Economy World

Greece will miss its deficit target in 2012

ATHENS, Greece – On Monday the Greek government acknowledged  that it would not be able to meet the goal of reducing its deficit to 6.5 percent of GDP in 2012. It is able to reach 6.8 percent.

According to figures from the draft budget law submitted to Parliament, the Greek debt is expected to reach 172.7 percent of gross domestic product or 371.9 billion euros.

The challenge for the socialist government of George Papandreou is to obtain payment of a loan of eight billion euros, the sixth installment of the aid plan of 110 billion euros in May 2010 decided by the euro area and the IMF to prevent a collapse of the country.

Faced with the persistent difficulties of Athens, the leaders of the euro area had to agree  on a new rescue plan 109 billion euros on 21 July, which would only enter into force once approved by each State.

Inspectors from the “troika” (European Commission, European Central Bank and International Monetary Fund) are in Athens these days to review measures taken by Greece.

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