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Greece's Alternate Foreign Minister has dismissed rumors that the IMF or the European Union would intervene to provide financial assistance to the country. Greece's economy is faltering and the budget deficit last year was 13 per cent of its GDP. "There is no thought at all about the IMF" Minister Dimitri Droutsas said, "and there is no need for financial assistance from the European Union"

Speaking Thursday in New York, Droutsas said his government had already announced major structural changes to deal with the crisis, including a new tax system to discourage tax evasion, raising the retirement age to 67 for public pensions and freezing wages for civil servants.

Droutsas also said the government would try to scale down the many bureaucratic levels of the Greek public sector, in which many unions are on strike or planning strikes to protest the changes. Droutsas said it was natural the new mesures would meet with some resistance because they affect so many people directly, but he expressed confidence the government will be able to work with other parties and has the support of the population and the European Union.

The Greek Alternate Foreign Minister also told reporters the current reunification talks in Cypress remain a priority issue for his government. On a recent trip to the divided Mediterranean island, Secretary General Ban Ki Moon called on both the Greek and Turkish Cypriot leaders to accelerate the negotiation process. Although the Secretary General said a solution was “within reach” during his visit, Droutas believes the present stage of discussion does not allow for overwhelming optimism, adding that the latest proposals by Turkish Cypriot leaders were outside the framework that had been earlier discussed.