Weaknesses leave Greece exposed

The financial meltdown that has affected most of the globe’s economies has not left Germany unscathed either. Nevertheless, if there is an index that clearly underscores Greece’s vulnerability to the repercussions of the global financial crisis, it is the spread between Greece’s 10-year government bond and the German Bund. The fact that the interest rate in Greece is 1.7 percent higher than that of Germany, up from 0.1 percent four years ago, speaks volumes about the chronic structural shortcomings that plague the local economy. Experts have pointed out that these weaknesses contribute to making the country even more vulnerable to the ongoing crisis. It goes without saying that hoping that things will change for the better is necessary but not nearly enough. The conservative government of Premier Costas Karamanlis must look to address the long-neglected domestic structural problems that accentuate the problems already caused by the current crisis.