EU finance ministers urge Greece to step-up recovery plan

European Union finance ministers, after a two-day meeting in Brussels yesterday, asked Greece to stick rigidly to the recovery plan endorsed early this month by the European Commission.

In a statement released after the meeting, the ministers  said although Greece has until 16 March to prove it has taken initial steps towards reducing its budgetary deficit, the country should ensure a budgetary adjustment of at least 4 per cent of GDP in 2010.

It sets a target of 8.7 per cent of GDP for its 2010 budgetary deficit, which represents a 4 percentage point reduction from the estimated 12.7 per cent deficit for 2009.

Greece's updated stability programme sets 2012 as the date for reducing the deficit below the 3 per cent reference value.

The ministers asked Greece to present a report by 16 March setting out the timetable for implementing budgetary target measures for 2010, and another by 15 May outlining the policy measures needed to comply with the Ecofin decision.

Joerg Asmussen, Germany's deputy finance minister, advised Greece to follow the lead of Ireland and Latvia, EU countries which are slashing spending in an effort to rein in their financial troubles.