Greece's second step undertaken yesterday failed to convince Germany to provide assistance to the debt-laden Greece. The Greek government announced the previous day cutting deficit by 4.8 billion euros through increasing taxes on tobacco, alcohol, and sales in addition to reducing public workers' bonus payments received at holidays by 30%, yet Merkel said, one day ahead of its meeting with the Greek Prime Minister, that her meeting with Papandreou will not be on financial aid commitments, while the German finance minister mentioned that measures adopted by Greece are enough to encourage investors to buy Greek bonds.

The 16-nation currency pared its two-day advance against the dollar after Merkel's announcement, dropping to 1.3642 from the day's opening at 1.3695, as of 08:55 GMT.