Wednesday, April 27, 2011

Greek Deficit Exceeds Target Set by Bailout

New York Times
April 26, 2011

Almost a year after it adopted sweeping austerity measures as a condition of an international rescue package, Greece has failed to get a grip on its public finances, according to new data released on Tuesday, increasing fears that the country may have to restructure its mountain of debt.

Greece’s deficit was 10.5 percent of gross domestic product in 2010, according to Eurostat, the European Union statistics agency. The deficit exceeded the 9.6 percent target set last fall by the government and the European Commission, the European Union’s executive arm. Public debt swelled to 142.8 percent of G.D.P., Eurostat said.

Some critics will see these figures as a vindication of the argument that austerity measures — imposed as part of the 110 billion euro, or $160 billion, bailout last May by the European Union and the International Monetary Fund — are stifling the growth that Greece needs to put its finances back in order.


No comments: