From BBC:
The Greek government has unveiled an austerity budget that aims to cut its 2011 public deficit to 7.4% of the nation's annual economic output or GDP.
If achieved, this would mean a 5bn-euro ($6.8bn; £4.3bn) reduction on Greece's projected 9.4% deficit for 2010.
Under the budget plans, the government will cut health and defence spending, and increase the sales tax on most retail items from 11% to 14%.
Greece had to accept a 110bn-euro ($150bn; £93bn) rescue deal in May. This sum - which is being given to the country in three stages - has come from the European Union and International Monetary Fund.
To get the money, Greece had to agree to enforce substantial spending cuts to reduce both its public deficit and overall government debt, which are among the largest in Europe.
The country's finance department also said that the Greek economy would contract by 4.2% this year and by a further 3% in 2011, higher than its previous estimate of a 2.6% slowdown next year.
Greece is taking an axe to its deficit. As much as everyone says the country and its citizens are in denial, they are taking the largest steps to get their house in order. Will it be enough? Time will tell. Will it stay in place when the "crisis" subsides (a better question)? This is the crux of the biscut. It is easy to swim when the sharks are circling, but the calmer water often poses a bigger challenge.
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