"The 2012 draft state budget is the real confession of the Memorandum's and the Mid-Term Strategy programme's failure," he said, adding that the "government acknowledges that despite the people's immense sacrifices, the fiscal targets are not being met and it is revising them".
The reason, he continued, is because recession is even deeper and the deficits higher than even the most recently revised forecasts, belying the finance minister's expectations and assurances that the deficit target will be met and proving that when the arithmetics of the economy clash with the false political expectations, arithmetics always win.
Referring to 2011 deficit, Staikouras said that despite the government's recent movements of political despair with the imposition of new measures that increase the bill to 28 billion euros for 2011, the deficit is estimated to reach 18.7 billion euros instead of 17.1 billion euros which was the target.
According to ND the deficit will decrease, if it decreases, because the government is now placing its hopes on the state mechanism and the citizens, for 5 billion euros in 2011, disregarding the state's unpaid obligations of 6.5 billion euros, the payment of which would further increase the deficit.
Staikouras accused the government of "obsession with the same economic policy that disregards recovery of the economy and renders its (PASOK government's) third State Budget a 'virtual reality'"