EU’s Rehn Says Greek Deficit ’Very Critical’ for Bloc

Olli Rehn, the European Union official picked to tackle the region’s fiscal crisis, said the 27-nation bloc faces “a very critical situation” over Greece’s budget deficit.

“It is essential that rapid action is taken to avoid the situation getting worse,” Rehn told a European Parliament committee today in Brussels during his confirmation hearing. While the EU “is assessing the matter with major concern,” he said Greece is unlikely to leave the euro region.

The Greek government “is aware of the seriousness” of the deficit situation and that its room for maneuver is “very limited,” Rehn said.

For more: EU’s Rehn Says Greek Deficit ’Very Critical’ for Bloc (Update2) - BusinessWeek