Barroso tells Greece: "full compliance paramount"

European Commission President Jose Manuel Barroso issued a statement on Wednesday after Greece adopted a 4.8 bln euro austerity package, saying that full compliance with the proposed measures is "paramount."

In the margins of today's visit by Italian President Giorgio Napolitano to the European Commission, José Manuel Barroso, EC President, said the Commission welcomes the announcement by the Greek Government to introduce a set of additional consolidation measures to cut its budget deficit.

The additional budget steps announced by the Greek government today are essential for the stability of the eurozone and the European Commission fully supports them, the President told journalists.

This announcement confirms the Greek Government's commitment to take all necessary measures to deliver the programme's objectives, he added.

Greece came through Wednesday with a new austerity plan worth euro 4.8 billion.

SOUNDBITE (English) by José Manuel Barroso, EC President: the Commission welcomes the announcement by the Greek Government to introduce a set of additional consolidation measures. This announcement confirms the Greek Government's commitment to take all necessary measures to deliver the programme's objectives and in particular to ensure that the 4% of GDP deficit reduction target for 2010 will be met. This assessment is shared by the President of the Eurogroup. Greece's ambitious programme to correct its fiscal imbalances is now on track. The additional measures announced today appropriately include expenditure cuts, and in particular savings in the public wage bill, which are essential for achieving permanent fiscal consolidation effects and restore competitiveness. The announced revenue-increasing measures also contribute to fiscal consolidation. Full and timely implementation of fiscal measures, along with decisive structural reforms, in compliance with the Council decision is paramount. This is in the interest of the Greek people, who will benefit from sounder public finances, better growth prospects and job opportunities. It is as well important for the overall financial stability of the euro area. The Commission considers that correcting imbalances and restoring competitiveness is essential to put Greece back on a sustainable path. The Commission fully supports Greece in this endeavour. The measures announced today provide a strong signal of the readiness of the Greek Government to proceed with courageous decisions.