The German economists Hans-Werner Sinn of Munich's Ifo Institute for Economic Research and Albrecht Ritschl of the London School of Economics have been discussing for two weeks now to what extent the German-backed bailouts for Greece can be compared with the Marshall Plan implemented after World War II. Without a drastic waiving of debts Germany's successful model would hardly have been possible, Albrecht Ritschl explains in the Free Exchange blog of the liberal business magazine The Economist: "The figures for Greece are indeed horrific, exceeding 200 percent of GDP. What makes them so particularly depressing is that there seems to be no coherent plan, or one that is based on illusions. That was very different after World War II. The Marshall Plan hatched out in 1947 had a simple goal, to give top priority to self-sustained recovery in Europe, and to minimise further transfers from the US. That's why ERP deliveries were so small. Indeed, they were only designed as a palliative, and a red herring for the European public, until the deep political agenda of the Marshall plan had played out." (28/06/2012)
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