EU budget enforcer to meet Greek leaders in Athens Monday

(BRUSSELS) - The EU's top budget enforcer will meet Greek leaders in Athens on Monday to inspect the government's plans to slash its massive public deficit and debt and discuss the way forward, his office said.

Finland's Olli Rehn, the EU's Economic and Monetary Affairs Commissioner, "will be in Athens to discuss the current situation of the Greek economy and public finances." the EU Commission said in a statement.

He has meetings scheduled with country's deputy prime minister, finance minister and central bank governor, aong others.

Last week Rehn had said he was planning a trip to Athens "to discuss the fiscal and economic situation and the future financial stability of the eurozone."

The Greek debt crisis, exacerbated by dodgy data reporting, threatens the political ties at the heart of the eurozone, as the euro sinks to new lows on currency markets and credit rating agencies issue repeated downgrades.

Experts from the European Commission, the European Central Bank and the International Monetary Fund visited Greece recently to monitor the country's plans to cut spending and raise revenues.

Rehn will travel to Athens armed with their report. If the experts say the programme is not enough, a meeting of EU finance ministers could demand even harsher corrective action at a meeting on March 16.

Greek Prime Minister George Papandreou warned on Friday of national bankruptcy unless public spending is slashed, the kind of talk that sends shivers down the collective spine of the other 15 eurozone nations.

His country, which has the eurozone's highest public deficit, is at the centre of a storm over spiralling debt levels in Europe that threatens the cohesion of the entire 16-nation single currency area.

EU leaders have already offered to step in to safeguard the euro economy if the troubles cross a certain, unclear threshold, but have still to reveal whether or how that would extend to coughing up hard bailout cash or loan guarantees.

Rehn, is also expected to press the Greek authorities on currency swaps they have admitted using in 2001 which a string of reports say allowed Athens to hide already bulging debts and help the country enter the eurozone.

Greek authorities have instigated a series of austerity measures, which resulted in a general strike last week.

However the rest of Europe remains not only concerned at the figures but unsure if they can trust them.

Late last year Athens revealed that its public deficit and debt were much worse than initially thought.

Faced with the risk that market suspicion could spread to other countries on the eurozone's periphery, European Union leaders have placed Athens on a short leash to ensure it gets its finances back into shape.

While the EU has put Greece under virtual fiscal tutelage, Luxembourg Finance Minister Luc Frieden said Friday that the other eurozone countries will help Athens out of its financial bind if necessary.

Italy, Portugal and Spain have come under increased financial market pressure since the Greek crisis erupted, but the Luxembourg minister insisted that "no eurozone country is going to declare bankruptcy."