ATHENS, Jan. 12 (Xinhua) -- Greek Prime Minister George Papandreou hosted a working luncheon on Tuesday for the European Council President Herman Van Rompuy who pays an official visit to Athens for first time with the way out of the crisis of both Greek and European economy as the main topic on the agenda.
Praising the newly elected EU head for his valuable experience as former Prime Minister of Belgium, a country that has faced similar crises in the past, Papandreou expressed certainty that Van Rompuy will help the European Union face the major challenges united with one voice.
"We look forward to working closely with the EU Council president, as well as the EU Commission, on Greece's revised Stability and Growth Program which will be presented to Brussels the following days" Greece's premier said.
"The main problem of Greek economy is the credibility deficit. We will restore it step by step" Papandreou concluded.
"The year 2010 will be a year of major challenges for all Europe. Our priority at the moment is the economic recovery. We need a new strategy that will be discussed during the upcoming EU summit in Brussels," Van Rompuy stressed.
"Concerning the state of the Greek economy, it is important for the benefit of all EU member states, and the eurozone in particular, that Greece will face the challenge successfully," the EU Council president added.
"A package of drastic reforms is needed. Greece's budget deficit must reach EU levels by 2012. The new Stability and Growth Plan must be a step towards that direction and I am convinced that Greece already takes all necessary measures," Van Rompuy said.
The EU Council president's visit in Greece is preparatory ahead of the EU summit on the crisis which will convene on Feb. 11 in Brussels.
As Greek economy is in the midst of the storm these last two months, Van Rompuy chose to visit Athens first of other European capitals to discuss ideas circulating in Brussels regarding the interconnection of EU funds to member states with the achievement of specific goals and promotion of particular policies.
The EU Council head, according to Greek official sources, also sounded out the Greek side on the idea expressed by the Spanish Prime Minister Jos Luis Zapatero to promote the so-called economic governance in the euro area.
According to the plan, EU member states should agree to interventions by Brussels in case of signs of derailment from the common agreed path.
The two leaders also discussed the EU approach to climate change after Copenhagen, EU's future enlargement and the issue of illegal immigration and asylum.
On climate change Van Rompuy said that it will be the second most important issue on EU's agenda, after economy.
As EU Council president leaves Athens on Wednesday morning, a delegation of experts of the International Monetary Fund (IMF) which arrives at the Greek capital on Tuesday afternoon, will start a round of meetings with Greek officials on the plan to overcome the crisis.
A team of EU Commission auditors had similar talks with Greek ministers last week.
The IMF experts who are on a regular surveillance mission, will stay in Greece for a week to discuss the possibilities for IMF technical assistance to Athens in the coming months concerning pension reform, tax policy and the drafting and implementation of the budget.
IMF officials stress that the delegation will not discuss the possibility of handing out a loan to the country or place it under surveillance.
In another sign of the negative climate regarding Greek economy today Greece auctioned the first state bills of 26 and 52 week terms for this year and raised 2.08 billion euros at interest rates more than double in comparison with the ones fixed last October, and the Athens Stock Exchange took another plunge. At 2 p.m. local time the General Index had declined by 3.26 percent.
