**The European Union (EU) Commissioner for Economic and Monetary Affairs is visiting Greece to discuss the country’s cost-cutting efforts.**Olli Rehn’s visit has increased hopes that Europe may be moving closer to offering Greece a rescue deal, although Germany continues to deny this.
Greece is moving ahead with efforts to trim its vast budget deficit.
German chancellor Angela Merkel said again on Sunday that Greece had to sort out its own problems.
However, she did not comment on reports that German banks may help Greece by buying more Greek government bonds.
“We have a contract which rules out the possibility of bailing out other nations,” said Ms Merkel.
Mr Rehn is due to meet Greek Prime Minister George Papandreou, Finance Minister George Papaconstantinou and other senior government officials.
Pay freezes
Greece has pledged to reduce its deficit from 12.7% - more than four times eurozone rules - to 8.7% during 2010.
Austerity measures the government is now planning to introduce include freezing public sector pay, raising taxes and changing the pension system.
The plans have sparked anger from unions, and a nationwide strike was held last week.
Greece has to report back to the EU on 16 March on how its budget cuts are progressing.
The EU has warned that it may force Greece to carry out more extensive cuts if those already in place are not shown to be working fast enough.
Mr Papandreou is due to meet Ms Merkel in Berlin on Friday.