Oct. 2, 2011, 4:53 p.m. EDT
New Greek austerity plan short of target: report
Parliament to vote on cabinet budget proposal
By Steve Gelsi, MarketWatch
NEW YORK (MarketWatch) — The Greek Finance Ministry on Sunday cleared an austerity plan for approval by Parliament that falls short of targets set by the European lenders, according to media reports.
The draft budget calls for a deficit of 8.5% of Greece’s gross domestic product in 2011, falling short of a target of 7.6%, Reuters reported.
The deficit will be reduced to 6.8% of GDP in 2012, but still short of the mark of 6.5% of GDP, according to the plan.
Parliament may vote on the package as early as Monday, according to reports.
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Greece is seeking a tranche of aid totaling $10.7 billion as part of a larger bailout package promised early last year by a three European groups nicknamed the troika.
The cross-border institutions holding the purse strings are the European Union, International Monetary Fund and the European Central Bank.
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Also last week, Greek Finance Minister Evangelos Venizelos welcomed the German parliament’s support for the euro-zone rescue fund and stressed that Greece is committed to meeting its obligations.
The German parliament voted overwhelmingly to increase the size and flexibility of the euro-zone rescue fund, providing an important victory for Chancellor Angela Merkel as she battles growing public skepticism over the country’s role in bailing out its currency partners.
Full story: http://www.marketwatch.com/story/new-greek-austerity-plan-short-of-target-report-2011-10-02
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