“They think that Berlin sent wagons of trains in euros to Athens but…” – The truth on German aid to Greece?
Stern puts things in place: Merkel's problem and Greek debt relief
“Lending Greek debt does not cost a German taxpayer a penny. Many people do not understand this because they think we have been filling wagons with Euros and sending them from Berlin to Athens. But this is not right. From the German budget, not one euro has been invested in Greece,” writes the German magazine Stern.
“This is due to the complicated rescue system. Germany helped Athens in two ways: initially, the Kreditanstalt für Wiederaufbau / KfW granted a loan of about EUR 15 billion, later Germany gave almost EUR 22 billion to the European Stability Mechanism (ESM). It was a guarantee that ESM would borrow from the world markets and then grant it to Greece, naturally, of course,” notes Stern and explains that “with the debt reduction, the following are the loans: currently they have an average life of 32.5 years, are extended for a few years, and interest is later demanded. Greece’s debts are not removed, not even in part. This means that ESM and KfW will wait longer to take back their money. That’s all. The German taxpayer will not feel anything. “
According to RES, the German magazine notes that “the third aid program for Greece expires at the end of August, and the Euro states have to decide whether to ease debt. The draft must also be approved by the members of the German Parliament, which will be difficult because more than 60 Members voted on the last aid package for Greece in 2015. So many dissidents can not stand the new government, the majority will be defeated. Angela Merkel and Olaf Solsch would end before they even started. AfD and FDP are aware of this danger and will cause a turmoil in the coalition. They will mislead the “bankrupt Greeks” by mourning the bills that supposedly sent to Athens by German taxpayers, and many alleged experts and allegedly serious journalists will be competing with the dance because nothing is easier to thank the patrons in the German hangouts than against the rhetoric of the lazy Greeks and the bad euro.”
The article also notes that when creditors approved the third aid program in 2016, they assured Greece that debt relief would be made if the government is reforming. More or less, Prime Minister Alexis Tsipras succeeded. Unemployment has fallen, the economy is growing, even Greeks like the capital markets. “Of course,” he adds, “and there are still weaknesses. Corruption and nepotism have not been patched up, the reorganization of the administration is progressing well but slowly, the situation is improving very slowly. This progress must, however, strengthen it and keep our word. ”
Another key reason for debt relief, according to Stern, is China . He writes in particular: “The Chinese are spreading to Europe. With money, business purchases and construction projects, they gain influence, for example in Hungary and the Czech Republic, but also in Greece. There they lease the port of Piraeus and invest in energy companies. Activism leaves signs, the Greeks are oriented towards the East. When the EU wanted to condemn the human rights situation in China last year, the Greeks replied no. A planned (condemnation) statement is not “constructive criticism,” they said.
Consistency in Europe is collapsing. The gap between the North and the South is large enough, and there is no need to widen and alienate the Greeks. Rejecting debt relief would be an insult. The Greeks try, suffer from an unprecedented austerity policy, but make progress. Not helping them would be hard-core and lead them to the camp of China. This would not be a start for Europe, as promised by the new government. It would be dismantling. ”
“And all this,” he continues, “because of a debt relief that does not cost us a dime. A debt relief, of which no nursery school will be closed, should not be dismissed by any teacher and no bridge will be left unrepresentative. It is a debate about fictitious numbers, a conversation that serves prejudice and confusion in the head. ”
“One thing should be clear: Anyone who is against the alleviation of Greek debt, do not care about taxpayers’ money. He is interested in something else. It wants to destroy the greatest achievement since the Second World War, the European Union, whose values, democracy, enlightenment and solidarity must be despised so that one day some others take power. The nationalists. The heirs of Viktor Orban and Marie Lepen. Anyone who is interested in European integration must stop it. The final of Europe begins,” concluded the German magazine.
Translated from Crash Magazine Online.