Greece to miss deficit targets

Greece has said its budget deficit will be cut in 2011 and 2012 but it will still miss the targets set by the EU and IMF.



The 2011 deficit is projected to be 8.5 per cent of Gross Domestic Product, down from 10.5 per cent in 2010 but short of the 7.6 per cent target.



The government, which yesterday adopted its 2012 draft budget, blamed the shortfall on deepening recession.



The figures come as inspectors from the IMF, EU and European Central Bank are in Athens to decide whether Greece should get a key bail-out instalment.



Greece needs the 8 billion euros instalment to avoid going bankrupt next month.



Bankruptcy would put severe pressure on the eurozone, damage European bank finances and possibly have a serious knock-on effect on the world economy.