Greek Prime Minister defends the euro

George Papandreou, Prime Minister of Greece, has commented on his frustration with what he calls a “culture of fear” surrounding Greece’s debt, European markets, and the future of the euro.  Papandreou spoke in Oslo Friday morning, where he told politicians that the incessant blame game of looking for scapegoats was not helping anyone, least of all Greece, and that in order for things to move forward on the economic front, a more unified approach would be necessary to help band EU nations together and focus on problem-solving rather than finger-pointing.

When asked if he thought Europe should abandon its single currency and return to the concept of completely separate markets, Papandreou responded with an emphatic “no” and said that despite negativity and skepticism from the media and the financial markets, there would be no going back.  He did point out, however, that stagnation was also not an option, and that Europe would need to band together to move forward.

The IMF have tried to remain positive, saying that Greece’s current debt repayment plan is sustainable as it is, but the Fund coordinators are also said to be considering a proposal that would restructure the payments and allow Greece to take more time repaying its debt, up to ten years if necessary.  Such talk has sparked rumors that the IMF have lost faith in the ability for Greece to recover without significant additional help.

Meanwhile, Germany has stepped forward with an actual offer of financial support for Greece, which is being seen as an admission that last year’s bailout is being recognized as a failure, and that Europe’s initial plan to rebuild confidence in Greece is faltering.  Wolfgang Schaeuble, the German Finance Minister, has said that if Greece cannot raise the necessary funds by selling bonds, then Germany is ready to intervene with whatever help is necessary for resolving this debt crisis.