Europe is pushing for Greece to cut its deficit by an additional 0.7% of gross domestic product this year in order to win further euro-zone financing, but the International Monetary Fund fears existing targets may already be stretching the limits of what΄s politically possible, according to an official close to the talks.
A deteriorating Greek recession, tightening credit conditions and the inability of Athens to implement some of the structural reforms required under a EUR110 billion bailout program has pushed Greece΄s deficit further into the red.
While Europe wants Greece to offset the deficit increase with additional measures to lower government costs and raise revenues, the IMF wants Greece to simply stick to the existing deficit targets, the official said.
(source: Dow Jones)
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