Greece May Have Already Missed Budget Target

BRUSSELS(MarketWatch) -- Greece is at risk of missing a key budget target in June, European Union experts said in a report, a sign of the uphill struggle the country faces as it tries to get its deficit reduction plans back on track.

The report, prepared by European Commission budget experts with input from European Central Bank officials and published over the weekend, says that Greece could miss its June target for its primary budget balance, a measure of the government deficit that excludes interest payments on outstanding debt.

Government revenue faces "significant" shortfalls that have only partially been offset by lower spending and delayed payments, the report says. "As a result, the quarterly performance criterion on the primary balance could be missed already in June."

The EU and the International Monetary Fund expect Greece's primary deficit to be 0.8% of gross domestic product at the end of this year. The Greek government hopes that austerity measures approved by the Greek parliament last week can put the country back on track to hitting that target.

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