Optimism Greece will strike rescue deal

Greece edged closer yesterday to winning a new rescue package worth €130 billion as officials said Germany was optimistic a deal could be struck despite misgivings over whether Athens would stick to commitments.

Before a crunch meeting of eurozone finance ministers on Monday, caretaker prime minister Lucas Papademos talked to fellow eurozone leaders to persuade Berlin and others to back bailout measures needed to stave off bankruptcy. German Chancellor Angela Merkel, Italy’s Mario Monti and Mr Papademos all expressed optimism over an accord during a three-way conference call, Mr Monti’s office said in a statement.

Mutual accusations of brinkmanship between Athens and other euro capitals have soured the atmosphere and strained ties within the single currency union as it faces its toughest challenge since euro notes and coins were introduced in 2002.