June 24, 2011
Tensions between Germany and Greece are one side effect of the Greek debt crisis. Germany is the country that shoulders the biggest part of the financial aid Greece is receiving from the European Union and International Monetary Fund. Consequently, some German politicians and parts of the media feel entitled to tell Greece what should be done – and Greeks don't seem to like it, judging by the anti-German slogans shown on banners and placards at demonstrations in Athens. Given Germany's history – not just its military one but its history as a debtor – Germans should think again before they criticize, says Albrecht Ritschl, professor of economic history at the London School of Economics, in an interview with the Monitor's Michael Steininger.
Professor Ritschl, should Germans abstain from giving Greece advice on how to manage the debt crisis?
Germans are perfectly entitled to give advice. The question is more, what kind of stance they should adopt. In Germany right now the public mood is at boiling point, and Germans seem to have conveniently forgotten, that not too long ago Germany had its very own debt problems and got back onto its feet after World War II largely due to very generous debt forgiveness.
Germany is shouldering a big part of the financial aid and Germany reformed its job market in the last 10 years – a process not without pain. Aren’t the Germans entitled to their opinion?
Absolutely, and it is clear that Greece has to embark on structural reforms. The question is, how to sell this, how to advertise it and how to deal with the particular problems of the Greek society.
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