Troubled Greece under EU surveillance

THE Greek economy was put under permanent surveillance by the European Union yesterday in a new measure to ensure the state gets its finances under control and prevents danger to the euro.

Economics Commissioner Joaquin Almunia warned that if Greece does not make the spending cuts it has promised, and if their actions do not reduce their deficit as specified, the EU will demand further action.

The announcement boosted the value of the euro that had fallen to a six-month low last week as Greece’s problems unfolded. The bond market also reactively positively, reducing the yield on Greek bonds.