The European Commission will take another step in the budget disciplinary procedure under way against Greece tomorrow, telling Athens it has not done enough to bring its budget deficit below the EU limit in 2005.
The move, which has already been flagged by Greek Finance Minister George Alogoskoufis, will be in contrast to Brussels' decision last week to put this so-called excessive deficit procedure on ice for Germany and France.
The disciplinary action planned against Greece comes hard on the heels of criticisms levelled at the country for massive budget revisions which showed its deficit broke the EU deficit limit every year since 1997.
Brussels launched the disciplinary action when it first discovered Greece's 2003 deficit topped the EU cap of three per cent of gross domestic product and told the country to take steps that would cut its deficit to below that limit by 2005.
Greece insists it can cut its deficit to 2.8 per cent in 2005 from levels above five per cent in 2004 but will face a sceptical reaction from the EU executive tomorrow.
Brussels' report needs to be endorsed by EU finance ministers, a step that is not always guaranteed as Germany and France proved last year.
EU finance ministers in November 2003 suspended disciplinary action against Berlin and Paris when the Commission tried to take similar disciplinary steps against the euro zone's two biggest economies.
The Commission won a legal appeal against finance ministers' decision but last week decided to leave the disciplinary action against the two countries on hold, accepting their promises that they would bring their deficit below the EU cap in 2005.
The Greek government based its deficit-cutting plans on the assumption that the country's GDP would grow by just under four per cent in 2005. That compares with the 3.3 per cent rate targeted by the Commission's official forecasts.
Brussels is, however, expected to indicate Athens will be offered an extra year, until 2006, to bring its deficit to below EU limits.