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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Photos Full Coverage Sitemap Greece to keep to bailout terms in 2011 budget: minister AFP - 2 hours 48 minutes ago Send IM Story Print Greece to keep to bailout terms in 2011 budget: minister ATHENS (AFP) - – Greece will stick to the tough terms of its massive EU-IMF bailout and further tighten austerity measures in its 2011 budget, Finance Minister George Papaconstantinou said Sunday. "The draft which will be announced Monday will be based on the (EU-IMF) memorandum and will integrate the measures foreseen in that memorandum," George Papaconstantinou said in an interview in the To Vima daily. Crippled by debts of nearly 300 billion euros (415 billion dollars), Greece became in May the first eurozone member to need a financial bailout, with the European Union and International Monetary Fund stepping in with a 110-billion-euro rescue package. The draft budget, which should be finalised within two months to be submitted to parliament for approval, targets a public deficit of 7.6 percent of gross domestic product (GDP), after squeezing it down from 14 to a planned 8.1 percent this year. The primary objective for the government in 2011 will be boosting tax revenue. While the government has succeeded in squeezing the public deficit by nearly a third in the first eight months of this year, that has mostly come from cuts in spending. During this period revenues increased by only 3.3 percent, far short of the target of 13.7 percent. "In 2011 we will try to increase revenue and apply and the new tax law and measures against tax evasion," said Papaconstantinou. The Greek government has cut public sector salaries, hiked the minimum retirement age from 60 to 65 years, and raised a slew of taxes in a bid to reduce its budget deficit. It has also launched measures to crack down on endemic tax evasion. Papaconstantinou expressed confidence that the measures already adopted would push the public sector deficit down to 12 billion euros, down from the 14.5 billion deficit it ran in the first eight months of this year. Responding to concerns in the Greek media about the long period of austerity, the minister promised that after "the first two years of austerity, the following years will be a period of stability and development." Recommend Send IM Story Print News Search Top Stories Top economist warns of European 'wave of austerity' Greece to keep to bailout terms in 2011 budget: minister Europe draw level with US in rain-hit Ryder Cup Bosnian voters hope elections will bring change US contemplating travel alert for Europe More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended Mix of sadness, triumph as Brazil's Lula makes his exit Foreclosures bungle could hit US banks China's Wen calls on EU to help it reform financial system US contemplating travel alert for Europe Schwarzenegger, California lawmakers in budget deal More Most Viewed » US state executes first woman in nearly 100 years 'Time bomb' superbug requires global response: doctor Workers swarm Europe's streets in anti-cuts protests More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo! Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Yahoo! News Network Copyright © 2010 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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