Prime minister George Papandreou stressed the need for a "Fourth Way" that will "ensure that the markets have the freedom to innovate and grow" but, above all, will also guarantee that "democracy is never subordinated to markets", in an interview with the US newspaper Christian Science Monitor.

The premier also explained that "Greece's debt has come from years of economic mismanagement - wasteful government spending, an inefficient public sector, chronic tax evasion", noting that "many other developed countries have unsustainable levels of debt that will require tough decisions in the short term to guarantee viability in the long term".

"But cuts alone will not be enough to safeguard the global economy. We also need measures to stimulate growth and create jobs," he said, stressing: "Instead of collective austerity, we need global responsibility."

Papandreou also warned that "there is a real danger in global austerity", because it could dampen global demand during a very fragile recovery. Our goal should not be to bounce from one bubble to another, but rather to move the global economy towards sustainable and equitable growth. We must ensure that those least responsible for causing this crisis do not pay the highest price.

The premier further said that "Greece strongly supports further European integration and unity", stressing that "greater fiscal coordination is an essential part of this process".

"We must ensure that European institutions serve the interests of Europe's citizens - not of financial markets," he said.