Greece unveils more cuts in 2011 budget

ATHENS, Greece (AP) — Greece's government unveiled more spending cuts Thursday in the 2011 budget submitted to Parliament, pledging to reduce the deficit by €5 billion ($6.8 billion) — to 7.4 percent of gross domestic product from this year's projected 9.4 percent.

The budget, presented by Finance Minister George Papaconstantinou, includes cuts in operational and wage costs at loss-making state-run enterprises, health care and defense. The government will also increase the lower bracket of consumer tax from 11 percent to 13 percent — although VAT in the vital tourist industry and medications will be cut to 6.5 percent from 11 percent.

"This is a difficult budget that continues …