[4]The following anecdote should probably explain why Germany is now ready to part ways with Greece, Lehman-like consequences be damned. As Kathimerini reports [5], former PASOK defense minister Akis Tsochatzopoulos has had one of his properties in central Athens seized, the same he is alleged not to have declared to avoid paying taxes. Yep - one of the top Greek political figures caught in tax evasion. And one thought such travesties only occur in the US. But wait there is more: this is the same defense minister whom the Greek Parliament voted in favor of indicting in connection with taking bribes for the purchase of submarines. As a reminder [6], "At least 120 million euros was paid in bribes by the German firm that struck a deal with the Greek government for the sale of four navy submarines, according to German court documents seen by Kathimerini....Two former executives of Ferrostaal, the Germany firm that was part of the consortium which won the contract, gave depositions in Munich concerning the kickbacks paid to secure the deal, which was worth just over 1.2 billion euros. According to court documents seen by Kathimerini, the first illicit payment of 32 million euros was made in May 2000. The money was deposited into a Swiss bank account but the two former Ferrostaal employees said they did not know who the recipient was. The executives said their main aim had been to win over a “top level” official in the Defense Ministry." Turns out it is the same guy who was concurrently engaging in tax evasion. And that is why Greece had a budget revenue miss of about the same amount as it paid Germany for its subs. It also explains why, as Germany will no longer receive payment for its subs, it no longer needs Greece as a mercantilist partner.
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