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The case for Greece: when it forgave Germany’s debt

FILE - In this Feb. 27, 1953 file photo, the German Debts Agreement is signed in London. Though Germany is resisting Greece’s pleas for some relief, it should know better than most what it can achieve. After the hell of World War II, the Federal Republic of Germany - more commonly known as West Germany - got massive help from its former foes, among them Greece. The agreement, in which Greece and about 20 other countries effectively wrote off a large chunk of Germany’s loans and restructured the rest, is a landmark case that shows how effective debt relief can be. It helped spark what became known as the German economic miracle. (AP Photo, file)
FILE - In this Feb. 27, 1953 file photo, the German Debts Agreement is signed in London. Though Germany is resisting Greece’s pleas for some relief, it should know better than most what it can achieve. After the hell of World War II, the Federal Republic of Germany - more commonly known as West Germany - got massive help from its former foes, among them Greece. The agreement, in which Greece and about 20 other countries effectively wrote off a large chunk of Germany’s loans and restructured the rest, is a landmark case that shows how effective debt relief can be. It helped spark what became known as the German economic miracle. (AP Photo, file) FILE - In this Feb. 27, 1953 file photo, the German Debts Agreement is signed in London. Though Germany is resisting Greece’s pleas for some relief, it should know better than most what it can achieve. After the hell of World War II, the Federal Republic of Germany - more commonly known as West Germany - got massive help from its former foes, among them Greece. The agreement, in which Greece and about 20 other countries effectively wrote off a large chunk of Germany’s loans and restructured the rest, is a landmark case that shows how effective debt relief can be. It helped spark what became known as the German economic miracle. (AP Photo, file)

By Associated Press 5 min read

LONDON (AP) – Forgiving debt, if done right, can get an economy back on its feet.

Though Germany is resisting Greece’s pleas for some relief, it should know better than most what it can achieve.

After the hell of World War II, the Federal Republic of Germany – more commonly known as West Germany – got massive help from its former foes.

Among its creditors then? Greece.

The 1953 agreement, in which Greece and about 20 other countries effectively wrote off a large chunk of Germany’s loans and restructured the rest, is a landmark case that shows how effective debt relief can be. It helped spark what became known as the German economic miracle.