| |
|
|
|
|
|
||
 |
|
|
|
|
|
|
| |||||
|
|||||
|
|||||
|
Statement by Federal Chancellor Helmut Kohl during the German Bundestag Debate on the Convergence Reports on Membership of the European Economic and Monetary Union Bonn, Thursday, 2 April 1998 Madam President, The completion of Economic and Monetary Union is, in terms of practical consequences, the most significant decision to be taken since German reunification. It will be the most funda-mental change to take place in Europe since the collapse of communism. At the same time it is the most important milestone in the process of European unification since the establishment of the European Coal and Steel Community in 1951 and the European Economic Community in 1957. It is therefore fitting and in keeping with the great tradition of parliamentary democracy that a question so vital to our nation's future should be debated in the German Bundestag, the freely elected parliament of all Germans. On 2 December 1992 the German Bundestag ratified by an overwhelming majority the Treaty of Maastricht. A key component of this Treaty was the creation of a European economic and monetary union. This goal is shortly to become reality. We are all at this moment in time most keenly aware of the significance of this step. The twentieth century now drawing to a close has revealed two distinct faces, faces that could not be more different from each other. The first half of the century was marred by the most horrific wars the world has ever seen, by totalitarian ideologies and tyranny. The second half - although initially just in part of our continent - was marked by peace and freedom, the search for understanding and reconciliation. This profound change from dark to light can be ascribed to a host of reasons - but chief among them is the unification of Europe. European unification is a boon - notably for us Germans. Without it war could never have been banished from the free part of our continent for all time. Nor, without European unification, could Germany have regained its unity. We Germans therefore have a vital interest in seeing further progress towards European unification. Today a historic opportunity beckons, we must not fail to grasp it. Eight years ago we had a one and only chance to regain our national unity. We took it. At the time there were plenty of cavillers and critics who thought it their business to stop us. By and large they were the same as those now out to turn people against European Economic and Monetary Union. But over German unity we were not to be deterred by the doubters and ditheers, nor will we be deterred now. We are making good headway in constructing the common European house but we know, too, that a house that is only half-built will fall to ruin again. It will not in the long run be able to weather the storms and tempests the new century will bring - and what exactly it will bring there is no knowing. Now is the time then, not some moment in the future, to continue and complete the task of building the house of Europe. Konrad Adenauer's declaration before the German Bundestag on 15 December 1954 today rings more true than ever: "The unity of Europe", he said, "first a dream of a few men, then became the hope of many, and is today a necessity for all of us". Today we must address two epoch-making tasks which in the next century will change the face of Europe. The first is, through the enlargement of the European Union and NATO, to finally overcome the Cold War division of our continent. Here we have already made great strides. Two days ago the European Union officially opened accession negotiations with Poland, the Czech Republic, Hungary, Slovenia, Estonia and Cyprus. Last week the Bundestag and the Bundesrat ratified the accession of Poland, the Czech Republic and Hungary to NATO. The second momentous task, which we are now about to achieve, is the creation of the single European currency. The euro will give European unification a quite new quality. Both tasks - EU enlargement and economic and monetary union - are the logical continuation of Konrad Adenauer's policy for an integrated Europe. Throughout German post-war history prominent figures in all democratic parties have been committed advocates and supporters of European integration. Besides Konrad Adenauer I would point to Carlo Schmid, Kurt Georg Kiesinger, Franz-Josef Strauß and Willy Brandt, to name but a few. I look back with special gratitude at the great debates on Europe the German Bundestag has held over the past years and decades. Those were indeed proud moments in our Parliament's history. Today it is Helmut Schmidt who, with passion and strategic finesse, argues the case for monetary union. To him, too, I pay tribute. To build a European house that is stable and weather-proof, we need the single European cur-rency as one of its cornerstones. For European citizens it will enhance their sense of belonging. It will encourage a greater awareness that only together can the nations of Europe meet the challenges of the future. The starting point for the history of European unification was the famous declaration made by Robert Schuman, France's foreign minister at the time, on 9 May 1950 that culminated in the establishment of the European Coal and Steel Community. He said, and I quote:"Europe will not be made all at once, or according to a single, general plan. It will be built through concrete achievements, which first create a de facto solidarity." The forty-year European success story has shown that European integration is not some esoteric intellectual game but means unre-mitting, down-to-earth, hard work. And step by step Europe is indeed being built. Yet another proof that it is the people with vision who go down in history as the true realists. Courage, far-sightedness, integrity: those are the keys to Germany's future. Opportunism and dithering open no doors to tomorrow's world. The German Trade Union Federation last weekend stated clearly and unequivocally that the conditions for the launch of the euro on 1 January 1999 are near-ideal. It also warned that the euro launch should not become a political football in a populistic election campaign. That clarification is welcome. The representatives of German industry and agriculture have also given their clear backing to the single European currency. II Ladies and Gentlemen, The euro is one of our main strategies for responding to the major challenges of the twenty-first century. That begs the crucial question of whether Europe - and hence Germany as well - is ready to set out for new horizons. This decision we are now taking will largely determine whether future generations in Germany and Europe will enjoy lasting peace and freedom, prosperity and social stability. The significance of European monetary union cannot be meas-ured in purely economic terms. A currency is far more than a medium of payment. It is also part of a country's national tradition, its cultural identity. Emotionally and politically speaking it has for us Germans in particular enormous symbolic meaning. For most Germans the D-Mark, 50 years old in June, is the symbol of 50 years of peace, 50 years of freedom and 50 years of stability and prosperity. The introduction of the D-Mark we associate with the beginning of the work of reconstruction in a country left shattered by the Second World War. For people in Germany's new Länder in the East the D-Mark stands for the democratic new beginning which followed the end of 40 years of communist rule and for the road to German unity. Against this background, I fully understand that many of our citizens are loath to give up their tried and trusted D-Mark. I am conscious of the heavy responsibility this decision for the euro means not just for today's but also for future generations. This year we will be celebrating the D-Mark's 50th birthday. I hope and firmly believe that in 50 years from now people looking back will recognize that we correctly read the signs of the times and acted accordingly. Ladies and Gentlemen, We have taken every precaution to ensure the euro's long-term stability. Time and again the Federal Government - and I myself - impressed on our partners in the EU that there could be no tampering with the stability criteria laid down in the Maastricht Treaty. It is thanks to the Federal Government's efforts that under the Treaty the future European Central Bank will be as independent as the Bundesbank and committed first and foremost to safeguarding the stabil-ity of the euro. We have succeeded in making Frankfurt the seat of the new European Central Bank. The name Frankfurt, linked as it is with the Bundesbank and its work, is a byword for stability and sound management far beyond our national borders. This, I am sure, will remain so in the future. At this point I would like to pay special tribute to Finance Minister Theo Waigel. Together we were able to win support for his proposal for a Stability and Growth Pact to ensure long-term compliance with the strict criteria of the Maastricht Treaty. Thus with the switch to the euro the success story of the D-Mark will continue at European level. Through the euro we will be preserving those values that made the D-Mark the hallmark of stability and confidence. Ladies and Gentlemen, Already in the run-up to monetary union Europe has increasingly become a community geared to stability. That is the common message of the convergence reports presented over the past week by the European Commission and the European Monetary Institute. That is also the conclusion of the report I requested from the Bundesbank on convergence within the European Union. Inflation and interest rates in the EU member states are now at record
low levels. On average inflation in the EU is down to 1.6 % and long-term
interest rates are now below 5 %. That is the result of the price-stability
policies being pursued by all countries preparing for the euro. What we
have here is a stability culture the like of which has never been seen
before. And a hard currency is at the same time the best social policy.
It is after all the pensioners, small savers and people on low incomes
who most depend on their money keeping its value. On the public debt criterion, we are with 61.3 % slightly over the reference value of 60 % specified in the Maastricht Treaty. However, as the European Commission and the European Monetary Institute have rightly pointed out, Germany's public debt reflects the sorry legacy of over 40 years of communist misrule. In the context of reunification Germany has indeed had extraordinarily heavy burdens to bear. That the reports of the European Commission and the European Monetary Institute have once more clearly spelt this out is to be welcomed. Without these extra burdens, our public debt would today be far below the Maastricht refer-ence value - standing at a mere 45 % of GDP in fact. But for me what counts far more than anything else is the fact that our level of public debt is not the result of spendthrift policies but the unavoidable consequence of the huge investments we are making to strengthen the fabric of national unity. Could we take any pride in a 45 % level of public debt if on the other hand Germany remained divided and 17 million of our countrymen denied freedom, the rule of law and human dignity? Nobody should forget that on the plus side of the balance-sheet is the gift of German unity in peace and freedom. This is and will remain cause for joy and gratitude. The reunification of our country is worth every effort, now and in the future. Ladies and Gentlemen, Despite the acknowledged too-high debt levels in some EU member states the European Commission concludes, and I quote, "the conditions are in place for the continuation of a sus-tained decline in debt ratios in future years". All these developments make clear beyond a shadow of doubt that the conditions for a stable European currency have never been as good. That is the result of the prodigious convergence efforts the EU member states have made. Most of them just a few years ago would have thought it inconceivable that nearly all EU countries would fulfil the strict Maastricht criteria. Yet the data and facts presented in the reports of the European Commission, the European Monetary Institute and also of the Bundesbank speak for themselves. They give the lie to all those pessimists who to the end were constantly casting doubt on the timetable for the euro. Today it is clear: on both counts, timetable and convergence, we are right on track! European Monetary Union will begin on time on 1 January 1999. That is in the interest of Europe - and it is in the interest of Germany. The European Commission will be proposing to the European Council of Heads of State and Government that the following 11 countries should be founding members of the euro: Belgium, Germany, Spain, France, Italy, Ireland, Luxembourg, the Netherlands, Austria, Portugal and Finland. In their reports the European Monetary Institute and the Bundesbank have confirmed that from a stability standpoint this proposal is justified. The Federal Government shares this view. At the forthcoming European Council of Heads of State and Government to be held in Brussels on 2 May it therefore intends to vote in favour of the Commission's proposal. The Federal Government explicitly confirmed furthermore on 27 March that, as required under the Maastricht Treaty, it would continue to press for and give special attention to ensuring the sustainability of convergence. In this context the Federal Government trusts that particularly those countries which still have very high debt levels will energetically pursue their strategy for further consolidating their public finances. We hope, too, that those countries in the EU which at present do not wish or are as yet unable to join the single currency will soon be part of the euro-zone as well. III Ladies and Gentlemen, The great economic challenges of our day cannot be overcome by each country going its own way. Increasing globalization of the markets and ever sharper competition between countries and regions around the world for investment and jobs requires that Europeans act in unison. It is necessary to introduce the euro as a matter of urgency, and it is in our own best interests to do so. The new common currency will further secure Europe as an area of economic
prosperity and monetary and social stability. Not least, the euro contributes to stabilizing the international currency and finance system, which is especially significant considering financial crises such as the one in South-East Asia. The European common market without internal borders for persons, goods, services and capital will be brought to completion by the common European currency. The euro-zone will encompass a common market of nearly 300 million people and, with a share of around 20 % of world income, will be comparable to that of the USA. Prices will be easier to compare, thereby directly benefiting consumers. I'll give you another oft-cited example: millions of Germans who spend
their holidays in neigh-bouring countries each year will make savings
as they will no longer need to exchange money. The common European currency will improve the long-term investment and employment climate in Germany and Europe as a whole. Of course, I am aware that the euro is not a panacea that can solve all our job market problems in one go. But I would like to remind you that Germany is the world's number 2 exporting country. Every fifth job in Germany depends on exports, more than 40 % of which go to countries that have good chances of being among those adopting the common currency in the first wave. And because there will in future no longer be any exchange rate risks in dealing with these coun-tries, export-dependent jobs in Germany will be less at risk. The European currency will open up the great opportunity for new, sustainable, economic dynamism, long-term growth and secure jobs in the 21st century. The Bundesbank observed that "Ultimately, monetary union will be all the more successful, the more flexible goods, financial and job markets are". The Bundesbank's clear message is that we will use the chances the euro provides for more employment if we in Germany persist with our reform programme and if all those involved continue to make their contribution, particularly companies and trade unions. Anyone who refuses to carry out the necessary reforms because they are unpopular or reverses reforms that will secure our future pushes up costs and denies work-seekers the chance of employment. Anyone who does not now forge ahead with the necessary reforms, but first resorts to harmonizing the continent's standards in tax, social and environmental policies will not make progress in Europe and will not reach the goal. Such a policy is unrealistic because nobody in Europe would now be prepared to commit themselves to, for example, our high social and environmental standards. For our partners that would be tantamount to renouncing their own competitive advantages on our behalf. Such a policy is also dangerous because it would merely lead to a lower level of harmonization. That would mean bargaining away, for example, what we in Germany have achieved in the area of social policy. We stand firm: the necessary reforms must be pushed through now. No one will relieve us of the task of doing our homework. Notwithstanding that, it is, of course, helpful for EU countries to better coordinate their national economic and employment policies. The EU employment summit in Luxembourg last November was an important
step in this direction. When consultations with employers' representatives
and trade unions have been concluded later this month, the Federal Government
will present the German action plan. The completion of economic and monetary union heralds a new stage in the process of Euro-pean unification. At the same time, in the Treaty of Amsterdam, we have also laid the foundation for enlarge-ment and also for the further internal development of the European Union. I am pleased that Germany, thanks to the overwhelming approval of the Bundestag and Bundesrat, was the first European Union member state to complete the ratification process. It is now vital to put the Amsterdam reforms into practice with determination, in order to improve the European Union's operational ability and efficiency. I am thinking, for example of the area of foreign and security policy, and, in particular, of joint efforts in the fight against international organized crime. We can also build on the progress we made in Amsterdam in reforming the European institu-tions. The European Parliament's new rights and possibilities are just one example. However, all this institutional progress, in particular with a view to enlargement and accep-tance, is not sufficient. We are today facing the question of how an enlarged European Union can improve its ability to act both within and outside the Union, while at the same time enhancing and developing its democratic roots and its responsiveness to the needs of its citizens. Following the decision on the euro, I believe that the time has come to take stock of the situation regarding this sensitive issue. Many of my colleagues among the heads of state and government of the European Union agree with me that we should initiate a discussion on this issue at the mid-June European Council in Cardiff. One of the central questions for me will be the further implementation
of the principle of sub-sidiarity. A centralist European community, with Brussels as an all-powerful capital, never was and never can be our goal. Europe must continue to be characterized by its cultural diversity, its special regional features and its distinctive traditions. Nation states and the European Union will also continue to carry out different and, to some extent, mutually complementary tasks. However, there are still very different views in Brussels and in the individual member states as to the details. We must therefore define the dividing line between the different areas of competence more precisely; retransferring some responsibilities from Brussels to nations or regions must not be a taboo subject, either. This has nothing to do with "renationalization" as is sometimes sug-gested. We want a Europe which responds to the needs of its citizens. IV Ladies and Gentlemen, The Federal Government has in this legislative period pushed through nearly all the reforms which are necessary for the future - mostly in the face of bitter resistance. Some examples are: - reform of the railways and post office services, The full effect of our reforms on growth and jobs in Germany will unfold gradually but initial successes are already evident. Germany has successfully developed its global position as a strong, innovative business location. For example our country has once again become the world's number 1 in universal patents, an area which is especially important in connection with globalization. German exports are booming. Our exports for 1997 were 10 % up on the previous year. We have won back world market shares for the first time. The computer trade fair, CeBIT'98, ended on 25 March 1998 in buoyant mood. According to the exhibitors, the fair surpassed all hopes and lively business is expected to result from it. This clearly shows that the course of modernizing the economy and society is paying off. Germany has become noticeably more competitive internationally as a business location. All this is having a positive effect on growth in our country. The pace
of upturn is increasing. The most important domestic task continues to be combating unemployment, which is still much too high. At present we are seeing different developments on the job markets in the old and the new Länder. In the western German job market there is a slow but steady upward trend with new jobs being created particularly in export-intensive sectors, such as mechanical and electrical engineering, and the automobile industry. The eastern German job market is still suffering from job losses in the construction sector. However, east German industry is showing strong growth, although this is not yet being sufficiently reflected in the creation of additional jobs. Developing the east remains the Federal Government's priority. We will maintain our high level of support for the development of the east in future, despite all the efforts at consolidation, which we will continue in the years ahead. Ladies and Gentlemen, Above all, Germany must become more attractive again for domestic and foreign investment. Between 1985 and 1996, foreign investments in Great Britain amounted to eight times those made in Germany. For this reason we need a tax system which is competitive internationally. We need a drastic tax reform which clears the way for innovation and investments. Right now Europe is experiencing a business renaissance. Investors in
dollars are showing particular interest in Germany. The Federal Government, however, continues undeterred to advocate a far-reaching reform of the tax system which is really worthy of the name. We are making every effort to encourage more investments and jobs to come to Germany. Our Petersberg concept, passed by the Bundestag but blocked by the majority in the Bundes-rat, is still right! The general election this September will also be a plebiscite on tax reform. I am sure that the decision will be in our favour. V Ladies and Gentlemen, Less than two years before the turn of the millennium, new horizons are opening up for our continent. A new Europe is emerging. It is a Europe in which we Germans are surrounded by partners and friends who are working together with us to build the common European house. German foreign policy has made an important contribution to this development, which has received world-wide recognition. For the first time in our history we have good, indeed excellent, relations to Washington, Paris, London and Moscow. For us Germans, this is a gift of history at the end of the 20th century. At the beginning of this century, international relations were marked by national power politics and the striving for spheres of influence. The words of Lord Edward Grey, the British Foreign Secretary, on the outbreak of the First World War proved to be cruelly true for whole generations: "The lamps are going out all over Europe; we shall not see them lit again in our lifetime". There are still many people among us who have personal memories of the dark decades that were just beginning at that time for millions of Europeans. It was the age of world wars and totalitarianism, of fascism and national socialism, of communism. This age ended just a few years ago with the disintegration of the Soviet empire. At the end of this bloody 20th century we have the opportunity, together with our friends and partners in Europe, to build a better and juster world, in which the light of freedom and peace shines out brightly. This Europe is our mission. It is our duty to the younger generation, to our children and grandchildren. Ladies and Gentlemen, May I ask you to cast your vote in favour of the Federal Government's bill on European economic and monetary union! German Information Center |
|
 Newsletters
 Printer-Friendly
Page
Email This Article |
||
|
|||||
|
|||||
