EU ready to give 'urgent assistance' to Greece

(BERLIN) - The European Union is ready to provide urgent help to debt-ridden Greece, a report said Saturday, putting new pressure on Germany which has been seen to drag its feet on the country's financial crisis.

"The European Union has the means (to put in place) rapid and coordinated assistance," The European Union's financial affairs chief Olli Rehn was quoted as saying in a report to be published Sunday by the Welt an Sonntag newspaper

"The European Commission is ready to make a concrete proposal in this sense. The financial aid could come into effect quickly but would be linked to drastic obligations" on Greece, he added, according to excerpts.

EU Commission chief Jose Manuel Barroso on Friday urged member states to approve the creation of a financial aid mechanism for Greece to use if necessary.

Barroso was making an implicit appeal to German Chancellor Angela Merkel, who has been reticent to offer help, to approve a mechanism for offering aid to Athens when the 27 heads of state and government meet in Brussels next Thursday and Friday.

The help Barroso has in mind would be "a system of coordinated bilateral loans," and as such would be compatible with EU law which bans bailout loans to any of the 16 nations, including Greece, that use the euro currency.

Greek Prime Minister George Papandreou has urged the EU to help his country borrow more cheaply when they meet next week.

Under pressure from the EU, Athens has announced swingeing cuts to fix its public finances -- triggering strikes and violent protests on the streets of Athens.