European Union finance ministers met today to shore up the credibility of their budgetary rulebook and EU statistics after Greece admitted it had exceeded deficit limits for years.
Ministers signalled Athens would escape punishment for its bogus data, which formed the basis for its adoption of the euro. But the embarassing affair served only to fuel debate over reform of the Stability and Growth Pact that has split the 12 euro zone countries and worried other EU states.
Greece and the European Commission said Athens had exceeded the bloc's 3 per cent of gross domestic product (GDP) deficit limit since 1997 and that its debt had also risen.
But with the future of the Stability Pact itself up in the air because of repeat breaches by Germany and France, the euro zone's biggest economies, ministers appeared to have no appetite to mete out immediate punishment.
Half the 12 euro zone countries are close to or in breach of the deficit limit, as are six of the 10 mainly central and eastern European countries that joined the EU in May.
Speaking after a meeting of euro zone finance ministers late on Monday, European Joaquin Almunia said there was still no consensus in what would be a "very difficult and delicate process" and divisions were still evident.