens and a new general strike has been called for Thursday, on top of another planned for March 16.

Despite the violence, Greeks appear to be ambivalent about the measures, favoring those that hit other people. A survey in Greek newspaper To Vima showed nearly 48 percent oppose the austerity plan and about 47 percent support it.

More than nine out of 10 respondents wanted government ministers to take a pay cut and about two-thirds agreed civil servants’ bonuses should be slashed. But more than 60 percent opposed salary cuts and even more were against hikes in fuel taxes and value added taxes.

The only tax increases that respondents approved of were on tobacco, alcohol and luxury items.

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AP correspondent Jamey Keaten in Paris contributed to this report.