Papademos Gains Cabinet Approval for Final Greek 2012 Budget

Greece’s new government unveiled a budget for 2012 with a deficit shortfall dropping by almost half, thanks to pension and wage cuts and a Greek debt swap that will slash interest costs.

Greece’s budget deficit will narrow to 5.4 percent of gross domestic product next year, or 11.4 billion euros ($15.5 billion), from 9 percent this year, or 19.7 billion euros, according to the budget sent by e-mail from the Athens-based Finance Ministry today.