Greek Prime Minister George Papandreou said on Friday that current spreads in Greek bond yields over those of other euro zone states were not sustainable in a monetary union."We are in an incomplete...economic union which does not have all the tools to deal with the wider issues. The most simple one, which every Greek understands, is 'spreads'", he told a meeting of center-left politicians in Oslo.
He said that borrowing rates were far higher than those of Germany and many other European countries.
"That is not sustainable in a monetary union," he said.
European Central Bank Governing Council member Ewald Nowotny earlier said Greece seemed not to have met the terms of its international rescue package recently. Euro zone finance ministers meet on Monday although a resolution on the Greek crisis is not anticipated.
"Greece has apparently not fulfilled the conditions sufficiently of late. The issue of privatizations will be the most sensitive point here," Austria's Kronen Zeitung quoted him as saying. (read more)
