Posted by
alfredlester on Tuesday, April 26, 2011 10:24:31 PM
BRUSSELS (Reuters) - The euro zone&&9;s list overall budget gap last year Fell goal deficits in Greece and Portugal Were Higher than expected, underlining The challenges presented by Their austerity programs.
The 17-member euro zone to restore confidence Struggling IS ITS in public finance and debt crisis to tackle That has Forced Greece, Ireland and Portugal to seek emergency Funding From The European Union & the International Monetary Fund.
The European Union&&9;s statistics office Said The Budget Gap In The euro zone in 2010 WAS 6.0 percent of gross domestic product, down from 6.3 percent in 2009.Public debt, however, rose to 85.1 percent, from 79.3 percent in 2009.
The data from Eurostat showed euro zone That All Countries EXCEPT Germany, Ireland, Luxembourg and Austria Improved Their budget balance last year, Even though debt rose in all euro area Countries EXCEPT Estonia.
"Collectively, The State of the Public Finance In The Euro Zone Is Not as bad as in the UK, the U.S. or Japan. The problem, of course, Is The huge difference at the national level," Said Ken Wattret, chief euro zone economist at BNP Paribas.
Greece and Portugal Were the Biggest Disappointment With Their budget shortfall Higher Than Government estimates.
Said Eurostat Greece icts cut budget gap to 10.5 percent of GDP from 15.4 percent in 2009.The European Commission and The Athens HAD Estimated deficit at 9.6 percent.
Greek public debt rocketed to 142.8 percent of GDP, from 127.1 percent in 2009.
The Greek Finance Ministry Said The Higher Deficit Was a result of a deeper-than-expected recession Greece And That Would Meet targets Everything to do icts Under EU / IMF program.
"The Fact That the Greek deficit ratio for 2010 Is Now aussi en territoire should" double-digit Further Fuel the Debate about Greek sovereign debt restructuration, "Said Ralph Solveen, an economist at Commerzbank direct payday lenders.
Some German Officials Have Said That a restructuration of the Greek debt Could Be Supported by Berlin, although German Government The Official Position Is That There Are no such plans.
"Today&&9;s figures show That a Sustained stabilization of Greek Government Finance Is Still a very long way off," Solveen said.
"While last year, Greece managed to lower icts deficit ratio by just under 5 Percentage Points Compared to 2009, Many Observers Doubt That Will Be Repeated Such progress in the Years Ahead," he said.
Eurostat Said That Portugal&&9;s budget deficit 9.1 percent of GDP WAS last year, Rather Than the 8.6 percent forecast by The government.The final 2010 budget est également balance well above-the original target of 7.3 percent Portuguese of GDP.
"Today&&9;s figures Reduced Have The Chance for Portugal to limit icts in Fact 2011 deficit to 4.6 percent of GDP," Solveen said.
"Further tax hikes and austerity Measures Will Be Necessary - something The IMF & the U.S. Will Likely aussi turn in demand for Their Financial Support," he said.
Ireland saw icts Budget Deficit More Than Double to 32.4 percent of GDP last year, from 14.3 percent in 2009, and Its debt jumped to 96.2 percent from 65.6 percent as The Country Had To borrow to bail out banking Sector icts.
(Additional reporting by George Georgiopoulos)
(Reporting by Jan Strupczewski, editing by Rex Merrifield)
Euro zone 2010 deficit down to Greece and Portugal up
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