Greek deficit breach likely to avoid sanctions

Greece announced on Saturday 11 september that its 2004 budget deficit would be 5.3% of gross domestic product. With national debt standing at 184 billion euros, 112% of GDP, or 50,000 euros for every citizen. However the collapse of the stability and growth pact suggests Greece will avoid sanctions.

The Stability and Growth Pact forced Greece and others to clean up their public finances to adopt the euro, and still is effective in controlling the conduct of potential entrants.

The European Co