The European Commission is considering cutting Greece some budgetary slack this year and allowing the government to break its promise of reducing the deficit to below the 3 percent of GDP limit, the Economy and Finance Minister suggested yesteday.

The 2006 budget, approved by Parliament last month, foresees a deficit of 2.6 percent of gross domestic product versus an estimated 4.4 percent in 2005.

The possible one-year extension would provide some relief to Greece's public finances, which aim at tightening spending and shrinking the state investment program.

Economy and Finance Minister Giorgos Alogoskoufis said yesterday that this is an issue raised by Brussels and not Athens.

«If the European Commission gives us this extra time, then it will be welcome,» said Alogoskoufis.

Greece has revised upward its budget figures for every year since it entered the eurozone in 2001.

Opposition parties described the news as a sign of failure for the 2006 budget, which has yet to be implemented.

«Ten days after the budget was voted (in by Parliament), they confess that this credible and honest budget, as it was described by the Prime Minister, cannot be applied,» said PASOK MP Vasso Papandreou.

Sources say that Greece will push for the extension on the grounds that the 2006 deadline was initially given on data which have since changed.