Greece won’t seek WWII reparations from Germany during debt crisis, prime minister says

Greece won’t seek German reparations during crisis

ATHENS, Greece — Greece’s prime minister on Friday said his country will not raise the issue of World War II reparations payments from Germany during the financial crisis.

Speaking in parliament, George Papandreou rejected calls from opposition parties to seek further payments — which Berlin denies it owes beyond reparations made in 1960.

Papandreou described the reparations issue as “open” but added that it would not be discussed during Greece’s efforts to overcome its debt crisis, which has in recent months rattled the European Union.

“We are not surrendering our rights but we are also not being carried away by the current events,” Papandreou told parliament.

He said the question of German reparations as a result of World War II has not been resolved, that Greece has not give up its claims and that the issue exists as part of bilateral relations with Germany.

“On the other hand, this cannot be used as a flag of convenience now that we have found ourselves in a weak position … If we officially raise the issue at this current time, this could easily be interpreted … as another sign of weakness and an effort to evade our responsibility,” Papandreou said.

Officials in Greece and Germany are trying to avoid a strain in relations over Greece’s ongoing debt crisis, which has affected confidence in the euro and prompted widespread speculation of a German-led assistance from the EU.

Papandreou insists Greece is not seeking direct financial aid but support that would calm financial markets and allow Athens to borrow money at pre-crisis rates.

Spreads on Greek government bonds over the equivalent German bond — a key indicator of market confidence — remained high Friday, at 347.7 basis points.

“We will seek and we will demand European solidarity and I believe we will get it,” Papandreou told parliament.

The Greek prime minister’s office said Papandreou has accepted an invitation from Angela Merkel to meet the German Chancellor in Berlin on March 5.

While Berlin denies it owes more reparations to Greece, deputy Greek Prime Minister Theodoros Pangalos said this week that Athens has still not been compensated for gold reserves snatched by the Nazis. Groups representing civilians killed by the German army during the wartime occupation are also fighting for compensation.

On top of this, media headlines in Greece have in recent days concentrated on a row over the publication on the cover of the German news magazine Focus of a doctored image of the ancient Greek statue Venus of Milo making a rude hand gesture.

The use of the iconic sculpture to illustrate a story about Greece’s manipulated debt figures enraged some Greeks — a major Athens-based consumer group, INKA, on Friday called for a boycott of German products.

Germany’s ambassador to Athens said Thursday: “The Embassy regrets the fact that recent articles in the German press have created a sense of offense among the Greek public.”