Sean touched on it earlier but the weekend numbers but the figures in this story re-iterate something that we all know: there is no way out for Greece.

  • The latest budget predicts a deficit of 8.5% of GDP vs. 7.6% target
  • GDP is expected to fall 5.5% this year and 2-2.5% in 2012

The huge deficit comes despite the harsh emergency taxes recently announced. A contracting economy plus a rising deficit plus an inability to finance debt equals default. No doubt the next tranche of aid will be approved but Greece’s default is purely a matter of ‘when’.