Athens: Greece`s new government readied plans on Monday to slash deficits and boost confidence in the country`s
shaky finances by cutting bloated public payrolls and going
after rampant tax evasion.
Greeks concerned about how spending cuts would affect
them were awaiting a speech by Prime Minister George
Papandreou outlining the government`s efforts.
European Union officials have warned that Greece must
deal with its problems itself and not expect a bailout.
A delegation from Moody`s credit rating agency was in
Athens to review the economic situation, which has seen the
country`s projected deficit swell to more than 12 percent of
economic output this year.
That is four times the limit imposed European Union as a
condition of using the euro currency, and twice the previous
The country`s debt has soared to a staggering euro300
billion (USD 442 billion).
Moody`s put Greece`s government credit rating under
review for possible downgrade in late October, and a verdict
is expected by early next year at the latest.