Brussels, 13/01/2010 (Agence Europe) - In a report critical of statistical analysis by Greece of public finances between 2005-08, Eurostat paints a worrying picture of the situation, which will not improve without resolute government action. If this is not forthcoming, “the reliability of the Greek deficit and debt will remain in question”, indicated the document published on 11 January, which will be examined by the Ecofin Council on Tuesday 19 January. The EU27 are expected to adopt conclusions on the subject.
The European Institute for Statistics immediately pointed out that data revisions referring to the scale of previous deficits have been extremely rare in EU countries but have happened on several occasions in Greece. Following its visits there, the institute criticises the shortcomings in Greek statistical information (at a budgetary and macro-economic level). Despite efforts by Eurostat over recent years (since 2004, 10 visits have taken place and 5 reservations issued with regard to notified data), the quality of Greek budgetary data is still not at the level of other EU countries. Although data for 2009 are not covered in the report (they are still being examined), doubts remain on data sent in last October regarding 2005 and 2008. Eurostat is therefore not ruling out further adjustments on previous figures, including those for 2008 (the most recent upward revision brought the deficit up to 7.7% of GDP, a figure on which caution is still being expressed). At this stage, “a substantial number of unanswered questions and pending issues still remain in some key areas, such as social security funds, hospital arrears and transactions between government and public enterprises”. The report identifies two problems: statistical shortcomings themselves (on a methodology and procedural level) and lacks in the Greek institutions in a wider sense (inappropriate governance, weak cooperation and lack of clear responsibilities particularly contribute to subjecting the statistics to political pressure and election cycles). More specifically, Eurostat highlights “severe irregularities” relating to notifications for excessive deficit procedures in April and October 2009 (incorrect data and non-respect for accounting rules and the timetable).
Conclusions will be adopted by EU finance ministers next week but will be less harsh. According to the draft text, the EU “strongly urges” the Greek government to rectify the weaknesses identified and welcomes the initial action taken to enable the statistical authority to operate independently. Appropriate measures are expected to restore confidence in the country's statistics.
The Commission will propose to the Ecofin Council (February) that it takes another step forward in the excessive debt procedure against Greece (letter of formal notice under Article 126.9 of the Treaty on the Functioning of the EU). There is also a possibility that an infringement procedure will be opened against Greece but the spokesperson for Commissioner Almunia did not confirm such an approach to the press and would only state that “providing reliable budgetary statistics is an obligation under the Treaty and secondary legislation”. (A.B./transl.fl)