The TT has been calling the Greek bailout, as well as the other bailouts for Portugal, as a black hole for a long time now. The EUcrats are throwing good money after bad in the hope of salvaging their political union that was founded on false promises and backward thinking. KGS
CRISIS: GREECE, “BLACK HOLE” IN BUDGET INCREASES AGAIN
(ANSAmed) – ATHENS – Despite the drastic austerity measures adopted by the Greek government, the “black hole” in the country’s budget is deepening and has now reached a figure of 4.53 billion euros for the first six months of 2011. Provisional figures suggest that the central government’s budget deficit for the period between January and June 2011 reached 12.781 billion euros, more than the predicted figure of 10.374 billion and above the 9.997 billion figure recorded over the corresponding period of 2010.
Revenue for the first six months of the year dropped to 3.051 billion euros. Net income from the ordinary state budget was 21.814 billion, a fall of 8.3% compared to the same period of last year, while targets laid out beforehand had identified a scheduled increase of 5.4%. The Finance Minister says that the fall in revenue is in particular the result of a recession that is deeper than allowed for when the budget was being drawn up, and will be tackled in the second half of the year with revenue from tax income, as part of the medium-term economic programme running from 2011 to 2015.
Government economists, however, fear that the extra 6.7 billion euros in measures laid out in the programme will not be enough to cover the “black hole” in the budget and reduce the deficit to 7.6% of GDP in 2011. This would make new economic measures necessary before the end of the year.