In 2012 the Germany had agreed, alongside other Eurozone members, to pay interest earned on Greek bond investments back to Greece as part of the second economic adjustment programme designed to help the country recover from the economic crisis.
However, Illing claimed that Berlin had decided against returning the revenue interests because of concerns about the Southern European country’s ability to continue the reforms to its economic system.
Professor Illing said Germany’s decision to keep the money was legal but “morally” questionable
“There were doubts about whether Greece would continue with the reforms and fulfil the conditions imposed in the bailout programme. These funds have been withheld and they have been transferred to a special fund of the Eurogroup.”
The Economics professor also said that Germany’s supposed decision would not be technically illegal.
“Legally Germany has the right to keep these payments. But of course, you can debate whether it is morally justified. There are different views in Germany.”
The German Green Party sternly responded to a Finance Ministry report claiming that Germany had gained a consistent sum of money from various aid schemes to support Greece.
