The zone's Achilles' heel

13 January 2010 By Ian Campbell

Dubious figures have been a Greek problem since it entered the euro zone. Now the zone’s leaders are angry, and a double digit fiscal deficit, high indebtedness and poor competitiveness suggest Greece may struggle to stay in. Without political will to change, Greece could fail.

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A report by Eurostat, the European Union's statistical office, says Greece must address "institutional weaknesses" or the reliability of Greek fiscal and debt data will remain in question.

George Papandreou, the Greek prime minister, told a press conference on Jan. 13 that the government will draft a plan to reduce the government's deficit to 3 percent of GDP within three years. "Our aim is to formulate a programme based on our principles, on our targets." He also said: "It is particularly in our own interest to follow that programme with credibility, to prove that can chart our own way, which is to protect the poor and the middle class, who carry no responsibility for the crisis or for the previous government's faults."

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