German president supports demand for war reparations

Angela Merkel

Joachim Gauck, the president of Germany, expressed his support for demands by Greece that Germany provide reparations for destruction and damage caused during the Nazi occupation of Greece during World War II. In an interview in the Sueddeutsche Zeitung Gauck said that Germany should consider its historical responsibility to Greece:

 "We are not only people who are living in this day and age but we're also the descendants of those who left behind a trail of destruction in Europe during World War Two -- in Greece, among other places, where we shamefully knew little about it for so long.It's the right thing to do for a history-conscious country like ours to consider what possibilities there might be for reparations."

For the most part Germany has ignored or rejected the Greek demand for $312 billion dollars approximately in reparations. German officials argue that reparation was already paid in 1960. In April, vice-chancellor and economy minister, Sigmar Gabriel said  the demand was stupid. He said that the Greeks were simply trying to get some leeway from its euro zone creditors as they tried to reach a deal for releasing more funds. The issue, Gabriel, said has nothing to do with conditions for further financial aid. While Gabriel may be right about that, reparations payment could help keep Greece afloat while negotiations for a deal are completed, and the payments might also be used as a carrot to entice Greece to agree to further pension cuts and raise taxes, requirements that have been regarded as "red lines" by the Greek government not to be crossed so far.

The presidency in Germany is mostly a ceremonial post and Gauck has little power but even Chancellor Angela Merkel agreed that Germany had to deal with some sensitivity with the issue of the Nazi occupation of Greece during the Second World War: 

 “One can’t draw the line on history.We see this in the discussion in Greece and also in other European countries. We Germans do have a special responsibility to deal in an aware, sensitive and knowledgeable way with what we perpetrated under Nazism.”

While Merkel insists on recognizing the long lasting wounds caused by Nazi actions, she did not go on to address Greek demands for further war reparations. The German government claims the matter of reparations was closed with Europe's acceptance in 1990 of the treaty uniting East and West Germany. While reparations might provide a way to provide Greece with vital cash to stave off a default while negotiations were ongoing, German officials seem unlikely to actually make any further payments as it probably would cause a political uproar in Germany and might not lead Greece to change its position on reducing pensions and increasing taxes. In fact, if Greece gets the cash it needs, it might have less incentive to yield to the demands of its creditors.

Sources:
http://www.voanews.com/content/greece-says-it-wont-request-financial-bailout/2746021.html
http://www.reuters.com/article/2015/05/01/us-eurozone-greece-germany-reparations-idUSKBN0NM43J20150501
http://www.dw.de/german-president-gauck-raises-prospect-of-world-war-two-reparations-for-greece/a-18424011
http://www.bloomberg.com/news/articles/2015-05-02/merkel-says-germany-can-t-cut-off-nazi-past-cites-greece

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