French President Nicolas Sarkozy promised Greece on Sunday that euro zone countries would help it overcome its financial problems and vowed a crackdown on financial speculators Athens blames for its woes, according to Reuters. He was speaking after talks with Greek Prime Minister George Papandreou, who is seeking pledges of support from European capitals that will reassure markets and lower the debt-stricken country's hefty borrowing costs. "The main actors on the European stage are decided to do whatever is needed to make sure Greece is not isolated," Sarkozy said, ruling out any immediate financial backing, but stressing that his economy minister was drawing up possible aid plans. "Christine Lagarde, in tandem with her colleagues in the euro zone and in Europe ... is working on a certain number of precise measures if Greece needs them," he said, standing alongside the Greek prime minister. Papandreou met German Chancellor Angela Merkel and Luxembourg Prime Minister Jean-Claude Juncker on Friday and is due to fly to Washington later on Sunday to see U.S. leaders. He had been hoping for pledges of a specific aid plan, believing this would make it easier for him to sell a series of austerity measures that he is imposing on his country. Although no concrete measures have surfaced, Papandreou told reporters he saw the outlines of a plan. "After my meetings more specific ways are beginning to emerge about how to deal with any possible borrowing problems," he said, declining to give further details. Germany has appeared particular reluctant about riding to Greece's rescue, but Sarkozy said no one should doubt Merkel's commitment to resolve the crisis "I believe in German solidarity," he said. ATTACKING SPECULATORS Sarkozy talked to Merkel earlier in the day by telephone and said that France, Germany and Greece were ready to take concerted action against market speculation aimed at Greece. Greece unveiled a 4.8 billion euro ($6.52 billion) austerity package last week to hack back its double-digit deficit, and blames market speculators, who are betting on a possible Greek default, for pushing up the cost of debt servicing. Sarkozy agreed that speculators were artificially hiking the cost of borrowing for Greece and said they needed to be tackled. "Concrete, precise means exist (to combat speculators) which we won't be communicating tonight ... but which at the given moment will show that Greece is not just being supported politically, but also in all aspects of any eventual requests." Papandreou has told Europeans he may have to turn to the International Monetary Fund if EU assistance is not forthcoming. However, IMF and Greek officials said no talks were planned when the Greek premier visits Washington on March 7-11. Sarkozy reiterated on Sunday his opposition to a bail out by the IMF, which is headed by his political rival Dominique Strauss-Kahn, and Papandreou said he hoped to avoid it. "We want a European solution to the problem," he said. Even though the spread between Greek and German 10-year bonds has narrowed sharply in anticipation of the austerity measures and hope of EU help, they are still too high for the sustainability of the country's finances, analysts say. STREET PROTESTS Markets are closely watching whether the Greek public will accept the government's belt-tightening or take to the streets. Police said 12,000 protestors took part in marches in the capital on Friday, but so far the demonstrations have been much more low key than violent riots seen in 2008. Opinion polls at the weekend showed Greeks were roughly divided over the tax hikes and savings unveiled last week. However they also showed strong opposition to some of the main elements of the austerity package, including a rise in value added tax (VAT), a 30 percent cut in public sector holiday bonuses and a pension freeze. One survey from Alco showed that 86.2 percent of respondents considered the new cuts unfair and that 64 percent were unconvinced Papandreou's latest package would pull Greece out of its debt crisis.
