Greece's budget deficit surpassed the EU cap in 2003 and could be adjusted even higher, Eurostat said on Friday, prompting the European Commission to say it would prepare a report on the country's budget situation.
The deficit was revised to 3.2 percent of gross domestic product - higher than the 1.7 percent figure submitted in March by the country's previous Socialist government and also above the figure of 2.95 percent of GDP estimated by the current conservative government.
Eurostat, the European Union's statistics office that validates budget figures submitted by national authorities, said it still could not fully certify the deficit data for 2003 and possibly for previous years.
Greek government spending on military equipment had been under-estimated and there was a lack of reliable information on issues related to social security funds, according to Eurostat as it pressed the Greek authorities for further clarifications.