Wednesday, October 27, 2010

Report: Greece Falling Short of Rescue Package Deficit Goal

by Bill McBride on 10/27/2010 10:28:00 PM

From Landon Thomas at the NY Times: Greece Said to Be Falling Short of Deficit-Cutting Goals

With economic conditions weaker than expected, tax revenue is coming up short of projections in parts of Europe.
...
Greece ... looks as if it will run a budget deficit for 2010 greater than the 8.1 percent of gross domestic product it agreed to as part of a rescue package from the International Monetary Fund and the European Union ...

In Ireland, which is expecting its third consecutive year of economic contraction this year, the government says it will need an additional 15 billion euros in budget cuts to reduce its deficit from 32 percent of gross domestic product to 3 percent by 2014.
According to Bloomberg, the yield on the Greece 10-year bond jumped to 10.39% from 9.36% on Tuesday, and the yield on the Ireland 10-year bond increased to a new crisis closing high of 6.77%.