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Greece Germany relation review

 

To the financial level the relation is more of a creditor and debtor for which the terms of conditions for payments as well as repayments are being negotiated over the meetings. So far a common accord has not been reached.

Greek stance -

  • Greece just paid another tranche of payments due to IMF worth € 580 million, which leaves Greece with one last payment worth € 350 million due in Friday. Greek government continued to mention about Greece's ability over payments and liquidity crunches.
  • Greece once again pushed the Germans for claims of War crime in World War II, for which they say that Greece was ditched and forced to accept a smaller token.
  • Greece is trying to negotiate over its due payment of € 7.2 billion to ECB in July/August. Suggested to link repayments with growth in GDP. Greek government even threatened referendum over the new conditions, should the negotiation proves unsuccessful.
  • Several instances led to high tension like posing the German finance minister Mr. Wolfgag as a Nazi dominator or Mr. Varoufakis showing middle finger to Germany in a video (which was proved a fake later).
  • Greek media and people continued to express their anger on Germany and ECB, some calling it "evil central bank" or "European criminal bank".

German stance -

  • German finance minister has shrugged off Greece's claim over money for WWII as it was settled years ago according to him. He further mentioned that Greece can only blame itself as it lived beyond means for many years.
  • German politicians so far remained united as they intend to keep Greece in Euro zone but cracks are emerging as some in Chancellor Merkel's own party voiced anger over the last bailout extension for another four months.
  • Recent poll suggests that 52% of the German people want Greece out of Euro.

Euro is currently trading at 1.05 against dollar, not focusing on Greece much but might change that as the dates will close in to finalize negotiation. April 20 is a crucial date to come out with results.

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