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A Greek Watergate threatens the West The PM was caught spying — and remained in power

Democracy is failing in the very place it was born. Credit: LOUISA GOULIAMAKI/AFP via Getty Images

Democracy is failing in the very place it was born. Credit: LOUISA GOULIAMAKI/AFP via Getty Images


September 23, 2022   6 mins

Nothing surprises me more than politicians professing to be surprised that their phones have been tapped. In the world revealed to us by Edward Snowden almost a decade ago, no phone is beyond the reach of motivated eavesdroppers. This is not to say, however, that phone-tapping political opponents has lost its capacity to poison democracy. If those in power can get off  after they are caught red-handed, the floodgates of authoritarianism open widely. Soon, what remains of our democratic checks and balances is washed away. This is why Greece’s own Watergate scandal, which has gradually come to light over the past few months, has a significance well beyond the borders of democracy’s supposed cradle.

To put the recent revelations in context, Greece has as proud a tradition of politically motivated phone-tapping as any other country. I still chuckle when I recall what happened in the early hours of a May morning in 2015 during my short stint as Greece’s finance minister. Soon after I had concluded a sensitive conversation with my friend Jeff Sachs, the phone rang. It was Jeff again, this time laughing uncontrollably.

“You will not believe this,” he said. “Five minutes after we hung up, I received a call from the National Security Council. They asked me if I thought you meant what you’d told me.” I had fully expected my phone had been tapped, but two things made Jeff’s news remarkable. First, the eavesdroppers not only had the capacity to instantly recognise that what I had said to Jeff was of real significance, but they must also have had an open line to America’s NSC. Second, they had no compunction whatsoever about revealing that they were tapping my phone!

I was, of course, neither the first nor the highest-ranking Greek politician to have been honoured with such attention. We now know that, back in 2008, the phones of the then-prime minister, his wife, half the cabinet and close to 100 government officials were tapped by US agencies. Nor was eavesdropping monopolised by US agencies. In 2015, operatives of EYP — the Greek intelligence agency — dropped into my ministerial office to check for bugs, and pointed out the window at two vans which, they said, belonged to the German Embassy and contained listening equipment trained at me and my team. A few months later, the Prime Minister I was serving under told me that the EYP’s head had been spreading the toxic lie that I was in cahoots with Wolfgang Schäuble (Germany’s then Finance Minister) to get Greece out of the eurozone.

Clearly, in view of such experiences, I was not at all surprised, let alone shocked, at the news that EYP has recently been eavesdropping on politicians and journalists. So, why am I branding this latest incident as Greece’s Watergate? Why do I go so far as to believe it poses a greater threat to democracy than Richard Nixon’s original?

The short answer is: because Nixon was forced to resign once it was revealed that he had endeavoured to cover up spying. Kyriakos Mitsotakis, the current Greek Prime Minister, has in contrast succeeded in neutralising the democratic institutions set up to maintain a semblance of legality — before they neutralised him.

The sequence of events leading to the exposure of Greece’s Watergate scandal began in July 2019, immediately after Mr Mitsotakis won the last general election on behalf of New Democracy, our conservative party. One of the very first decrees he issued, as incoming Prime Minister, was one that gave his office direct control over and responsibility for EYP. “Why on earth is the PM taking over the supervision of EYP?”, I remember a parliamentary colleague asking me that very day. It was, indeed, a curious move.

Our trepidation only grew following two personnel choices. First, Mitsotakis appointed a nephew of his, Grigoris Dimitriadis, to oversee EYP on his behalf. Secondly, he chose as EYP’s new head Panagiotis Kontoleon, the CEO of the Greek franchise of the private security firm G4 — a man with no record of public service, and whose appointment Mitsotakis could only complete after amending the relevant law to remove the prerequisite that the EYP chief holds a postgraduate degree.

Given his concerted and very public efforts to take complete control of the state intelligence agency, something no other PM had ever done, it became impossible to shift blame to some other minister once the faeces hit the proverbial fan.

Of the more than 17,000 wiretaps that EYP admits it has placed during the last year alone, two cases are at the heart of the current scandal. The first is that of Thanasis Koukakis, an investigative journalist who dared look into Greek shipowners’ loans that had been illegally written off by the Bank of Piraeus (one of the banks that Greek taxpayers have had to repeatedly bailout). It turns out that Koukakis was one of EYP’s “subjects of interest”, an outrage that would have probably gone unnoticed without the second, higher profile, case.

It was this case that broke the camel’s back: an investigation begun by the European Parliament’s IT department accidentally revealed that Nikos Androulakis, an MEP belonging to PASOK (the formerly dominant party in Greek politics), was being phone-tapped by EYP. It was explosive news because, at the time his phone was tapped, Androulakis was contesting the leadership of PASOK — a contest that he, eventually, won. The significance of that contest cannot be understated, since its outcome mattered a great deal to Mitsotakis and his governing New Democracy party.

Since the middle of the pandemic, opinion polls have persistently suggested that the next election, which must take place by July 2023, will result in a hung parliament. While Mitsotakis’ New Democracy seemed likely to remain the largest party, it was not even close to an absolute majority. PASOK, in third place, was therefore positioned as kingmaker: whoever the party chose to side with would end up in government.

The stakes of PASOK’s leadership race suddenly seemed very high. Of the three main candidates, the one that would almost certainly choose to back New Democracy and Mitsotakis to form a government was Andreas Loverdos — an MP and former minister who had served gladly in New Democracy-PASOK coalition governments between 2011 and 2015. Every newspaper, radio and television station supporting Mitsotakis was rooting for Loverdos to beat Androulakis in the PASOK leadership primary. Is it any wonder that the revelation of EYP’s surveillance of Androulakis was big news? In a period during which the ruling party was rooting for Androulakis’s opponent, the nation’s spy agency — which ruling party’s leader and his nephew controlled and supervised to the full — was tapping Androulakis’ phone!

As if that were not sufficiently outrageous, the Prime Minister doubled down with a disgraceful reaction to the ensuing uproar. In a six hour-long parliamentary debate on the subject, the Mitsotakis repeatedly insisted that the wiretap on Androulakis was perfectly legal, even if it was politically disingenuous. When we pressed him on the legal and logical justification for tapping Androulakis’ phone, he referred vaguely to grounds of “national security” — claiming that such sensitive matters cannot be spoken about in an open parliamentary session. At that point, we — the leaders of the opposition parties — called his bluff and voted to convene a special parliamentary Select Committee, which would debate these “national security” grounds in confidence.

And so it was that, a few days later, a Select Committee convened. Among the summoned witnesses were, naturally, the two men Mitsotakis had appointed to run EYP: Dimitriadis and Kontoleon. Both appeared in front of the Committee and both, reading from the same invisible script, repeated the same mantra: “We cannot answer your questions because the information the Select Committee seeks is privileged.” After a few pointless and cacophonous sessions, lacking any power to arrest witnesses for contempt of Parliament, the Committee disbanded and the case was closed.

And here’s the rub. Politicians, like corporations and athletes, often try out illegitimate practices to tilt the playground in their favour. In our surveillance society — in which our every move, thought or click is turned into a valuable commodity — phone-tapping is, unfortunately, commonplace. However, when a President or a Prime Minister seeks direct control over the nation’s spooks in order to press them, and their gadgets, into spying on opponents, they cross a Rubicon. If a leader is caught red-handed, our democratic institutions may be judged on whether they can neutralise him. In the case of Watergate, it was hard to unveil Nixon’s complicity, but the moment the President’s involvement was established, he was gone. In the case of Greece’s Watergate, our parliamentary sovereignty was jettisoned so that the guilty PM could stay put. In this sense, Greece’s Watergate bodes more ill for democracy than America’s original.

The reader may, understandably, ask: why should this defeat of Greece’s parliamentary democracy, however sad it may be, matter in the grander scheme of things? Because, my dear reader, you should never underestimate Greece’s capacity to be the harbinger of terrible developments that will come to your shores before you know it. Can you recall where the Cold War began? Not in the streets of Berlin in 1945, but in the streets of Athens in December 1944! Do you remember where the eurozone crisis began? Not in Italy or Spain or France, but in Greece in 2010! For some reason I am not privy to, my country has a proven record of giving birth not only to some important values, like democracy, but also to existential threats to Western civilisation. Which is why the ever-complacent West should be paying attention as our Greek Watergate scandal unfolds.


Yanis Varoufakis is an economist and former Greek Minister of Finance. He is the author of several best-selling books, most recently Another Now: Dispatches from an Alternative Present.

yanisvaroufakis

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Brian Villanueva
Brian Villanueva
2 years ago

Don’t give the Greeks too much credit. It seems spying on political opponents has become utterly normal even in America. More and more evidence is coming to light that the Obama/Clinton/DNC machine colluded with the FBI to launder made-up political dirt as actionable intelligence for purpose of destroying then-candidate Trump.

This horse bolted the barn 5 years ago. Of course, if your political opponents are actual Nazis, maybe spying on them isn’t so bad. Major parts of the American Democratic Party have convinced themselves of this idiocy, culminating with President Biden’s infamous “enemies of democracy” speech last week. So I guess we shouldn’t be surprised that American progressives are willing to thro out every legal and political norm in their pursuit of remaining in power. After all, they’re fighting to save democracy!

Christopher Barclay
Christopher Barclay
2 years ago

Greece has been an EU colony since 2015. The Greek government is no more in power than the Greek Royal Family. The Greek Government is merely the window-dressing that has been constructed to hide tyranny.

Bernard Hill
Bernard Hill
2 years ago

…Maybe a canary or maybe a canard, but best surely to be wary of Greeks baring grifts?

Last edited 2 years ago by Bernard Hill
Brendan O'Leary
Brendan O'Leary
2 years ago

I’d certainly want to know, in time to make emigration plans, if my country’s finance minister was consulting Jeffery Sachs

Milton Gibbon
Milton Gibbon
2 years ago

The point that the writer lost me was when he criticised Mitsotakis for removing a law requiring the head of the EYP to hold a postgraduate degree. He needed to come up with more than that or it just doesn’t need to be made mention of. It is credentialism he is espousing over and above, you know, real world experience such as running a company (I am assuming G4 is moderately successful). The other claims are shocking but there must be someone else who can write about this case without the sort of bias against ordinary citizens who don’t happen to have the right piece of paper.

roger harrison
roger harrison
2 years ago

If Yanis is correct, the smart move is to meet up with your contact down at the noisy local taverna and discuss your truths and reach agreement with a handshake out of earshot of the phone tappers. Then go back to your respective offices and on the telephone ‘agree’ to the exact opposite. Your opponents phone taps will be worth shit and overtime will be regarded as useless. Problem solved.

Jam Las
Jam Las
2 years ago

This piece is self confessed trite. An opposition member having a go at a political opponent. And one doing a far better job than you or your boss ever did. With a bull faeces argument to justify the importance beyond your own playground to boot. Wow!

roger harrison
roger harrison
2 years ago
Reply to  Jam Las

Yes Mitsotakis may be doing better for Greece than Yanis and his politics but the point is that modern democracies need to draw an ethical line somewhere. We are all heading to hell (Venezuela, China, the Solomons, Russia, et al) in a hand-cart if the government of a modern western country, such as Greece is meant to be, steps over the line and sanctions the politicisation of its security forces, police etc. Im from Danistan (Victoria Australia) so am fully aware of the authoritarian tendencies in ‘liberal’ politicians!

Jam Las
Jam Las
2 years ago
Reply to  roger harrison

I am not condoning state sanctioned wire tapping but it is naive to think this is in any way unique since Snowden, Merkel etc. There has been an ongoing domestic feud, at least since the declaration of modern Greece, that has been viscous with Yanis personally affected as many Greeks have been and massive geopolitical consequences to the State. Now is a time of clear and present danger. To my mind and my point is, this piece is trying to internationalise an otherwise unremarkable story with BS justification. Yanis is not a liberal in the Australian sense, he is a leftist, likely left of Dan Andrews. This is the axe Yanis is grinding against a successful conservative (liberal) Greek Government. How many wire taps where there during Tsipras governance? None?

Jam Las
Jam Las
2 years ago
Reply to  roger harrison

I am not condoning state sanctioned wire tapping but it is naive to think this is in any way unique since Snowden, Merkel etc. There has been an ongoing domestic feud, at least since the declaration of modern Greece, that has been viscous with Yanis personally affected as many Greeks have been and massive geopolitical consequences to the State. Now is a time of clear and present danger. To my mind and my point is, this piece is trying to internationalise an otherwise unremarkable story with BS justification. Yanis is not a liberal in the Australian sense, he is a leftist, likely left of Dan Andrews. This is the axe Yanis is grinding against a successful conservative (liberal) Greek Government. How many wire taps where there during Tsipras governance? None?

roger harrison
roger harrison
2 years ago
Reply to  Jam Las

Yes Mitsotakis may be doing better for Greece than Yanis and his politics but the point is that modern democracies need to draw an ethical line somewhere. We are all heading to hell (Venezuela, China, the Solomons, Russia, et al) in a hand-cart if the government of a modern western country, such as Greece is meant to be, steps over the line and sanctions the politicisation of its security forces, police etc. Im from Danistan (Victoria Australia) so am fully aware of the authoritarian tendencies in ‘liberal’ politicians!

Jam Las
Jam Las
2 years ago

This piece is self confessed trite. An opposition member having a go at a political opponent. And one doing a far better job than you or your boss ever did. With a bull faeces argument to justify the importance beyond your own playground to boot. Wow!