How Merkel Profits From Greek Debt Misery

July 13, 2017

Germany has profited from Greece’s debt misery to the tune of £1.19billion (€1.34bn), shock figures have revealed.

As one of Athens’ biggest creditors, the eurozone’s largest economy has banked millions in interest on loans to the heavily indebted state over the last two years alone.

A loan from Kreditanstalt für Wiederaufbau (KfW), the state development bank, has raked in about £350million (€393m) from interest payments since 2010, according to the Süddeutsche Zeitung.

Politicians are now demanding the interest is paid back to Greece.

It comes after Athens recently received a further £7.5bn (€8.5bn) as its latest bailout continues.

Green budget expert Sven-Christian Kindler said: “It may be legal for Germany to make money from the crisis in Greece.

“But it’s not legitimate in a moral sense of solidarity.”

Jens Spahn, parliamentary state secretary in the Federal Ministry of Finance, rebuffed the calls to refund the cash.

He said: “The Federal Government is currently not planning such a referral.”

Germany also benefits from the European Central Bank (ECB)’s bond-purchasing programme in 2012 designed to help crisis hit countries like Greece.

Profits on Greek government bonds are given to central banks across the eurozone.

Last year, the sum for Germany amounted to £1bn (€1.147bn), while the figure for 2017 is £800m (€901m).

The EU expert of the Greens in the Bundestag, Manuel Sarrazin said: “The interest rate gains must finally be paid to Greece. It can not be that Wolfgang Schaeuble wants to rehabilitate the German budget with Greek interest profits.”


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