The Commission adopted a series of recommendations for Greece to correct the excessive budget deficit, improve competitiveness through structural reforms and provide reliable statistics.

The EC have assessed measures taken by Greece to comply with the Council Decision of May to remedy the situation of excessive deficit. The Commission has also published a report in the context of the economic adjustment programme financed by the euro-area Member States and the International Monetary Fund. Besides, it considers that the overall positive assessment of compliance paves the way for the next tranche of loans and it expects the euro-area Member States approve and disburse this second instalment.

The state budgetary developments over the first half of 2010 have been positive, with the deficit declining by some 46%, faster than planned.

Significant progress has been achieved in structural fiscal reforms. Progress with pension and public administration reform has been made ahead of schedule, but efforts need to be intensified to improve the collection and processing of data which are essential for budgetary control.

Beyond fiscal-related issues, important steps forward have also been made with the ambitious broader structural reform agenda. ambitious labour market laws, that will increase the economy's adjustment capacity, have been adopted ahead of schedule.

The Financial Stability Fund has been established and the Bank of Greece has intensified banking supervision, in order to ensure adequate liquidity for the banking sector.

The Commission has also launched an infringement procedure to ensure the authorities comply with their duty to report reliable budgetary statistics.

It is the first time that the budgetary and economic surveillance instruments foreseen in the Treaty are used simultaneously and in an integrated way. The Commission shares the budget-deficit reduction targets that the Greek government has set itself as well as the fiscal measures and structural reforms announced in the stability programme.

The Commission's assessment of compliance will be discussed at the 7th September Eurogroup and ECOFIN meetings.