Greece Submits Slashed Budget

    Greek national flags fly outside the parliament building in Athens, Greece, on Thursday, Oct. 27, 2011. The new package will reduce debt by about 100 billion euros and the interest the country pays by as much as 5 billion euros a year, providing a firmer basis for Greece to put reforms in place and begin producing primary surpluses, Greece's Finance Minister Evangelos Venizelos told reporters in Athens yesterday. Photographer: Angelos Tzortzinis/Bloomberg via Getty Images

    Angelos Tzortzinis, Bloomberg / Getty Images

    There are going to be painful cutbacks in Greece for a while. The new government of Prime Minister Lucas Papademos submitted a draft budget Friday in a first step toward meeting requirements for an international bailout. The plan would reduce Greece's 2012 budget deficit by more than a third to just 5.4 percent of its GDP. But there wouldn't be any more austerity measures next year as long as reforms are enacted. The country desperately needs the bailout cash to avoid bankruptcy and disrupting the euro zone. But rival parties still have to pass the plan, and representatives from the International Monetary Fund, the European Union, and the European Central Bank will meet Papademos this weekend to forge a path forward.

    Read it at Reuters