Papoulias: War reparations and "haircut" of the debt

The sustainable fiscal consolidation can only be achieved in parallel with development. Development means major productive investment. And these will not be made unless the debt is restructured."

By these words, the President of the Republic Karolos Papoulias formulated the problems to deal with the crisis in his address to the German counterpart , Joachim Gkaouk , last evening during the official dinner hosted at the Presidential Palace.

The President admitted that the crisis in Greece due to significant mistakes but notes shortcomings in the structure of the euro and the deadlock of punitive policy ,as said, imposed by the North . Mr. Papoulias and raised the issues of the occupation loan and war reparations saying:

"You know the personal ties I have with Germany. These special ties make it even more difficult for me to understand the refusal of the German government to discuss the issue of the occupation loan and war reparations. It is not only an outstanding negative shadow on our relations. It is also a crucial matter of political morality. It is an oxymoron that Greek people are asked to implement, without debate, painful prerequisites and obligations and at the same time Germany refuses to discuss his obligations outstanding from the Second World War. Refuses to negotiate. Refuses to international arbitration. Refuses, in short, international law to resolve disputes. Your position that "no issue" is an assertion . Cannot be invoked unilaterally as a final conclusion", Mr. Papoulias said.

The President of the Republic referring to the Cyprus issue and the new negotiations that have started, made it clear that Greece will not accept peace plan that would legitimize the fait accompli of the invasion plan, let alone a solution that is not fully compatible with the acquit and expressed Greece's objection in the European policy to address illegal immigration, calling for substantial assistance of all countries.