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Mon 12 Dec 2009Pressure builds on Greece to solve crisis

GREECE MUST announce bold initiatives in the next few days to rescue its collapsing bond market and avert the possibility of defaulting on a rising public debt, leading economists and bankers warned yesterday.

Prime minister George Papandreou will today outline structural reforms aimed at cutting the budget deficit from 12.7 per cent to 3 per cent of gross domestic product (GDP) – the limit allowed by the euro zone’s stability and growth pact – over the next four years.

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