EUROPEAN COMMISSION chief José Manuel Barroso has declared that his executive will move today to back a swingeing austerity package from the Greek government.
The commission’s endorsement of efforts by the Greek government to bring its wayward deficit to heel came as the administration characterised its troubles as part of a wider euro zone problem, with Spain and Portugal next in the spotlight.
Prime minister George Papandreou held emergency consultations with opposition party leaders yesterday to bolster support ahead of a formal assessment of his recovery plan from the commission.
The EU executive will introduce deeper surveillance of Greece’s finances in the months ahead, imposing deeper spending cuts on the country if targets are not met.
The intervention follows months of pressure on Greece after Mr Papandreou’s newly-elected government revealed last October that its 2009 deficit would be 12.7 per cent, more than twice the prior estimate.
“The huge Greek government deficit for 2009 came as a surprise to us all,” Mr Barroso told reporters.
Echoing remarks by outgoing economics commission Joaquín Almunia, he said the planned correction of the deficit was feasible but subject to risks.
“Provided such risks will not be allowed to materialise through the timely implementation of corrective measures, the deficit will indeed be corrected.
“We believe this will be done. The Greek government is committed to take such measures,” he said.
Mr Barroso said a successful correction of the “very excessive” deficit was important not only to Greece, but for the euro area “and the EU as a whole”.
