A double Greek ballot and higher interest rates precipitated the country’s descent into crisis in 2009, experts in charge of state finances at the time have told a parliamentary probe.

“The state mechanism slowed down, as did citizen compliance with tax obligations,” George Sfakianakis, formerly head of the finance ministry’s council of economic advisors, told lawmakers late on Tuesday, the semi-state Athens News Agency said.

In 2009, Greece held European parliament elections and early legislative elections as a financial crisis fuelled by toxic bank loans gathered pace in advanced economies.

Sfakianakis added that Greek growth, excessively based on cheap loans from 2000 onwards, inevitably took a blow when interest rates rose as the crisis unfolded.

“At the beginning it seemed that the inward-looking Greek economy would weather the crisis, but it began having problems with the rise of interest rates,” he said.

A Greek parliamentary committee is investigating claims by former members of state data agency Elstat that the country’s 2009 deficit was artificially inflated before Athens called for an EU-IMF rescue in May 2010.

The deficit was initially calculated at six per cent of output by the outgoing conservative government, and closed at 15.7 per cent under the socialists who won the 2009 election.

“Six per cent was a forecast,” former Finance Ministry general secretary Ioannis Sidoropoulos told lawmakers.

“It was based on the assumption that elections would be held, and that the new government would take urgent measures,” he said.

Sidiropoulos added that if sweeping cutbacks initiated under the EU-IMF rescue in May had been taken in October 2009 “we would be in far better position.”

Former ministers of finance, health and labour have been called to testify, and the European Union’s former Economic Affairs Commissioner Joaquin Almunia could also be invited to give evidence, in addition to senior officials from EU data agency Eurostat, ANA said.

The committee’s report is to be issued on March 23.