| ECB's Trichet presses Greece to cut budget gap |
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| Tuesday, 10 November 2009 | |
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European Central Bank Governor Jean-Claude Trichet said Monday that Greece must make a serious commitment to cutting its budget deficit and overhauling its system for collecting data on the Greek economy. His remarks, in a pre-taped interview with Greece's ANT1 television station, join a chorus of criticism by European Union officials in recent weeks over Greece's ballooning fiscal gap and its shoddy statistics. Greece recently revealed that its budget deficit this year will climb to 12.7% of gross domestic product--the highest in the euro zone and more than double what the country had forecast just two months earlier. "If the statistics are credible and the number is so dramatic, then I believe... that it is necessary for you to commit to a very serious plan for consolidating your economy," Trichet said in the interview. Greece has come under intense European Commission scrutiny since it made public the size of its deficit in mid-October. Since then, European Economic and Monetary Affairs Commissioner Joaquin Almunia has repeatedly rebuked Greece for failing to meet its deficit targets; while Jean-Claude Juncker, the head of the informal Eurogroup group of euro-zone countries, has criticized the country for its poor statistics. On Wednesday, the European Commission is expected to recommend that Greece be placed under heightened supervision for its excessive deficit. According to Eurostat, the statistics agency of the European Commission, Greece will have the highest budget deficit among the 27 European Union member states this year, surpassing other big budget offenders like Ireland and Spain. |
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