Wednesday, April 22, 2009

The budget deficit of Greece affect the whole euro area

Greece plans on Wednesday, April 22, to announce unexpectedly high budget deficit in 2008. It is estimated the European Union's statistical office "Eurostat", Greece's budget deficit is 4.8% of GDP, well above the last assessment of the Greek government 3.7% of GDP.

Statement by Greece will inevitably strengthen the resolve of Germany and other countries to strengthen the rapid return to fiscal discipline, which is one of the key rules of monetary union, and the cessation of new programs that entail budgetary costs. Greek Finance Minister Janis Papatanasiu promises to prevent the growth of budget deficits.

"We have already frozen the salaries of public sector programs to stimulate the economy will not. We are signaling to ministers that they should save, save and save again - he said in an interview with" Financial Times ". - Revenues declined as surplus pension funds lower than forecasts, and the transfer of funds in the EU, about 0.5% of GDP, this year's delayed. "

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