EU to launch disciplinary action over Greek deficit: source

BRUSSELS, Nov 29 (AFP) - The European Commission will launch disciplinary action against Greece on Wednesday over its drastic revision of deficit figures for 1997-2003, a commission source said Monday.
The Greek government must specify within two months the action it intends to take in response to the infringement proceedings, which will be launched in the form of an early warning letter to Athens.
Greece's entry into the eurozone in 2001 was largely based on the country's 1999 public deficit which, according to budget data presented by Greece in 2000, stood at 1.8 percent of gross domestic product.
But Greece's conservative government, which took office in March, admitted earlier this month that the country's public deficit had been in excess of the eurozone limit -- 3.0 percent of economic output -- since 1999.
The 3.0 percent of GDP ceiling is set out in the Stability and Growth Pact which underpins Europe's single currency. The pact has been effectively suspended since last year when EU heavyweights France and Germany were let off the hook despite repeated breaches of the rules.

11/29/2004 17:40 GMT - AFP