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EU backs Greece's fiscal austerity measures

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EU backs Greece's fiscal austerity measures


Greece’s plan to cut its huge deficit have been cautiously welcomed by the EU.

The proposals include cutting public worker salaries, raising the retirement age and introducing a special enterprise tax.

However, Brussels is warning that Greece may well have to take extra measures to shore up its finances.

Amelia Torres, spokesperson for Economic and monetary affairs said: “We see risks around achievement of these targets as the Greek authorities do, but the objectives are achievable although surrounded by risks. We are creating a process of monitoring, the implementation of the programme, that includes the need to adopt additional measures, in case some of those risks will materialise.”

Greece’s long-term deficit cutting plan aims to reduce the budget shortfall to below three percent in 2012 from 12.7 last year.

The European Commission is due to publish on Wednesday its recommendations on how and by when Greece should reduce its budget deficit below the EU’s ceiling rate of three percent.

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