EU Commission backs Greek rescue package after calling Athens measures solid and credible

EU Commission backs Greece on aid package

BRUSSELS — EU Commission President Jose Manuel Barroso has backed the Greek rescue package after calling Athens measures “solid and credible.”

Barroso said Sunday he recommends that the aid measures be approved. Eurozone finance ministers meet on the issue later Sunday.

Barroso says such aid will be “decisive” in getting Greece back on track and to protecting the financial stability of the 16 nations using the euro currency.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

ATHENS, Greece (AP) — Greece’s finance minister has outlined harsh spending cuts and tax increases necessary to free up billions of euros in a joint International Monetary Fund and eurozone rescue for the debt-ridden country.

George Papaconstantinou said Sunday the government is faced with a “choice between collapse or salvation” of the country, and has to implement the measures, which aim to reduce the budget deficit to below 3 percent of gross domestic product by 2014, from the current 13.6 percent of GDP.

The full amount of the three-year IMF-eurozone package will be announced in Brussels after an emergency eurozone finance ministers’ meeting later Sunday.

He says savings worth €30 billion ($40 billion) through 2012 would be achived through public service and pension pay cuts, higher taxes and streamlining government.