Greece was the other reprobate. In the 1990s, to qualify for eurozone membership, Greece, like Italy, had eked out primary surpluses (on the budget excluding debt service). Even with interest costs running at 11.5 percent of GDP, this had held the deficit in check. After the formation of the eurozone, Greek borrowing costs and debt service charges fell by more than half. It could have been the opportunity for a substantial fiscal consolidation. Instead, Athens let its tax revenue decline.
