Financial Times FT.com

Greece freezes public pay to contain deficit

By Kerin Hope in Athens

Published: March 19 2009 09:32 | Last updated: March 19 2009 16:42

Greece’s move to freeze public sector salaries and impose a one-off tax on high-income earners has highlighted fears that the budget deficit may spiral out of control this year.

Yannis Papathanassiou, finance minister, said the measures, announced on Wednesday, would ensure Greece stays on track for a deficit of 3.7 per cent of gross domestic product – slightly above the 3 per cent limit for eurozone member states.

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