EU's Katainen says lack of trust in Greece, solution still possible

European partners' trust in Greece has fallen and made negotiations harder but the country's problems can still be solved if all sides do their part, European Commission Vice President Jyrki Katainen said on a visit to Athens on Thursday.

"You cannot negotiate if you don't trust," Katainen told a news conference when asked about whether trust in Greece was being restored. "I have to be honest here, it has decreased. It's not because of the people but it's very difficult to understand everything, what is going on."

The comments come as talks between Greece and its EU and IMF creditors remain deadlocked over economic reforms, leaving Athens at risk of running out of cash in weeks.

"I am confident that Greece's economic problems are possible to solve if confidence levels rise and everybody does their share," he said.

[Reuters]