Greece And Hungary To Face EC Proceedings Over Euro Rules Violations
According to reports in the European media this week, the EC is planning to
launch disciplinary proceedings against Hungary and Greece over their failure
to remain below the 3% of GDP budget deficit limit put in place by the Stability
and Growth Pact. In November, Greek Finance Minister Giorgios Alogoskoufis admitted that since
it joined the single currency, the country's budget deficit had been larger
than permitted by the Pact, despite the government's dissemination of information
to the contrary. According to reports at the time, speaking in Athens, Mr Alogoskoufis announced
that: "It was proven that for no year, from 1999 on, and afterwards, had the
deficit fallen below three percent." Bank of Greece governor, Nicholas Garganas attempted to excuse the Greek authorities
following the revelation, arguing that the country had been subjected to tougher
accounting rules than many of its fellow eurozone members. The EC also rejected plans put forward by the Portuguese government to keep
its deficit down by selling state property, leading Prime Minister Pedro Santana
Lopes to hint at the existence of a safety net measure, set to be unveiled today. .
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