USA - Germany

He said his government's main task will be to
implement a bailout package brokered on October
26.

He cited "a crisis of trust" among the country's
European allies about whether Greece has the will
and the ability to restore its economy, but he said
"big progress" has already been made toward
restoring fiscal stability, pointing to the reduction of
the deficit from 15% of GDP to 10.6%.
Fiscal support is needed from Greece's European
allies and the International Monetary Fund, he said.

German Chancellor Angela Merkel, speaking
Wednesday in Berlin after meeting with Irish Prime
Minister Enda Kenny, restated Germany's
commitment to a strong European Union of 27
nations and to the 17-nation eurozone.
Merkel said the pair had talked about the need to
make the eurozone -- the nations that use the euro
as a single currency -- stronger in the face of crisis
and about treaty changes to make it easier to
monitor countries.

"I made clear that Germany sees a necessity here to
show the markets and the world that the euro stands
together and must be defended, but also that we are
willing to give up a part of national sovereignty," she
said.

"Overall we share the assessment that we still have
a problem in terms of debt, but also competition, but
we also share the opinion that the Europeans are
willing to overcome the problems and to show the
world that we stand together."

Her comments come amid speculation that the crisis
in Greece and elsewhere could, if unresolved, lead to
a breakup of the eurozone.
Papademos previously has stressed Greece's
commitment to the euro, saying its membership in
the eurozone is a guarantee of financial stability.

The drama in Greece has shaken international
markets because investors were afraid the new
bailout deal -- which has stringent austerity
measures attached -- might not be implemented.

Papademos said the October 26 bailout, worth 130
billion euros ($177 billion), calls for austerity
measures but "will ensure the financing of Greece
over the following years and the completion of the
effort of the economic recovery."

Papademos said work should get under way
"immediately, at a very high pace," with the first
priority being to secure disbursement of the next
tranche of bailout money from a 2010 bailout
package by no later than December 15 to ensure the
government can pay its bills.
In addition to the new austerity measures, his
government must also implement promises made by
the previous administration in relation to the 2010
bailout, including privatizations of state-run firms
and cuts to the public sector.

Public anger over the cuts led Papandreou to propose
a referendum on the new bailout plan, triggering
anger among Greece's European partners and
political turmoil at home.