Greek Prime Minister George Papandreou has called on members of parliament to forge a "national accord" to deal with the country's debt crisis.

Speaking at the start of three days of debate, Mr Papandreou said the country was "at a crucial point" and risked a catastrophic default if it did not act.

"I have asked for a renewal of confidence in the government, because the country finds itself at a crucial point," he told parliament, as cited by BBC.

In his words the country would soon run out of money if politicians did not take action.

The prime minister said his priority was "a national accord to tackle the Greek debt and deficit which are a national problem", warning that the image of disunity was damaging the country's reputation.

But he also said a reform of political system was needed, and proposed a referendum later this year on possible changes to the constitution.

Eurozone finance ministers are set to meet in Luxembourg to discuss releasing a loan of up to EUR 12 B.

Greece needs the loan - the latest tranche of a EUR 110 BEU and IMF aid package agreed in May last year - to avoid defaulting on its looming debts.

The money is conditional on the government implementing a series of painful domestic reforms.

The intense debate over the belt-tightening, a condition of an international bailout package, has sent thousands of public sector workers and others onto the streets to protest the plan, which includes wage freezes and higher taxes.

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