Weekend Economists American Bad Boys Part 1 July 12-13, 2014

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35. U.S. Offered Berlin 'Five Eyes' Pact. Merkel Was Done With It

http://www.bloomberg.com/news/2014-07-11/berlin-spying-prompted-u-s-offer-too-late-to-sway-merkel.html

U.S. Ambassador John Emerson made his way to the Foreign Ministry in Berlin armed with a plan to head off the worst diplomatic clash of Angela Merkel’s chancellorship.

Emerson came to the July 9 meeting with an offer authorized in Washington: provide Germany a U.S. intelligence-sharing agreement resembling one available only to four other nations. The goal was to assuage Merkel and prevent the expulsion of the Central Intelligence Agency’s chief of station in Berlin.

It wasn’t enough.

The same morning, across the boundary once marked by the Berlin Wall, Merkel convened her top ministers following the 9:30 a.m. Cabinet meeting on the sixth floor of the Chancellery and resolved to ask the U.S. intelligence chief to leave German soil.

Merkel, who ultimately determined the government’s course, had to act. Public and political pressure after more than a year of accusations of American espionage overreach, stoked by indignation at the lack of a sufficient response from Washington, had left the German government with no alternative.