Greek PM: existing policies have worsened downturn

Greek Prime Minister Lucas Papademos said on Monday the policies tied to Athens' international bailout had worsened a recession and pushed unemployment higher, but the problem could be mitigated with reforms.

"It is a fact that the crisis and the current policy have worsened recession and unemployment," Papademos told parliament at the start of a debate that will culminate in a confidence motion on Wednesday.

He said Greece's only choice was to remain in the euro zone, and the country had to widen its tax base and fight rampant tax evasion, a problem identified by economists as a serious hindrance to Greece's budget performance.