Greek PM Papademos pushes for letter backing austerity

Greece's new Prime Minister Lucas Papademos has said Greek party leaders should provide a written commitment to new austerity measures. This comes amid growing EU demands for party leaders to pledge written support for Greek budget cuts as a conditon for the next installment of aid to the country.

Speaking at a news conference with European Commission President Jose Manual Barroso in Brussels, Papademos told reporters he was convinced that Greece would be able to achieve its financial objectives over a relatively short period of time.

Lucas Papademos, Greek PM, said, "The task ahead of us is a Herculean one, one could even use other adjectives in order to show how challenging it will be to achieve the objectives and carry out the task of this government. But I am convinced that the new government, supported by the Greek people, will be able to achieve its objective over the relatively short period of time ahead of us."

However, while a signed letter has been repeatedly demanded by the European Union as a preconditon for the disbursement of a vital 8 billion Euro tranche from the first bailout, the Greek conservative New Democracy Party leader Antonis Samaras has said he would not provide it. Barroso said that the situation in Greece was perhaps at its most critical than at any time in the last 18 months.

Jose Manuel Barroso, European Commission President, said, "The agreement to form a national unity government backed by a broad political consensus is a vital signal of the need for political stability in Greece at this crucial time. The situation is extremely serious, more so perhaps than at any point in the last 18 months.

Challenge also comes from some Greek citizens who are also not satisfied with the austerity measures. Around 200 steelworkers gathered in front of parliament in Athens protesting against layoffs and proposed salary cuts as Papademos met with EU officials in Brussels to discuss Greece's financial difficulties.

Greece needs a sixth disbursement of loans under last year's 110 billion euro rescue program and a planned second international aid package of 130 billion euros to avoid economic collapse.

The Greek government is imposing austerity measures to secure an instalment of international rescue loans, without which it will run out of money by mid- December.