Press Release: Commission proceeds with excessive deficit procedure for Greece

The European Commission has found that Greece's budgetary situation deteriorated further in 2004 despite having the highest economic growth in the euro area, and in contradiction with the recommendations of the Council addressed in July 2004. Greece expects the deficit to reach 5.3% of GDP in 2004 instead of the 3.0% foreseen in its March notification. The draft budget for 2005 sets a target for the general government deficit of 2.8% but the measures presented appear insufficient to bring the nominal deficit below the 3% threshold by 2005 as recommended by the Council. Based on this assessment, the Commission recommended to the Council, 22 December 2004, to decide that Greece has taken no effective action to correct its excessive deficit.