A top Greek budget researcher resigned late Thursday after making a dismal economic forecast that angered the crisis-hit country's Socialist government, AP reported. Stella Balfousia had headed a panel of experts appointed by parliament in March to provide lawmakers independent economic assessments on the progress of Greece's major austerity program. In a report published Wednesday, the panel warned Greece would likely miss 2011 budget targets because of months of austerity delays by the government and sluggish tax collection. Finance Minister Evangelos Venizelos criticized the document as lacking "validity" and argued that members of the panel - known as the State Budget Office - had yet to acquire the "knowledge, experience and responsibility" required for the job. Before heading the four-member panel, Balfousia held a senior position at a separate research group that advises the government and at the state statistics agency. Her resignation drew sharp criticism from opposition conservatives. "The government has reached the point of forcing out officials which itself chose ... What more does it need to finally understand that its financial policy is wrong?" party spokesman Yiannis Michelakis said. Wednesday's report warned Greece was set to miss budget targets this year even if it fully implements painful reforms, after primary deficit had already exceeded the annual target in the first seven months of this year. "The widening of the deficit is associated with worrying fiscal developments, particularly delays in implementing the adjustment program, and the limited efficiency of revenue collection mechanisms," the report said. The warning came as international debt inspectors were in Athens to monitor progress of austerity measures agreed in exchange for two successive international bailout-loan deals totaling ?219 billion ($315 billion). Venizelos met with the inspectors Wednesday and Thursday. The latest loan deal, struck on July 21 with the European Union and International Monetary Fund, was followed by a forecast that the Greek recession would be worse than expected in 2011, with the economy possibly contracting by over 4.5 percent instead of just 3 percent. The government has been struggling to meet its targets, particularly those for revenue, with tax collection falling short both through difficulties in stamping out tax evasion and because cash-strapped consumers have been spending less. On Thursday, another tax hike came into effect, with Value Added Tax on restaurant and coffee shop products jumping from 13 percent to 23 percent - the fourth VAT increase in the past year-and-a-half. -- SPA
