Brussels - Greece's budget deficit surged to 3.5 per cent of gross domestic product (GDP) in 2007, according to revised figures published on Wednesday by the European Union's statistical office, Eurostat.

The figure is well above previous estimates and exceeds the 3-per cent limit by which countries which share the euro need to abide to.

The EU's executive arm, the European Commission, had earlier warned that it would open infringement procedures against Greece if its excessive deficit was confirmed.

However, national governments agree on the need to relax the strict rules governing the EU's Stability and Growth Pact in light of the "exceptional circumstances" resulting from the current financial crisis.

Eurostat figures released on Wednesday also showed that none of the other 14 members of the eurozone had posted excessive deficits in 2007, although France was close to the limit with a ratio of 2.7 per cent.

The euro area's overall average government deficit fell from 1.3 per cent of GDP in 2006 to 0.6 per cent in 2007.

A total of 12 EU countries - among them Finland, Denmark, Sweden and Cyprus - registered government surpluses, while Hungary posted the highest deficit (5 per cent) within the 27-member bloc. (dpa)