Ten years after the tumultuous July 2015, when Greece was on the brink of Grexit, former German Chancellor Angela Merkel, a pivotal figure during the Greek debt crisis, offered candid reflections on that “Greek drama.”
In speaking at the Stavros Niarchos Foundation for the Greek launch of her book Freedom, Merkel, in conversation with Kathimerini director Alexis Papahelas, expressed admiration for the resilience of the Greek people and shed light on previously unseen moments of tension and negotiation.
Merkel’s admiration for Greek resilience during the crisis
Merkel firmly stated that she would not offer an “apology” to the average Greek. Instead, she expressed deep respect, saying, “I could not imagine the European Union without Greece.” She particularly highlighted the extraordinary efforts she made to sway her finance minister, Wolfgang Schäuble, who advocated for Greece’s exit from the Eurozone.
“I called him every hour and kept him informed,” she revealed, underlining her commitment to keeping Greece within the euro.
A moment she described as the most unpleasant of her political career was when Prime Minister Alexis Tsipras of the time informed her by phone of his decision to hold a referendum. “It was the most surprising and the most silent of my career,” Merkel recalled, noting, “Then we understood that if the ‘no’ vote prevails, it means leaving the euro. We could not decide for a democratic country ourselves.”
Merkel also shared her initial impressions of Tsipras during his first visit to Berlin as Prime Minister, as well as her complex relationships with George Papandreou and Antonis Samaras. She touched upon the intense pressure from Barack Obama that once brought her to tears, her dealings with Vladimir Putin, and her views on the war in Ukraine and Donald Trump, whom she perceives as approaching everything from a “deal” perspective.
Navigating the crisis: From “no bailout” to “whatever it takes”
In recalling the early days of the crisis, Merkel described the immense challenge of providing financial assistance given the euro’s “no bailout clause.” In February 2010, faced with Greece’s dire need for money, she felt like the “bad guy,” unable to offer immediate aid. She recounted a meeting during which a silent George Papandreou responded “nothing” when asked what he wanted, leading to an intervention by European Council President Herman Van Rompuy to craft a statement of support.
By 2011, Merkel was resolute: “I decided that we had to do everything in our power to keep Greece in the Eurozone.” The negotiations, particularly after the referendum, were “extremely difficult.” Despite Schäuble’s differing views on a Greek exit, Merkel emphasized her continuous communication with him to ensure joint decision-making.
Regarding Antonis Samaras, Merkel saw herself as the “bad cop,” not out of malice but conviction that “the country needed to get on the right track.” While politically aligned, they often held conflicting views. Merkel personally favored a debt haircut for Greece, a position shared by Schäuble but faced strong opposition from figures such as then-ECB President Jean-Claude Trichet, who feared a loss of confidence in the Eurozone.
Merkel expressed genuine awe at the resilience of the Greek people during the crisis, particularly when they were limited to withdrawing only sixty euros from ATMs. “I was impressed by how the Greeks held up with the €60, I wondered if the Germans would hold up,” she confessed.
Alexis Tsipras and the 17-hour negotiation
Angela Merkel described her first encounter with former Greek Prime Minister Alexis Tsipras as initially unimpressive since their first meeting took place in Brussels. She later met him again in Berlin and emphasized that she found Tsipras to be sincere, noting that he never attempted to mislead her.
In recalling an early meeting, Merkel mentioned waiting for Tsipras outside of the Chancellery, only for him to divert to meet protesters behind the building, where he listened to their concerns. She remarked that despite their political differences—Merkel’s party supporting privatizations and Tsipras’ party opposing them—they gradually developed a closer working relationship.
Merkel recounted the dramatic phone call when Tsipras informed her of the referendum. “I didn’t want to leave the euro, and he didn’t want a memorandum,” she said.
After Tsipras refused to agree with the lenders and vaguely responded to her questions on his next steps, he finally confirmed his intention to hold a referendum. When Merkel asked for his recommendation on how to vote, Tsipras simply replied, “Of course not.”
“That’s where I lost my voice,” Merkel recalled, describing the rapid end to the call and her immediate discussion with François Hollande, where they concluded that a “no” vote would effectively mean a euro exit. Despite the intense challenges, Merkel later expressed satisfaction with the high caliber of the Greek team that ultimately agreed to the third memorandum.
The immense pressure she faced during the crisis sometimes took an emotional toll. Merkel revealed, “Obama didn’t know the legal part well, the goals of the ECB…At one point, I burst into tears, [as] I had been pressured.”
She explained that Obama’s desire for the ECB to provide more liquidity was legally impossible under German law. She credited Mario Draghi, then president of the ECB, for his bold “whatever it takes” stance, which she noted he implemented independently.
Migration, geopolitics, and a “deal” with Trump
Merkel also addressed the migration crisis, describing the situation in Greece as “dramatic” with 10,000 new refugees arriving daily at its peak. She championed the EU-Turkey plan to manage the influx, acknowledging the contentious nature of dealing with Erdogan but emphasizing the necessity of realpolitik. She expressed satisfaction with Europe’s progress towards a common asylum system.
On Greek-Turkish relations, Merkel highlighted the frequent tensions and her attempts at mediation, recognizing the difficulty of finding common ground in an often aggressive climate.
Her relationship with Vladimir Putin was marked by fundamental disagreements. While Putin viewed the dissolution of the USSR as the “worst event of the 20th century,” Merkel considered it “the most pleasant of my life.”
She acknowledged Russia’s enduring presence and nuclear power but noted that the invasion of Ukraine in February 2022 signaled “a new era,” ending any direct relationship with Putin, who she stated had lied to her regarding Crimea.
Finally, Merkel characterized Donald Trump as someone who views “everything as a deal.” She found it challenging to achieve common results with him, describing it as “not good news.” She recounted a memorable moment during which Trump refused to shake her hand, preferring to “distract attention and have everyone look at him.”
When asked what she would say to an average Greek today, Merkel reiterated her admiration: “I wouldn’t apologize, I presented my motives. I would say we achieved a lot, [and] I can’t imagine the EU without Greece.”
She concluded by reiterating her profound impression of Greek society’s endurance: “I was really impressed…people could only take 60 euros out of the bank. I said the Germans wouldn’t be able to bear it.”