The ink is hardly dry on Germany’s assent to the last bailout package, but Greece is already signalling that more money is needed — and fast. The new and improved deficit targets set by the IMF and the European Union won’t be met, not this year and not next. From Reuters:
(Reuters) – Greece will miss 2011 and 2012 budget deficit targets set by the EU and the IMF, according to figures published by the finance ministry on Sunday after the cabinet adopted the draft 2012 budget.The budget deficit will reach 8.5 percent of GDP this year, missing a 7.6 percent target. It will be brought down to 6.8 percent of GDP next year but will still miss the bailout target of 6.5 percent of GDP.“Three critical months remain to finish 2011, and the final estimate of 8.5 percent of GDP deficit can be achieved if the state mechanism and citizens respond accordingly,” the Finance Ministry said in a statement.
What Via Meadia finds most interesting in that statement is that the Greek Finance Ministry isn’t promising to achieve the 8.5 percent deficit for 2011. That’s a best case scenario if everything goes right. Knowing the Greeks, it probably won’t.I wonder if the speechwriters have started work on Chancellor Merkel’s next speech to the Bundestag explaining the need for still more money for Greece. It will need to be good.