Greece said on Sunday it will fail to meet 2011 and 2012 budget deficit targets agreed by the troika of international lenders, including the European Central Bank, the European Commission, and the International Monetary Fund.
The budget deficit will reach 8.5 percent of the gross domestic project this year, missing a 7.6 percent target. The deficit will be cut the next year to 6.8 percent, but still will be higher than the 6.5 percent bailout target, the Finance Ministry said in a statement after an extraordinary government meeting.
Crisis-hit Greece is struggling to get in October the next 8 billion euro tranche out of a 110 billion euro bailout from the troika, which left the country in September, saying they could not provide in October the next tranche if Greece failed to meet the agreed budget deficit target. The lenders returned in Greece earlier this week as Greece had announced new austerity measures, including large redundancies, wage and pension cuts.
Local TV channels have quoted government source as saying the country's authorities would increase the 2011 budget deficit target.