George Alogoskoufis, Greek finance minister, promised a soft landing for the economy after last year’s spending spree to ensure a successful Olympics. But if measures aimed at reducing the deficit fail to deliver quick results, Greece is in for a bumpy ride.

Athens is under close scrutiny by Eurostat, the Commission’s statistical arm, under EU procedures to curb an excessive budget deficit. The 2004 deficit is estimated at 6.1 per cent of gross domestic product – twice the 3 per cent permitted under the EU’s stability and growth pact.