US President Barack Obama and Greek Prime Minister George Papandreou hold talks later today on economic issues amid concerns that speculators are undermining Greece's efforts to overcome a severe debt crisis.
Papandreou arrived in Washington yesterday after visits to France and Germany as part of efforts to drum up international backing for his debt-crippled nation, which has adopted new austerity measures to pull out of its crisis.
In his first public address on arrival, Papandreou called on the US to crack down on speculators, apparently referring to reports that some US funds have placed big bearish bets against the euro, the sole currency of 16 European Union member states, including Greece.
'Unprincipled speculators are making billions every day by betting on a Greek default,' he said.
The euro has come under market pressure since it was disclosed that Greece's public debts have mushroomed to €300 billion, well above its annual economic output.
Papandreou warned that the repercussions of any coordinated speculative attacks on the euro would also be detrimental to the US.
'That is why Europe and America must say 'enough is enough' to those speculators who only place value on immediate returns, with utter disregard for the consequences on the larger economic system - not to mention the human consequences of lost jobs, foreclosed homes, and decimated pensions,' he said.
The White House said that 'economic issues will be an important part of the discussion' between Obama and Papandreou and that they were expected 'to discuss their shared commitment to financial reform and economic recovery,' among other topics.
Papandreou is unlikely to ask for financial aid from the US although his hard-pressed government, which faces a mounting barrage of strikes over its austerity cuts, has suggested it could appeal to the International Monetary Fund for help if rebuffed by the European Union.
US Secretary of State Hillary Clinton said that Papandreou wanted the US to lobby for financial reforms in the Group of 20 industrialised and emerging nations.
