More Steps to Cut Greece's Budget Deficit

To reduce Greece's current budget deficit of 12.7% of GDP to 8.7% of GDP this year is the target of Greece's current Finance Minister. The current Greece's government has pledged to slash the shortfall to the EU limit of 3% in 2012 by cutting spending, freezing wages, raising taxes on items like alcohol and cutting down on tax evasion.

It has been recently uncovered that Greece is using swaps to cover up the true amount of its deficit. The EU is promising support on the condition that all the requested measures are met. However, the tricky problem here is that once Greece is helped the dam would be broken and Spain and Portugal will be counting on help from the EU to cut their own budget deficits.