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ATHENS (Reuters) - Greece said on Tuesday it would cut its double-digit budget deficit under the EU's 3 percent of GDP limit by 2012, a year earlier than previously planned, bowing to pressure from markets and euro zone peers.
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A day before EU and ECB officials arrive for an inspection visit to Athens, the new socialist government set a more ambitious fiscal health target, pleasing bond markets but drawing skepticism from economic analysts.
Greek Prime Minister George Papandreou told his ministers to move faster in cutting ballooning deficits and debt, a week before Greece taps international markets for funds.
"The prime minister asked that the adjustment be front-loaded and that the reduction of the deficit takes place in three years," Finance Minister George Papaconstantinou told reporters after a cabinet meeting. "The fiscal adjustment will be done quickly to exit (EU) supervision so that we can turn a new page for the country."
A team of EU and ECB officials is due in Athens this week to discuss fiscal measures in the euro zone's weakest link. The government had pledged in December to cut the deficit to 8.7 percent of GDP in 2010 from 12.7 percent last year and under the EU ceiling by the end of 2013.