Greek socialist government bite the deficit reduction bullet

[Gonzo]

Papandreou’s 2010 Budget, Deficit-Reduction Measures Approved
http://www.bloomberg.com/apps/news?p...d=awHQKjjoxUHQ

Papandreou has pledged “radical” action to narrow the budget gap and restore Greece’s credibility, pledges that have provoked threats of strikes and civil unrest.

The budget plan aims to cut public spending and increase revenue. Measures include a tax on large properties to generate 1 billion euros, benefit cuts for civil servants and a crackdown on tax evasion. The budget will reduce a deficit of 12.7 percent of economic output this year to 9.1 percent in 2010. Earlier this month Papaconstantinou said additional measures beyond those in the budget would reduce the shortfall to 8.7 percent in 2010.

The difference between Greece and the UK is that the Greek government are only in their third month in office of a potential four year term and can blame their predecessors for the mess.

Can we expect similar bold action from Gordon and chums or are they just holding out until next summer when it will no longer be their problem?

[Diver]

Papandreou’s 2010 Budget, Deficit-Reduction Measures Approved
http://www.bloomberg.com/apps/news?p...d=awHQKjjoxUHQ





The difference between Greece and the UK is that the Greek government are only in their third month in office of a potential four year term and can blame their predecessors for the mess.

Can we expect similar bold action from Gordon and chums or are they just holding out until next summer when it will no longer be their problem?

I did write and suggest that they tax contractors at 60% on gross and confiscate all property not essential for day to day living.

Diver in Permy mode