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Minister: Greek Economy to Shrink by Another 3 Percent in 2011

The Greek economy is expected to shrink by a further 3 per cent this year, Finance Minister Giorgos Papakonstantinou said Thursday, nevertheless pledging to maintain the country’s deficit-cutting course.
The Greek economy had already contracted by 4.5 per cent in 2010.
The country is attempting to cut its deficit from just under 10 per cent in December to 7.4 per cent by the end of this year.
Papakonstantinou said that will be achieved by, among other things, privatizing state-owned corporations and liberalizing the energy market. Officials in Athens are also planning to sell real estate and property that belongs to the state.
There will be a discussion with opposition parties over what is to be put on the market to raise some 15 billion euros (21 billion dollars), the finance minister said.
‘There will not be new taxes or savings measures,’ he said.
Papakonstantinou, however, did not exclude the possibility of further pay cuts for government employees.
He pledged to push through the planned reforms, but also noted that Greece’s course depends on ‘decisions that should be made on the European Union level.’ Athens is hoping for the deadline on the repayment of its international loans to be extended.
Inspectors from the European Central Bank, the European Commission and the International Monetary Fund regularly audit Athens’ financial books. Their reports are key to Greece getting the installments of its bailout, which amounts to 110 billion euros over three years.
(source: DPA)

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