Today the European Commission decided to put Greece under supervision together with five more countries from the EU because of “exceeded deficit.” The procedure started for Greece, France, Spain, Ireland, Latvia and Malta because those countries have deficit bigger than 3% of the GDP, without that being as a consequence of the financial crisis.
Because passing the limits of 3% is not believed to be temporary—in other words it is not due to extraordinary reasons, this is why the European Commission automatically starts the relevant procedure.
The deficit of Greece was bigger than 3% of the GDP during 2007 and 2008 and the same is predicted for 2009 and 2010. In Greece’s case the options for a flexible solution to the deficit problem are limited, according to Brussels. This is because the country has had high deficit even before the “explosion” of the crisis.
The period, which will be given to Greece to lower the deficit under 3% of the GDP, is of great importance.