The European Commission said today it will demand tougher measures such as new taxes and cutbacks if Greece doesn't make progress getting its ballooning deficit under control, according to AP. Greece's budget crisis and worries that it won't be able to pay back debt have shaken the European Union and its shared currency, the euro, which has slid in value recently. It has also intensified speculation that other EU nations might have to bail Greece out if it risks default. Greek and European officials say that they are confident that the country will manage to curb its budget gap and that a financial rescue won't be necessary. EU Economy Commissioner Joaquin Almunia said Monday that the EU executive believed Greece's «ambitious» targets to fix its budget crisis «are achievable although surrounded by risks.» If those risks materialize, he said the EU would step in and demand new measures _ such as new taxes or cutbacks _ to bring Greece's spending in line and moves to make the economy more competitive, such as curbing wage levels that are well above productivity levels.
