Greece 'can do more' to cut debts without EU help

Greece was told today that it had to take more economic action itself if it wanted a bailout from the EU.

The EU's economic and monetary affairs commissioner, Ollie Rehn, said on a visit to Athens that tougher measures from the Greek government could be enough re-finance the country's debts without help from Brussels.

Greece's austerity measures include a new pensions system,a rise in VAT and taxes on fuel and tobacco. The government has until 16 March before EU officials consider its economic report card.

Rehn kept the prospect open for support from other euro-zone member states. An EU summit last month agreed to bail out Greece "if needed", but demanded tougher reforms in Athens to restore stability.

The scale of the problem has raised international fears that Greece cannot pay its debts and that investors will avoid the euro.

Greece has not officially requested a bail-out and still insists that talk of bankruptcy is "completely absurd" - although France and Germany are said to be ready with aid if needed.

Rehn will report back to the Commission on Greek cost-cutting measures and the country's prime minister, George Papandreou, will go to Berlin on Friday for talks with Angela Merkel.