Greece outweigh in 2009-2010 allowed in the eurozone budget deficit

Greece is several times higher than allowed for eurozone budget deficit in 2009-2010, written in Greek newspapers on Friday, citing sources in the government.

Ministry of Finance expects that this year the deficit will rise to 12-14% of GDP, which is about 240 billion euros. The government socialists came to power in elections on 4 October, will have to find some 30 billion euros in addition to more than 60 billion that the country has already borrowed in foreign markets since the beginning of this year.



Given the anticipated recession in the second half of 2009 and the second in 2010, the Greek government determines the budget deficit of less than 10% by the end of 2010. The previous center-right Cabinet ministers promised by this time reduced to acceptable levels in the eurozone of 3%, but this plan was rejected by voters, as well as economic analysts, who considered it overly optimistic.

The Finance Ministry does not exclude the country's increasing number of charges in 2010. Either way, reducing the deficit to 3-4% in the coming year will require the authorities to save 10 billion euros, at least half of which must come from higher taxes.

Among the possible measures the government called the tax increase on real estate, the heavier tax burden for the most wealthy individuals, the increase in excise taxes on tobacco, alcoholic beverages, gasoline. Finally, the government does not leave hopes to legalize some 1.5 million open balconies that their owners without the permission of blocked and turned into part of his home, to recover from these premises real estate tax, thereby completing the budget. It is known that efforts in this direction were made over several years, but to no avail.

Meanwhile, the state will inevitably continue to borrow large sums to foreign markets. According to the business editions of Greece, the Government received in October, "cashier" in the 8 billion euros, which is already almost entirely spent on the current commitments of the budget. According to the Central Bank of the country, from the beginning of the year Athens lent 62-63 billion euros under the relatively high percentage, and further borrowing is inevitable. "I would like at least that we have not reached 70 billion borrowed funds this year," - said a source in the Ministry of Finance.

It is expected that this year the debt of Greece for the first time in several years will exceed 100% of GDP

Related Posts by Categories