Greeks strike again as EU ponders rescue

The cuts have already sparked protests and strikes disrupting air and ground transport, as well as schools and hospitals.

The Greek government is struggling to service its debt of nearly 300 billion euros and has pledged to reduce its budget deficit from 12.7 percent of output -- over four times the allowed EU level -- by four points this year.

The country's central bank governor said Monday said Greece would manage its debt crisis without a bailout.

"A scenario in which help is required will not become reality," George Provopoulos told the Financial Times Deutschland.

He added he was confident that Athens would be able to raise some 20 billion euros needed to refinance its debt mountain in April and May -- seen by many as an acid test for the country's ability to remain solvent.

Athens successfully raised five billion euros in borrowings on the international bonds market last week, although these were offered at yields of more than six percent.

Overall Greece is looking at borrowing more than 50 billion euros this year but social upheaval is likely to undermine investor confidence.

"With a general strike planned for Thursday and some 20 billion euros of debt set to mature in April and May, market confidence looks likely to remain pretty fragile without even firmer pledges of support from the rest of the eurozone, particularly Germany," said Capital Economics analyst Ben May.

After meeting Papandreou on Friday German Chancellor Angela Merkel said she was "optimistic" Greece would not need assistance from its European partners.

On Sunday, French President Nicolas Sarkozy said the 16-nation eurozone would help if needed and were working on a "certain number of specific measures" to address Greece's debt crisis, but did not provide details.

Papandreou's approval ratings remain high at home, with a Sunday poll showing 52 percent of Greeks have confidence in his efforts to pull the country of its debt crisis.

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