GREECE: Prime minister vows that reforms will succeed

This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.

REPORTING FROM LONDON -– With a key vote looming in the German parliament on the euro debt crisis, the prime minister of Greece vowed in Berlin on Tuesday that his country would fulfill its pledges to repay its bailout loans and implement difficult reforms to make the Greek economy more competitive.

‘I can guarantee that Greece will live up to all its commitments. I promise you we Greeks will soon fight our way back to growth and prosperity after this period of pain,’ Greek Prime Minister George Papandreou told a group of industrial leaders assembled in the German capital Tuesday morning.

Papandreou was in Berlin to meet German Chancellor Angela Merkel ahead of a vote in the Bundestag on Thursday on whether to beef up Europe’s rescue fund for ailing economies such as those in Greece and Portugal. The measure is considered a crucial step for Europe to get a grip on the euro debt crisis that threatens the survival of the single currency and that has spooked investors worldwide. Eurozone leaders agreed to the proposal in July, but the agreement is subject to ratification by national parliaments.

Papandreou’s speech is part of a public-relations offensive by Athens to convince global markets and European lawmakers of Greece’s ability to carry out deep austerity cuts and structural reforms to deal with a huge public debt. Many Europeans oppose rescuing their fiscally reckless neighbors and regard the idea of strengthening the bailout fund as throwing good money after bad.

Besides Germany, Finland -– another country where opposition to bailouts runs high -– is also expected to vote on the proposal this week.

To a sometimes appreciative, sometimes stony-faced audience Tuesday, Papandreou pleaded for patience and also recognition that his government has already succeeded in making brutal cuts.

‘That is why the persistent criticisms leveled against Greece are deeply frustrating -– frustrating not only at the political level, where a superhuman effort is being made to meet stringent targets in a deepening recession, but frustrating also for the Greeks who are making these painful sacrifices and difficult changes,’ he said. “We need years to make these major changes.’

Papandreou said that keeping Greece afloat and saving the euro was in Germany’s interest as well as the rest of Europe, comparing it to German reunification after the fall of the Berlin Wall, which was also costly and difficult but important for European peace and solidarity.

RELATED:

Greece unveils new austerity measures

Greek foreign minister talks of a new financial transactions tax

In surprise, bailed-out Ireland economy grew 1.6% in 2nd quarter

-- Henry Chu