Tuesday

17th Oct 2017

EU report slams Greece over false statistics

A report published by the European Commission on Tuesday (12 January) has condemned Greece for falsifying its data on public finances.

Written up at the behest of EU finance ministers, the document talks of "deliberate misreporting of figures by the Greek authorities in 2009."

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

The country's newly elected Socialist government upwardly revised its 2009 deficit forecast last October from 3.7 to 12.5 percent, a considerable change that prompted credit rating downgrades and outrage in other EU member states.

"Revisions of this magnitude in the estimated past government deficit ratios have been extremely rare in other EU member states, but have taken place for Greece on several occasions," said the report.

The document continues that the Greek data is so unreliable that actual debt and deficit figures could be even higher than the revised forecast.

In a damning paragraph, the commission says: "poor co-operation and lack of clear responsibilities between several Greek institutions and services  ...ambiguous empowerment of officials, absence of written instruction and documentation, which leave the quality of fiscal statistics subject to political pressures and electoral cycles".

Questioned whether other EU governments could also be fiddling their public finance figures, the EU's economic commissioner-designate, Olli Rehn, told MEPs this week during a parliamentary hearing that he thought Greece was an isolated case.

Some analysts say the country's debt level, currently at 113 percent of gross domestic product and set to rise further, poses a major problem for Athens and could threaten the stability of the euro due to spillover effects into other member countries and market jitters.

EU governments have asked the commission to put forward a list of measures to help the embattled administration tackle the issue, with the handover likely to happen in the coming days. Greece is then expected to report back to the commission by the end of the month with a list of actions it plans to take.

Van Rompuy support

In a badly needed show of support, the EU's new permanent president, Herman Van Rompuy, said Greece is now taking steps to meet the "substantial" challenge posed by its debt and deficit levels.

After a meeting with Greek Prime Minister George Papandreou on Tuesday, Mr Van Rompuy said he was "confident that the Greek government is already taking the necessary further steps to address the situation."

"Resolute fiscal consolidation should start without delay in 2010 and the deficit should be brought below three percent by the end of 2012," he added.

Greek experience to spur EU request for audit powers

Frustrated by the ongoing saga over Greece's public finances, the European Commission has indicated it will seek audit powers for the EU's statistics office - Eurostat - in order to verify elements of national government accounts.

Analysis

Juncker's euro-push could risk unity, warns eastern flank

The EU Commission chief hopes that as Emmanuel Macron pushes for euro area countries to integrate further creating a multi-speed Europe, central European members will be more inclined to join the single currency. Are they?

Stakeholders' Highlights

  1. EU2017EENorth Korea Leaves Europe No Choice, Says Estonian Foreign Minister Sven Mikser
  2. Mission of China to the EUZhang Ming Appointed New Ambassador of the Mission of China to the EU
  3. International Partnership for Human RightsEU Should Seek Concrete Commitments From Azerbaijan at Human Rights Dialogue
  4. European Jewish CongressEJC Calls for New Austrian Government to Exclude Extremist Freedom Party
  5. CES - Silicones EuropeIn Healthcare, Silicones Are the Frontrunner. And That's a Good Thing!
  6. EU2017EEEuropean Space Week 2017 in Tallinn from November 3-9. Register Now!
  7. European Entrepreneurs CEA-PMEMobiliseSME Exchange Programme Open Doors for 400 Companies Across Europe
  8. CECEE-Privacy Regulation – Hands off M2M Communication!
  9. ILGA-EuropeHealth4LGBTI: Reducing Health Inequalities Experienced by LGBTI People
  10. EU2017EEEHealth: A Tool for More Equal Health
  11. Mission of China to the EUChina-EU Tourism a Key Driver for Job Creation and Enhanced Competitiveness
  12. CECENon-Harmonised Homologation of Mobile Machinery Costs € 90 Million per Year

Latest News

  1. EU-Russia trade bouncing back - despite sanctions
  2. No sign of Brexit speed-up after May-Juncker dinner
  3. EU defence strategy 'outsourced' to arms industry
  4. EU privacy rules tilt to industry, NGO says
  5. Malta in shock after car bomb kills crusading journalist
  6. Spanish and Catalan leaders continue stand-off
  7. May pleads for more, as EU makes Brexit gesture
  8. EU circles the wagons around Iran deal