Over the last few weeks the worsening economic climate in Greece has grabbed the headlines around the world but the truth is that many experts believe Greece is just the tip of the economic difficulties set to challenge the Eurozone and the European Union. So could Greece plunge the Eurozone back into recession?

The Greek crisis

Those who have followed the Greek issue will be well aware that the budget deficit in the country has spiralled out of control and the government is literally running out of money to fund public sector services. Only this weekend the Greek prime minister confirmed the country has sufficient capital to cover the national budget until mid-March at which point funds will dry up and the next stage of the Greek economic crisis will be upon us.

While there is no doubt that the economic downturn in Europe and around the world has impacted upon the Greek economy, many believe that Greece has been a problem waiting to happen for many years. Like so many smaller European countries it has depended upon fellow European Union members for assistance in the past and will need to in the future. Despite the fact that the European Union has demanded massive budget cuts from the Greek authorities before any rescue package can be agreed the truth is that the European Union cannot afford for Greece to fail.

The impact on the European property market