Hollande’s trip is a “message of confidence and backing,” his office said, adding that since he took power nine months ago the Socialist leader has championed the idea that Athens remain within the euro zone.

Foreign Minister Dimitris Avramopoulos said the visit was a “strong gesture of understanding, solidarity and support for the Greek people. “This visit encourages the pro-European forces in Greece who are struggling against the fierce opposition of certain interest groups representing the dysfunctions of the past and proposing the country΄s entrenchment and isolation from the European process,” he told Le Figaro newspaper. “Greece can be rescued only through a drastic improvement in its economic competitiveness,” Avramopoulos said.

The French presidency said Greece “remained an important outlet for French companies,” stressing that the majority of firms with units there had not closed operations since the crisis unfolded. The visit aims at “concrete ideas to spur job creation, display our confidence and seek economic partnerships,” it said, Capital.gr writes.

In statements with newspaper Ta Nea daily, Hollande said “I am here to offer France’s support to Greece,” and expressed confidence that French businesses would invest in Greece. “Both countries enjoy a long history of friendship during which each supported one another,” France’s president noted. “The French people feel solidarity with the Greek people in the hardships they are experiencing. The meaning of my visit is to express France’s support so that Greece succeeds as part of Europe’s future.”

Greece’s sacrifices “have been more painful than those of any other country,” the French president said, and pointed out that although making the state budget healthier is necessary, it is not enough; what is needed is measures supporting development. “I am coming to Athens to express France’s availability in contributing to this through the cooperation of our administrative mechanism, the commitment of French businesses, and the mobilisation of European funds. I reject a Europe that would condemn countries to an austerity with no end in sight,” Hollande pointed out. He said France could contribute in the sectors it excelled in, such as energy and water resources.

Referring to Greece’s efforts to restore its credit abroad, Hollande said “Trust has returned,” adding, “I have no doubt that our large businesses will participate in future tenders” for projects (source: AMNA). Hollande is meeting with President Karolos Papoulias at 3:00 p.m., to be also attended by Prime Minister Antonis Samaras; Hollande will also attend a Greek-French business forum at the Hilton Hotel (3:45 p.m.).

Ahead to his trip yesterday evening, the Premier has spoken by phone to his coalition leaders Evangelos Venizelos and Fotis Kouvelis and briefed them on the content of his meeting with Eurogroup president Jean-Claude Juncker on Wednesday.

Samaras, in an interview with Sueddeutsche Zeitung newspaper said Greece could stay afloat if it receives its next tranche of aid later than October but will be broke if the money does not arrive. “Theoretically, we could bridge the time. But if we don ́t get the tranche at all, Greece is broke,” Samaras said.

“The Germans will get their money back. I am guaranteeing that personally. And all the others will also get their money back. We will fulfill our obligations fully,” the Premier said to the German paper.

Angela Merkel and Francois Hollande presented a united front toward Greece yesterday, telling Athens it should not expect leeway on its bailout agreement unless it sticks to tough reform targets, Reuters reports.

The German and French leaders met in Berlin to fine-tune their message to Prime Minister Antonis Samaras. Merkel stuck to her policy of deferring to a report due in September on Athens’ progress by the troika representatives before discussing flexibility on the bailout terms, but said it was vital “that we all stay true to our commitments”.

“But we will, and I will, encourage Greece to continue on its path to reform, which has demanded a lot of the Greek people,” she told reporters before a dinner with Hollande set to be dominated by Greece. “We want, I want, Greece to be in the Eurozone, it’s a desire we have expressed since the start of the crisis. It’s up to the Greeks to make the effort that is essential for that goal to be met,” said France’s Socialist president, standing alongside Merkel.

“Our key priority is to regain our credibility by showing our determination,” a government official told Reuters.

Samaras is already preparing public opinion for yet more suffering. “We’re all having a difficult time. There will be more hardship,” he said on Monday from the city of Pylos.

According to Kathimerini, Samaras does not intend to formally raise the issue of extending Greece’s fiscal adjustment programme by two years when he meets European leaders next week but wants to use the talks as an opportunity to sound out his counterparts ahead of some crucial decisions regarding Greece. Sources told the paper that Samaras will only officially ask for an extension at the European Union leaders’ summit scheduled for October 8 and 9, which will be after the troika delivers its report on Greece to Eurozone finance ministers, who will have to decide whether to release further funding for Athens.

Samaras is set to meet with Eurogroup chief and Luxembourg Prime Minister Jean-Claude Juncker in Athens on Saturday. The following Friday Samaras will travel to the Germay for talks with Merkel and to France for talks with Holande the day after.

Sources suggest Greek government sees three stages in its negotiating strategy in view of its key contracts and consultations with the country’s European partners in the next two weeks, with the ultimate goal is for Greece to obtain a 2-year extension to the timetable for bringing down deficit below 3% of GDP and seek an additional funding package for the extra period.

Finance Minister Yannis Stournaras will probably accompany Prime Minister Antonis Samaras in his meetings with French President Francois Hollande in Paris and German Chancellor Angela Merkel in Berlin.

According to media reports, the 3-stage plan provides for:

I) The presentation of a credible package for saving EUR 11.5 billion over the next two years.

II) Approval of the disbursement of the next bailout installment of EUR 31 billion, which depends on a positive report by the troika.

III) The 2-year extension to the fiscal stabilization programme. Sources say the government has drawn up a scenario for the development of the deficit and GDP if the extension is granted, aiming to show that the plan is realistic and will lead to better results.

Prime Minister Antonis Samaras is expected to outline the proposal during talks next week with German Chancellor Angela Merkel in Berlin and French President François Hollande in Paris, after a meeting with Eurogroup chief Jean-Claude Juncker in Athens next week (Aug 22).

As the paper writes, the Greek government will ask France and Germany to allow Greece to spread the package of EUR 11.5 billion in 4 years, starting in 2013, that is to reduce government spending by about EUR 3 billion a year until the end of 2016.

Ioannis Mourmouras, senior economic adviser to the prime minister said that the greater than expected recession for this year, with Greece’s GDP expected to fall by 7%, is justifying the request for extension. “The deficit reduction requested for the 2013-2014 period is excessive. An over-dose of austerity measures would be suicidal,” he stressed.

Referring to PM Antonis Samaras’ visit to Berlin, German government spokesman Steffen Seibert said “the chancellor will certainly first listen to what Mr. Samaras has to say about the situation in Greece and the implementation of the [reform] programme.” He added: “the findings of the trio of creditors providing financial aid to Greece will remain the basis for further decisions… The troika report is for everyone, not just the federal government, but for all countries, to decide

According to protothema.gr, quoting a source with the PM’s office, there will be no meeting of the three coalition leaders before Antonis Samaras’ meeting with Eurogroup chief Jean-Claude Juncker in Athens, and the tour in Berlin and Paris right after. Until Juncker’s arrival in Greece, the package of measures for EUR 11.5 billion will be completed. Media reports suggest that coalition leaders Evangelos Venizelos and Fotis Kouvelis, although continuing to support the government, they need to demonstrate that they do not identify with the Prime Minister, as they are under pressure from their own parties and also would like to maintain room for communication maneuvers in view of the politically difficult September. Labour reserve in the public sector, cuts in wages and pensions and the privatization of public enterprises remain issues of disagreement in the coalition government.

As protothema.gr writes, Samaras is preparing to present Juncker the package of measures and the plan for privatizations and a smaller public sector. Maximos Mansion believes that a good meeting with Juncker will prepare the ground for the meetings with Merkel and Hollande. The PM’s discussions will affect the Troika report, as they will return in late August, and will also shape the climate for the September Eurogroup to discuss the tranche of EUR 31.5 billion. By then Samaras will have met with the director of ECB and the head of IMF.

The government’s target is clear: “The country should stand upright within the euro as well, until the implementation of critical decisions about managing the debt crisis in the Eurozone. Samaras will take all necessary steps in consultation with the partners in order to restore confidence in the country, whatever the political cost at home.” In his meetings, Samaras will describe the difficult situation within the country and request the extension of the fiscal adjustment programme.

voters across France are casting their ballot Sunday in the first round of the 2012 French presidential election choosing between 10 candidates including President Nicolas Sarkozy, Socialist Party candidate François Hollande and extreme right National Front party chief, Marine Le Pen.

According to French law, if no candidate wins 50% of the vote, the top two contenders head for a knock-out round, set to be held on May 6, 2012.

While predictions indicate a high abstention rate leaving the outcome uncertain, opinion polls point towards Francois Hollande, Sarkozy’s main Socialist challenger which could give France its first left-wing president in 17 years just as fears re-emerge over Europe’s sovereign debt crisis.

The two political leaders are on course to finish in the top two in Sunday’s polling, therefore setting them up to square off in a second round vote on May 6.

The outcome of that vote will decide who is France’s president for the next five years.

Voting has begun in France’s overseas territories but on the mainland citizens must wait until Sunday to cast their ballots.

On Sunday, voting will carry on in 85,000 polling stations across the country’s  mainland. Voting began at 8am local time (06:00 GMT) and continue until 8pm (18:00 GMT).

Over the past  months, campaigning has concentrated on the economy as France confronts an unemployment rate of around 10%,  its highest in 12 years, and a stagnant economy as the eurozone debt crisis continues.