Jose Manuel Barroso said the Greek plan looked 'feasible and ambitious'.
Greece has tabled a plan to cut its budget deficit to below the EU's limit of 3% of gross domestic product in 2012 from last year's expected 12.7%.
Commission President Jose Manuel Barroso said the plan looked feasible and ambitious, although surrounded by risks.
Greece's financial problems have sparked talk about a possible bail-out by the EU and fears about the stability of the 16-country euro zone.
Mr Barroso stressed that a successful reduction of the deficit was important not only for Greece but for the euro area and the EU as a whole.
