Wall Street Journal
November 11, 2010
Anemic government revenue has pushed Greece behind its targets for reducing the state's treacherous budget deficit, fresh data from monthly reports of the Greek finance ministry show.
The ministry reported that Greece's central-government deficit narrowed 30% in the first 10 months of this year compared with a targeted narrowing of 32%.
Greece's poor fiscal health sparked Europe's sovereign-debt crisis this spring. When the country ran out of money to repay its creditors, the other euro-zone countries and the International Monetary Fund stepped in with a €110 billion bailout.
The country has little room for fiscal maneuver, and missing the deficit target would leave Greece with unpleasant options if it wants to avoid a debt default: more tough budget cuts imposed on a restive population, or more bailout money. It remains effectively shut out of private debt markets by the giant premiums that investors are demanding on Greek bonds.
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