Finance minister warns GDP will shrink more than expected

The transcript discusses the deeper than expected economic recession in 2012, with a predicted GDP drop of 2.8%. It highlights the temporary suspension of holiday subsidies and the immense uncertainty faced. Despite this, there is moderate optimism due to European leaders' commitment to finding a coherent solution to the crisis. The transcript also touches on political demands, including the suspension of IRS tax on subsidies.

What was the predicted GDP decline for 2012?

• 2.8%

• 1.9%

• 3.5%

• 4.2%

What is the cumulative GDP decline over 2011 and 2012?

• 3%

• 4%

• 6%

• 5%

Why is it difficult to make unconditional policy statements?

• Public opposition

• Because of the immense uncertainty and severity of the situation

• Due to political disagreements

• Lack of data

What is the reason for cautious optimism regarding the economic situation?

• Improved domestic policies

• Strong commitment from European leaders to resolve the crisis

• Increased foreign investments

• Rising employment rates

What event is expected to provide a solution to the crisis?

• A new government policy

• A financial aid package

• The European summit on October 23

• An international trade agreement