Germany: 25 years since Nazi forced labor compensation began

A German fund set up to compensate the millions forced to work for the Nazi regime is marking 25 years since the first payments were made. But for many victims, it was much too late.

https://p.dw.com/p/5FVVj

Russian forced laborers, both men and women, during World War II, seen in a black and white photo. They are standing in a field.
Russian civilians were used as forced labor in Germany by the Nazis during World War IIImage: Everett Collection/IMAGO

Germany’s Remembrance, Responsibility and Future (EVZ) Foundation is this month marking 25 years since it first paid compensation to the last survivors forced to work under the Nazi regime.

But some have argued that those payments should have begun much sooner after the end of World War II in 1945, and should have been much larger. According to the EVZ, €4.4 billion ($5.1 billion) were paid to 1.66 million former forced laborers and their legal successors in around 100 countries between 2001 and 2007, when the final payments were made.

Some 26 million people are believed to have been forced to work for the Nazi regime between 1933 and 1945, around half of them in occupied Europe outside Germany’s borders during World War II. Historical studies have found that if the full amount of slave labor performed during the Nazi era were to be compensated, the original fund would have had to comprise between 180 billion and 220 billion deutschmarks (€90 billion–€112 billion).

“If you ask me personally: Was it a large fund? No, of course not, measured against the injustice,” said EVZ head Andrea Despot. “There were around 26 million people who worked in factories, in agriculture, in churches, in private homes, in companies. There was barely a section of society that didn’t profit from it. One could say that it was not nearly enough to compensate the damage and the exploitation that happened.”

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The EVZ Foundation was established in July 2000, both as a way to compensate forced laborers and as a foundation to promote and finance projects that foster human rights, democratic values and the interests of survivors of the Nazi regime.

The organization was given a fund of 10.1 billion deutschmarks. Half was paid by the federal government, and the other half by an organization of around 6,500 German companies, called the German Business Foundation Initiative, many of which, though not all, were businesses that had used forced labor.

Compensation for Nazi-era slaves mere ‘symbolism’

Though West Germany did introduce compensation measures, such as the 1953 Federal Compensation Act for those persecuted for political, racist or religious reasons, those attempts excluded forced laborers. From the 1950s to the 1980s, following public pressure, some large West German companies voluntarily paid out millions of deutschmarks in compensation to forced laborers, though not to people in Eastern Europe.

The debate in the 1990s was tortuous, with many German companies initially refusing to contribute to the fund and refusing to accept responsibility for the forced labor. “In the end, it was basically just numerical symbolism,” said Constantin Goschler, a historian at the Ruhr University Bochum who in 2012 published a comprehensive collection of studies on the compensation for Nazi-era forced laborers.

“The people representing the claimants were saying: We need at least a double-figure number [of billions] and those paying were saying: We want a number that’s at most double figures,” he added. “And so in the end 10 billion DM came out. It had nothing to do with the size of the damage, it was pure negotiation psychology.”

Class-action suits, especially from Jewish groups

Legal pressure also played a significant role, as more and more victims groups, particularly in the US, began to discover the power of the class-action lawsuit.

A black and white photo of several workers being watched by Nazi soldiers in 1940
Many Polish people were forced to work by the occupying Nazi regime during the warImage: picture alliance

“It wasn’t a purely moral or ethical decision — that was part of it, but not only,” Despot told DW. “After decades of demands from survivors, there was international pressure, especially from the USA and also from Jewish organizations, who were preparing class action lawsuits.”

These threats finally led Germany to enter into negotiations with the US to establish legal clarity for the future. 

Why did compensation take so long?

Goschler said there was one overarching reason why the German state took over half a century to offer compensation to the former forced laborers.

“The first reason was the Cold War,” he told DW. “During the Cold War, there was a principle in effect: We don’t send any money behind the Iron Curtain.” That meant that West Germany simply refused to send any money to its eastern neighbors, notably Poland.

Another factor, Goschler said, was that former forced laborers in Eastern Europe were often treated with suspicion, and so had few people on their side at home.

“Forced laborers — and many of them were women — in the former Soviet Union were considered collaborators who had worked for the Nazi war economy, and when they returned home after the war, they were mistrusted, they were sent to screening and filtration camps, they lived a pretty miserable life,” he said. 

In fact, Goschler argued, when Germany did finally compensate them, the survivors were less concerned about the money than correcting the historical record. “What was more important than that little bit of money they got from Germany was the certificate that confirmed that they were victims, and not traitors,” he said.

Andrea Despot, head of the EVZ foundation
Andrea Despot said the fund could not come close to fully compensating the trauma caused by Nazi forced laborImage: Jens Schicke/IMAGO

Defending human rights and democracy

Many former forced laborers are still alive today. The Jewish Claims Conference has said there are still around 200,000 Jewish survivors around the world, plus several hundred thousand Eastern Europeans, Roma and Sinti, and former political prisoners who were forced to work by the Nazis. Exact numbers for those latter groups have never been established.

Though the compensation claims have long since been paid out, the EVZ’s work continues today. The EVZ is now a charitable foundation that funds projects fostering human rights, democratic values, historical and political education. 

According to Despot, the EVZ’s main purpose today is maintaining Germany’s cultural remembrance of the Nazi period, particularly the forced labor schemes, from which thousands of German companies profited. 

In 2025, the EVZ was declared an “undesirable organization” by the Kremlin, following its show of support for Ukraine.

“Ukraine, Belarus, and Russia were all very deeply scarred by the genocidal and exploitative German occupation,” said Despot. “We saw those countries as partners in our work. The Russian war against Ukraine today is also an attack on Ukrainian identity and Ukrainian history.”

Now, the EVZ helps Russian and Belarusian organizations that have been driven into exile by their respective governments.

Edited by: Rina Goldenberg

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