Economist claims Germany is keeping Greece’s cash

EPA/PATRICK SEEGER via Naftemporiki
The Express — Speaking to CGTN, Professor Gerhard Illing at Ludwig Maximilians University said that the German Government had allegedly decided to withhold €1.34bn in money it has received from Greece. The Green Party went as far as suggesting it was being used to ‘furnish’ the federal budget. 

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.

The party’s EU expert Manuel Serrazin consequently accused Germany’s Finance Minister Wolfgang Schäuble of misappropriating the funds to help sustain the German budget.Speaking to the German newspaper Süddeutsche Zeitung, Serrazin said: “The interest gains must at least be paid out to Greece. It cannot be that Schäuble can refurbish the  German budget with Greek interest profits.”