6 Jan 2012

Fresh concerns about Greece

11:16 am on 6 January 2012

Prime Minister Lucas Papademos is raising fresh concerns about the threat of a default by Greece.

Mr Papademos said the country faces running out of cash in March unless unions and employers can agree on wage cuts and boost competitiveness.

Agreement is essential for a second rescue package from the European Union and International Monetary Fund.

Mr Papademos said that without it, Greece's future in the euro is at risk.

''Without the agreement and the funding linked to it, Greece faces an immediate danger of uncontrolled default in March,'' he said.

''We cannot expect other EU states and international organisations to continue to fund a country that does not adapt to reality and does not deal with its problems.

''Our decisions and actions will not only determine the country's ability to return to a viable stabilisation course but our very future in the euro,'' Mr Papademos said.