EU To Warn Greece Over Deficit

BRUSSELS (AP) — Greece faces formal criticism from other EU nations for failing to cut back a ballooning budget deficit, the EU's top economy official Joaquin Almunia warned Tuesday.

Greece last month said its yearly gap between public spending and receipts would double to 12.5 percent of economic output. The new Socialist government has promised "radical changes" to raise more taxes to try to stem the gap.

The country will now miss a 2010 deadline that EU finance ministers gave it to bring the deficit under the 3 percent limit set by EU budget rules. The limit is crucial for the 16 nations that use the euro as it is one of the few ways they can coordinate their economies.

EU Economy Commissioner Joaquin Almunia said he "will take note of the lack of effective action" in reducing the deficit and would prepare a formal warning to the country in January or February. The EU executive will publish its views on the Greek deficit on Wednesday.

Other EU officials are frustrated by Greece's bad bookkeeping.