German economy minister calls Greek war reparations request 'stupid'

Sigmar Gabriel throws out Greece's demand for a278.7bn, but opposition parties argue for return of forced wartime loan from Athens amounting to a10.3bn

Germany's economy minister has branded Greece's demand for a278.7bn (203bn) in second world war reparations as "stupid", but the German opposition said Berlin should repay a forced loan dating from the Nazi occupation.

The Greek deputy finance minister, Dimitris Mardas, made the demand on Monday, seizing on an emotional issue in a country where many blame Germany, their biggest creditor, for the tough austerity measures and record high unemployment that accompanied two international bailouts totalling a240bn.

Related: Greece puts figure of a279bn on claim for German reparations

The German government's categorical Nein certainly cannot be allowed to stand. That's disgraceful