The WSJ reports that the European Commission has said it will accept Greece’s plan to reduce its government budget deficit, but warned that further spending cuts and new taxes might be needed to fix the country’s public finances. According to FT Deutschland, the European Commission has put Greece under de-facto EU supervision.

Trade unions in Denmark have reacted strongly to suggestions that the Commission could demand pay-cuts in Greece, Danish paper Politiken reports. The FOA, a Danish trade union which represents most of the country’s public sector workers, has warned that the Commission’s demands could force the union to recommend a No vote in a future Danish referendum on euro membership. “That the EU intervenes in setting [national] wages is completely unacceptable”, Dennis Kristensen, head of the FOA, is quoted saying. The FOA has previously stayed neutral in referenda questions.

The Telegraph quotes EU Monetary Affairs Commissioner Joaquin Almunia saying the Greek targets will be enforced vigorously: “Every time we see or perceive slippages, we will ask for additional measures to correct these slippages. Never before have we established so detailed and tough a system of surveillance”.

The Guardian looks at the possibility of a Greek bail-out and quotes a senior official in Brussels saying, “For political reasons there can be no bailout, but the eurogroup can act with the Greeks to reform. We have a monetary union, a system for supporting the currency, interdependence.”

Die Welt reports on a study by the Cologne Institute for Economic Research, which favours IMF intervention as a solution for Greece, with a researcher quoted saying that “one could question whether EMU institutions have the necessary powers to persist and sanction budgetary discipline”, adding “it’s better that the IMF imposes disciplines on the indebted countries than that Eurozone countries fight amongst each other and political tensions emerge.”

Meanwhile, the FT reports that eurozone governments have borrowed a record €110bn from the markets so far this year, forcing up borrowing costs for those countries with the weakest public finances.

via Open Europe