Greece And Germany At Odds Over Financial Crisis

Greece is in a massive financial crisis that has had repercussions throughout the European Union economy. The crisis is based in large part due to Greece’s entitlement culture in which the government has overspent to the point where the country is facing bankruptcy. Germany and its financial institutions have backstopped Greece in the past and have been a constant partner in loans and other financial assistance.
The Germans have tightened their belts, however, and are not happy that Greece failed to do the same. Germany has threatened to cut off any further financial assistance to Greece which has sparked anger among the Greeks and even triggered the “Nazi Card” being played. Greek Deputy Prime Minister Theodoros Pangalos lit up the news wires with highly inflammatory rhetoric in which he claimed the Germany basically robbed Greece blind during the Nazi-World War II era occupation of the country and that reparations were never made by the Germans.
German officials said that such rhetoric is not helpful and many believe that they have been more than helpful through the years with billions of dollars in aid. German citizens, however, have little sympathy for Greece and its plight as they feel that they have subsidized a virtual welfare state through the years and would like to sever all financial ties. Polls show nearly two-thirds of all Germans are vehemently opposed to a Greek bailout.
Greece may have the ultimate trump card in their favor, however, as the lack of a bailout may have a damaging ripple effect throughout the European Union. The trade factor is another card that is in Greece’s favor as Germany exports as much as three times as many goods as Greece does back to them in return. Germany also faces their own stagnant economy that makes bailing out other nations inopportune at this time.