Greece’s plan to bring budget deficits down to under 3% of GDP by 2012 have received formal approval from the European Commission.
“We are endorsing the Greek program; we are giving confidence and supporting the Greek authorities,” EU Economic and Monetary Affairs Commissioner Joaquin Almunia told reporters in Brussels today. “The implementation of this program is not easy.”
Still, it’s been made clear that the nation’s financial situation will require monthly updates, and that road ahead remains extremely challenging.
It remains to be seen whether the Greek government has the political capital to enact the spending cuts and potential tax hikes necessary to achieve its proposed goals.