Obama: Greece, Facing Bad Days, Has US as Ally

Greek Prime Minister George Papandreou gestures during his joint news conference Secretary of State Hillary Rodham Clinton, Monday, March 8, 2010, at the State Department in Washington. (AP Photo/Haraz N. Ghanbari)

(AP)

President Barack Obama stood with Greek Prime Minister George Papandreou on Tuesday and pledged that the United States would work with its ally, even as Greece's enormous debts sparked frenzied trading.

Papandreou said he outlined European proposals in his White House meeting and Obama reacted positively to European ideas about cracking down on currency speculation. He also said the issue would be discussed at the next meeting of the Group of 20 summit of leading and emerging economies in June.

Earlier Tuesday, European officials urged the U.S. to curb certain financial instruments.

A market frenzy in recent weeks saw traders make bets worth billions of dollars against the euro and on the chances of Greece not repaying its massive debts. Those market worries have undermined the 16-country currency.

Papandreou said he also detailed steps that Greece has taken to reduce its deficit and reform its economy.

During a reception for Greek Independence Day in the East Room, Obama drew applause from a largely Greek-American audience when he said, "Whether in good times or in bad times, the people of Greece will always have a friend and a partner in the United States of America."

Obama added: "This solidarity continues today — whether it's the close counterterrorism efforts between our governments or the deep partnerships between our people."

The president made no mention of the financial proposals.

The Greek leader also met with U.S. lawmakers Tuesday, including House Speaker Nancy Pelosi.

"The Greek people can be assured that the United States will stand with them at this critical time," Pelosi said in a brief joint appearance with the Greek prime minister.

In a boost for Papandreou, Homeland Security Secretary Janet Napolitano announced Tuesday that Greece had been finally added to a list of countries whose citizens do not need visas for tourist visits to the U.S. Most European countries already enjoy that privilege, so the issue has been sensitive for the Greek government, which has been pleading for years to join the visa waiver program.