Hi ESL-b, The two phrases mean the same thing--that what I am about to say goes against my principles or beliefs [ pains me] , but that I have to admit that it appears to be true. In your particular sentence, it is not clear what it is that antagonizes the feelings of the study's director so much that it causes him or her to feel 'pain' when making the statement about Germans. Using your first construct, the sentence could be reworded to: It pains me to say this , but perhaps the Germans do actually deserve to get the best service.
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