Greece announces new budget cuts for 2011

ATHENS: Greek Finance Minister Evangelos Venizelos on Sunday announced new budget cuts totalling around two billion euros as demanded by the European Union and the IMF in exchange for a rescue package for the debt-ridden country.

For the country to be able to meet its obligations, "there is a shortfall of about two billion euros which must be covered," he said on Greek television. "And the only effective measure is a special tax on real estate."

The minister said this "new national effort" was crucial given the unfavourable perception of Greece abroad, with renewed rumours of a debt default or Greece's possible exit from the Eurozone.

Eurozone leaders announced a 159-billion-euro ($223-billion) rescue package for debt-ridden Greece in July, but many Greeks fear the stringent conditions set for the money to trickle down will only make unemployment worse.

Copyright AFP (Agence France-Presse), 2011