The Greek government has finally managed to cut the budget deficit by 37% (down to €12.6bn) over the last 9 months. In 2011, the Greek budget deficit was equal to €20.1bn.
Spending cuts by 13% down to €49,4bn are the main reason for the decline. The budget income has reached €36.7bn, which is €1.3bn less than the target level of €38bn.
The Greek Department of Finance has increased taxes and cuts salaries in the public sector. Investments in the national economy are reduced as well. Nevertheless, Greece is still on the verge of defaulting on its debt. It will be very difficult to save the Greek economy. Social tensions have reached the climax. More and more experts say that Greece should leave the eurozone and go back to the Drachma in order to restore the balance and reduce the public debt.
Forex.
The chart below, courtesy of , reflects the current state of affairs in the market of EUSUD. The currency pair is trading within the 1,3171-1,2803 price range formed by a wave of level H8. In order to resume the long-term rally, the price will have to break and consolidate above 1,3071 and 1,3171. Alternatively, in order to reverse the recent rally, the currency pair will have to consolidate below 1,2803 (as shown below):
