Greece just confirmed that it would miss its 2011 and 2012 budget deficit targets, which were set by the EU and IMF.
Its 2011 deficit will hit 8.5%of GDP and its 2012 deficit is expected to fall to 6.8%, said the Finance Ministry.
Its targets were 7.6% and 6.5%, respectively.
However, this isn’t much of a surprise. Last month, a source told Reuters that the deficit would probably hit 8.6% of GDP.
Today’s news was broken earlier by Reuters.
The shortfall in the 2011 deficit target means Greece would need almost 2 billion extra euros just to finance its expenses for this year. It also means emergency tax hikes and wage cuts announced in the past two months to hit the target have not been enough to put Greece’s finances back on track.
Greece also introduced new cuts including a plan to put around 30,000 government workers on partial pay and then lay them off after a year.