World Bulletin / News Desk
Greece will frontload budget cuts to achieve a primary surplus in 2013 for the first time in many years but its economy will shrink for a sixth consecutive year by up to 4 percent, a government official told Reuters.
The government will unveil a draft budget draft later on Monday, aiming to satisfy international lenders but expected to prolong the economic pain of the Greek people.
It will include more cuts in public sector pay, pensions and welfare benefits as part of an 11.5 billion euro ($14.8 billion)austerity package of savings that will be spread out over the next two years.
Greece's economic output has declined by a quarter since 2008 in a vicious spiral of austerity and recession, with the most heavily indebted euro zone nation repeatedly falling behind in meeting targets set under its EU/IMF bailouts and at risk of being forced out of the single currency area.
The official, who spoke to Reuters on condition of anonymity, said Athens will frontload a big chunk of the new spending cuts under negotiation with inspectors from the troika of the European Union, European Central Bank and International Monetary Fund.
"The draft budget will include 7.8 billion euros in cuts for 2013," the official said.
Belt-tightening has taken a toll on economic activity, suppressing domestic demand and driving the jobless rate to a record 24.4 percent.
The official said the budget will aim for a primary surplus of 1.1 percent of gross domestic product (GDP). He said GDP was expected to contract by 3.8 to 4 percent next year.
This year's primary deficit - which excludes debt servicing costs - is expected to exceed a targeted 1.0 percent of GDP. The finance ministry sees the primary deficit at 1.5 percent of national output in 2012.
The greenback had soared along with global markets for months after Trump's November election victory on hopes his big-spending, tax-cutting policies would fire up the world's top economy and fan inflation.
Nasdaq closes with gains for seven consecutive trading days
Japanese car maker says battery sensors could cause engine fires
The application "will allow EasyJet to establish a new airline, EasyJet Europe, which will be headquartered in Vienna and will enable EasyJet to continue to operate flights both across Europe and domestically within European countries after the UK has left the EU," the no-frills airline said in a statement.
Energy sector that is undergoing transitional period requires new strategies, says Gas Exporting Countries Forum senior
OPEC Secretary General says meetings with US shale producers to continue
Tehran welcomes greater engagement of Turkish firms for Iran's upstream and downstream projects: Iranian Deputy Oil Min.
A return to $100 per barrel oil prices for a sustained period in unlikely, Petoro official says
Deal between Iran's Petropars, Total and Chinese CNPC is sign that return of sanctions is unlikely: Iran's deputy oil min.
Tokyo will contribute to stable world energy supply, says Katsuo Nagasaka, chairman of Chiyoda Corporation
BIST 100 index rises 0.04 percent while US dollar/Turkish lira rate stands at around 3.61
Russia agreed to cut 300,000 barrels of daily oil production in line with OPEC's latest accord in May 2017