EU calls new Greek austerity measures "solid" package

BRUSSLES, March 4 (Xinhua) -- The European Commission said Thursday the new austerity measures put forward by Greece on Wednesday were a "solid" package that would help the country meet its targets on deficit cutting.

"With the package presented yesterday, Greece is in a position which will enable it to meet ambitious deficit targets, especially in 2010, as is the general desire," Commission spokesman Amadeu Altafaj told a regular news briefing.

He said: "These measures are the best way to strengthen the credibility of the Greek state with regard to its public finances and it will certainly have an influence."

Greece announced additional deficit cutting measures on Wednesday, which among others included a 30-percent cut in the holiday bonuses for civil servants, tax hikes on fuel and cigarettes, an increase in value-added tax, and the freezing of pensions.

The European Commission issued a statement on the same day, welcoming the additional measures proposed by the Greek government.

"The Commission considers that correcting imbalances and restoring competitiveness is essential to put Greece back on a sustainable path," the statement said.

"The Commission fully supports Greece in this endeavour," it said, adding that the new measures "provide a strong signal of the readiness of the Greek Government to proceed with courageous decisions".

The European Central Bank (ECB) also welcomed the "convincing additional and permanent fiscal consolidation measures" announced by the Greek government.

"We appreciate the envisaged very swift implementation of these measures, which are both necessary and appropriate to make significant progress with fiscal consolidation in 2010," the governing council of the ECB said in a statement.

"This demonstrates the strong commitment of the Greek Government to achieve the fiscal objectives enshrined in its stability programme," it said.

Greece has promised to cut its deficit by 4 percentage points this year, after its deficit reached a staggering 12.7 percent of gross domestic product (GDP) in 2009. It aims to bring the deficit to below the EU ceiling of 3 percent of GDP in 2012.