DAVOS: Greek and European Union officials closed ranks on Friday, insisting there was no chance of a Greek default or an EU bailout and that Athens would do whatever it takes to cut its burgeoning deficit.

“Solidarity is possible, will exist. A bailout is not possible and will not exist,” EU Monetary Affairs Commissioner Joaquin Almunia told Reuters Insider TV.

Greek Prime Minister George Papandreou, also at the World Economic Forum in Davos, promised to do all that was required to cut the deficit and restoring confidence.

“Greece is in a situation where we need to take very strong measures and structural changes in our country,” he said. “We’re determined to implement the program.” The euro zone has pledged to cut its budget deficit this year to 8.7 percent of gross domestic product from over 12 percent and return to the EU’s 3 percent cap by 2012.

But fears that Athens will not be able to rein in spending have continued to haunt markets and put pressure on the euro, fueling speculation the euro zone would eventually step in. A senior euro zone official said on Friday that there were no formal talks or preparations in any European institutions to help Greece financially and that the EU strategy toward Greece was to continue pressing hard for budget cuts.

However, there may be informal talks among officials in some EU capitals over what to do in a worst-case scenario, said the official, who declined to be named.

Germany and France have denied media reports they were working on an aid plan for Greece, and the EU Treaty bans the rescue of any member state by another or by the union. “I can certainly say that in institutional terms the European Union is not preparing anything,” said the official.

Greece partially regained investor confidence on Monday when it succeeded in selling 8 billion euros of 5-year bonds, albeit at a high price, and announced plans to sell more in February. But Finance Minister George Papaconstantinou said the next bond would have to be carefully timed. It would be disastrous if his country had to finance all this year’s debt requirements at current rates, he said.