BRUSSELS, Dec 21 (AFP) - The European Commission is set to pursue disciplinary action against Greece and Hungary Wedensday for breaching EU public deficit rules, an EU source said here.
However, the European Union's executive arm would suspend moves against Cyprus, the Czech Republic, Malta, Poland and Slovakia, the source said Tuesday.
In July, the commission decided to launch its excessive deficit procedure against Greece and six of the EU's 10 new member states.
After a weekly meeting to be held on Wednesdayw, European Economic and Monetary Affairs Commissioner Joaquin Almunia is to announce "the suspension of measures against the new member states with the exception of Hungary," the source said.
He added that the decision would be taken because the states to be exempted had moved to correct their breaches of the EU Stability and Growth Pact's limit on public deficits of no more than three percent of output.
"The commission will pursue the procedure against Greece and Hungary" on grounds that they have not done enough to bring their deficits into line with the three percent limit, the source said.
Greece, which has been in breach of the limit since 1997, is targeting a 4.6 percent deficit this year and 4.1 percent in 2005. Hungary's shortfall is forecast at 4.6 percent this year and 4.1 percent in 2005.
12/21/2004 15:28 GMT - AFP