NSA Global SIGINT Highlights

Merkel Bugged While Pondering Greece Crisis

WikiLeaks release: July 1, 2015
Keywords: National Security Agency, NSA, Top Secret, SIGINT, COMINT-GAMMA,
NOFORN, intercept, espionage, United States, USA, Germany,
European Union, EU, Troika, European Commission, European Central
Bank, ECB, International Monetary Fund, IMF, EU financial crisis,
Angela Merkel, Wolfgang Schnaeuble, Jose Manuel Barroso, JeanClaude Trichet, Christine Lagarde
Restraint: TOP SECRET//COMINT-GAMMA//ORCON/REL TO USA, FVEY
Title: NSA Global SIGINT Highlights: Eurozone Crisis: Merkel Uncertain on
Solution to Greek Problems, Would Press U.S. and UK
Date: 2011
Organization: National Security Agency (NSA)
Author: Summary Services Office
Link: https://wikileaks.org/nsa-germany/
Pages: 1

Description
This is a highly sensitive Top Secret US National Security Agency (NSA) report on intercepted German
government communication between Chancellor Angela Merkel and her personal assistant on 11 October
2011. The report, dating from 2011, summarises Merkel's intercepted observations concerning the Greek
financial crisis, and the viability of various approaches to the crisis favoured by the principal Troika
leaders: European Commission President Jose Manuel Barroso, European Central Bank (ECB) President
Jean-Claude Trichet, and International Monetary Fund (IMF) Managing Director Christine Lagarde. The
report demonstrates keen American intelligence interest in European leadership plans for dealing with the
Greek financial crisis. The report has been marked as "REL TO USA, FVEY" meaning that it was intended
to be circulated to the intelligence services not only of the United States but also to its "Five Eyes"
partners in the United Kingdom, Canada, Australia and New Zealand.

Eurozone Crisis: Merkel Uncertain on Solution to Greek Problems, Would

Press U.S. and UK (TS//SI-G//OC/REL TO USA, FVEY)
(TS//SI-G//OC/REL TO USA, FVEY) 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 U.S. and British governments to help bring about an FTT.
Unconventional
German leadership
G/OO/526362-11, 181753Z