This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8411749.stm

The article has changed 8 times. There is an RSS feed of changes available.

Version 4 Version 5
Greece 'faces sinking under debt' Greece 'faces sinking under debt'
(10 minutes later)
The Greek prime minister has unveiled a series of spending cuts, warning that the country is at risk of "sinking under its debts".The Greek prime minister has unveiled a series of spending cuts, warning that the country is at risk of "sinking under its debts".
George Papandreou said the planned cuts would include a hiring freeze on certain public sector jobs and reduced social security spending.George Papandreou said the planned cuts would include a hiring freeze on certain public sector jobs and reduced social security spending.
Calling for national unity, he vowed to reduce Greece's public deficit from the current 12% to under 3% by 2013.Calling for national unity, he vowed to reduce Greece's public deficit from the current 12% to under 3% by 2013.
He also announced a 90% tax on the bonuses of senior bank workers.He also announced a 90% tax on the bonuses of senior bank workers.
Other proposals include a cut in defence spending, pay freezes for public sector workers, and the closure of a third of Greece's overseas tourism offices.
"We must change or sink," said Mr Papandreou."We must change or sink," said Mr Papandreou.
He added that Greece had "lost every trace of credibility" and the country had to "move immediately to a new social deal".He added that Greece had "lost every trace of credibility" and the country had to "move immediately to a new social deal".
Indicating that some spending cuts would be painful, he said that "we must all lose our comfort".Indicating that some spending cuts would be painful, he said that "we must all lose our comfort".
'Not Iceland''Not Iceland'
Mr Papandreou's comments come a week after international ratings agency Fitch downgraded the country's credit rating - meaning that it thought Greece was now a riskier place to invest.Mr Papandreou's comments come a week after international ratings agency Fitch downgraded the country's credit rating - meaning that it thought Greece was now a riskier place to invest.
Finance Minister George Papaconstantinou earlier defended Greece's position in the eurozone, despite its deficit being far above the European Union limit of 3%.Finance Minister George Papaconstantinou earlier defended Greece's position in the eurozone, despite its deficit being far above the European Union limit of 3%.
He said Greece was worthy of its place because it "abides by the rules" and was "not the only eurozone country with a deficit of that order".He said Greece was worthy of its place because it "abides by the rules" and was "not the only eurozone country with a deficit of that order".
Mr Papaconstantinou told the BBC: "Greece is not the next Iceland, nor is it the next Dubai... it is tackling the very serious situation that we have.Mr Papaconstantinou told the BBC: "Greece is not the next Iceland, nor is it the next Dubai... it is tackling the very serious situation that we have.
"It is doing it with specific measures that cut expenditure and increase government revenue and also it is a government which is immediately tackling long-term structural problems," he added."It is doing it with specific measures that cut expenditure and increase government revenue and also it is a government which is immediately tackling long-term structural problems," he added.
Since last week's decision by Fitch, Greece has come under increasing pressure to take action over its deficit from the European Central Bank.Since last week's decision by Fitch, Greece has come under increasing pressure to take action over its deficit from the European Central Bank.
However, Collin Ellis, European economist at Daiwa Securities, says that "the idea that the euro area is on the the brink of losing Greece and possibly other members is simply absurd".However, Collin Ellis, European economist at Daiwa Securities, says that "the idea that the euro area is on the the brink of losing Greece and possibly other members is simply absurd".
He believes there is still time for the Greek government to sort out its finances, and, should it not be able to, "it is inconceivable that other euro area member states and, if necessary, international organisations would not step in".He believes there is still time for the Greek government to sort out its finances, and, should it not be able to, "it is inconceivable that other euro area member states and, if necessary, international organisations would not step in".
The country's public debt stands at 300bn euros ($442bn; £269bn).The country's public debt stands at 300bn euros ($442bn; £269bn).