Deficit this year to reach 8.5 per cent of GDP, exceeding
target imposed by lenders, despite plans to slash public
jobs.
Greece has said that it will miss key targets
set by the European Union and the International Monetary Fund
for reducing its budget deficit for both this year and the
next, despite a further round of austerity measures.
The EU and the IMF imposed the targets as part of an emergency
bailout to save the debt-ridden eurozone member state from
potential bankruptcy and a loans default which analysts say
could pitch the world into a new economic crisis.
Greece's deficit this year is expected to reach 8.5 per cent of
gross domestic product, or $25.2bn; higher than the targeted 7.8
per cent of GDP, or $23.1bn, the finance ministry said on
Sunday.
For 2012, the deficit is projected to shrink to
$19.8bn, or 6.8 percent of GDP; still higher than the EU-IMF
target of 6.5 per cent.
Analysts fear any default on Greek debt could pitch the
fragile global economy into a fresh recession.
Eurozone countries who share the debt-challenged euro
currency will be meeting in Luxembourg as International auditors
spent the weekend trying to obtain the most accurate picture of
Greece's finances and forecasts, after protests including staff
occupations of ministries slowed the resumption of negotiations.
The Greek failure to reach the deficit target is linked to a
bailout package that Greece needs to avoid running out of cash.
The government says it needs the loans to pay salary and other
bills this month.
Athens is labouring under a crushing 350 billion euros or
more of debt, with its stripped-bare economy already on its
knees.
