Wall Street Journal
October 3, 2011
The Greek government submitted a 2012 budget Monday that includes sharp increases in taxes and spending cuts in an attempt to bring its deficit back on track. But the country's disclosure Sunday that it would miss budget targets for this year prompted further fears the country would be forced to reschedule its debts.
The 2012 deficit is now seen at 8.5% of gross domestic product, or about €18.69 billion ($25 billion)—well above a previous target of €17.1 billion, or 7.8% of GDP. As a result, the draft budget presented to parliament calls for €6.6 billion in austerity measures on top of the amount anticipated by government earlier in the year.
Greece will miss its target despite efforts as recently as June to rein in the deficit through a host of tax increases and spending cuts that have further weighed on the country's recession-ravaged economy.
The government expects its €220 billion economy to slump 2.5% next year, after shrinking 5.5% in 2011, as a weakening economic outlook abroad compounds its domestic woes.
More
No comments:
Post a Comment