Greece in ECOFIN: Adding Numbers Up

(GREEK NEWS AGENDA)   Minister of Finance George Papaconstantinou participated at the European Council Economic and Financial Affairs meeting in Luxemburg (October 19-20).  The minister acknowledged that the budget deficit for 2009 will creep up to 12.5% of GDP, a figure which has been also confirmed by the Bank of Greece.  One third of this significant increase can be attributed to the economic crisis – GDP contracted by 1.5%, investment dropped by 20%, tourism by 15% and shipping revenue by 20%.  The rest can be equally attributed to expenditure excesses, as well as the revision of the way by which the deficit is measured.  Papaconstantinou is ready to negotiate a three-year extension for deficit curbing with the possibility of a further one-year extension.  “The first step is to decrease the deficit to a single digit figure” for 2010, said the minister. The government has pledged to present the Commission with a revised three-year Stability and Growth Programme (2008-2011).Thirteen out of sixteen countries of the eurozone will be put under EU deficit supervision. The European Commission estimates that public finances for all eurozone members will begin to recover by 2011 at the latest.  European Commission: Driving the European Recovery