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Greece have slipped ten places to 18th in the world in the new FIFA World ranking released on Wednesday.
Otto Rehhagel's side suffered from a poor Euro 2008 campaign when they lost all three group games to Spain, Sweden and Russia and scored just one goal.
The friendly loss to Hungary (3-2) and draw with Armenia (0-0) did not help either.
Before the tournament Greece were at number eight. England, who were at number nine but failed to qualify for Euro 2008, have also dropped out of the top ten, going down to 15.
New European champions Spain have taken over as the number one side in the world. It is the first time they have taken top spot from Argentina who have suffered a few poor results in their bid to qualify for the 2010 World Cup.
Italy climb one spot to number three while beaten finalists Germany move up to third.
The biggest climbers are Croatia - up from 15th to seven - and semi-finalists Russia who have moved up 13 places from 24 to 11.
FIFA RANKINGS (previous position in brackets):
1. (4) Spain
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