Debt-ridden Greece has come under increased pressure to implement tough austerity measures after the European Union announced plans to closely monitor the country's efforts to cut its enormous budget deficit. The new wave of belt-tightening could spark more protests by workers.

Pressure on Greece to get its public finances into shape increased Wednesday as the European Union announced unusually strict measures against the country. The European Commission, the E.U.'s executive body, is to put Greece under closer monitoring than any euro-zone country has ever been subjected to and also criticized Athens for faulty reporting of statistics.

Speaking at a press conference Wednesday, European Economy Commissioner Joaquin Almunia welcomed Greece's new plan to reduce its enormous budget deficit. On Tuesday, Greek Prime Minister George Papandreou announced a package of austerity measures that includes a freeze on salaries in the public sector, a possible increase in the retirement age and a hike in fuel prices.

Almunia said that the Commission was endorsing the program, which he described as "ambitious" but "achievable." "We know that the implementation of the program will not be easy," he told reporters. "It's extremely challenging, but absolutely necessary and urgent."

However, the E.U. wants Greece to do even more and is urging it to adopt a "comprehensive structural reform package" that would include cuts in pension spending and reform of the health-care system. The Commission also wants Greece to increase the competitiveness of its economy by making its labor market more flexible, among other demands.