Greece revealed today that it is in more dire economic straits than envisioned when a €110 billion bailout deal was agreed to this summer, sparking concern that Europe’s debt crisis could deepen.
The Christian Science Monitor
High school students play cards as they block a main avenue outside the Greek parliament in Athens, on Monday. Unions and other protest groups are escalating demonstrations against the government, and deepening austerity measures. Greece admitted it will not meet closely-watched budget targets in 2011, according to figures in the draft budget for 2012 revealed Monday, spurring renewed turmoil in world markets and pressure on the struggling eurozone member by rescue creditors.
Thanassis Stavrakis/AP
Greece is closer to default than previously thought, calling into question whether a second planned bailout will be enough to contain the European debt crisis – and thus avoid plunging the world into another global recession.
As finance ministers from the eurozone meet today inLuxembourg to address the debt crisis, Greece revealed that it is in even more dire straits than envisioned when international powers agreed to a €110 billion ($146 billion) bailout deal this summer.
Based on a draft budget sent to parliament today, Greece's deficit this year will be 8.5 percent of gross domestic product (GDP), well above the 7.6 percent outlined in the bailout deal. The higher deficit was chalked up to a deeper recession than forecast, which is projected to bring public debt to a whopping 172.7 percent of GDP by next year – the worst ratio in the eurozone.
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