IMF praises Greek budget cuts

Greece - 15 September 2010

Greece's program of budget cuts is "on track" for this year but further austerity measures will soon be needed, the International Monetary Fund (IMF) has stated.

According to an IMF report, Greece is on course to spend €4 billion ($5.19 billion) less than originally planned in 2010.

It called on the Greek government to follow this up by pushing through privatization methods in a variety of industries, as well as removing the red tape holding back the retail and tourism industries in the country, reports Reuters.

Greece also needs to improve spending controls, as well as cracking down on tax evasion, the IMF suggested.

"The program's credibility hinges critically on improving tax compliance," said the report.

Earlier this month, Hans-Werner Sinn, the head of Germany's IFO Institute, called on politicians in Greece to consider pulling out of the eurozone rather than imposing further austerity measures which could push the nation to "the edge of civil war", reported the Guardian.

By Claire Archer

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