Greece is seeking a two-year extension of its latest austerity programme aimed at improving the country’s debt sustainability and prospects for a return to growth, according to a document obtained by the Financial Times…
It comes as Greece struggles to find another €11.5bn of spending cuts – equivalent to about 5 per cent of national output – to be implemented in 2013 and 2014 under the current bailout deal with the European Union and International Monetary Fund.
The extension plan calls for a slower adjustment with cuts spread over four years until 2016, and the budget deficit declining annually by 1.5 percentage points of national output rather than 2.5 points under the present arrangement… (more)
