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Inspectors find that Greece missed all targets - report
Date 29/05/2011 23:22  Author webmaster  Hits 1000  Language Global
29 MAY 2011

(Reuters) - Greece has missed all fiscal targets agreed under its bailout plan, a mission from an international inspection team found, putting further funding for Athens at risk, according to a German magazine.

"The troika asserts in its report to be presented next week that Greece had missed all its agreed fiscal targets," weekly Spiegel magazine reported in a prerelease.

The International Monetary Fund, the European Commission and the European Central Bank -- known as the troika -- currently have a team in Greece assessing how sustainable the country's debts are.

The mission will be holding meetings next week before an expected finalisation of the report.

"The deficit in the public budget was higher than expected," the magazine said, referring to the report's findings.

"The reason is that the Greek government still spends more than agreed in the aid programme. On top of that tax income is still lower than demanded."

The IMF has already said it cannot release its part of a 12 billion euro (10.4 billion pound) aid tranche to Greece next month if fiscal conditions underpinning the bailout are not met and the European Commission's top economic official was quoted as saying the EU was setting the same conditions.

"We Europeans have the same conditions as the IMF," EU Economic Affairs Commissioner Olli Rehn was quoted as saying in the same prerelease for Monday's Spiegel magazine.

"We will decide on the next tranche after the troika's report. The situation is very serious," Rehn added.

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