German historian Hagen Fleischer: ΄Germany turns a deaf ear to claims΄

This interview was first published in German on February 10, 2015 by the web edition of tagesschau, a TV programme hosted by ARD, one of Germany's public broadcasters. It was translated to English by Maria Pervolaraki and was published by Analyze Greece. 

Germany and Greece are partners in the EU and NATO, but the aftermath of the German occupation in the Nazi period is to this day an important part of the relations between the two countries. Why is that?

On April 6th, 1941 the Wehrmacht marched into Greece and occupied the whole mainland until month's end. At the end of May and despite heavy losses, the German airborne troops conquered Crete, the last free part of Greece. Upholding a centuries-old tradition resistance came also from large segments of the Cretan civilian population. The surprised attackers reacted with cruelty and executed hundreds of Cretans. Throughout the occupation time tens of thousands of Greek civilians were brutally eliminated, amongst them many women and children, the 60.000 deported and murdered Greek Jews not included. The German plundering of the nation’s resources was one of the pivotal reasons for the epidemic famine; In the first occupation winter alone at least 100.000 Greeks – according to moderate estimates – succumbed to hunger. There are also much higher estimates of a total of 300.000 to 600.000 victims. In addition to all this came the steep decline in the birth rate. By the time of the German withdrawal, one in three Greeks was suffering from infectious diseases. What is hard to calculate are the losses due to hyperinflation, as well as the country’s ravaged infrastructure in the wake of rapine exploitation; not to mention the fact that occupied Greece had to actually pay for the expenditures of the occupiers.

So the Germans bled Greece dry. How did it come to the forced loans fought over today?

From the second occupation year on, the occupiers demanded from the National Bank of Greece – over and above the regular occupation costs ‘authorised’ by the Hague Convention respecting the Laws and Customs of War on Land – additional amounts for their war operations in the Mediterranean area. From March 1942 until the German withdrawal in October 1944, the National Bank had to act as “creditor,” and make monthly transfers – often multiple – of considerable amounts in the form of ‘loans’ to a special account of the Wehrmacht. The inflation, however, galloped higher and the currency exchange rate varied from day to day. This makes it very difficult today to calculate the current value of these 'loans.’ The next element of uncertainty is that the occupying force transferred almost every month remaining sums back to a repayment account of the National Bank. In other words, it was de facto recognised that it had been indeed a case of lending. A repayment, albeit with no interest, was bindingly promised in agreements leaving the exact date undetermined.

These occupation loans were a singular case and are not to be compared to German war debt in other countries.

So are there serious estimates as to the total amount of the loans?

I was the first to find a memorandum in the German federal archives showing calculations for future use by Nazi experts in early 1945 of how high the ‘remaining debt of the Reich to Greece’ was. It all added up to 476 million reichsmark. The concurrent exchange rate between reichsmarks and dollars was 2 to 1.  The interesting thing is that deputies of the Nazi regime calculated this amount for internal use. In the archives of the National Bank I found two other calculations, also from 1945. The detailed one totals up the price of the occupation loans at 228 million dollars. This coincides with the German computations. Creditors and debtors came up, at the same time,  with almost the same number.
Wouldn’t that be a negotiating basis for today’s opposing sides?

And what was the result of all this?

Many Greeks have calculated simple and compound interest, and in some cases came up with astronomical amounts. I have always advised Greek Prime Ministers and other politicians against maximalist claims. Although in the matter of reparations Greece probably has the biggest accumulated demand, it is out of the question that Germany will revisit the matter, lest a precedent be set. No such risk exists, however, if the German government breaks with the defensive approach and agrees to come to the negotiating table and examine the different perspectives on the occupation loans based on the documentation.

But why hasn’t Greece succeeded in getting a reimbursement until today?

From the London Debt Agreement of 1953 – a reparations moratorium brokered by the United States – to 1990 the German side was saying that it was too soon because the war was fought by a united Germany. Then, after the German reunification Helmut Kohl and Hans-Dietrich Genscher and Hans-Dietrich Genscher (German Chancellor and Vice Chancellor/Foreign Minister respectively) said that it was now much too late. The matter was ancient history. This stance has continued to this day. This bothers many Greeks, as well as me as both a Greek and German citizen. My mother country is historically, financially and morally at odds with my adopted country.

This is the only issue where all parties in parliament – from the fascists to the orthodox communists – see eye to eye; that this money should be sued for.

Do the Greeks feel that Germany is taking them at all seriously?

Unfortunately not. And this is cause for bad blood. The Greeks were rather fond of Germany in spite of the gruesome occupation period, which was worse than in any other non-Slavic country. Since the onset of the crisis, however, a host of German media outlets unfortunately find relish in sneering remarks and caricatures portraying the Greeks are cheats and racketeers; who are now all of a sudden  – 'because they are broke' – dredging up 'alleged' issues of German guilt and wartime debt. Still, since 1945 the Greeks have steadily carried this claim forward, but to no avail. And when German media demagogically write about the ‘cheats of the eurozone' who should sell off their islands already, they play into the hands of domestic demagogues. For, all this conjures up memories of 1941 to 1944, when occupation policy was determined by the same stereotypes and Crete was to forever remain in German hands, an outpost of the ‘future Nazi world empire.

Prof. Dr. Hagen Fleischer studied History as well as Media and Communication at the Freie Universität Berlin, and has been researching for decades German and Greek history. Since 1977 he lives in Greece and teaches at the Universities of Crete and Athens. He has represented Greece in many conferences and research projects.