Sarkozy and Greek PM have 'constructive' talks on deficit

PARIS MEETING: GREEK PRIME minister George Papandreou held what the Élysée Palace said were “constructive talks” with French…

PARIS MEETING:GREEK PRIME minister George Papandreou held what the Élysée Palace said were "constructive talks" with French president Nicolas Sarkozy in Paris yesterday, outlining his government's plans to reduce Greece's deficit.

Speaking after the meeting, Mr Papandreou said his government would do everything necessary to hit its 2010 deficit target and would implement fully its austerity budget programme.

However, he would not be drawn on whether he expected EU allies to offer Greece an aid package.

The prime minister said he had discussed a range of issues with Mr Sarkozy, including his country’s economic and political problems, and reiterated he was determined to cut the Greek deficit to 8.7 per cent of gross domestic product in 2010 from 12.7 per cent in 2009.

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“We are ready to take any measures in order to make this sure and guaranteed that we reach this goal,” he told journalists.

He added that Greece would honour recent budget commitments it had made to the EU. “We have resolved absolutely to make sure it is implemented in every detail,” he said.

Before his meeting with Mr Papandreou, which the Élysée Palace later described as “constructive” in a statement, Mr Sarkozy had a discussion with German chancellor Angela Merkel.

He was also due to speak to European Council president Herman Van Rompuy yesterday evening.

Earlier, government spokesman Luc Chatel said the French government was “busy working” on possible solutions for Greece.