Greece under attack as eurozone ´weak link´

George Papandreou lashed out at speculators targeting his country´s economy as a weak link in the eurozone.

Greece's prime minister lashed out Thursday at speculators targeting his country's economy as a ''weak link'' in the eurozone as Greek bonds came under massive pressure on financial markets.

George Papandreou admitted that Greece has a ''credibility gap,'' but insisted that he has not sought a bailout from Greece's European Union partners, as reported by a French newspaper.

- There is an attack on the eurozone by certain... interests, political or financial, and often countries are being used as the weak link for the eurozone - said Papandreou.

Greece, whose euro membership has been questioned, was being targeted under ''an ulterior motive or agenda,'' he said at the World Economic Forum annual meeting in Davos, Switzerland.

He did not specify what political motives could be involved.

But he spoke after French newspaper Le Monde said eurozone governments are considering giving financial support to Greece, whose massive debt has shaken the single currency.

Responding to the report, Papandreou said: ''We haven't asked for money from the European Union.''

Underlining the pressures that Greece faces, the yield on Greek 10-year bonds soared to 7.126 percent on Thursday from 6.706 percent on Wednesday, hitting its highest level since Greece joined the eurozone in 2001.

The turmoil in Greece has meant that the country must pay substantially more than many of its eurozone partners to attract investors to buy its debt.

On Thursday, the yield on Greek bonds was nearly 4.0 points higher than that on the benchmark German Bund.

European Central Bank chief Jean-Claude Trichet meanwhile dismissed speculation that Greece could be forced out of the 16-nation eurozone.

''Nobody is going to leave the euro,'' he said, adding: ''The euro club is a strong club with strong ties of reciprocal support.''

Finance Minister George Papaconstantinou said Greece is exploring all options to reduce its bloated budget deficit.

- Any country looking to fulfill a 54-billion euro (75-billion dollar) borrowing requirement is exploring all possible avenues - the finance minister said in an interview with CNBC television from Davos.

- What's happening in Greece is a broader issue... it's clear that some of the attacks on Greece are broader attacks on the euro... behind Greece is Portugal and Spain - he said.

His boss Papandreou meanwhile denounced a newspaper report that China might buy Greek government bonds, saying they were totally false.

''We're in a jittery time. There is a lot of speculation. Even rumours can create problems for serious governments,'' he said, adding: ''This is a problem which we are facing.''

But he said the crisis also highlights the strength of the eurozone because it ''shows that it is good that we are in a common family,'' which creates a protection for its members.

The Greek leader insisted that Athens will meet eurozone deficit targets by 2012, and the country could use the fallout from the global economic crisis as an opportunity.

- The international crisis is a very difficult crisis for us... it has highlighted some of the real problems we have.... Let's make this crisis an opportunity - he said.

Greece is ''determined'' to meet a target of reducing its deficit to below three percent of GDP, in line with eurozone rules, in 2012, he said.

Papandreou insisted that Greece was working to build up international confidence.

''Our biggest deficit is the credibility deficit, it's not the financial deficit,'' he said, adding that Greece plans to move ''in the next few days'' to set up an independent statistics bureau, and would cut its budget.