Greece accused of fraud over debt statistics

The European Commission has effectively accused Greece of fraud over its misreporting of government deficit figures. As the country teeters towards potential financial default, a report on repeated errors in financial data said that the European statistical checking system run by European Union (EU) statistical agency Eurostat and national agencies had been undermined. “This quality assurance system and its features is based on assumptions… shown to be subject to shortcomings and limitations, of particular relevance in the case of Greece: [statistical agencies] are supposed to cooperate in good faith. Deliberate misreporting or fraud is not foreseen…” it said. Honest figures are supposed to underpin the Euro, whose international value depends on member government deficits staying within set limits. Disciplinary procedures designed to keep governments in line rely on the integrity of financial data.