Germany is king when it comes to debt and calculated based on the amount of losses compared to economic performance, Germany was the biggest debt transgressor of the 20th century, according to German economic historian, Albrecht Ritschl.
Ritschl told Der Spiegel magazine that Germany was the worst debtor nation of the past century. He warns the country should take a more chaste approach in the euro crisis or it could face renewed demands for World War II reparations.
He said Germany was responsible for what were the
biggest national bankruptcies in recent history. It is only thanks to the United
States, which sacrificed vast amounts of money after both World War I and World
War II, that Germany is financially stable today and holds the status of
Europe's headmaster. "That fact, unfortunately, often seems to be forgotten,"
The historian said that in 1990, then-Chancellor Helmut Kohl refused to implement changes to the London Agreement on German External Debts of 1953.
Under the terms of the agreement, in the event of a reunification, the issue of German reparations payments from World War II would be newly regulated. The only demand made was that a small remaining sum be paid, "but we're talking about minimal sums here."
"With the exception of compensation paid out to forced laborers, Germany did not pay any reparations after 1990 -- and neither did it pay off the loans and occupation costs it pressed out of the countries it had occupied during World War II. Not to the Greeks, either," Ritschl said.
As the saying goes, eaten bread is soon forgotten!
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