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.