- Oct 26, 2006
Greek debt problems 'worse than ever' | The PostDebt-ridden Greece is even further in the red than most people thought, experts warned today.
Its 2009 budget deficit and debt levels were much higher than previously estimated, the European Union statistics agency said, making it unlikely the country will reach targets set out in its bailout agreement.
Greeces 2009 budget deficit reached 15.4% of gross domestic product, significantly above its previous estimate of a 13.6% deficit, Eurostat said.
Public debt stood at 126.8% of GDP at the end of last year, higher than that of any other EU state. In April, Eurostat had estimated the figure at 115.1% of GDP.
The revisions are likely to mean Greece will not achieve its initial target of lowering the deficit to 8.1% of GDP by the end of this year.
Prime Minister George Papandreou insisted last week that his government would still be able to reduce the deficit by at least 5.5% by the end of the year, as promised.
The problem in Greece is worse then what was forecast and Portugal is not doing well either. The PIIGS are on life support now it seems. The Irish government needs to learn something from this but will they?