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Greek investigation into financial crisis

EU - Greece has been accused of faking stats
EU - Greece has been accused of faking stats

The Greek parliament is to launch an investigation to find out who is to blame for the country's financial crisis.

An investigating committee will examine what political decisions 'blew up budgets and deficits', a spokesman for the Socialists' parliamentary group told parliament.

The Socialist government revealed in October that Greece's deficit and debt were far higher than reported by the country's previous administration, leading to a fiscal crisis that threatens to destabilise the euro.

EU officials have accused past Greek governments of faking statistics and trying to hide the extent of its fiscal problems.

'Our problem is credibility and we must regain it, at all costs,' Deputy Prime Minister Theodoros Pangalos told parliament.

A full meeting of EU finance ministers in Brussels earlier signed off on proposals by eurozone countries to force the Greek government to prepare 'additional measures' by the middle of next month to meet its deficit reduction targets.