On Monday, Prime Minister George Papandreou pledged that Greece would pull down its mounting budget deficit and bring it in line with the rules set down by the European Union by the year
2013. The announcement has managed to put at rest some concerns that are currently being experienced by investors about the country's financial position.

As per PM Papandreou, his Government would work toward cutting down the deficit to the EU recommended 3% of the total GDP over the next four years, on the back of a forecast of 12.7% GDP for the current year.

"The deficit will be below the 3% limit of GDP before the end of the first four-year term for the government, by 2013", said PM Papandreou, while revealing that the deficit would be cut with a series of "structural and permanent measures".

Starting in 2012, Greece would make efforts to start pulling down its huge debt, which is expected to surpass 120% of the total GDP by next year.

While many have cheered the thoughts shared by the PM, the speech has been met with criticism and skepticism by economists and investors.

"Overall, the speech contained no major surprises", said Platon Monokroussos, an economist at EFG Eurobank. "It did show a determination by the Greek government to address Greece's fiscal problems, but going forward the key will be implementation."