Greece puts a price on German war reparations

Greece has revived its demand for war reparations from Germany, this time putting a price on the demand.

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(Transcript from World News Radio)

During WWII, occupying German forces destroyed hundreds of Greek villages, executed thousands of civilians, and looted huge sums from the Greek central bank.

Now, Greece has revived its demand for war reparations from Germany.

As Kristina Kukolja reports, this time it's taking matters one step further, by putting a price on the demand.

(Click on audio tab to listen to this item)

There was no joy on the faces of the Greek and German leaders, Alexis Tsipras and Angela Merkel, when Second World War compensation was raised, yet again, at a meeting in Berlin last month.

Now Greece is naming its price.

Alternative Minister of Revenue, Dimitris Mardas, made the announcement in the Greek parliament.

"According to our own calculations, the debt that is connected, with the German reparations amounts to 278.7 billion euros, of which the 10.3 billion euros is the aforementioned obligatory loan, and all the rest of the figures related with reparations concern either private citizens or infrastructure. During the 1946 Paris Conference, that amount was set at 341.2 billion U-S dollars, at that time."

Greece is demanding what would amount to around 10 per cent of Germany's GDP.

It's more than the value of the entire Greek economy, and exceeds the country's total international debt.

But the matter is seen as long-resolved by way of post-war agreements, not only by Germany but by other European countries.

Bavaria's State Finance Minister Markus Soeder believes there's nothing more to be said on the issue.

"The German government has said that it views the issue as closed. I support this position and it's not a very clever strategy from Greece to make reparation claims when they actually mean money from the euro zone as a whole."

The suggestion that Greece may be seeking reparations to help pay off international loans comes as Thursday's repayment deadline looms, to the International Monetary Fund.

Finance Minister Yanis Varoufakis has assurred creditors Greece will honour the commitment.

The question is "how?", which has some speculating Greece's Prime Minister Alexis Tsipras could be preparing to take up Russia's offer of help.

Mr Tsipras is in Moscow for talks with President Vladimir Putin, in a move this Athens resident approves of.

"I think he is right to go to Russia. It does not please our partners, but our partners need to understand that from the moment that they will not give us funds, and they threaten that they will strangle us, that they will close our banks and our sources, and they threaten and strike out at Greece because we have no money, then he is doing the right thing. Is this not Europe? Shouldn't Europe be obligated to help us? They should help us. They should give the government funds. Since they are not giving us funds and have created this current situation then he is doing the right thing."

The meeting between Mr Tsipras and Mr Putin will do nothing to ease the trepidation of Greece's euro zone and IMF lenders, who are considering the most recent bailout reform proposals from a government unashamedly opposed to austerity measures.

Athens-based political analyst, Dr George Tzogopoulos, says Greece needs to show Europe its options remain open.

"Greece does not seek to provoke the European Union, but it might like to put pressure on the European Union by showing that it has theoretical alternatives, in order to guarantee the financing of the national economy. On the other hand, however, it is the right of member states of the European Union to have contacts with Russia from the moments these contacts are placed within the framework of the EU rules."

 

 

 


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4 min read

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By Kristina Kukolja



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