The Greeks are likely to miss their budget deficit goals in 2011. Their deficit could exceed 8% of GDP. Tax collection is the biggest problem. People don’t have enough money to pay taxes.
The reason? In more western countries, particularly Germany, cutting the budget stimulates the economy and creates jobs. This is because there is a larger private sector to begin with. In Greece most jobs are public sector jobs. Therefore cutting them and cutting back on pay only harms the economy.
The German austerity system doesn’t work here and will derail future prospects for the EU.