The government’s proudest achievement in its first year in office — a law banning media barons from access to lucrative state tenders — appears set for a drubbing from Brussels after a top EU official yesterday reportedly recommended action against the ban.

According to EU sources, Commissioner for Internal Market and Services Charlie McCreevy called for the initiation of procedures against Greece over the law, which has drawn complaints from Greek and Italian firms, to be discussed by the College of Commissioners next Wednesday. If commissioners approve McCreevy’s recommendation, a first warning letter could be winging its way to Athens next Thursday.

McCreevy has argued that EU regulations only allow the exclusion of companies from public tenders if the firms in question have been found guilty of a specific breach of the law regarding their business practices.

Billed by the ruling conservatives as a major success in their anti-corruption drive — a keystone of New Democracy’s electoral platform — the law was passed on January 20. It is intended to prevent businessmen from wielding their media clout to bludgeon governments into awarding them lucrative public contracts. The law has been criticized by the Federation of Greek Industries.

Leaving a glimmer of hope for Athens, sources in Brussels yesterday said an EU decision could be deferred following a decision by Commission President Jose Manuel Barroso, who is understood to be under pressure from the government to do so.