Belfast Telegraph

Friday 26 December 2014

Deficit targets being cut by Greece

Students march during a rally against austerity measures in the northern Greek port city of Thessaloniki (AP)
Students march during a rally against austerity measures in the northern Greek port city of Thessaloniki (AP)

Greece has slashed its deficit targets for the next four years following its latest international debt relief deal.

A revised mid-term strategy paper submitted to Parliament foresees the budget deficit shrinking to 7.9 billion euro (£6.7 billion), or 4.3% of the country's annual gross domestic product (GDP) this year.

That beats the budget target of 5.2% and the previous mid-term target for 2013 of 5.5%.

The forecasts also provide for lower deficits until 2016, when overspending will hit 2.3% of GDP.

Greece has survived on international bailouts since 2010, in return implementing deep spending cuts and tax hikes to tame deficits that peaked at more than 15% when the economy started to implode in 2009.

The revisions require parliamentary approval.

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