Yesterday saw the passage of an austere budget plan by the Greek government. I don’t consider going into all of the details of the plan to be important. Most importantly though, the budget deficit as a percentage of gross domestic product is projected to be 7.4% in 2011 vs. 9.6% this year.
That the Greek government passed this budget amidst rioting in Greece is evidence of its serious intent to adhere to the restrictions placed on it by fellow EU members. This is a good sign for a return to stability over the next 2-3 years in the European financial situation.
Jason
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