Greece sees 2011 budget deficit at 7.4% of GDP

Greece pledged on Thursday to take further fiscal measures to cut its budget gap to 7.4% of GDP next year in its latest attempt to comply with the terms of a EU/IMF bailout.
The deficit will shrink by 5.1 bln euros next year compared with 2010, according to the final 2011 budget draft submitted to parliament, more than the 2.2 bln euro deficit reduction targeted in an initial budget draft published last month.
Euro zone finance ministers told Athens on Tuesday to cut spending further to meet the fiscal targets agreed as part of its 110 bln euro bailout programme.
"To achieve 2011 budget targets, we need additional fiscal efforts, based on rationalising public spending and structural reforms," Finance Minister George Papaconstantinou told parliament before submitting the budget.
Greece is set to miss its 2010 budget targets after austerity hurt tax revenues more than expected and a revision of past deficit figures revealed on Monday that the country's finances were in even worse shape than assumed.