Greece pledges tough cuts in austerity budget

Greece will bring forward painful budget cuts to end a decade of primary deficits while grappling with a sixth year of recession, according to a 2013 budget draft aimed at satisfying international lenders.

The government unveiled a tough austerity budget after Yannis Stournaras, the finance minister, met the troika inspectors, whose approval is vital to unlock the next slice of aid, urgently needed to avoid bankruptcy.

Greece will aim for a primary surplus before debt service of 1.1% of GDP next year, the first positive balance since 2002, after a 1.5% deficit in 2012. The economy will shrink for a sixth year, by 3.8%.