Greece Pledges Cuts to Bring 2011 Deficit to 7.4%
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Greece’s government plans to cut the budget gap by 5 billion euros ($6.8 billion) in 2011 by reducing spending, including wages at state companies, and increasing sales taxes to meet targets under a European Union-led rescue.
The deficit will decline to 7.4 percent of gross domestic product, or 17 billion euros, from 9.4 percent of GDP this year, according to an e-mailed statement from the Athens-based Finance Ministry today. That compares with a target of 7.6 percent under the May agreement with the EU and the International Monetary Fund to secure 110 billion euros in emergency loans.