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Greece proposes more austerity

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The Greek government proposes more austerity in the draft budget for 2011 (AP)

The Greek government proposes more austerity in the draft budget for 2011 (AP)

The Greek government proposes more austerity in the draft budget for 2011 (AP)

The Greek government has proposed more austerity in the draft budget for 2011 that it submitted as it tries to trim the deficit further to meet the conditions of an international bailout.

The government aims to trim the deficit to 7% of gross domestic product by the end of next year - lower than the 7.6% target set by the terms of the rescue package by the International Monetary Fund and eurozone countries.

Finance Minister George Papaconstantinou had pledged not to impose any further salary cuts on civil servants in the budget.

But more austerity is in store for Greeks as the government continues its efforts to trim a deficit that reached nearly 14% of GDP last year.

According to the budget submitted to Parliament, the government predicts it will have cut the deficit to 7.8% of GDP by the end of this year, better than the 8.1% target that was part of the conditions for Greece to receive an international bailout package.

PA