Greece is right to expose German loans hypocrisy 1

Greece is right to expose German loans hypocrisy

Greece forgot much of its history when it needed Germany to repay loans made during the Second World struggle. The overseas minister, Dimitris Avramopoulos, informed the parliament in Athens on Wednesday:  “We will exhaust every means available to agree. One cannot evaluate the instances, but also one can’t erase the reminiscences.â€

His speech, which became light on details, accompanied a leak this month of a finance ministry report showing that Greece needs Berlin to repay €162bn – together with €108bn for infrastructure damage all through the profession between 1941 and the give up of the war, and €54bn as reimbursement for a hobby-loose mortgage Germany demanded to help its war attempt The Info Blog.

Avramopoulos released the claim for damages in reaction to name-callings by German policymakers, saying that Athens needed to fork out such widespread sums for the USA’s recklessness before and after the banking crash. Non-public region debtors have forgiven several of Greece’s debts; however, loans from Berlin through Brussels need to be repaid in complete – and with interest –, says the German chancellor, Angela Merkel. Loans to Brussels and the international economic Fund quantity to €240bn.


In a single fe,e Athens is right to point out that Berlin is hypocritical when it accuses indebted eurozone nations of reckless behavior. Germany changed into an aggressor in international wars and did not pay the money owed it incurred. In the Second World War, it pressured countries such as Greece over huge sums in the shape of zero loans that were no longer repaid.

Greece was ordered to pay $528m using Adolf Hitler. It became not just a large sum – equal to $7.1bn now – it weakened the forex and, according to Apostolos Vetsopoulos, in his 2002 doctoral thesis for university college London,  “annoyed inflation inside the Greek economy due to the fact the financial institution of Greece changed into compelled to difficulty inflationary notes to cowl those super expensesâ€. Avramopoulos has carried out a compound hobby to this sum to reach $54bn.

The trouble with the Greek stance is that Germany broke down after the war and became in huge debt. It became no longer the best, unable to pay excellent loans and pay the reparations many countries desired to cover the cost of all the damage wreaked via the Wehrmacht.

France, the Benelux countries, and Britain desired reparations. They were given their cash, although not from Germany. Their recompense came from America, which had come to the conclusion that punishing Germany, Japan, and all the Axis countries could cause a return to fascism. So, it stepped in with huge sums of cash from 1945 onwards, which in 1947 was the Marshall Plan.

Like most of Europe, Greece became a beneficiary of the Marshall Plan. The sums were so huge that they changed the cash due from Germany and more. In impact, Washington paid Berlin’s debt.

Vetsopoulospoints out that the trouble for Greece,whicht might be authentic today, is that the money was wasted. First, Greece descended into civil war after 194,5 while different international locations had been rebuilding. From 1947, when matters settled down, the corruption in public life and the sclerotic enterprise region meant much of the money went unspent, at least not on investment to re-tool a largely agricultural financial system.

The factor is that no one extracted any cash from the Germans after the war. Almost all its money owed was forgiven, first at a worldwide conference in 195,3, after which 1989 Helmut Kohl stated he could not likely absorb East Germany and pay 2d international war debts.

And there may be another twist. If the Greeks refuse to relinquish their 70-year-old claim, they must additionally ask the Italian government for unpaid loans. As Germany’s Axis partner, Rome became a beneficiary of the identical deal, and Benito Mussolini’s foot soldiers helped destroy plenty of (Athens).

In the end, the lesson each aspect wants to research is humility because both are wrong. However, Germany needs to revise its position on eurozone debt. It ought to realize the hypocrisy of its modern-day stance and, more importantly, the dire effects of creating it sticks. The Americans were smart when they got here to German money owed; it is time Germany adopted the same stance.

• The picture caption of this newsletter was amended on 29 April 2013. The original stated Walther von Brauchitsch was in the center of the photograph. This has been corrected.



I am a writer, financial consultant, husband, father, and avid surfer. I am also a long-time entrepreneur, investor, and trader. For almost two decades, I have worked in the financial sector, and now I focus on making money through investing in stock trading.