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Greek PM warns nations may be pushed to bankruptcy

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Greek PM warns nations may be pushed to bankruptcy
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Greece’s Prime Minister George Papandreou has warned that Germany’s tough stance on banks and bond markets sharing the pain of any euro zone country defaulting on its debts could force some economies toward bankruptcy.

The Greek leader, who was on a visit to France, said that has “created a spiral of higher interest rates for countries that seem to be in difficulties, such as Ireland or Portugal.”

He spoke as it was revealed Greece’s budget deficit last year was even worse than previously thought.

The EU’s statistics agency says it was not 13.6 percent, as earlier estimated, but actually 15.4 percent which makes it more difficult for Papandreou’s government to cut the deficit to levels that are acceptable to Brussels.

International Monetary Fund, European Union and European Central Bank officials were in Athens on Monday for an inspection visit of the country’s finances.

They are checking that Greece is meeting the conditions for its 110 billion euro bailout.

Another 4.5 billion euros of spending cuts are expected to be announced this week for Greece’s budget for next year.