The Impasse Continues: The Occupation Loan after German Reunification

Abstract

The expectation that the unification of Germany would open up new opportunities for settling war reparations with Greece was quickly dissipated. Chapter 3 gives an account of the steps taken by various Greek governments to break the impasse and start negotiations with reunited Germany, though again to no avail fuelling public resentment in Greece and mutually hostile feelings in both countries. Especially after the Greek bailout in 2010, many activists suggest that in reciprocation Greece should default on its current debt obligations regardless of the risks that such a move entails for the country and the Euro area as a whole.