Prime Minister George Papandreou, addressing a Cabinet meeting on Wednesday, stressed that "we have an extended crisis in the EU, as well as worldwide, over the issue of debt, particularly in developed countries."
The prime minister referred, in particular, to the need for a coordinated Eurozone response, the need for arrangements with markets and in the financial sector, as well as a proposal for a tax on fiscal transactions in order to back the banking sector's participation, which "holds great responsibilities for the crisis in 2008". He also said such funding would be a way of finding resources for the EFSF mechanism.
Papandreou also referred to the credit rating firms and to the Eurozone's problems, such as the lack of appropriate supervision, "of which we were also a victim with the previous government, which if it had correctly faced such problems we would not have reached the point of having such a debt and deficit."
He further referred to eurobonds issue, saying that such a tool would offer "greater depth to the bonds market itself and even more so value to the euro itself.
Papandreou went on to refer to developments in Libya and noted that "the stance we observed from the beginning of this process, regarding the struggle of the peoples of the Arab countries, was a stance of support of the citizens and the movements, that were calling for more democracy, rights, justice, such as of course peaceful, democratic and a smooth transition to democratic regimes as well, something that is still being called for in Eguypt and in other regions of the Arab world.
"We struggled from the beginning, as regards Libya, for an end to hostilities. We supported efforts for democratic and peaceful developments, we supported actively the operations for the protection of the non-combatants."