BRUSSELS (MNI) – Greece may need additional budget measures to meet
its 2011 targets, since those targets will not be relaxed despite an
expected upward revision in the country’s public deficit figures for
2006-2009, Eurozone officials said on Monday.

“The targets will be kept…It is essential that the 2011 targets
are kept,” European Commissioner for Economic and Monetary Affairs, Olli
Rehn, told reporters at a press conference following a meeting of
Eurozone finance ministers in Luxembourg. “This may require some
additional measures of fiscal consolidation in order to stick to the
targets,” he added.

Earlier this year, after revealing a budget deficit more than four
times the EU’s stipulated limit, Greece was thrown an E110 billion
lifeline by its Eurozone partners and the International Monetary Fund in
exchange for a commitment to implement a strict austerity plan.

“We have every confidence in the ability of the Greek government to
meet the targets contained in the programme,” Eurogroup President
Jean-Claude Juncker told reporters at the press conference.

But he said he didn’t envisage giving Greece any leeway.

“The deficit figures will have to be changed,” Juncker said. But he
concurred with Rehn that “the revisions of deficit figures will not
affect Greece’s obligations” to its EMU partners and the IMF.

Eurostat, the European Union statistics agency, is set to publish
revised estimates for Greece’s deficit and debt data in the period
2006-2009 at 0900 GMT on Friday.

An upward revision is expected though the exact magnitude of the
revision is unknown. However, a Greek finance ministry official said in
Athens Monday evening that the 2009 budget deficit “is heading towards
16% [of GDP],” compared with the previously reported figure of 13.5%.

Rehn echoed this sentiment, saying Eurostat — which undertook a
mission to Athens in September — had found “certain entities which have
to be reclassified as public entities,” and that “will have a certain
upward impact” on the budget deficit data.

“Eurostat has a very significant presence in Athens in these days
and weeks to clean the data for 2006-2009 by, at the latest, early
November,” Rehn said.

He said the Greek government would present its final budget draft
only after Eurostat had obtained the final data.

The press conference was dominated by concerns about the Eurozone’s
peripheral countries, many of whom are struggling with high debt and
deficit levels.

Juncker said he hoped the major parties in Portugal would “join
forces” to adopt the country’s 2011 budget in Parliament this week.

Both Rehn and Juncker said they had faith that Ireland could bring
its budget deficit under control by 2014.

Rehn said the European Commission was “working closely” with the
Irish government on a multi-year plan which will contain details for
each year through 2014.

–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com

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