Greece gets formal warning over false accounting
Greece has been given a formal warning by the European Commission for publishing false data about its public finances.
Link: Greece admits faulty budget figures
The warning comes after the Commission found that the country had massively underreported its budget deficit between 1997 and 1999.
Greece has already admitted that it would have failed qualification to join the euro in 2001 had this been known at the time, reported the BBC. The country could face legal proceedings if it does not change its procedures.
The Commission found that Greece’s actual deficit was 6.6% of GDP in 1997 rather than the 4% that was reported. In 1998 and 1999 its deficit was also above the 3% limit set by the EU for joining the single currency.