Greek budget wins narrow approval

The Greek parliament has narrowly passed the new socialist government's 2010 budget, which aims to cut the public deficit to single digits.

It is the first step to tackle the nation's financial crisis. The plan aims to narrow the debt to just over nine percent of GDP from nearly 13 percent this year.

Opposition parties and markets have criticized the plan for being short of measures needed to reign in the country's massive debt, such as wage cuts.

Many analysts believe the budget targets are attainable but provide no guarantee for fiscal restraint in subsequent years as they rely on one-off measures.

Rating agencies warn they may cut Greece's rating further if the government fails to win public support for tougher, longer-term measures.

Greek Prime Minister George Papandreou, right, listens to Greek Finance Minister George Papaconstantinou during a budget debate at the Greek Parliament in Athens on Wednesday, Dec. 23, 2009. (AP Photo/Thanassis Stavrakis)