Brussels, 07/05/2004 (Agence Europe) - On Friday, the European Commission announced that it would open excessive deficit proceedings against Greece in the next few weeks, after the latest estimation, published the same day by Eurostat. At the presentation of its spring economic forecasts on 7 April, the Commission indicated that it would have to wait for the definitive confirmation of the Greek data before taking a decision. Eurostat estimates that the Greek deficit reached 3.2% of GDP in 2003, against a Commission forecast of 3.0%. In March, Greece reported a deficit of just 1.7% of GDP.
According to Eurostat, which went to Greece to investigate, the increase in the Greek deficit last year is mainly down to a reduction in the estimation of tax revenue (mainly VAT) in public accounts, Community aid revised downward (structural funds) and the reclassification of a payment, to the State, of the postal savings office. Eurostat also revised the estimation of Greek public debt in 2003 upward: 103.0% of GDP, rather than 102.4% according to the data notified by the Greek authorities in March.