Greek deficit to reach 9% of GDP

New Greek Prime Minister Lucas Papademos says the country's budget deficit will reach 9% of gross domestic product this year, higher than earlier targets.

Papademos was sworn in last week to head a 15-week coalition government backed by the outgoing Socialists and rival conservatives, created to secure the approval of a new massive bailout worth €130bn from other eurozone countries and the International Monetary Fund.

Papademos presented an outline of his policies in parliament today, promising faster structural reforms and declaring that Greece has already met requirements to receive the next eight billion euro rescue loan instalment, vital to avoid bankruptcy.

Papademos also said he was determined to keep the country in the eurozone, and urged political leaders to back a written commitment for a new massive debt deal.

He described Greece's membership of the 17-nation eurozone as "our only choice".

He spoke hours after conservative leader Antonis Samaras defied a European Union demand to provide a written commitment to the new debt agreement.