Greek debt 'out of control'
Athens, September 2, 2011
The Greek finance ministry was on the defensive yesterday after a new budget watchdog let slip that the country's massive debt was 'out of control' just as officials held critical talks with creditors.
Finance Minister Evangelos Venizelos attributed the error to inexperience.
'All responsible international organisations know in which way macroeconomic and fiscal reports are compiled, checked and published,' Venizelos said.
'It is clear that the budget office still lacks this knowledge, experience and responsibility,' the minister said.
To Vima daily yesterday reported that the government and the creditors are debating a more lenient public deficit target of 8.8 per cent for this year, compared to 7.4pc set in a five-year budget approved in June.
An unidentified Greek official told Dow Jones Newswires that the deficit is likely to exceed 8.5pc of gross domestic product this year.
The watchdog report warned that the dynamic of Greece's enormous debt was 'out of control,' with the country slipping even further into recession.