Former Greek Prime Minister George Papandreou has responded to former German Chancellor Angela Merkel’s remarks about the 2009 Greek crisis, stating that she told ‘three and a half truths which lead to three conclusions.’
The first lesson, according to Papandreou, is that Europe was unprepared for the crisis and failed to understand its nature. He emphasizes that the Greek crisis was not simply due to excessive spending or borrowing, but rooted in a governance crisis—marked by weak institutions, lack of transparency (notably manipulated statistics), and democratic deficits.
‘Public resources were not directed toward sustainable development and social cohesion but were squandered through patronage networks,’ said Papandreou, adding that such practices persist today under the current New Democracy-led government, undermining Greece’s credibility and future.
Papandreou acknowledges that Merkel recognized her initial underestimation of the crisis’s scale and the resistance to reforms from domestic elites who believed fiscal consolidation alone would restore confidence. However, he argues this overlooked the systemic dimension of the crisis, which also exposed flaws in the architecture of the Eurozone itself.
As the second conclusion, Papandreou notes that Greece became an easy scapegoat, despite the deeper roots of the crisis. He recalls that the Greek government at the time sought more time and political support—not new loans—to implement structural reforms after years of mismanagement. ‘Merkel unfortunately did not realize that our request was not “nothing,” as she claimed, but rather “everything” for Greece, the fate of the EU, and the euro,’ he remarked.
He concedes that European leadership was constrained by the infamous ‘no-bailout’ clause and skepticism over key European institutions’ credibility. Papandreou adds that Merkel admitted the involvement of the IMF was her choice to act as a ‘tough’ and ‘independent’ external observer, precisely because Europe lacked the expertise to handle such a systemic crisis.
The third takeaway, Papandreou says, is that modern challenges require a collective European response. Without unity, Europe risks disintegration as citizens turn to nationalist and isolationist rhetoric. He calls for bold and coherent European action—not only in defense and border protection but also in upholding shared values, sustainability, education, research, and innovation.
‘Europe must dynamically use its financial tools—including eurobonds—to invest in our common future. In 2010, eurobonds were taboo; today, they are a necessity. The true strength of Europe lies in solidarity. That is the ultimate lesson—and still-unfulfilled promise—of our shared crisis,’ concluded Papandreou.