Greek budget programme gets Moody’s thumbs-up

A file picture of Greek Prime Minister George Papandreou. Photo: AP.

The Greek government’s proposals to slash its massive budget deficit has won praise from one of the world’s biggest credit rating agencies.

Moody’s Investor Services says that the government’s plan to restore credibility to its public finances, reform its tax system and combat tax evasion is “relatively well designed” at least for the short-term.

However, Moody’s said on Tuesday that it is maintaining its negative outlook on the country’s long-term debt given the lack of certainty surrounding Prime Minister George Papandreou’s ability to implement the programme.

The new Socialist government has delivered a set of proposals to the European Union outlining how it will bring its budget deficit down to within EU limits by 2012.