EU predicts larger Greek deficit in 2011

EUOBSERVER / BRUSSELS -Greece's economy is expected to contract more than previously forecast this year, while its budget deficit will exceed the level agreed by international creditors, the European commission has said.

The new estimates, contained in the EU's 2011 spring forecast published on Friday (13 May), are likely to reinforce calls for an additional Greek rescue package in order to stave off a possible default.

Greece's economy will shrink 3.5 percent this year, predict...