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1/16/10

Greece feels the heat as Europe evaluates budget plan - by Christine Pirovolakis

It's not just the unseasonably warm temperatures that are making Greek politicians sweat.

Athens is feeling the heat from the European Union for drastic action to restore its public finances after seeing its credit rating downgraded recently by all three major rating agencies.

In a three-year plan presented to the European Commission on Friday, Greece aims to cut the budget deficit to 8.7 per cent of gross domestic product (GDP) this year, 5.6 per cent in 2011 and 2.8 per cent by 2012.

Greece's public deficit for 2009 is tipped to reach 12.7 per cent of GDP - well above the strict 3-per-cent deficit rule for members of the eurozone, which Athens joined in January 2001, two years after Euro was launched.

For more go to : Greece feels the heat as Europe evaluates budget plan (News Feature) - Monsters and Critics


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