BRUSSELS (MNI) – Greece’s budget deficit declined by 40% in the
first quarter of this year compared with the same period a year ago,
Greece’s finance minister George Papaconstantinou said on Thursday.
Greece is grappling to manage an annual budget deficit more than
four times the European Union’s stipulated 3% limit, and many in the
market fear it won’t be able to make its repayments and could default on
its debts.
Fresh data announced on the Greek finance ministry website said
that the deficit in the first quarter of this year was E4.3 billion, 40%
lower than the E7.1 billion deficit recorded in the first quarter of
2009.
“This 40% decline has been achieved even before the latest
additional government measures cutting expenditures and increasing tax
revenues have fully taken effect,” Greek Finance Minister George
Papaconstantinou told the country’s parliament, according to a statement
on the finance ministry web site.
“It proves that the government is fully on track to meet the 8.7%
of GDP deficit target in 2010 and is successfully implementing the
Stability and Growth Programme in order to put the economy on a
sustainable path,” the finance minister said.
European Union countries have a pact to limit their budget deficits
to 3% of annual GDP. In 2009, Greece’s budget deficit was 12.7%, and
Papaconstantinou said earlier this week that figure would likely be
revised higher but that the revision would be small.
Eurozone finance ministers struck a deal late March to provide
bilateral Eurozone loans and IMF aid to Greece if needed.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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