By HENRY J. PULIZZI
WASHINGTON—Greek Prime Minister George Papandreou said he discussed a European proposal to crack down on financial-market speculation with President Barack Obama Tuesday, adding that Mr. Obama's response was "very positive."
Speaking with reporters following a meeting with Obama in the Oval Office, Mr. Papandreou said Greece has not asked the U.S. for financial help. But he said he filled Obama in on the emergency steps Greece is taking to address soaring deficits and rebuild its economy.
"What we are doing is, first of all, revamping our economy. We are taking measures to put our economy on the right track," Mr. Papandreou said.
He lauded news that the European Commission will support a proposal by Germany and France to reform the nearly $40 trillion CDS market, potentially including a ban on speculative derivative trades. He said the move showed Europe is now united on the need for tighter regulation.
"There is solidarity," he said. "It will not allow speculators to play around with the stability of the euro zone."
"We have found a positive response from President Obama, which means that this issue will be on the agenda in the next G-20 meeting," he added.
Earlier, the White House said Greece's fiscal problems "can and should" be resolved by the European Union, the White House said Tuesday, dismissing the notion that the U.S. could be involved in a bailout.
"This is an issue for the European Union," White House spokesman Robert Gibbs said. "They have and possess the capabilities to solve that."
In a speech Monday, Mr. Papandreou called on the U.S. to join an effort to crack down on market speculation that he believes has pushed Greece's borrowing costs higher and could trigger another financial crisis if unchecked.
An administration official said earlier that Mr. Obama's proposed regulatory overhaul would give regulators tools to rein in market manipulation. The official said Greece's central task should be addressing its fiscal and economic-growth woes.
Mr. Gibbs said Mr. Obama has been briefed regularly on the situation in Greece.
"This is something that the Europeans can and should resolve on their own," Mr. Gibbs said of the fiscal crisis.
Mr. Gibbs didn't comment on proposals to crack down on credit default swaps.
The European Commission signaled Tuesday that it would support a proposal by Germany and France to reform the nearly $40 trillion CDS market.
Earlier Tuesday, House Speaker Nancy Pelosi, (D., Calif.) met with Mr. Papandreou, along with House Foreign Affairs Chairman Howard Berman, (D., Calif.) and the Foreign Affairs Committee's top Republican, Rep. Ileana Ros-Lehtinen (R., Fla.).
Ms. Pelosi welcomed Mr. Papandreou, calling attention to the long-standing U.S.-Greece relationship.
"The Greek people can be assured that the United States will stand with them at this critical time," Ms. Pelosi said.
Write to Henry J. Pulizzi at
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