G
reece didn't ask for financial support, and Germany didn't offer any in talks Friday between Merkel and Greek Prime Minister George Papandreou, while Merkel said there would be a common push to crack down on market speculation that has led Greece's cost of borrowing to skyrocket.
"I repeat that Greece has not requested financial support ... and I thank (Germany) for its cooperation in facing speculators," Papandreou said on the second of a four-city tour that began in Luxembourg Friday morning and will take him to Paris Sunday and Washington on Tuesday.
"Germany can express its solidarity," Merkel said, adding that she made it clear that "we are here to help, show understanding."
Merkel added that her country could help Greece with its expertise and in other ways. Strict fiscal policy has helped propel Germany to Europe's biggest economy.
But she didn't give any specifics of how Germany would show solidarity, or what concrete steps will be taken to tackle speculators.
"The support was political support, without mechanisms," government spokesman Giorgos Petalotis told reporters after the meeting, which was also attended by Greek Finance Minister George Papaconstantinou.
Still, the Greeks insisted they were satisfied with the outcome of the meeting, and had received all that could be expected.
"We need political and moral support and we got that today from the German government," Papandreou said.
Earlier this week, the European Commission said it would call in market regulators and banks to discuss possible problems with the market for credit default swaps on sovereign debt.
The swaps are a form of insurance against a borrower defaulting on debt - and the market for them has swelled in recent weeks as traders weigh up the risk that Greece might not be able to repay its massive debt.
Merkel's comments echoed previous remarks made this week amid market and media speculation that the European Union may be preparing some sort of bailout aimed at helping Greece cope with its economic woes.
Asked about media reports of a potential rescue plan being worked on by European nations, Greek government officials said they were unaware of any such discussions or plans.
Greece insists it has now done all it can. It says that if its latest euro4.8 billion ($6.5 billion) austerity package, which was approved by Parliament Friday and described by Merkel as an "inordinately important step", doesn't win the full support of the EU and the markets, it could be forced to seek help from the International Monetary Fund.
Earlier Friday in Luxembourg, Prime Minister Jean-Claude Juncker, who heads the informal eurogroup, said the problem should be dealt with inside the eurozone.
He said it was acceptable for the IMF to offer technical assistance, but insisted: "as the chairman of the euro group I'd like to exclude any further involvement of the IMF."
