Greece will submit plans to cut its huge budget deficit to the European Commission later on Friday. The three-year plan, approved by the Greek parliament on Thursday, aims to cut the deficit to 2.8% of GDP by 2012.

It is currently at 12.7% of GDP – four times the European Union’s limit of 3% – while Greece’s debts amount to 113% of GDP.

The state of Greece’s public finances has come under intense scrutiny from the EU in recent weeks.

This week it expressed concern over the financial data being supplied by the Greek government.

On Thursday, the president of the European Central Bank was forced to dismiss as “absurd” speculation that Greece would be forced out of the eurozone because of its budget problems.

Categories: Market News, US Markets, World Economy
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