EU said to be concerned over new tax and spending plan

Eurozone officials showed concern after Athens announced plans to cut taxes and raise welfare spending which could breach commitments made by Greece to its creditors, three sources involved in monitoring the country's fiscal situation said.

After exiting its third international bailout in August last year, Greece has agreed with eurozone lenders to abide by strict fiscal targets until 2022 in exchange for further financial support.

But ahead of EU elections on May 23-26, and after Greece outperformed its fiscal targets, Prime Minister Alexis Tsipras on Tuesday announced tax cuts and pledged to reinstate a benefit for low income pensioners among other "relief measures."

The plans "may not be in line with commitments," one EU source said, adding that EU officials had raised concerns during a regular mission to Athens which ended on Wednesday.

Greece has...