The Greek government has announced EUR2.3 billion in new tax measures in an effort to try and slow the country's ballooning budget deficit.

Greek finance minister Yannis Papathanassiou said it is likely his country will see no economic growth this year, a contract to the government's previous forecast of 1.1% growth.

Due to higher interest payments on the national debt, slowing economic growth, higher outlays for social programs and rising tax evasion, Greece has seen its budget deficit widen to above 5% of GDP in 2008.

Due to this, the European Commission has given Greece until the end of 2010 to bring its budget gap below the European Union mandated level of 3% of GDP.

The measures announced today, which have been expected for some time, include new taxes on certain property, fuel, mobile phones, cars, luxury boats and gambling income, which combined will raise EUR1.91 billion in revenue.

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