Greek budget cuts raise default concerns

Markets prepare for the worst as Athens unveils new tougher austerity measures; IMF managing director Dominique Strauss-Kahn says cuts are necessary

Greek flag

Plans to introduce new and deeper austerity measures in Greece have sparked concerns that the beleaguered sovereign will have to restructure its debts.

On Friday, the Wall Street Journal reported plans by the Greek government to take a further €26 billion ($37.68 billion) in austerity measures over the next five years, through some €15.6 billion in spending cuts, and another €10 billion in revenue measures. The move caused yields on long-term and short-term Greek paper to soar, with the two-year

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