THE GUARDIAN: George Papandreou has threatened to turn to the IMF in exasperation with the EU's lack of clarity on a plan to resolve the Greek crisis
Greece raised the stakes in the row over how to stabilise the euro today when prime minister George Papandreou set European leaders a deadline of next week for unveiling rescue plans for his battered economy and threatened to turn instead to the International Monetary Fund for help.
Clearly exasperated by the lack of clarity from the EU on what it might do to help resolve Greece's ballooning debt and deficit crisis, Papandreou effectively told European leaders it was time to put up or shut up.
The 16-country eurozone had to deliver on its pledge last month of coming to Greece's rescue if need be by putting a "loaded gun on the table" which would deter speculators betting on a Greek sovereign default and reduce the punitive rates on Greek borrowing.
"This is an opportunity we should not miss," Papandreou told the European parliament in Brussels. "We are expecting this from the summit next week."
Papandreou's remarks put him on a collision course with Chancellor Angela Merkel of Germany, who became the first European head of government on Wednesday to demand that the rule book for the euro be rewritten to enable the ejection of persistent fiscal delinquents. >>> Ian Traynor in Brussels | Thursday, March 18, 2010
