Ex-NATO supreme commander warns of ‘Grexit security nightmare’

James StavridisAn American former supreme allied commander of the North Atlantic Treaty Organization has warned that a possible Greek exit from the Eurozone “could become a geopolitical nightmare” for the European Union and NATO. James Stavridis, a retired four-start US Navy admiral, who served as NATO’s 16th Supreme Allied Commander Europe from 2009 to 2013, said solving the Greek crisis should not be left to the central bankers. In an article published Wednesday in Foreign Policy, Stavridis said the financial administrators that are handling the Greek crisis were not sufficiently cognizant of the massive geostrategic implications of a possible “Grexit”.

The retired admiral said that if the Greek economy continues its downward spiral, the country may not be able to fulfil its defense obligations to NATO, in which Greece has held full membership since 1952. As a result, the country may leave not only the EU, but also NATO. Neither organization has ever lost a member-state, said Stavridis, adding that such a development would constitute terra incognita and would “shake both organizations in fundamental ways” by weakening their broader ideological cohesion.

However, said Stavridis, chances are that Greece will remain a member of EU and NATO despite possibly exiting the Eurozone. But it would be “an angry disaffected and battered nation”, he said, and could thus wreak havoc in both organizations. The latter are consensus-driven, meaning that their actions depend on the unanimous agreement of all member-states. If Greece adopted an “uncooperative” attitude, it would easily bring both organizations to a halt when it comes to pressing issues, such the refugee crisis in the Mediterranean, sanctions against Russia over the war in Ukraine, the Iranian nuclear program, or even negotiations about transatlantic trade. Currently, Greece’s important geographic position means that its naval bases constitute the maritime flank of NATO during a critical time of tension in the eastern Mediterranean, said Stavridis.

And what if Greece, shunned by the West, started to look elsewhere for support? Russia, which shares strong historical and religious links with Greece, could be a “prospective partner” for Athens, argued Stavridis. If Moscow offered even marginal economic assistance to Athens, Greece could be tempted to further distance itself from its Western partners, both diplomatically and militarily.

Admiral Stavridis’ warning came a day after NATO Secretary-General Jens Stoltenberg said Greece had played “an important role in southern Europe as a NATO member” and urged Athens not to make cuts in its defense spending due to the ongoing economic crisis.

Global finance fears grow as Greece faces economic meltdown

GreeceSeveral Western countries issued travel warnings for Greece on Sunday, as the Greek government shut down all banks and imposed capital controls following the breakdown of talks between Athens and the European Union. British and American citizens traveling or living in Greece were advised to have enough cash on hand, as ATMs were quickly running out of currency. In a late-night televised address to the nation, Greek Prime Minister Alexis Tsipras said banks would remain closed until July 6 –the day after Greeks vote in a nationwide referendum on whether to accept the bailout terms proposed to Greece by its creditors. Police tightened security around ATM machines, as lines were reportedly formed in petrol stations in the capital.

The decision to shut down the banks was taken after finance ministers in the eurozone –the a monetary union of 19 European Union (EU) member states that have adopted the euro as their common currency– rejected Athens’ request to prolong a financial-assistance program. The decision could prompt Greece to default on a €1.5 billion payment to the International Monetary Fund, one of Greece’s main creditors. Additionally, the European Central Bank, which oversees Greece’s banking system, refused on Sunday to infuse cash to the Greek banks, in order to accommodate the mass withdrawal of cash by panicked citizens. On Saturday, Greece’s Minister of Finance, Yannis Varoufakis, was not allowed to attend a eurozone meeting in Brussels –a historic first that could mean Greece is close to being kicked out of the eurozone and maybe even the EU as a whole.

Finance ministers of the 18 countries that attended Saturday’s meeting issued a joint statement pledging “to do whatever it takes to stabilize the common currency area” and shield it from possible domino effects caused by the Greek financial meltdown. However, it is difficult to predict what will happen to the financial markets if Greece declares a default, as some of the world’s largest banking institutions share ownership of the country’s mammoth €300 billion debt. Financial analysts warned that the euro will become “increasingly vulnerable” to ripple effects from the Greek crisis, while the London-based Financial Times crisis meeeting the developments in Greece were “expected to trigger a sharp reaction” in the world’s markets this week. The big question, said The Times, is whether the economic fallout from the latest dramatic developments would be limited to Greece or become “a global event”. There was no question, said the paper, that the markets were “at a critical juncture” and that investors were “taking the possibility of contagion very seriously”.

Meanwhile, several European countries announced they will be holding emergency meetings on Monday. German Chancellor Angela Merkel invited German party leaders to a crisis meeting, while the office of French President Francois Hollande said he would be holding a “restricted emergency cabinet meeting” to discuss the developments in Greece. The British government said its ministers were “taking steps” to protect the country from possible economic turbulence in the eurozone –of which the United Kingdom is not a member. British newspaper The Observer said in a lengthy editorial published on Sunday that the Greek crisis, coupled with rising tensions over immigration from the Middle East and North Africa, heightened terrorism fears, as well as the impending British EU referendum, were causing a “perfect storm [of] tension and division at Europe’s core”.

Author: Joseph Fitsanakis | Date: 29 June 2015 | Permalink: http://intelnews.org/2015/06/29/01-1724/

CIA issues ‘stand-down’ on spying against Western Europe

CIA headquartersBy JOSEPH FITSANAKIS | intelNews.org
The United States Central Intelligence Agency has issued a “stand-down order” to its stations in Europe, instructing them to cease all intelligence operations targeting allied countries, media reports claim. According to several Western European news outlets, including British newspaper The Guardian, CIA stations in Europe have been “forbidden from undertaking unilateral operations” involving assets recruited from within government agencies allied to Washington. Last summer, the German government instructed its intelligence agencies to limit their cooperation with their American counterparts “to the bare essentials”. Berlin also expelled the United States Central Intelligence Agency chief of station —essentially the top American official in the country. The moves came after successive revelations by American defector Edward Snowden, suggesting that Washington had spied on Germany and other Western European countries with unprecedented intensity in recent years. In July, Berlin arrested two German intelligence officers who it said were spying on Germany on behalf of the CIA. The Guardian said that the stand-down order came into effect shortly after the arrests of the CIA’s two German assets and Berlin’s subsequent reaction, which diplomatic observers described as “unprecedented”. The order was communicated to CIA stations “by senior CIA officials through secret cables”, said the paper. The decision is reportedly aimed at giving CIA stations in Europe time to evaluate the degree of operational security of their intelligence-collection programs and assess whether their officers were “being careful enough” so as to prevent further embarrassment for Langley. Additionally, CIA stations have been asked to evaluate whether targeting allied nations in espionage operations is “worth running the risk of discovery”, said The Guardian. Since the stand-down order was issued, CIA case officers have reportedly stopped meeting with all of their assets recruited from within allied governments. The London-based newspaper quoted one anonymous former CIA official who said stand-downs of this sort are not uncommon after operations are compromised, but added that he could not remember a stand-down order being “this long or this deep”. Read more of this post

Comment: Nuland’s leaked phone call is ‘populist intelligence’

Victoria NulandBy JOSEPH FITSANAKIS | intelNews.org
My phone started ringing off the hook on Thursday evening, when a video appeared on YouTube containing a frank conversation between Victoria Nuland and Geoffrey Pyatt. Nuland, Assistant Secretary at the United States Department of State, and Pyatt, US Ambassador to Ukraine, were discussing US diplomatic moves on the political standoff in Ukraine. In the conversation, which was clearly meant to be private, Nuland expresses frustration with efforts by the European Union, which she deems weak and inadequate. In a shocking display of candor, Nuland tells Pyatt that the US should “help glue this thing and […] have the UN help glue it and, you know, f**k the EU”.

On Thursday night I spoke at the main news program of BBC television, where I agreed with most observers —some of the US government officials— that Russia was the obvious culprit behind the leaked conversation. The geopolitical interests of Washington and Brussels coincide almost completely when it comes to Ukraine, as both wish to detach the former Soviet republic from the Russian sphere of influence. So driving a wedge between the two allied sides is clearly to the benefit of Moscow. I added that the two American officials should have known better than to speak so frankly on the phone, given the constant monitoring of diplomatic communications by both adversary and friendly intelligence services, which is common knowledge in diplomatic circles. Read more of this post

US surveillance or Merkel’s phone prompts angry German reaction

Philipp Rösler and Angela MerkelBy JOSEPH FITSANAKIS | intelNews.org
News of an invasive intelligence-gathering operation by the United States, which allegedly targeted the official communications of German chancellor Angela Merkel, has prompted angry responses from the European Union. The news prompted the French government to request that US surveillance of European heads of state be discussed during an upcoming EU summit, while The New York Times warned yesterday that “invasive American intelligence gathering” against Europe could “severely damage […] decades of hard-won trans-Atlantic trust”. The latest row between Washington and Brussels was sparked by a report aired on ARD, Germany’s state television station. It said that the National Security Agency (NSA), America’s foremost communications interception agency, had monitored the official cellular telephone of German Chancellor Angela Merkel. A spokesperson for the German government told journalists yesterday that the German leader had “angrily” called US President Barack Obama and demanded assurances that her communications were “not the target of an American intelligence tap”. The German leader reportedly told Mr. Obama that there should be “no such surveillance of the communications of a head of government” belonging to a “friend and partner of the US”. The Times reported that Washington’s responded by assuring Chancellor Merkel that her communications were “not the target of current surveillance and would not be in the future”. But the White House is said to have refused to enter into a discussion of past interception activities. Mrs. Merkel’s telephone call was the second time in less than two days that Mr. Obama had to provide assurances of privacy to a European head of state. Read more of this post

News you may have missed #851

EuropolBy IAN ALLEN | intelNews.org
►►Allegations that NSA has a listening post in Vienna. Both the US and Austrian governments have denied reports claiming to expose a major surveillance operation by the National Security Agency from within a villa in the Austrian capital Vienna. Austrian media reported last week that the US government had decided to end operations at the site because its cover was blown. Meanwhile, the allegations have turned into an Austrian affair of state.
►►Europol fighting unprecedented crime levels. Europe is dealing with an unprecedented surge in organized crime as sophisticated multinational groups, including child sex abusers and counterfeit gangs, expand their networks, according to Rob Wainwright, the British head of the European Union’s criminal intelligence agency, Europol. Wainwright says that thousands of gangs are capitalizing on the rise of smartphone and internet technology.
►►Are NSA revelations helping US tech industry? Edward Snowden’s unprecedented exposure of US technology companies’ close collaboration with national intelligence agencies, widely expected to damage the industry’s financial performance abroad, may actually end up helping. Despite emphatic predictions of waning business prospects, some of the big Internet companies that the former National Security Agency contractor showed to be closely involved in gathering data on people overseas –such as Google and Facebook– say privately that they have felt little if any impact on their businesses.

NSA operates ‘secret collection program’ out of US embassies

NSA headquartersBy JOSEPH FITSANAKIS | intelNews.org |
Documents leaked by American intelligence defector Edward Snowden point to the existence of a sizable signals intelligence collection program operating out of dozens of United States embassies and consulates located around the world. The documents, given by Snowden to German newsmagazine Der Spiegel, contain details of a monitoring program known as the Special Collection Service (SCS), which appears to operate under the auspices of the National Security Agency (NSA). The NSA is America’s largest intelligence agency —it is bigger than the CIA and the FBI combined— and is tasked by the US government with intercepting electronic communications worldwide. Snowden was a technical contractor for the NSA before he defected to Russia this past summer, where he was offered political asylum. Der Spiegel says that Snowden’s documents point to the existence of the SCS, which allegedly operates covert listening posts in over 80 American embassies and consulates worldwide. These listening posts operate clandestinely, without the knowledge or permission of the host countries. The German newsmagazine identifies the United Nations (UN) headquarters in New York as being among the SCS’s principal listening targets. In the summer of 2012, says Spiegel, an SCS operation managed to compromise the UN headquarters’ internal video conferencing system, by breaking the encryption used to secure the communications of resident diplomats. One NSA document seen by Spiegel hails the “dramatic improvement of data [collected] from video teleconferencing and the ability to decrypt the traffic”. It goes on to state that intercepted communication exchanges rose from 12 to nearly 500 within three weeks following the SCS penetration. Read more of this post

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