Why Germany Owes Greece

June 23, 2011 § 8 Comments

An excellent point spotted yesterday: a German economist bravely points out that Germany is in the position to be the creditor nation of Europe today because it never paid any of its debts in the 20th century, including the war reparations it owed countries like Greece.

Germany Was Biggest Debt Transgressor of the 20th Century


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§ 8 Responses to Why Germany Owes Greece

  • AMEN!!!!

    I suggest a trip to Kalavryta and Distomo. Only two of the atrocious “wiping out of the map” of villages that happened during WWII.
    It’s not like we’re begging German people’s (whom we respect) own money. The money comes from the banks themselves, they have own funds.

    • Yes, but it is just not true that it isn’t the German peoples’ money. Money for the bailout (to help Greece make its next round of payments to its creditors) would come from the general EU fund, to which the taxpayers of all EU countries contribute.

      The UK, which of course has stayed well out of the euro, has just talked its way out of it.

      Cameron successfully negotiates UK out of further Greek bailout funds

      • If you ask me, there shouldn’t have been bailouts in the first place. Monetary union was a bad idea to begin with, exactly because all countries were not (are and will never be) on the same level of productiveness.
        But then again, the UK who stayed out of the euro has its own round of fiscal problems, so I’m really lost. I don’t have your benefit of previously writing about such matters either.

  • Harri says:

    And this has to do what with Eurozone exactly?

  • Can I just imply that we have to take a step back from “who owes whom” and look at the larger picture? The world economy is based on selling debt and making a profit from it. No one can stay out of this vicious circle unless world economy steps out of this virtual reality and focuses again on trading products. In the good old sense of the word, not the modern one. Debt is not product. Speculation is not product. Anyone who thinks that any country is above that is sadly mistaken. The private organisations that profit from this situations are barking at the doors of United States. Portugal and Italy will follow. When countries fall to their knees like that nobody is safe.

  • blagoja says:

    Why is this issue raised now ?

    If Greece is allowed to go back 80 years into the past (as far as the world wars) to seek compensation, then a country like Republic of Macedonia should be allowed to go back that far to reclaim their stolen lands.

    • Blagoja, the enormous German war debt was only forgiven in the nineties, after reunification, which was supposed to be the date of their payment. It was forgiven so that Germany could rebuild itself, a huge and expensive task involving the social, civic and economic assimilation of its formerly Communist other half.

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