The Treaty of Versailles imposed harsh economic reparations on Germany post World War 1, in order to collectively punish Germany, its people and its leadership for their role in that horrific slaughter.
Now Germany has done worse to Greece, according to some analysts:
Echoing a widespread view on social media, one financial analyst claimed the deal was worse than the 1919 Treaty of Versailles that crushed Weimar Germany with debt and paved the way for the second world war.
Marc Ostwald, of ADM Investor Services, argued that the eurozone creditor countries wanted “to completely destroy Greece”
Nobel prize winning economist Paul Krugman had this to say about the deal in the New York Times in a piece entitled “Killing the European project”:
This goes beyond harsh into pure vindictiveness, complete destruction of national sovereignty, and no hope of relief. It is, presumably, meant to be an offer Greece can’t accept; but even so, it’s a grotesque betrayal of everything the European project was supposed to stand for.
Make no mistake, this has never been about economics and the practical mathematics of getting Greece to repay its debt. This has been about power politics and those with the power in Europe making an example out of Greece and its audacity to listen to the people and push back against austerity.
Of course, Zero Hedge summarised the modern reality of the European Union utterly succinctly: