Greece assured of eurozone future

Xinhua, September 15, 2011

French President Nicolas Sarkozy and German Chancellor Angela Merkel said they were convinced that "the future of Greece is in the eurozone," according to a statement issued by the Elysee Palace after a telephone conference among leaders of Greece, France and Germany.

Stressing the importance to conform with the eurozone agreement settled on July 21, Sarkozy and Merkel said they attached great importance to the Greek government's implementation of the "strict and effective" recovery program supported by other eurozone members and the International Monetary Fund (IMF).

As a pre-condition to install new bailout package for debt-ridden Greece, Germany-led eurozone bloc and the IMF has demanded Greek government to implement a series of austerity measures in order to convince the lenders on the solvency of the state.

"Greek Prime Minister confirmed the Government's absolute determination to take all necessary measures to implement all commitments," the statement added.

Sarkozy and Merkel are "convinced that the future of Greece is in the euro area," the statement stressed, saying the implementation of the commitments by Greece is not only essential for the state to have "a sustainable and balanced growth" but also able to "strengthen the stability of the euro area."

The fear over the contagion of a possible default by Greece has weighed down and unsettled European financial market for months. Last weekend, Greek government announced new set of austerity measures, including a two-year property tax, to cut deficit and make up revenue shortfalls after rounds of rescuing packages made little effect in restoring investors' confidence.