"Two weeks ago the European Commission gave the green light to Greek measures [to recover its deficits] and just a few days ago, Greece announced new measures," George Papaconstantinou said, defending his government's position three hours before facing 15 other finance ministers from the euro zone.
No additional measures until March review
The EU's new commissioner for economic affairs, Olli Rehn, put extra pressure on the Greek government to announce additional measures to overcome the highest deficit in the euro zone to date at 12.75%.
"There is a clear case for additional measures," the commissioner said as he arrived for the talks this afternoon.
Greece has so far committed to a target of reducing its deficit by 4% before the end of 2010 and committed to a total reduction of 10% by 2012.
Papaconstantinou maintained he would be telling the Eurogroup meeting that he will not be adding further measures unless a European Commission review scheduled for March shows that current policies are not working.
Last week, the Greek government announced a swathe of new measures to counteract its climbing deficits, including cutting public sector wages, raising the retirement age and hiking fuel taxes. The measures follow other tax hikes on cigarettes and alcohol.
Greece is also in the process of restructuring its tax system, moving more of the tax burden to higher pay checks and higher value property, the minister added.
In addition to today's round of meetings, tomorrow the EU's 27 finance ministers are expected to agree on the finer details of a Greek bail-out if the situation were to worsen.
'We are in a terrible mess'
Papaconstantinou tried to quell fears in Brussels, and in financial markets, that Greek deficits would devalue the euro indefinitely, saying that the media had overplayed the situation in his country and that Greece was a mere 2% of EU GDP.
In particular, the minister was referring to a German media poll showing that less than a third of the country's population would support a Greek bail-out.
The finance minister nevertheless admitted that his country "was in a terrible mess" as a result of a swathe of incremental fiscal and structural problems that have come to light since the crash in financial markets.
Papaconstantinou, a member of a new socialist government that was elected three months ago, reeled off a long list of troubles including an "out of control and inefficient civil service, clientelism and a non-viable public pensions system".
'Statistics problem will not reoccur'
"Greece's greatest deficit right now is not money but credibility," the politician continued, saying there would not be a repeat of the recent scandal exposing Greece's fake data, which put its public debt at a mere half of its true figure, 12.75%.
Accurate statistics are among a swathe of subjects that Greece has put on the European agenda. Enhancing the status of the European statistical service, Eurostat, will form part of discussions tomorrow between the 27 finance ministers at the European Council.
For its part, Papaconstantinou said his statistical office had cleaned up its act and new legislation would make the National Statistics Office independent, with oversight coming from the Greek Parliament.
