In brief: Country will miss deficit targets

ATHENS, Greece – Greece won’t meet 2011-2012 deficit targets imposed by international lenders as part of the country’s bailout, the Finance Ministry said Sunday.

The country’s deficit this year is expected to reach 8.5 percent of gross domestic product, or 18.69 billion euros ($25.2 billion) – higher than the targeted 17.1 billion euros, which would have been 7.8 percent of GDP, the ministry said.

Greece has been reliant since May 2010 on regular payouts of loans from a 110 billion-euro bailout from other eurozone countries and the International Monetary Fund. It was granted a second 109 billion-euro package in July, but details of that deal remain to be worked out.

The Finance Ministry said the missed target was because of a deeper-than-expected recession, with the economy contracting by 5.5 percent instead of the 3.8 percent estimate made in May. It implied the deficit could even exceed this level by the end of the year unless all-new austerity measures were implemented.

“The final estimate for a deficit equal to 8.5 percent of GDP can be achieved, if there is a proper response by the state authorities and the citizens themselves, on whose stance the country’s financial … and social future depends,” the announcement said.

‘Fat tax’ targets unhealthy habits

COPENHAGEN, Denmark – Denmark has imposed a “fat tax” on foods such as butter and oil as a way to curb unhealthy eating habits.

The Nordic country introduced the tax Saturday, of 16 kroner ($2.90) per kilogram (2.2 pounds) of saturated fat in a product.

Ole Linnet Juul, food director at Denmark’s Confederation of Industries, said the tax will increase the price of a burger by around 15 cents and raise the price of a small package of butter about 40 cents.

The tax was approved by large majority in parliament in March as a move to help increase the average life expectancy of Danes.