The Greek government's efforts to cope with a debt crisis have won a vote of confidence from rating agency Standard & Poor's, which said that it had been reviewing the troubled nation's finances for a possible downgrade, but has decided that the action is not necessary at this time.

Greece is coping with a budget deficit that is far above the limits that are supposed to be followed by nations using the euro.

Athens is cutting salaries of public servants and raising some taxes in an effort to close a major budget gap.

Greece needs to make substantial borrowings, and a lower credit rating would prompt lenders to charge higher interest rates, greatly increasing the nation's costs.

The S & P analysts write that Greece can probably reach its deficit reduction targets this year.  But the report says it will be "difficult" to reach its financial goals in later years, the Voice of America said.

On March 15 2010, Eurozone finance ministers agreed on co-ordinated action to help Greece financially if necessary.

Eurozone chief Jean-Claude Juncker said the ministers ruled out loan guarantees for Greece, meaning the EU would not back up any bilateral loan between an EU member and Greece.

The euro zone ministers clarified which mechanisms could be applied to help Greece if necessary, paving the way for the European Council to make a decision.

"If it is necessary (to help Greece), and we do not believe it to be necessary, we have made a decision on the instruments," Euro Group president, Jean-Claude Juncker of Luxembourg, told a news conference at the end of the meeting.

Asked about which conditions would necessitate an intervention, he said that it would arise "if we have the impression that the markets are not reacting appropriately, but we do not think" this will occur, since Greece is taking appropriate measures.

Juncker did not reveal which solution had been considered if Greece's finances have to be rescued, but said that the mechanism "would be activated quickly", it does not include loan guarantees and is "totally in line with the treaty" of the monetary union;  all the members of the euro area would participate in a "collective effort".

The Euro Group also addressed the question of differences in competitiveness between countries in the euro area, a disparity which "has widened since the creation of the euro" and which constitutes "a serious problem", according to Juncker.

He said the ministers want to encourage Greece to return to borrowing on the international markets as soon as possible.

The European ministers reviewed the economic situation of the Eurozone. They confirmed, Juncker said, that growth "remains fragile", but a change in exit strategy is not necessary.
 
The Euro Group meeting took place the day before the Economic and Financial Affairs Council (Ecofin), at which EU finance ministers backed the plan by countries in the euro area to help debt-stricken Greece financially if it becomes the first state in 11 years of monetary union to seek such aid.

EU leaders will decide on the detail of the mooted financial lifeline during a meeting on March 25 and 26.