Bring the gifts

5 October 2010 By Pierre Briancon

The government is ahead of IMF/EU targets for cutting its deficit, as its new budget shows. But revenue is seriously lagging, due to the country’s massive tax fraud and evasion. Athens wants to sort this out but, as last week’s tax amnesty shows, this won’t be easy.

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The Greek government on Oct. 4 pledged to cut the 2011 budget deficit faster than agreed in a 110 billion euro IMF/EU bailout deal, vowing another year of tough austerity to exit a debt crisis.

The 2011 budget draft submitted to parliament foresees the deficit will reach 7 percent of gross domestic product, compared to 7.8 percent in 2010 and a 7.6 percent target agreed for next year with international lenders, the International Monetary Fund and the European Union.

Greece's public debt is the highest of the euro zone, seen at 133 percent of GDP this year and 142 percent in 2011.

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