Greece Slashes Its Deficit By 42% (!)

 um 'cuse me, didn't this just happen?!

What have we learned from this, kids? A trillion euro slush fund can work wonders when a country is trying to get its finances in order.


Greece's finance minister, George Papaconstantinou, has said the country cut its deficit by 42% this year.

He hoped Greece would be able to borrow from financial markets again by 2011.

It means the country is beating a target set by the IMF and EU under the terms of a 110bn-euro (£73bn, $88bn) emergency loan extended this year.

According to Greek central bank data, the government's deficit was 11.5bn euros in the first half of the year, down from 19bn euros a year earlier.

The deficit for the first six months stood at 4.9% of GDP, well inside the IMF target of 5.8%.

The Greek government has vowed to cut the full-year deficit to 8.1% of GDP, from 13.6% last year.

Though Greece can't get a loan to save its life at this point, it plans on borrowing next year (you know, when things get a little more normal and everyone forgets how screwed up Greek finances really were) even though it has access to easy IMF/EU money through 2012.

Extend and pretend.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


malus Diaz said...

Its easy to not spend anymore if the debit machine declines your card...

"What-da-ya mean i'm out of money! I still have checks!"

Anonymous said...

as goes Germany, so goes the Euro I love reading the commentary from the readership to see what "the man in the street" is thinking.

One comment:
Nah, he's absolutely right. Germany IS the problem.

Germany has been (generally) very responsible, watching for signs of problems, keeping their own debts in order, and generally doing things right. They haven't attempted to borrow beyond their means, accepted reasonable growth rather than going for dramatic numbers that can't be sustained, etc. Germany has led the recovery, largely because they didn't get too close to the edge in the first place.

So, by comparison, those other countries that over-borrowed, or simply run enormous debts knowing full well that it can't be maintained over time, look bad. Shame on the Germans for making them look bad.

Clearly, the change that is needed is that Germans need to be more like everyone else so everyone else won't feel so bad.

NOTE: I wish the US could learn some lessons here too, but at least the US government isn't blaming Germany.

The commentary is starting to sound like "Go fuck yourselves" but it could just be me hearing that.