Athens Under Scrutiny From Debt Inspectors

Athens Under Scrutiny From Debt Inspectors

International debt inspectors have been in Athens to inspect the Greek government's finances, before they decide whether to hand over the next slice of bailout cash.

Officials from the International Monetary Fund, European Central Bank and European Commission, known as the troika, have been checking to see if Greece is meeting its budget targets.

Their meeting with the transport minister in the morning had to be rescheduled after civil servants angry at the latest round of austerity measures blocked the entrance to the government building.

The troika's report is due in around a fortnight, and without their approval Athens will not get the next part of the emergency loan it so desperately needs.

Meanwhile, George Papandreou is meeting the French President Nicolas Sarkozy in Paris to discuss the Greek debt situation and outline a joint strategy between the two countries.

His meeting follows similar talks held with German Chancellor Angela Merkel earlier this week.

Germany and France combined represent about half of the 17-nation eurozone's economic output - and they have been leading efforts to find a solution to the sovereign debt crisis.

On Thursday, efforts to boost the powers of a European rescue fund cleared a major hurdle after German politicians voted in favour of the measures.

There was relief for Mrs Merkel, who managed to pass the bill without having to rely on Germany's opposition party.

"The signs to assist Greece in its trials and tribulations are improving," said City analyst David Buik.

"However an overwhelming majority of investors think that Greece will inevitably default."

On Friday it was the turn of Austrian politicians, who also voted to approve the rescue fund changes.

Five of the of 17 nations still have to hold a ballot on whether to extend the role of the EFSF.