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Greece in Southeast Europe : political opportunities and economic challenges
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Internationale Politikanalyse International Policy Analysis Jens Bastian Greece in Southeast Europe Political Opportunities and Economic Challenges The change of government in Athens following the general elections of October 2009 offers new impetus for pro-active Greek foreign policy initiatives in the region of southeast Europe. The economic and financial crisis in southeast Europe has contributed to a severe deterioration of GDP and foreign direct investments, declining trade capacity and far-reaching social implications. The Greek economy has invested heavily in the neighbouring countries, in particular the financial sector. Greek banks have become strongly de­pendent on the return of these countries economies to medium-term stability and long-term viability. Greeces strategic economic role in southeast Europe is defined by en­ergy and transport links, as well as serving as a gateway for foreign direct investment in neighbouring countries. Prime Minister Papandreou has a strong political mandate in parlia­ment. His government will have to deliver quickly on the economic front. But he can gain additional traction and political leverage if he moves de­cisively in foreign policy, most notably in Greeces immediate neighbour­hood. FEBRUARY 2010