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Greek unions call new strikes Merkel pledges to stand by Greece
(31 minutes later)
Greece's two main unions have called a new general strike on 11 March to protest against austerity cuts they say are "anti-popular" and "barbaric". German Chancellor Angela Merkel has pledged to "stand helpfully by Greece's side" but her economy minister said Germany would not offer a cash bailout.
Public sector workers are currently striking and protestors have gathered in front of Parliament in Athens. Mrs Merkel was speaking ahead of a meeting in Berlin with Greek Prime Minister George Papandreou.
Meanwhile Greece's Prime Minister will the German Chancellor in Berlin later to discuss Greece's financial crisis. Mr Papandreou faces increased pressure at home as Greece's two main unions called a new general strike.
George Papandreou hopes for a German commitment to provide support if it cannot raise money from the markets. The strike, on 11 March, is to protest against austerity cuts the unions say are "anti-popular" and "barbaric".
However, reports of potential support for Greece are proving unpopular in Germany. Public sector workers are currently striking, and rock-throwing protestors outside parliament have clashed with police, who used tear gas to disperse them.
Its economy minister said earlier that his government "does not intend to give a cent" to Greece in financial aid.
On Wednesday, Mr Papandreou revealed further tax rises and spending cuts that have gone down very badly with public sector workers, but could reduce the risk of Greece needing help.On Wednesday, Mr Papandreou revealed further tax rises and spending cuts that have gone down very badly with public sector workers, but could reduce the risk of Greece needing help.
Members of the Socialist-led Greek parliament are set to approve the austerity measures on Friday.Members of the Socialist-led Greek parliament are set to approve the austerity measures on Friday.
Rock-throwing protestors outside the parliament clashed with police, who used tear gas to disperse them. 'Not a cent'
German fears Mr Papandreou hopes the talks with Mrs Merkel will lead to a German commitment to provide support if Greece cannot raise money from the markets.
Many Germans do not support their taxes being used for bailouts. However, reports of potential support for Greece are proving unpopular in Germany as many people do not support their taxes being used for bailouts.
Economy Minister Rainer Bruederle said earlier that his government "does not intend to give a cent" to Greece in financial aid.
ANALYSIS By Oana Lungescu, BBC News, BerlinANALYSIS By Oana Lungescu, BBC News, Berlin
Despite mounting speculation about an EU bail-out, most Germans oppose giving aid to a country that has misreported budget figures for years to hide its mountain of debt.Despite mounting speculation about an EU bail-out, most Germans oppose giving aid to a country that has misreported budget figures for years to hide its mountain of debt.
Chancellor Merkel has warned that the euro is in the most difficult phase since its creation.Chancellor Merkel has warned that the euro is in the most difficult phase since its creation.
Few doubt that Mrs Merkel will eventually take action if she sees the stability - or credibility - of the euro under threat.Few doubt that Mrs Merkel will eventually take action if she sees the stability - or credibility - of the euro under threat.
But with support for her centre-right coalition slipping, Mrs Merkel has reassured voters that she will not use taxpayers' money, nor breach the "no bail-out clause" in the EU's Maastricht Treaty.But with support for her centre-right coalition slipping, Mrs Merkel has reassured voters that she will not use taxpayers' money, nor breach the "no bail-out clause" in the EU's Maastricht Treaty.
A recent poll shows that 71% of Germans think the EU should not help Greece at all. You could call it a culture clash. Germans are big savers, not big spenders. Germany wary of footing Greek billA recent poll shows that 71% of Germans think the EU should not help Greece at all. You could call it a culture clash. Germans are big savers, not big spenders. Germany wary of footing Greek bill
There are also fears that rescuing one country could encourage others to expect the same.There are also fears that rescuing one country could encourage others to expect the same.
Meanwhile, Germany passed its budget for 2010, with borrowing set to soar this year.Meanwhile, Germany passed its budget for 2010, with borrowing set to soar this year.
New borrowing is expected to reach 80.2bn euros ($109bn; £72.5bn) - double the previous highest debt record, set in 1996. However this is less than the 85.8bn euros initially proposed by the government.New borrowing is expected to reach 80.2bn euros ($109bn; £72.5bn) - double the previous highest debt record, set in 1996. However this is less than the 85.8bn euros initially proposed by the government.
Raising fundsRaising funds
On Thursday, his government went to the financial markets to borrow money and saw its 5bn euro ($6.8bn; £4.5bn) bond issue oversubscribed. On Thursday, the Greek government went to the financial markets to borrow money and saw its 5bn euro ($6.8bn; £4.5bn) bond issue oversubscribed.
Mrs Merkel welcomed the uptake. "The placement of the bond yesterday went very well and that is of course a good signal for the markets," she said.
But Greece will need to borrow more in the coming months - more than $70bn for the year as a whole.But Greece will need to borrow more in the coming months - more than $70bn for the year as a whole.
Mr Papandreou has suggested that Greece might go to the International Monetary Fund (IMF) for help.Mr Papandreou has suggested that Greece might go to the International Monetary Fund (IMF) for help.
But the other countries in the eurozone would not welcome what would be seen as a sign that they could not fix their own problems.But the other countries in the eurozone would not welcome what would be seen as a sign that they could not fix their own problems.
The president of the European Central Bank, Jean-Claude Trichet, has dismissed the idea of the IMF providing financial aid for Greece.The president of the European Central Bank, Jean-Claude Trichet, has dismissed the idea of the IMF providing financial aid for Greece.
"I do not trust that it would be appropriate to have the introduction of the IMF as a supplier of help through standby or through any kind of such help," he told reporters in Frankfurt on Thursday."I do not trust that it would be appropriate to have the introduction of the IMF as a supplier of help through standby or through any kind of such help," he told reporters in Frankfurt on Thursday.
Mr Papandreou will also meet French President Nicolas Sarkozy in Paris on Sunday before travelling to Washington to meet US President Barack Obama on Tuesday.Mr Papandreou will also meet French President Nicolas Sarkozy in Paris on Sunday before travelling to Washington to meet US President Barack Obama on Tuesday.