Eleven Israelis and a West German police officer died during the attack, including during a botched rescue attempt.
Immediately after the attack, Germany made payments to the relatives of the victims amounting to about 4.19 million marks (about 2 million euros or $2.09 million), according to the Interior Ministry. In 2002, the surviving relatives received another 3 million euros, dpa reported.
A claim for compensation payments amounting to around 40 million marks cited massive errors in the police operation, but it was dismissed because of the statute of limitations.
In Israel, Ilana Romano, the widow of Yossef Romano, a weightlifter who was one of the first Israelis killed, told public broadcaster Kan on Tuesday that Germany's current reparations offer was “degrading” and the victims' survivors rejected it.
“The offer is degrading, and we are standing by our stance that we are boycotting the (anniversary) ceremony,” she said, adding that Germany “threw us to the dogs. They mistreated us for 50 years.”
“They decided to take responsibility — very nice after 50 years,” Romano said, calling for proper compensation for the families “not pennies.”
Ankie Spitzer, the widow of Andre Spitzer, a fencing coach with the Israeli Olympic team who was killed in the attack, also rejected the sum offered by Germany.
"The sum we have been offered is insulting,” Spitzer told RedaktionsNetzwerk Deutschland newspaper group on Wednesday. “We are angry and disappointed.”
The newspaper group — citing families of the victims — reported that Germany had offered 10 million euros to the families, which would include the payments that were already made in the past.
The German government has not publicly revealed how much money it has offered.
“We never wanted to talk about money publicly,” Spitzer said, “but now we are forced to do so.”
If the current offer stands, the relatives will not come to Munich for the commemoration of the 50th anniversary of the attack in early September, Spitzer said.
Demands to release previously unpublished files on the attack were met last month, when officials in Bavaria said they would release any files under wraps in the southern German state.
Ben Zion reported from Jerusalem.