Greece cuts deficit targets

Greece has slashed its deficit targets for the next four years following its latest international debt relief deal.

A revised mid-term strategy paper submitted to Parliament foresees the budget deficit shrinking to 7.9 billion euro, or 4.3% of the country’s annual gross domestic product (GDP) this year.

That beats the budget target of 5.2% and the previous mid-term target for 2013 of 5.5%.

The forecasts made public on Friday also provide for lower deficits through 2016, when overspending will hit 2.3% of GDP.

Greece has survived on international bailouts since 2010, in return implementing deep spending cuts and tax hikes to tame deficits that peaked at more than 15% when the economy started to implode in 2009.

The revisions require parliamentary approval.

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