Greek sovereign debt is fast increasing, fed by the persistent deficits in the current fiscal exercise, which is expected to leave for this year a gap of around 9% of GNP that may very likely reach 10% at the end of December, almost exactly as it was last year.

This means that all the 'draconian' measures taken by the Papandreou government over the past ten months have been completely ineffective, undermined by the larger-than-expected recession in the real economy.


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