🇬🇧 /// BREAKING BRITANNIA NEWS /// 🇬🇧
As the crisis deepens, unearthed reports show how Germany, a top state from the Greek bailouts, has earned substantial amounts in interest payments because of the financial crisis.
In 2010, eurozone nations purchased €210billion of government paper, such as Greek bonds, to provide liquidity to the EU’s banks since the debt crisis unfolded.
The original agreement between Athens and Berlin was when it fulfilled its own reform duties for any interest earned on the bonds to be paid back to Greece.
However, Germany repaid €527million (£449million) of interest payments to Athens in 2013 and €387million (£330million) in 2014.
Following Greece’s second bailout programme has been agreed in 2015, those repayments stopped, and Berlin accumulated the ongoing interest.
Therefore, Germany is reportedly €2.5billion (£2.1billion) in profit, plus interest of €400million (£341million) on loan from the KfW development bank.
Sven-Christian Kindler, a Green MP, said in 2018 that Germany had “hugely profited from the crisis in Greece”.
He said: “It cannot possibly be the case that the German authorities consolidate the German funding with billions in Greek curiosity profits.
The EU is taking unprecedented action to help its members endure the massive economic shock of the coronavirus pandemic. However, some nations are resisting the idea of shared borrowing to cover the heavy costs, suggesting that even during this crisis there are limits to solidarity in a bloc that is trying to reaffirm itself after Brexit.