We use central expenditure because it reports German data for the years 1948 and 1949 and because public expenditure (including the federal states and municipalities) was not available for all the federal states. The main limitation of this analysis is that we are obliged to rely on a transnational data body on social expenditure in all European countries, which may not be totally coherent. Like what. B there may be significant difficulties in determining spending on social security programs and social insurance in different countries (e.g.B. “For some countries/periods, the integration of social security has proved too difficult” Flora (1983, 345). Therefore, we use economic development data (economic services and spending on transportation and communications) and do not add other expenditures in social categories, such as public health spending. B due to cross-cutting problems in the treatment group. Similarly, we avoid including social spending on education or housing in the control group. In this case, the Expenditure Category Control Group includes data on defence, police, security and debt. Despite significant data constraints, the results indicate that economic development spending in Germany grew much faster than debt, defence and police reimbursement spending after 1953 compared to other categories of expenditure and compared to other European nations. Finally, when assessing the cancellation of Germany`s debt after the war, we must raise the political motivations (particularly in foreign policy) objectives. Even if we attributed to the LDA of 1953 the most cynical and instrumental motivations (i.e.
the need for a strong Germany in the context of the Cold War of the 1950s, in addition to the awareness of the mistakes of the Versailles conference and its consequences), it is clear that this debt erasure was firmly designed to help Germany to grow and always give priority to German economic health over debt repayment. This involved significant sacrifices by creditors (in the form of abandoning a large portion of their debts), but also the implementation of mechanisms to avoid any risk of the German economy stagnating with the weight of debt repayment.