FRANKFURT (AP) - The euro edged slightly higher against the dollar in early European trading Wednesday, after Greece's prime minister toughened an austerity program that would freeze salaries among the country's civil service. The 16-nation euro rose to $1.4021 in trading compared with $1.3964 in late New York trading the night before. Meanwhile, the British pound edged up $1.6056 on Wednesday from $1.5978 on Tuesday while the dollar fell to 90.18 Japanese yen from 90.38 yen. The euro has been buffeted by mounting concern about the debt carried by Greece, Portugal and Spain, all members of the eurozone. Tuesday night, Greek Prime Minister George Papandreou said his country would implement a blanket civil service pay freeze, raise fuel taxes and increase the retirement age, part of a bid to get the country's runaway budget deficit under control. Later Wednesday the European Commission is scheduled to issue its assessment of Greece's plans for its deficit, which is more than four times the European Union limit of 3 percent. That report is what has the euro treading water at the moment, said Michael Hewson, an analyst at CMC Markets in London, adding that the assessment "should lend support to Greece's attempts to cut and tax its way out of its fiscal hole." He noted Papandreou's call for tighter measures, but said making them stick is the main concern. "Calling for these austerity measures is one thing, but the real test comes in implementation, and that could be where the wheels come off," he said. The European Central Bank, which meets Thursday, is expected to stay out of the Greek debate while keeping its benchmark rate unchanged at 1 percent. Low interest rates can weigh down a currency as investors move funds to other markets that have higher yields. The U.S. has one of the lowest official interest rates of the major economies, even lower than the ECB's, and many emerging-market countries have substantially higher rates.

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