The Greek prime minister has stepped up demands for World War Tworeparations from Germany, and has even floated the idea of seizing assets. Political posturing or does he have a point?
What's happening?
Such seizures would include cultural institutes, which are owned by the German state. In the 2000 case, the Supreme Court awarded €28m to the relatives of 218 people massacred by the Germans in 1944.
Why should Germany pay more reparations?
As a result, an estimated 300,000 Greeks died of famine. As well as the deportation and extermination of Greece's Jewish population, a further 130,000 were killed for either directly opposing the new regime, or as reprisals for resistance.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Will Germany pay up?
Even if Germany was inclined to give in to Greece, it is fearful that doing so would encourage other countries to make similar claims. Overall, The Guardian's Helena Smith thinks that "the row is not likely to warm MPs in Merkel's conservative ranks who are already wavering over extending Greece's rescue programme".
How are the talks between Greece and the EU going?
What's more, they are clear that the proposals that have been made so far by Athens are not ambitious enough. Indeed, Germany has threatened to hold up the money that Greece will receive as part of the deal unless it makes more concession. There is also a big query whether, even if the agreement holds up, Greece has enough money to get it through the next few months.
Will another bailout be needed?
This means that there is a good chance that "Greece will leave at some point. And given the extreme difficulties of the current situation, it certainly could be soon".
