Brussels wants more controls on economic data by member states

In the wake of the Greek deficit crisis, a direct consequence of wrong data given to the EU by the Greek authorities over a long period of time, the European Commission has started the process to introduce more controls over the quality of statistics which member states are obliged to pass on to Brussels on a regular basis.

Adopting a proposal to amend the EC Regulation 479/2009 on the quality of statistical data in the context of the excessive deficit procedure, the European Commission is proposing to amend the existing rules in order to allow it and the member states to work more effectively together in improving the quality and the reliability of government finance statistics.

The amendments include more frequent and comprehensive regular statistical visits to member states by Eurostat in the context of the excessive deficit procedure. Furthermore, when an assessment has identified specific problems, Eurostat may conduct additional methodological visits.

According to the proposals, member states would now be asked to provide Eurostat with access to relevant information to assess the quality of fiscal data.

Commenting on the new proposals, Economic and Monetary Affairs Commissioner Olli Rehn said that the proposal for Eurostat audit powers will substantially reinforce the EU's capacity to counter incorrect reporting of statistical data. "I hope that the Council and Parliament will adopt this regulation soon. Still, each member state has the responsibility of providing accurate and reliable information on its national accounts and public finances. This is absolutely essential for the functioning of the eurozone, and for mutual trust in the EU," Mr Rehn said.

Meanwhile, the European Commission has once again denied that a bailout plan exists for Greece, saying that the Mediterranean state had not asked for "one single euro" from the EU executive.

A spokesman for Mr Rehn, responding to reports that eurozone members would foot the bill for a €20 billion to €25 billion aid package for the troubled government in Athens, said that there was "no such plan" and that this was a "speculative scenario".

During an extraordinary summit earlier this month, EU leaders pledged to take "determined and coordinated action" should a threat to the single currency arise, but no specific offer is on the table.

Greek Prime Minister George Papandreou said that if there was aid it would be in the form of a loan.

The Lisbon Treaty forbids any kind of coordinated eurozone bailout, except in the case where a country is threatened by natural disasters or "exceptional circumstances beyond its control".

Mr Papandreou is also asking for further assurances from European politicians that could placate markets and force down the cost of borrowing. The country has dominated news headlines since October last year because of a major revision of its 2008 and 2009 public deficit and debt statistics, which sent investors fleeing.

The 2009 budget shortfall now stands at 12.7 per cent of the country's GDP and the government will need to raise €54 billion (by selling government bonds) on the markets this year.

The EU's deficit and debt limits under the Maastricht Treaty are three per cent of GDP (for deficits) and 60 per cent of GDP (for debt).