Does Germany Owe Greece $95 Billion from WW II?

[High_Gravity]

Does Germany Owe Greece $95 Billion from WW II?

BERLIN — In the debate about the possible bankruptcy of the Greek state, one largely dormant argument has resurfaced with increasing frequency: the widespread damage inflicted by the Nazi regime during World War II means that Germany still owes Greece major wartime reparations.

While the claims for payment of damages are based on very real facts, one could argue that over the course of 60 years or so, those claims have been satisfied under international law.

What is at stake? Without having been provoked, the Wehrmacht — the Third Reich's armed forces — took over both Greece and Yugoslavia on April 6, 1941. In both countries, German soldiers set up a brutal occupation regime. As was usually the case in European nations invaded by the Germans, the high cost of the occupation was borne by the occupied country — and the Greek economy was plundered through forced exports.

This resulted in galloping inflation and a radically lower standard of living for Greeks. Additionally, the Third Reich forced the Greek National Bank to lend Hitler's Germany 476 million reichsmarks interest-free.

After Germany's surrender, the Allied powers organized the Paris Conference on Reparations in the fall of 1945. Greece laid claim to $10 billion, or half the total amount of $20 billion the Soviets suggested that Germany pay.

The suffering caused to Greece by the Nazis is undeniable. Yet at the same time, human suffering cannot really be measured. Independent historians unanimously agree that the total economically measurable damages suffered by Greece as a result of the German occupation, in both absolute numbers as well as proportionate to the population, put Greece in fourth place after Poland, the Soviet Union and Yugoslavia.

At the Paris Conference on Reparations, Greece was finally accorded 4.5% in material German reparation and 2.7% in other forms of reparations. Practically, this meant that Greece received mainly material goods — like machines made in West Germany — worth approximately $25 million, which in today's money amounts to as much as $2.7 billion.

However, the stipulations made at the Paris conference were all but irrelevant given that the U.S. opposed heavy economic penalties. U.S. leaders recalled what happened after World War I, when Germany's first democracy, the Weimar Republic, was massively weakened economically by having to pay off reparations. Indeed, one of the consequences of this policy was the rise of Hitler.

Read more: Does Germany Owe Greece $95 Billion from World War II? - TIME

 

[Swagger]

If they did, they've more than paid it back in E.U bailouts.

 

[waltky]

Uh-oh, Greece gonna have to default on its debt if it don't get the $95B from Germany...

Greece to miss budget deficit targets in 2011 and 2012
2 October 2011 - The Greek austerity measures are hugely unpopular and have led to a wave of strikes and protests

Greece has said its budget deficit will be cut in 2011 and 2012 but will still miss targets set by the EU and IMF. The 2011 deficit is projected to be 8.5% of GDP, down from 10.5% in 2010 but short of the 7.6% target. The government, which on Sunday adopted its 2012 draft budget, blamed the shortfall on deepening recession. The figures come as inspectors from the IMF, EU and European Central Bank are in Athens to decide whether Greece should get a key bail-out instalment. Greece needs the 8bn euros (£6.9bn; $10.9bn) instalment to avoid going bankrupt next month. Bankruptcy would put severe pressure on the eurozone, damage European bank finances and possibly have a serious knock-on effect on the world economy.

'Unanimously approved'

The Greek finance ministry said on Sunday that its unpopular austerity measures would have to be adhered to even if the latest targets were to be met. It said: "Three critical months remain to finish 2011, and the final estimate of 8.5% of GDP deficit can be achieved if the state mechanism and citizens respond accordingly." It released figures for 2012's projected deficit, putting it at 6.8% of GDP, also short of the 6.5% target. The figures came as the government met to approve Greece's draft budget for next year. It blamed an economic contraction this year of 5.5% - rather than May's 3.8% estimate - for the failure to meet deficit targets. The cabinet meeting also approved a measure to put 30,000 civil service staff on "labour reserve" by the end of the year.

This places them on partial pay with possible dismissal after a year. "The labour reserve measure was approved unanimously," one deputy minister told Reuters. This measure, along with other wage cuts and tax rises, have been part of a package intended to persuade the so called "troika" of the EU, IMF and ECB to continue with its bail-out. The inspectors will report back to EU finance ministers soon but analysts believe they have little choice but to approve the latest tranche. The Greek austerity measures are hugely unpopular at home and have led to a wave of strikes and protests. Many Greeks believe the austerity measures are strangling any chance of growth.

BBC News - Greece to miss budget deficit targets in 2011 and 2012

 

[syrenn]

If they did, they've more than paid it back in E.U bailouts.

I have to agree with that.

 

[mawlarky]

Or perhaps the Vatican would release all the nazi pillage they stole when they went walkabout all over Europe, but maybe the vatican is just keeping it safe until they feel the time is right to give it back to its rightful owners. That should help Greece out to the tune of a few Billion.

 

[ekrem]

Greeks owe money and gold to all nations Alexander went through.
Germany was also occupied and patents, gold and scientists were stolen.
Germans don't cry about this issue.

 

[Baruch Menachem]

And lets let not forget the medes and the Persians from before that... and the Assyrians before them....

 

[California Girl]

Or perhaps the Vatican would release all the nazi pillage they stole when they went walkabout all over Europe, but maybe the vatican is just keeping it safe until they feel the time is right to give it back to its rightful owners. That should help Greece out to the tune of a few Billion.

They 'stole' nothing. They saved countless priceless treasures from theft or destruction. And now, through their own goodwill, they restore and store those treasures and hold them in trust for mankind. For audit, each and every one is valued at 1 euro. If it wasn't for the Catholic Church, those treasures would be lost forever... or in the hands of private individuals.

The Church does not own these works of art. It cares for them - on behalf of mankind. And they do that at no cost to anyone but themselves.

All that, and we are also the biggest Charity on earth. We feed more of the world's most poor, we educate more of the world's population, we care for the world's sick, we help the world's homeless... We do more than the rest of you will ever do. And we do it without expecting any gratitude, we do it without reward, we do it because we are Catholic.

It's great to be us.

 

[elvis]

The US waived the war reparations after WW2 because we didn't want another Hitler rising in Germany... (see WW1 and its aftermath). Greece got themselves into this and now they're playing the Hitler card.

 

[PeteEU]

The US waived the war reparations after WW2 because we didn't want another Hitler rising in Germany... (see WW1 and its aftermath). Greece got themselves into this and now they're playing the Hitler card.

HAHHAHAH what a load of bullshit.

The US waved war reparations out of self interest. They were thinking of the Soviets...

Also the US had raped Germany for all valuables already so there was not much left any ways.

 

[editec]

Does Germany Owe Greece $95 Billion from WW II?

I doubt it.

No doubt they did right after the war.

But we've seen what imposing crippling war reparations do to world peace.