The Untold Story – Arms imports and the Greek debt crisis

Last week I went to a talk by Czech Prime Minister Petr Nečas at LSE in which he made the usual grim diagnosis about the debt crisis in Greece. The country was in dire need of structural reforms, he said, both to its economy and society. Leaders across the continent have been making similar criticisms, with Sarkozy and Merkel warning the Greek government last month that it wouldn’t receive new bailout funds unless it fully implemented austerity measures. And despite the significant debt swap agreed on today, any EU bail-out remains conditional on the country implementing a further round of budget cuts. Yet one area of the Greek budget doesn’t seem to have received such scrutiny, its huge military spending. The reason is simple, France and Germany still account for the vast majority of arms sales to Greece.

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