Athens troubled by budget, Games

ATHENS — Problems are growing for the new conservative government in Greece, with the Europeans warning about the country’s fiscal deficit and Olympic Games preparations requiring funds beyond those previously forecast.

Officials say the economy is in an unpleasant state and blame this on excessive spending by the socialist administration that was voted out of office in March.

The socialist Pasok party, led by George Papandreou, was defeated by the conservative New Democracy party of Costas Karamanlis after 11 years in power.

The deficit ceiling set by the European Union for the 12 countries using the euro as their currency is 3 percent of the gross domestic product. Economy Minister Georgios Alogoskoufis said spending will have to be reduced but will not affect funds for the Olympics in August.

The National Bank of Greece, the central bank, is expected to announce the latest budget deficit figure by the end of the month. The government expects it to be about 2.95 percent, slightly less than the euro-zone ceiling.

“We will implement our program for growth, employment and social cohesion,” Mr. Alogoskoufis added, stressing that his government will “restore credibility and transparency to public finances.”

“The deficit is a result of Olympics projects and unchecked fiscal expenditure,” wrote the conservative Athens daily Kathimerini. “The government must trim spending and hence adapt its planning to the new realities. … The Summer Games have, for the time being, deflected attention from crucial issues.”

Meanwhile, delays and security concerns continue plaguing officials in charge of the Olympics, with some described as increasingly jittery four months ahead of the Games.

Plans for a roof over the Olympic pool had to be scrapped and work on the tramway system as well as several sports venues are far from being finished.

“Many projects will be completed at the last moment — and only just,” said Public Works and Environment Minister Giorgios Souflias.

The roof over the main stadium — a steel and glass dome — is scheduled to be completed on July 20, a little more than three weeks before the Aug. 13 opening ceremonies.

“We are right on the edge. We need a surplus of determination and effort from all involved,” declared Fanni Palli-Petralia, the “alternate culture minister.”

Some of the Olympic sites have been affected by a recent strike of construction workers, who threatened more walkouts to back demands for a 35-hour workweek.

Also, the union of civil aviation workers warned that Greece’s airports were not equipped to handle the volume of increased air traffic expected during the Games. The government has not commented on the warning.

In contrast to delays on Olympic sites, work appears to be moving ahead on a massive face-lift affecting about 1,500 buildings in Athens.

Athens Mayor Dora Bakoyannis said about 70 buildings have been repainted but described most of the capital’s housing as “drab, neglected, lacking identity, with their external appearance wounded by the passage of time.”