Greece To Be Pushed To Accept Deeper Deficit Cuts

Greece could be forced to make deeper deficit cuts by European finance ministers. The finance ministers, however, stopped short of outlining measures to bail out the Greek economy, in the event the country is unable to finance its debt. Greece has already promised to reduce the budget gap of 12.7% of GDP to 8.7% by year end.

“We’re waiting for Greece to prove that it’s taking very seriously the commitments it has made,” Luxembourg’s Jean- Claude Juncker said late yesterday after leading a meeting of euro-area finance ministers in Brussels. Should the government’s efforts not satisfy the commission, the EU “will impose on Greece the acceptance of additional measures,” he said. "Greece will be excluded from a vote on any added deficit measures", he said.

If Greece accepts a European bailout, it could stand to lose its voting privileges in the EU. “If a country is in receivership, I think we need to introduce a rule that they are not allowed to vote while they’re in receivership -- in the council or on any other issue,” said Kurt Lauk, the head of the business caucus of German Chancellor Angela Merkel’s Christian Democratic Union.