Ministry document suggests that Germany is aware of how the austerity policy in Greece has failed
A report in the Rheinische Post reveals that the German Ministry of Finances has admitted the dramatic impact of the austerity policy in Greece, in its response to a question by Die Linke.
The German Ministry revealed that one in two young people in Greece is unemployed; the economy shrunk by 25% since 2009 and the debt has soared. Greece’s alternative, according to the German Ministry, would be bankruptcy, but this would have a very high adjustment cost.
Furthermore the document reports how the expectations from privatizations between 2010 and 2013 fell far from short – only 1 billion euros revenue compared to the expected 22 billion euros. The German Ministry further admits that the dramatic wage and pension cuts have caused an explosion of unemployment.
Die Linke MP Andrej Hunko commented that that German Ministry’s response was proof of how the policy observed in Greece caused further recession and poverty without improving the country’s finances. To this he cites statistics show that outstanding debts towards the Greek state increased from 46 billion euros in 2012 to 78 billion euros in 2014. The rescue policy, according toe Mr. Hunko, was an “abysmal failure”.
The newspaper report further notes that the Greek government has paid Germany back about 360 million euros in interest, while stressing that the German state has not lost a single cent so far. With the financial situation in Greece getting worse though, the German government expects to receive about 20 million euros on an annual basis.
– Die deutsche Regierung hat laut dem Berliner Finanzministerium bis Ende 2014 insgesamt 360 Millionen Euro an Zinsen für ihre Hilfskredite eingenommen. Österreich hat Griechenland bilaterale Kredite in der Höhe von 1,56 Milliarden Euro gewährt. Bis Ende vergangenen Jahres wurden von Athen 101,7 Millionen Euro an Zinszahlungen überwiesen. Österreich haftet darüber hinaus mit weiteren 4,3 Milliarden Euro für die Hilfskredite aus dem Euro-Rettungsschirm EFSF.
[The German government has taken, according to the Finance Ministry in Berlin until the end of 2014 a total of 360 million euros in interest on its emergency loans. Austria has granted Greece bilateral loans in the amount of 1.56 billion euros. By the end of last year, 101.7 million euros was paid to interest payments of Athens. Austria is also liable with another 4.3 billion euros for emergency loans from the euro bailout fund EFSF.]
– European banks were bailed out, not the people of Greece ! (At least 90% of the €252 billion Troika bailout loans to Greece has been spent on paying off reckless lenders, including British, French and German banks.)