A Greek crisis may well become Germany's problem

"I just think they can't do it, and their growth prospects are worse than the Government is predicting," Simon Tilford, chief economist at the Centre for European Reform think-tank, said. "They need to make cuts, but the country has shown little or no ability to do it" — either to cut the pension costs and early retirement extracted by the unions, to cut waste in hospitals and defence or to curb rampant tax evasion in the private sector. Even if Greece made the cuts, that would push it into a slump and deflation; crippling for such a highly indebted country. "Whatever happens, it will be miserable for them," Mr Tilford concluded.