In addition, Der Spiegel reported on Sunday that Greece's budget shortfall over the next two years will be as high as €20.0B, although this was rejected by the Greek finance ministry who said that the current package of €11.5B in budget savings and €2.0B in additional tax measures would be sufficient to meet budget targets. French Prime Minister Jean-Marc Ayrault backed proposals for a 2-year extension to Greece's austerity program (FT). Meanwhile, German government spokesman Kotthaus and Schauble both declined to comment on headlines that creditors may be considering notional haircuts on Greek debt.
According to Macro Strategist J. Reid at Deutsche Bank, “Away from Greece it's worth noting that the 2013 French Budget will include an additional fiscal tightening of €30.0B, two-thirds of which will be tax-based. As our European economists highlighted, this is due to lower growth forecasts for next year (although official forecasts might still be too optimistic) and they argue that a further €10.0B is required to meet the 3% deficit target for 2013.”