Greek Riots Unnerve Investors

more in Europe »

MILAN -- Social unrest in Greece has raised awareness of the long-term risks of investing in Southern Europe, where government debt management is deemed particularly threatened by a European recession.

Longer-term financing costs in the region are now higher than they were a year ago, even though the European Central Bank has cut its main interest rate to 2.5% from 4.0% this year.

Spain now has to pay as much as one percentage point ...