Greece presents 2012 draft budget, sees lower deficit next year

ATHENS. November 19. KAZINFORM The new Greek coalition government submitted to parliament on Friday the 2012 draft budget, forecasting an ambitious budget deficit cut to 5.4 percent of gross domestic production (GDP) next year form this year's 9.0 percent; Kazinform refers to Xinhua.

According to the draft budget, the Greek economy will shrink by 2.8 percent next year, while inflation and unemployment will stand at 0.6 percent and 17.1 percent respectively.

"This is the first major step of the new administration of consensus that paves the way to exit the debt crisis and make a new start," Deputy Prime Minister and Finance Minister Evangelos Venizelos told a press briefing.

The budget has been approved by the cabinet aired by Prime Minister Lucas Papademos earlier on Friday.

According to Venizelos, if the deliberations launched this week over a 50-percent "haircut" of the Greek debt agreed on Oct. 26 in Brussels end positively, the Greek deficit can be reduced to 5.4 percent next year.

Otherwise, it would be slashed to 6.7 percent of GDP.

Venizelos assured that if everything goes according to the plan, the government will not be obliged to introduce further austerity measures; Kazinform cites Xinhua.

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