Merkel Urges Greeks to Stick to 'Tough Path', Praises Progress

German Chancellor Angela Merkel on Tuesday said that a "tough path" of austerity was the best way for Greece to overcome its economic crisis as thousands of protesters demonstrated a few blocks away.

Merkel, the leader of Europe's largest economy -- and chief crisis paymaster -- also praised the course of Greek reforms and repeated her desire to keep Greece in the euro-zone, a badly-needed message of support to the country's embattled government.

"I am deeply convinced that this tough path is worth it and Germany wants to be a good partner," she said on her first visit to Greece in five years.

"A lot has been achieved. There is still a lot to do and Germany and Greece will work very closely together."

Prime Minister Antonis Samaras, a fellow conservative, responded: "Greece is determined to keep its promises and overcome the crisis...the Greek people are bleeding right now, but they are determined to win the battle of competitiveness."

Samaras, who heads a three-party coalition, plans to push through parliament later this month a new package of austerity measures worth 13.5 billion ($17.5 billion) over two years.

Greece has been told to implement the cuts by its international creditors -- the European Union, the International Monetary Fund and the European Central Bank -- in order to unblock a loan installment of 31.5 billion euros that has been pending since June.

Merkel repeated on Tuesday that no decisions can be taken on this issue before auditors from the troika of creditors deliver a report on the state of Greece's reforms later this month.

"We were agreed that, in conjunction with austerity measures and structural reforms, which demand a great deal from the people, there must also be growth stimulus," she told reporters after her talks with Samaras.

"Therefore, we will support everything possible to provide Greece access to credit from the European Investment Bank," Merkel said.