The Hellenic Radio (ERA): News in English, 09-06-10

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From: The Hellenic Radio (ERA) <www.ert.gr/>

CONTENTS

[01] Commitment to Reduce Deficit

In Luxemburg, Finance Minister, Yiannis Papathanasiou stressed that the government plans to take measures to shrink fiscal deficit to 3.7% of GNP in 2009. Mr. Papathanasiou said that the government will take the necessary measures following evaluation of economic development, state incomings and inflation rate in the coming weeks.

FinMin said that vigilance on the course of state finances would continue into 2010 aimed to reduce deficit below 3% mainly with structural measures. He also predicted a recovery of the European economy in the mid of next year ,describing it as a posite fact to cover state deficits created by the global financial crisis. He also stressed that strengthening of competitiveness was the basic question for a rapid exit of the Greek economy from the crisis. Finally, Mr. Papathanasiou stressed that Brussels recognized the government's consistency in dealing with fiscal purging but regardless of this the country's interest dictates that the government would have to adhere to the same route.

The European commission asks for permanent measures which will lead to reduction of deficit and state debt. The government is examining the following measures Settlement of porches turned into rooms Extension of tax relief with receipts Changes in sources of living Rise of tax for cigarettes, fuel and spirits Legalization of technical electronic games

Mr. Papathanasiou has clarified that there would be no extension of measure to support purchase of cars and that ETAK would not change.

In the meantime, inflation rate dropped to 0.5% from 1% in April 2008. The president of the Industrialists Union warned the government to take measures to prevent the country from experiencing deflationary phenomenon. Industrial production index and export- import index dropped by 11.7% in May.

News item: 23360

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