Tension grows over Greece deficit

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GABRIELE STEINHAUSER
BRUSSELS— The Associated Press
Published Friday, Sep. 02, 2011 6:33AM EDT
Last updated Friday, Sep. 02, 2011 7:20AM EDT

International debt inspectors left Athens amid disagreements over the country's deficit figures and how to make up for the budget shortfall, a European Union official said Friday, dismissing Greece's claims that the pause had been planned.

The delegates from the European Commission, the European Central Bank and the International Monetary Fund were in fact scheduled to leave next week, the official said. The official was speaking on condition of anonymity because of the sensitivity of the issue.

In a statement, the three international institutions known as the troika said “the mission expects to return to Athens by mid-September.”

The disagreement over Greece's finances comes after Finance Minister Evangelos Venizelos said his debt-ridden country's economy will likely shrink nearly 5 per cent this year — much more than previously expected.

That bigger decline is set to make it difficult for Greece to cut its deficit to around 7.5 per cent of economic output this year.

The troika regularly checks on Greece's implementation of a reform program agreed in return for massive international help. Greece received a