Budget deadline
February 16, 2010
After talks between Greek politicians and European finance ministers, Eurogroup President Jean-Claude Juncker announced on Monday that Greece would come forth with further budget cuts when it reports on March 16 to euro-zone countries, should its current efforts prove insufficient.
Juncker said the additional plan should focus on expenditure cuts and revenue-increasing measures.
Athens has pledged to reduce its deficit, which was 12.7 percent of gross domestic product (GDP) in 2009, by four percentage points in 2010. Greece hopes to reduce this further by 2012 to 3 percent - and thus come within the official maximum limit for countries using the euro.
Large demands
Greek Finance Minister George Papaconstantinou defended his country's efforts to slash the deficit by 2012. He also defended the use of "derivated contracts," used in the past to borrow money without increasing official debt levels, saying they were legal at the time of their use.
Critics have said the measures hid the full extent of the country's financial situation from Brussels.
Papaconstantinou said that although Greece is willing to undertake additional fiscal measures to tackle its debt, urging the country to do more before its report in March is asking for too much.
"We're trying to change the course of the Titanic, it cannot be done in a day," he told reporters in Brussels.
Papaconstantinou also suggested ministers of euro-zone countries should work on putting substance behind the pledges of support they made last week. EU leaders did not specify how much they would help, but said they are ready to take "determined and coordinated" action to ensure financial stability in the euro zone if necessary.
The details of the plans are being withheld from the public by Greece's euro-zone partners, as representatives agreed it would be "unwise" to reveal possible measures.
A draft declaration including Greece's obligation to report its situation in March and undertake additional measures if necessary is to be adopted by all 27 EU finance ministers on Tuesday.
mk/AFP/AP/dpa
Editor: Nancy Isenson