Greece Demands from Germany to Repay the Debt of Third Reich

• 02.10.2015, 18:01
•  Europe,  World,  Analytics

Germany has rejected Greece’s demand of £120 billion in reparations for Second World War damages claiming that Greece has "zero" chance over the demand, informs. Prime Minister Alexis Tsipras in his speech yesterday said that Greece has a “moral obligation” to claim for repayment for a forced wartime loan by the Third Reich, which was about 11 billion euros (476 million Reichsmarks). Now Greece insists that Germany owes it around 162 billion euro, which is around half of the Greek public debt. Tsipras also said to parliament that Greece has "a moral obligation to our people, to history, to all European peoples fought and give their blood against Nazism,"- reports dailymail.co.uk, Japantimes.co.jp, Bloomberg.com.

Greek people want to remind Germany that it has built a strong country due to the help of Greece and other European member countries that were "enemies". The European people united after the World War Two to build strong economy and humongous financial system. Now it is time to support Greece to renew its economy, especially because it is strongly connected with European countries, with Germany as well. Following the fact that Germany has rejected the repayment of the loan taken during WWII gives no room to Greece. Some sources also indicate that Germany debts not only to Greece, but also to other European countries. So, the political approach of Germany toward Greece is not justified. German’s resistance about the bailout program and neither giving a chance for forgiveness of the debt, nor prolonging the payment deadline put Greece in deadlock.

There are two scenarios: first is to have negotiations with Greece and come up with mutual beneficial compromises and the second to pay the previous debt demanded by Greece. If Germany does not agree with the first one there will not be any positive output. The economy will collapse and Greece will not be able to pay its 240 billion euro dept neither to Germany nor to other European partners. In other word there is no benefit for anyone in this case. If Germany agrees and cooperates with other creditors coming up with the agreement to have room for Greece, Prime Minister Tsipras has a plan to recover the economy and pay the debt in a long-term. Improvement of Greek economy can stabilize the unsteady economic circumstances of Europe. Second scenario includes German repayment of the loan taken during WWII. It also can help Greece to shrink the size of its debt (by 11 billion euros). The second scenario contains also moral aspect; it is about the dignity of Greek and European people that will be recovered if Germany will be ready to pay for the damages caused by Natzi to all Europe. The overall situation seems resolvable if Germany takes a step to go forward in the negotiation with Greece.

To help Greece to overcome the crisis should be priority for every Eurozone member, because if any of these countries collapse this will have a domino effect and everyone will be in the same spot.