Businessweek: Greece looks to drag economy from 'intensive care' -
Greece's new center-left government pledged to pull the economy out of "intensive care," but conceded Friday that public debt would continue to surge, reaching a massive 120 percent of annual national output next year. The Socialist party's draft 2010 state budget aims to trim government spending and cut the deficit to 9.1 percent of gross domestic product -- amid fierce pressure from the European Union to improve public finances. While still three times the EU deficit ceiling of three percent of GDP, the target is significantly lower than the 12.7 percent figure forecast for 2009. The draft budget foresees the economy starting to expand again towards the end of 2010 -- when it will shrink by 0.3 percent -- after a 1.2 percent contraction this year.
