On joint statements made at noon, Papoulias spoke of the two countries’ desire for cooperation in the energy, environment, agriculture, trade and tourism sectors by putting their comparative advances to use, which will strengthen the two countries’ good relations, ANA reports. Eastern Mediterranean countries can work together as natural gas from Cyprus and Israel can be transported to Europe through Greece, Papoulias said.

Papoulias added that the two presidents exchanged views on developments in the Middle-East, stressing that Greece condemns terrorism from whatever side it may come and that the safety of the Israeli state is an essential requirement of the solution to the Palestinian issue.

In return, Peres thanked Papoulias for the warm welcome and underlined that what is important is an “additional marriage” between the two countries. Peres made special mention to prospects for scientific cooperation between the two countries, saying that developments in the sector can be part of the solution to the economic crisis. “The economic crisis is a European crisis, but there is a passage from the old to the new world and the bridge is a scientific one,” Peres said.

“The crisis is not the end of the world but the birth of the new one,” he added. ”It’s bad for our people but good for the future and I think Greece was brave enough to take the hard way to recover completely.”

Peres was meeting Greek President Karolos Papoulias Monday, and will also hold talks with conservative Prime Minister Antonis Samaras.

Peres is also due to meet Greek Jewish community leaders, and will leave for Israel early Thursday.

In his speech during the summit, Papoulias called the Commission to unblock more money for the Greek regions, through the fifth Community Support Framework. He said EU funds for Greece were based on data released in 2008. “Greece can not be judged on the basis of 2008 data. Today is a different country,” Papoulias said, referring to high unemployment, particularly amongst young people.

He added that Member States that are invited to apply fiscal discipline are subject to intolerable pressures.

Earlier yesterday, the President of the Republic had brief discussions with the leaders of Great Britain, Germany and France. He had a meeting with European Commission President Jose Barroso, later on with Angela Merkel. On Wednesday eveνing, he met with President of the European Council, Herman Van Rompuy.

Meanwhile, Greece’s 300 newly elected lawmakers were sworn into Parliament Thursday, eleven days after the country’s second election in six weeks left no party with enough votes to govern outright.

The election of parliamentary speaker will be the main item on the agenda in today’s session, according to ANA. New Democracy will propose Vangelis Meimarakis for the post and he will require the support of 151 MPs to take the position. Next, the election of seven deputy speakers, six deans and three secretaries will take place.

Yesterday, the International Monetary Fund said it will send a fact-finding mission to Athens early next week for talks with Greece’s new government and signaled it was open to discussing target adjustments under the economic programme. “This mission will assess the recent economic developments,” IMF spokesman Gerry Rice told a news briefing, Reuters reported. “This visit will be followed by a negotiating mission to discuss with the authorities the policies necessary to achieve the program objectives.”

According to sources, Samaras’s letter states that Greece will stick to its bailout commitments but underlines that certain “adjustments” are necessary due to a worsening recession and high unemployment.

Greece’s financial situation though is unlikely  to dominate Thursday’s EU summit , with Germany’s Angela Merkel saying total debt liability would not be shared in her lifetime and giving little support to Italian and Spanish pleas for immediate crisis action, who have both appealed for European rescue funding recently.

“I don’t see total debt liability as long as I live,” Merkel was quoted as saying, a day after branding the idea of euro bonds “economically wrong and counterproductive”.

EU officials are most likely to discuss Greek calls for adjustments to the memorandum briefly, even though there appears to be little willingness for any concessions over and above an extension of Greece’s fiscal adjustment period, according to Kathimerini.

No decisions are expected to be taken concerning Greece’s financial situation before the planned visit to Athens  by Greece’s creditors, the EU, ECB and IMF, collectively known as the Troika, who have postponed their planned visit to Athens due to the ill-health of PM Samaras.

The Troika visit will now take place in July. The postponement will also delay the overdue €5 billion bail-out loan due to Greece, of which all but €100 million was due to go directly to the banks.

Earlier Wednesday the new finance minister, Yannis Stournaras, met with Papoulias to discuss political developments and preparations for the summit. Stournaras, who has not been sworn in yet as Greece’s finance minister, will to remain in Athens to prepare for a visit by troika officials. Outgoing Finance Minister Giorgos Zannias will join Papoulias at the EU summit.

Exiting the Presidential Palace, Venizelos said he presented Mr. Papoulias his views and experiences in light of the crucial summit, since Greece’s European partners expect the President to express the country’s position after June elections.

“The country has chosen the European path and the euro will struggle to be competitive again,” Venizelos said. He added that Greece is seeking an “organized review of the loan agreement” on the basis of the agenda of the Summit, which will address the crucial topics of growth and employment, according to ANA.

Meanwhile, yesterday’s meeting of the three coalition leaders at Prime Minister Antonis Samaras’ residence ended without statements shortly before 20:30. During the meeting, Samaras, Venizelos and Kouvelis discussed the coordination of the government, the priorities in the economy, the presence of Greece in Europe after the summit and more effective way of promoting the Greek positions, according to To Vima. They had a first discussion regarding the government’s programmatic statements in parliament, and an overall prioritization of the bills that will be passed by the government.

Economics Professor Yannis Stournaras was appointed the country’s new finance minister, the prime minister’s office said yesterday. “Prime Minister Antonis Samaras has decided to name Athens University economics professor and Director of (economic think-tank) IOBE Yannis Stournaras as Finance Minister,” a statement said. Party officials said the three Greek coalition leaders had quickly agreed on Samaras’ choice of Stournaras, 55, who is nicknamed “Mr. Euro” in Greece, according to Reuters.

Stournaras most recently was development minister in the caretaker government that led Greece to elections on June 17. He was chief economic adviser and aide to former Prime Minister Costas Simitis when Greece was negotiating entry to the euro, which it joined in 2001.

Greece’s socialist PASOK leader and former finance 
minister, Evangelos Venizelos, was unsuccessful Friday in his
 negotiations to form a coalition government and will hand in his 
mandate Saturday morning.

“The truth for all has come. I will inform tomorrow President Papoulias.” Venizelos said according to a televised speech by SKAI TV.

“I  hope everyone will think more sensibly 
during the party leaders meeting called by the president” , he added.

Earlier Friday, Venizelos held talks with SYRIZA party leader, Alexis Tsipras which has campaigned against the bailout, but there was no
 agreement.

Syriza’s Tsipras once again said he will not participate in any
 coalition with the two pro-austerity parties, referring to PASOK and ND. Meanwhile, he rejected accusations from ND’s Samaras that SYRIZA has an anti-European stance or is threatening to push Greece out of the euro, Kathimerini reported.

“ It seems as two main parties have not understood the results of the elections. It is not the Left Coalition that has refused the austerity measures but the Greek people who did so with their vote on Sunday,” Alexis Tsipras said after talks with Venizelos.

The European single currency hit its lowest point since January near $1.29, while the Athens stock exchange fell more than 4 percent to its lowest level since 1992, according to Reuters.

Greece is now deep into political crisis that could reject austerity measures and eventually force the debt-laden nation to leave the euro single currency union.

Venizelos is due to return his exploratory mandate to Papoulias on Saturday, after which the president will call each of the party leaders. It is possible the talks will take place on Monday. If no deal is reached, a caretaker government will be appointed. It will be headed by the president of the Supreme Court, Council of State or the Court of Audit, Kathimerini reported.