Merkel Bugged While Pondering Greece Crisis
The United States National Security Agency has been massively targeting phone numbers of top German ministers and public officials responsible for commerce, finances, economics and agriculture – including even Angela Merkel's personal assistant.
WikiLeaks published a list of 69 German government telephone numbers from a high-priority NSA target interception list demonstrating economic and political espionage against Germany for almost two decades. WikiLeaks is also publishing classified interception reports resulting from the surveillance, showing the US and UK spying on German officials discussing their positions and disagreements on the solution to the Greek financial crisis.
Discussing the Greek financial crisis with her personal assistant on 11 October, German Chancellor Angela Merkel professed to be at a loss as to which option--another haircut or a transfer union--would be best for addressing the situation. (The term "haircut" refers to the losses that private investors would incur on the current net value of their Greek bond holdings.)
Merkel's fear was that Athens would be unable to overcome its problems even with an additional haircut, since it would not be able to handle the remaining debt. Furthermore, she doubted that sending financial experts to Greece would be of much help in bringing the financial system there under control.
Within the German cabinet, Finance Minister Wolfgang Schnaeuble alone continued to strongly back another haircut, despite Merkel's efforts to rein him in, while France and European Commission President Jose Manuel Barroso were seen to be in favor of a gentler approach. European Central Bank President Jean-Claude Trichet was solidly opposed, with IMF Managing Director Christine Lagarde described as undecided on the issue.
Finally, Merkel believed that action must be taken to enact a Financial Transaction Tax (FTT); doing so next year, she assessed, would be a major step toward achieving some balance in relief for banks. In that regard, the Germans thought that pressure could be brought to bear on the US and British governments to help bring about an FTT.
