ATHENS (MNI) – Greece will be unable to meet its public deficit
target of 8.1% of GDP for this year, the Finance Ministry said Monday,
estimating that the deficit could be at least 9.4%.
The government will make addition spending cuts in the wider public
sector in order to offset the impact on the current budget of the upward
revisions to the 2006-2009 deficits announced by Eurostat, the ministry
said.
“We are committed to continue fiscal consolidation,” it said in a
press release. “The effort to achieve medium-term fiscal targets will
made in a balanced and just way and according to the commitments taken
by the country.”
“There will be no additional cuts in wages and pensions or
increases in taxes beyond what we have already pledged,” it added. The
supplementary consolidation effort “will be achieved mainly by cutting
state spending.”
Athens is in talks with EU and IMF officials currently undertaking
a new round of inspections to determine whether the government is
eligible for the third loan installment scheduled for December and which
additional measures should be taken this year and next.
According to Greek press reports, the government will need further
measures of up to E4.5 billion in order to meet deficit targets through
2011. Both Prime Minister George Papandreou and Finance Minister George
Papaconstantinou have indicated they wish to negotiate with officials to
extend the intended consolidation measures over period of three years to
avoid tax increases.
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