German Foreign and Security Policy [1 ed.] 9781613249406, 9781606921500

Citation preview

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved. German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved. German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

No part of this digital document may be reproduced, stored in a retrieval system or transmitted in any form or by any means. The publisher has taken reasonable care in the preparation of this digital document, but makes no expressed or implied warranty of any kind and assumes no responsibility for any errors or omissions. No liability is assumed for incidental or consequential damages in connection with or arising out of information contained herein. This digital document is sold with the clear understanding that the publisher is not engaged in rendering legal, medical or any other professional services.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved. German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

GERMAN FOREIGN AND SECURITY POLICY

LEAH N. BOWERS

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

EDITOR

Nova Science Publishers, Inc. New York

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009 by Nova Science Publishers, Inc. All rights reserved. No part of this book may be reproduced, stored in a retrieval system or transmitted in any form or by any means: electronic, electrostatic, magnetic, tape, mechanical photocopying, recording or otherwise without the written permission of the Publisher. For permission to use material from this book please contact us: Telephone 631-231-7269; Fax 631-231-8175 Web Site: http://www.novapublishers.com NOTICE TO THE READER The Publisher has taken reasonable care in the preparation of this book, but makes no expressed or implied warranty of any kind and assumes no responsibility for any errors or omissions. No liability is assumed for incidental or consequential damages in connection with or arising out of information contained in this book. The Publisher shall not be liable for any special, consequential, or exemplary damages resulting, in whole or in part, from the readers’ use of, or reliance upon, this material. Any parts of this book based on government reports are so indicated and copyright is claimed for those parts to the extent applicable to compilations of such works.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Independent verification should be sought for any data, advice or recommendations contained in this book. In addition, no responsibility is assumed by the publisher for any injury and/or damage to persons or property arising from any methods, products, instructions, ideas or otherwise contained in this publication. This publication is designed to provide accurate and authoritative information with regard to the subject matter covered herein. It is sold with the clear understanding that the Publisher is not engaged in rendering legal or any other professional services. If legal or any other expert assistance is required, the services of a competent person should be sought. FROM A DECLARATION OF PARTICIPANTS JOINTLY ADOPTED BY A COMMITTEE OF THE AMERICAN BAR ASSOCIATION AND A COMMITTEE OF PUBLISHERS. LIBRARY OF CONGRESS CATALOGING-IN-PUBLICATION DATA Available upon request. ISBN 978-1-61324-940-6 (eBook)

Published by Nova Science Publishers, Inc.    New York

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

CONTENTS Preface

vii

Chapter 1

German Foreign and Security Policy: Trends and Transatlantic Implications Paul Belkin

Chapter 2

Germany and Europe: New Deal or Déjà Vu? Ulrike Guérot

27

Chapter 3

Coalition Agreement

55

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Index

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

1

171

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved. German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

PREFACE Chapter 1 - German Chancellor Angela Merkel took office in November 2005 promising a foreign policy anchored in a revitalized transatlantic partnership. Most observers agree that since reaching a low-point in the lead-up to the Iraq war in 2003, relations between the United States and Germany have improved. With recent leadership changes in the United Kingdom, France, and Italy, U.S. officials view Germany under Chancellor Merkel as a key U.S. ally in Europe. Despite continuing areas of divergence, President Bush and many Members of Congress have welcomed German leadership in Europe and have voiced expectations for increased U.S.-German cooperation on the international stage. German unification in 1990 and the end of the Cold War represented monumental shifts in the geopolitical realities that had traditionally defined German foreign policy. Germany was once again Europe’s largest country, and the Soviet threat, which had served to unite West Germany with its pro-western neighbors and the United States, was no longer. Since the early 1990s, German leaders have been challenged to exercise a foreign policy grounded in a long-standing commitment to multilateralism and an aversion to military force while simultaneously seeking to assume the more proactive global role many argue is necessary to confront emerging security threats. Until 1994, Germany was constitutionally barred from deploying its armed forces abroad. Today, over 7,000 German troops are deployed in peacekeeping, stabilization, and reconstruction missions worldwide. However, as Germany’s foreign and security policy continues to evolve, some experts perceive a widening gap between the global ambitions of Germany’s political class, and an increasingly skeptical German public. Since the end of the Cold War, Germany’s relations with the United States have been shaped by several key factors. These include Germany’s growing support for a stronger, more capable European Union, and its continued allegiance to NATO as the primary guarantor of European security; Germany’s ability and willingness to undertake the defense reforms many argue are necessary for it to meet its commitments within NATO and a burgeoning European Security and Defense Policy; and German popular opinion, especially the influence of strong public opposition to recent U.S. foreign policies on German leaders. Under Merkel’s leadership, Germany has sought to boost transatlantic cooperation in areas ranging from economic and trade relations, climate change policy, and global counterterrorism and non-proliferation policy, to peacekeeping, reconstruction and stabilization efforts in Afghanistan, the Middle East, Africa, and the Balkans. Merkel has enjoyed relatively strong domestic support for her transatlantically-oriented foreign policy agenda. However, as her term progresses, and

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

viii

Leah N. Bowers

domestic political tensions mount, she may be more hard-pressed to justify her Atlanticist foreign policy to a public which appears increasingly skeptical of U.S. influence in the world. Chapter 2 - Notre Europe is an independent think tank devoted to European integration. Under the guidance of Jacques Delors, who created Notre Europe in 1996, the association aims to "think a united Europe." Our ambition is to contribute to the current public debate by producing analyses and pertinent policy proposals that strive for a closer union of the peoples of Europe. We are equally devoted to promoting the active engagement of citizens and civil society in the process of community construction and the creation of a European public space. In this vein, the staff of Notre Europe directs research projects; produces and disseminates analyses in the form of short notes, studies, and articles; and organises public debates and seminars. Its analyses and proposals are concentrated around four themes: •

•

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

•

Visions of Europe: The community method, the enlargement and deepening of the EU and the European project as a whole are a work in constant progress. Notre Europe provides in-depth analysis and proposals that help find a path through the multitude of Europe's possible futures. European Democracy in Action: Democracy is an everyday priority. Notre Europe believes that European integration is a matter for every citizen, actor of civil society and level of authority within the Union. Notre Europe therefore seeks to identify and promote ways of further democratising European governance. Cooperation, Competition, Solidarity: « Competition that stimulates, co-operation that strengthens, and solidarity that unites ». This, in essence, is the European contract as defined by Jacques Delors. True to this approach, Notre Europe explores and promotes innovative solutions in the fields of economic, social and sustainable development policy. Europe and World Governance: As an original model of governance in an increasingly open world, the European Union has a role to play on the international scene and in matters of world governance. Notre Europe seeks to help define this role.

Successively presided over by Jacques Delors (1996-2004), Pascal Lamy (2004-05), and Tommaso Padoa-Schioppa (since November 2005), Notre Europe aims for complete freedom of thought and works in the spirit of the public good. It is for this reason that all of Notre Europe's work is available for free from our website, in both French and English: www.notre-europe.eu Chapter 3 - Germany needs three things: economic rehabilitation, reform and investment. Consolidating the budget and fulfilling the Maastricht deficit criteria by 2007 are essential. Further reforms to the social security systems are needed. Consolidation and reform alone, however, are not enough. Germany needs a growth strategy, linked to considerably greater investment. A central goal of the coalition is to create new growth and more employment for Germany. Germany must respond proactively to the breakneck pace of global structural change. Time is of the essence, the international competition is not standing still. We need to act quickly. Strengthening the foundations of the social market economy is the prerequisite for

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Preface

ix

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

new growth and more employment in Germany. For around 10 years economic growth in Germany has been extremely weak. Weak growth is mainly responsible for the appreciable decline in the number of jobs liable to social security contributions. New growth must therefore be generated and more employment opportunities opened up. Without substantially more growth, it will be impossible to consolidate public finances and the social security systems. Half a percent more growth would create around an extra 2.5 billion euros in tax receipts and around 2.3 billion euros in additional revenue from social insurance contributions. Investment and innovation need to be revived to trigger a new spurt of economic growth; we want to stimulate consumer demand by boosting consumer confidence. This is an absolute economic priority.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved. German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

In: German Foreign and Security Policy Editor: Leah N. Bowers

ISBN: 978-1-60692-150-0 © 2009 Nova Science Publishers, Inc.

Chapter 1

GERMAN FOREIGN AND SECURITY POLICY: TRENDS AND TRANSATLANTIC IMPLICATIONS* Paul Belkin Summary

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

German Chancellor Angela Merkel took office in November 2005 promising a foreign policy anchored in a revitalized transatlantic partnership. Most observers agree that since reaching a low-point in the lead-up to the Iraq war in 2003, relations between the United States and Germany have improved. With recent leadership changes in the United Kingdom, France, and Italy, U.S. officials view Germany under Chancellor Merkel as a key U.S. ally in Europe. Despite continuing areas of divergence, President Bush and many Members of Congress have welcomed German leadership in Europe and have voiced expectations for increased U.S.German cooperation on the international stage. German unification in 1990 and the end of the Cold War represented monumental shifts in the geopolitical realities that had traditionally defined German foreign policy. Germany was once again Europe's largest country, and the Soviet threat, which had served to unite West Germany with its pro-western neighbors and the United States, was no longer. Since the early 1990s, German leaders have been challenged to exercise a foreign policy grounded in a longstanding commitment to multilateralism and an aversion to military force while simultaneously seeking to assume the more proactive global role many argue is necessary to confront emerging security threats. Until 1994, Germany was constitutionally barred from deploying its armed forces abroad. Today, over 7,000 German troops are deployed in peacekeeping, stabilization, and reconstruction missions worldwide. However, as Germany's foreign and security policy continues to evolve, some experts perceive a widening gap between the global ambitions of Germany's political class, and an increasingly skeptical German public. Since the end of the Cold War, Germany's relations with the United States have been shaped by several key factors. These include Germany's growing support for a stronger, more capable European Union, and its continued allegiance to NATO as the primary guarantor of European security; Germany's ability and willingness to undertake the defense reforms many argue are necessary for it to meet its commitments within NATO and a burgeoning European Security and Defense Policy; and German popular opinion, especially the influence of strong public opposition to recent U.S. foreign policies on German leaders. *

Excerpted from CRS Report RL34199, Updated April 29, 2008

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

2

Paul Belkin Under Merkel's leadership, Germany has sought to boost transatlantic cooperation in areas ranging from economic and trade relations, climate change policy, and global counterterrorism and non-proliferation policy, to peacekeeping, reconstruction and stabilization efforts in Afghanistan, the Middle East, Africa, and the Balkans. Merkel has enjoyed relatively strong domestic support for her transatlantically-oriented foreign policy agenda. However, as her term progresses, and domestic political tensions mount, she may be more hard-pressed to justify her Atlanticist foreign policy to a public which appears increasingly skeptical of U.S. influence in the world. This report may be updated as needed.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Introduction German Chancellor Angela Merkel took office in November 2005 promising a foreign policy anchored in a revitalized transatlantic partnership. Since reaching a low point in the lead-up to the Iraq war in 2003, diplomatic relations between the United States and Germany have improved substantially and the bilateral relationship remains strong. During Germany's six-month presidency of the European Union (EU) in the first half of 2007 and its corresponding G8 presidency, Merkel has distinguished herself both as an advocate for strong U.S.-European relations and as an internationally respected leader within Europe. With recent leadership changes in the United Kingdom and France, and a fragile coalition government in Italy, U.S. officials reportedly view Germany under Chancellor Merkel as a key U.S. ally in Europe. Indeed, despite continuing areas of divergence, President Bush and many Members of Congress have welcomed German leadership in Europe and have voiced expectations for increased German-U.S. cooperation on the international stage. Merkel is seeking to establish Germany as a partner on the forefront of multilateral efforts to address global security threats. She has made a concerted effort to improve the tone of U.S.-German diplomacy, emphasizing shared values, and the need for broad U.S.-German, and U.S-European cooperation in the face of common security challenges. The Merkel government has sought to increase transatlantic cooperation in areas ranging from economic and trade relations, climate change policy and global counterterrorism and non-proliferation policy, to peacekeeping, reconstruction and stabilization in Afghanistan, the Middle East, Africa, and the Balkans. Although U.S. and German officials agree that cooperation has increased, fundamental differences remain. Disagreement tends to stem from what many Germans perceive as a U.S. indifference to multilateral diplomacy and standards of international law, and what some in the United States consider a German and broader European inability or unwillingness to take the necessary steps to counter emerging threats. Widespread belief that U.S. policy in Iraq has failed and even exacerbated global security threats appears to be fueling persistently negative German public opinion of U.S. foreign policy, and corresponding skepticism of the exercise of military power. In addition to growing public disapproval of U.S. influence in the world, several other domestic factors could increasingly constrain Merkel as she seeks to implement her Atlanticist foreign policy agenda. These include pressure to focus more aggressively on domestic economic reforms and growing tension within Germany's "grand coalition" government.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

German Foreign and Security Policy: Trends and Transatlantic Implications

3

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Current Domestic Context Merkel has led a "grand coalition" government of Germany's two largest political factions, Merkel's Christian Democratic/Christian Social Union (CDU/CSU) and the Social Democratic Party (SPD), since November 2005. This is only the second time in post-war history that the traditionally opposing parties have ruled together.1 After setting an electoral goal of 40% for September 2005 federal elections, Merkel and the CDU won 35.2% of the vote—barely one percentage point more than the SPD, and three percentage points less than in 2002 elections. The disappointing electoral showing fueled criticism of Merkel within the CDU. However, public opinion polls suggest that both Merkel and the CDU have since gained favor at the expense of their coalition partners.2 Observers attribute Merkel's initial and somewhat unexpected popularity to her leadership in foreign policy and to the relatively strong performance of the German economy. Merkel gained high marks from her peers within Europe and beyond during Germany's sixmonth presidency of the EU in the first half of 2007 and its corresponding year-long presidency of the G8 group of industrialized economies. In addition, a rise in GDP growth from just under 1% in 2005 to about 2.5% in 2007 helped bring unemployment down from almost 12% in the first quarter of 2005 to just over 8% at the end of 2007.3 These developments appear to have at least temporarily deflated pressure from within the CDU for Merkel to pursue bolder economic reforms at home. Largely for these reasons, most observers expect Merkel's governing coalition to hold until the next scheduled federal elections in 2009. However, events suggest that if the SPD continues to slide in opinion polls, its leaders may increasingly seek to block CDU policy initiatives in an effort to distinguish the party from its coalition partners. Such a political stalemate could revive criticism of Merkel both from the left and from within the CDU, and shift her attention away from pursuing foreign policy objectives to focusing on domestic issues and consolidating her hold on party leadership. There is also some indication that the SPD may increasingly challenge aspects of Merkel's foreign policy which have heretofore enjoyed broad bipartisan support. Germany's Foreign Minister, Frank-Walter Steinmeier of the SPD, has consistently pursued foreign policy initiatives in unison with Merkel's positions. Nonetheless, differences between the respective parties have emerged on issues such as Turkish membership in the EU, German policy in the Middle East, and more drastically, on German policy toward Russia and the United States. With respect to Russia, bothcoalition parties advocate a "strategic partnership." However, Merkel appears to favor a harder line than the SPD, and has openly criticized Russian President Vladimir Putin for his treatment of non-governmental organizations and political opponents, and for his increasingly confrontational energy and foreign policy. The SPD is thought to favor a more conciliatory approach to Russia marked by enhanced political and economic engagement.

1

Germany's first grand-coalition government, from 1966-1969, was widely viewed as ineffectual, and many observers have voiced similar expectations for the current government. 2 An April 2008 poll conducted by research institute Forsa indicates a 38% approval rating for the CDU and 24% approval for the SPD. Spiegelonline, die Sonntagsfrage. URL: [http://www.spiegel.de/politik/deutschland/ 0,1518,523418,00.html]. 3 "Country Report: Germany," Economist Intelligence Unit, February 2008.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

4

Paul Belkin

Some commentators view disagreement within the "grand coalition" on Russia policy as an indication of the potential for broader domestic challenges to Merkel's Atlanticist foreign policy.4 The Merkel government's 2006 national security strategy, or White Paper on German Security Policy, recognizes the transatlantic relationship as the "foundation of Germany's and Europe's common security."5 However, German public opinion has become increasingly critical of U.S. influence in the world, leading some to suggest that Merkel's efforts to strengthen relations with the United States could become more of a political liability at home.6 Perhaps in a reflection of this trend, Merkel has not been reluctant to express her opposition to especially unpopular aspects of U.S. policy such as the incarceration of prisoners at Guantanamo Bay, alleged U.S. extra-judicial "renditions" of detainees in the war on terror, and U.S. climate change policy. At the same time, Merkel, who has a widely reported deep personal commitment to forging stronger relations with the United States, emphasizes that disagreements on select policy issues should not threaten the overall partnership between the two countries.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Foundations of German Foreign Policy Much of the criticism of U.S. foreign policy voiced in Germany today is grounded in perceived U.S. disregard for multilateral diplomacy and standards of international law — both fundamental tenets of German foreign policy. Since the end of the Second World War, German foreign policy has been driven by a strong commitment to multilateral institutions and a deep-rooted skepticism of expansionist policies and the exercise of military power. In the war's aftermath, the leaders of the newly established Federal Republic of Germany (West Germany) embraced integration into multilateral structures as a crucial step toward fulfilling two of the country's primary post-World War II interests: to reconcile with wartime enemies; and to gain acceptance as a legitimate actor on the international stage. To this end,foreign policy was identified almost exclusively with the Cold War aims of NATO and the European integration project, and a related quest for German unification. German unification in 1990 and the end of the Cold War represented monumental shifts in the geopolitical realities that had traditionally defined German foreign policy. Germany was once again Europe's largest country and the Soviet threat, which had served to unite West Germany with its pro-western neighbors and the United States, was no longer. In the face of these radical changes, and conscious of Germany's newly found weight within Europe and lingering European and German anxiety toward a larger and potentially more powerful Germany, German leaders reaffirmed their commitment to the multilateral process and aversion to military force. The EU, NATO, and the U.N. remain the central forums for Berlin's foreign, security, and defense policy. Despite the deployment of over 7,000 German 4

See, for example, Wess Mitchell, "Germany's Awakening," Washington Times, July 3, 2007. White Paper 2006 on German Security Policy and the Future of the Bundeswehr. Available at [http://www.bmvg.de]. 6 A January 2007 BBC World Service poll indicates that German views of U.S. influence in the world declined from early 2006 to early 2007, with 74% of Germans reporting negative attitudes of U.S. influence in January 2007, as opposed to 65% in early 2006. 16% of respondents said they had a mostly positive view of U.S. influence in the world. See [http://www.worldpublicopinion.org]; the German Marshall Fund's July 2007 Transatlantic Trends survey found that 33% of Germans view strong U.S. leadership in world affairs as "somewhat desirable," as opposed to 39% in 2006. Survey results available at [http: //www.gmfus .org]. 5

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

German Foreign and Security Policy: Trends and Transatlantic Implications

5

troops in internationally-sanctioned peacekeeping, reconstruction, and stabilization missions worldwide, German armed forces operate under what many consider stringent constraints designed to avoid combat situations. Since the end of the Cold War, German leaders have been increasingly challenged to reconcile their commitment to continuity in foreign policy with a desire to pursue the more proactive global role many argue is necessary both to maintain Germany's credibility as an ally within a network of redefined multilateral institutions, and to address the foreign and security policy challenges of the post-Cold War, and post-September 11, 2001 era. As one scholar notes, "the tensions, even contradictions, between [Germany's] traditional 'grand strategy' — or foreign policy role concept as a 'civilian power' — and a Germany, a Europe, a world of international relations so radically different from what they had been before 1990 have become increasingly apparent."7 These tensions are especially apparent in an evolving domestic debate over German national interests.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Multilateralism As National Interest During the Cold War, West German leaders were reluctant to formulate or pursue national interests that could be perceived as undermining a fundamental commitment to the multilateral framework as embodied by the Atlantic Alliance, European Community, and United Nations. West Germany avoided assuming a leading role within these institutions, preferring a low international profile, and seeking to establish a reputation as an "honest broker" with limited interests beyond supporting the multilateral process itself.8 West German governments did pursue distinct foreign policy goals, chief among them a quest for German unification, but sought to frame these obj ectives as part of the broader East-West Cold War struggle, rather than as unilateral German interests.9 Since unification, German governments have continued to exercise a multilateralist foreign policy. To this end, they have sought to reform and strengthen the EU, NATO, and the United Nations in an effort to improve multilateral responses to emerging security challenges and threats. Through these institutions, Germany pursues a "networked" foreign and security policy focused on intra- and inter-state conflict prevention and settlement, crisis intervention and stabilization, the struggle against international terrorism, and mitigating the proliferation of weapons of mass destruction (WMD). These goals are to be pursued in strict accordance with international law, and with respect for human rights.10 German politicians and the German public generally express strong opposition to international action that is not sanctioned by a United Nations mandate, or that appears to violate human rights standards and/or international law. German law forbids unilateral deployment of German troops, and requires parliamentary approval for all troop deployments. Although German leaders have 7

Hanns W. Maull, ed. Germany's Uncertain Power: Foreign Policy of the Berlin Republic. New York: Palgrave MacMillan, 2006, p. 1. 8 See August Pradetto, "The Polity of German Foreign Policy: Changes since Unification," in Hanns W. Maull, ed., op. cit. 9 West German foreign policy, particularly toward the Soviet Union, at times diverged from the United States and other partners, but never to a degree that it threatened the country's broader commitment to U.S. and NATO policies. In instances of divergence, West German leaders generally sought to quietly influence policy within multilateral institutions rather than openly confront Western allies. 10 See White Paper 2006, op. cit.; and Coalition Agreement CDU, CSU, SPD, November 11, 2005, [http://www.bundesregierung.de].

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

6

Paul Belkin

traditionally treated energy considerations as distinct from foreign and security policy, energy security goals are playing an increasingly important role in German foreign policy, particularly toward Russia and within the European Union.

Germany in the EU and NATO — The "Middle Path" The EU and NATO are the focal points of German foreign and security policy. Since unification, Germany has asserted itself as a driving force behind the EU's enlargement eastward, deeper European integration, increased European foreign policy coordination, and the development of a European Security and Defense Policy (ESDP). As Germany's role within the European Union evolves, its foreign policy is marked by a desire to balance its support for a stronger, more capable Europe, with a traditional allegiance to NATO as the foundation for European security. Chancellor Merkel argues that a more cohesive European foreign, security, and defense policy apparatus will in fact enable Germany and Europe to be more effective transatlantic partners to the United States. Germany consistently supports policies aimed at advancing EU-NATO cooperation. Berlin's dual commitment to the EU and NATO suggests that it is unlikely to advocate what might be perceived as too strong or independent a role for either organization in the foreseeable future, instead seeking what could be called a middle path of cooperation between the two institutions. That said, some, particularly members of the SPD and supporters of other left-wing political parties, reflect public opposition to U.S. global influence by criticizing German action within NATO which they perceive as too closely aligned with U.S. interests.11

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Germany in the United Nations Since joining the United Nations as a full member in 1973, Germany has supported its development as a cornerstone of a German foreign policy grounded in a commitment to international legitimacy. Today, Germany contributes just under nine percent of the regular U.N. budget, making it the third-largest financial contributor to the U.N. after the United States and Japan.12 For Germany, the U.N. offers a vital framework to determine and implement international law, and a necessary mechanism through which to sanction international peacekeeping and peacemaking efforts, and efforts to reduce world hunger and poverty, and increase sustainable development. German governments since the end of the Cold War have supported reform efforts aimed at improving the U.N.'s ability to provide timely and robust peacekeeping missions, avert humanitarian disasters, combat terrorist threats, and protect human rights. Many of these efforts have been resisted by some U.N. members, and the consequentially slow pace of U.N. reform has provoked much criticism, including from leaders in the United States.13 However,

11

As discussed below, German participation in the U.S.-led counterterrorism campaign in Afghanistan, Operation Enduring Freedom, has been the source of particularly intense debate. See, "Afghanistan splits German parties," Financial Times, July 5, 2007; and interview with German Foreign Minister Frank-Walter Steinmeier, "'Successes and Deficits' in Afghanistan," Spiegelonline, July 9, 2007. 12 "German Policy in the United Nations," German Federal Foreign Office, March 2004, [http://www.auswaertigesamt.de/diplo/en]. 13 For more information on U.N. reform efforts, see CRS Report RL33848, United Nations Reform: U.S. Policy and International Perspectives, by Luisa Blanchfield.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

German Foreign and Security Policy: Trends and Transatlantic Implications

7

Germany continues to view the U.N. as the only organization capable of providing the international legitimacy it seeks in the conduct of its foreign policy. An early indication of Germany's post-Cold War aspirations to assume greater global responsibilities has been its quest for permanent representation on the United Nations Security Council. Former Chancellor Helmut Kohl first articulated Germany's desire for a permanent U.N. Security Council seat in 1992, and received the backing of the Clinton Administration. Kohl's successor, Gerhard Schroder, intensified calls for a permanent German seat, but failed to gain international support. In what some consider an indication of the Merkel government's decision to soften its tone on the international stage, German officials have ceased publicly calling for a permanent German seat. Nonetheless, German government documents state that "Germany remains prepared to accept greater responsibility, also by assuming a permanent seat on the Security Council," and September 2007 press reports indicate that Merkel has asked President Bush to support a German bid for permanent Security Council representation.14

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Evolving Domestic Debate As global security threats have evolved, particularly since the terrorist attacks against the United States on September 11, 2001, German leaders have pursued a more proactive foreign policy. As recently as the early 1990s, German forces were understood to be constitutionally barred from operating outside of NATO territory, and the German foreign policy establishment was cautiously beginning to chart a post-Cold War course for the country. Today,over 7,000 German troops are deployed worldwide, and Germany plays a leading role in diplomatic initiatives from the Balkans to the Middle East. However, what some consider too rapid a shift in German security and defense policy has led to a growing debate over German national interests and the most appropriate means to realize them. German politicians have tended to justify increasing troop deployments and a more assertive foreign and security policy by appealing to a long-standing desire both to be considered a credible global partner, and maintain alliance solidarity.15 Some argue, however, that a foreign policy built largely on the need to assume a "fair share" of the multilateral burden, and on notions of international legitimacy and credibility, has obscured a lack of domestic consensus on more precisely defined national interests. This has become more apparent as German troops are deployed in riskier missions with less clear limits and mandates, such as in Afghanistan or Lebanon. Increasingly, Germans are questioning whether stated goals of alliance solidarity and credibility are worth the risks associated with military deployment; or, indeed, whether such deployments run counter to other German interests such as a commitment to pacifism. In response, calls for "exit strategies" and a more comprehensive accounting of the goals of German foreign policy have grown.

14

White Paper 2006, op. cit. p. 45.; "German chancellor reportedly to lobby Bush for permanent UNSC seat," BBC News, September 27, 2007. 15 For example, Schroder, in arguing for German engagement in Afghanistan, and Merkel, in arguing for German participation in EU and U.N. missions in Congo and Lebanon, both emphasized Germany's historic obligation to join efforts sanctioned by NATO, the EU, and U.N. Text of parliamentary debates on these missions available in German at [http://www.bundestag.de]; see also Kerry Anne Longhurst, Germany and the Use ofForce. Manchester: Manchester University Press, 2004.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

8

Paul Belkin

Some analysts and politicians — primarily in conservative political circles — argue that German leaders should be more willing to justify diplomatic and military engagement as satisfying national interests beyond those defined in the multilateral sphere. Others are skeptical, emphasizing what they see as a continued post-World War II obligation to surrender a degree of German sovereignty to such multilateral institutions, and to avoid any action seen as satisfying unilaterally determined German interests. Germany's grand coalition government includes proponents on all sides of the debate on national interests. The evolving discussion is likely to increasingly influence German policy within the European Union, the Atlantic Alliance, and the United Nations.16

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Germany in the EU Germany's post-World War II and Cold War commitment to the European integration project was grounded in a desire to reconcile with former enemies and spur economic and political development. Since the end of the Cold War, German leaders have used the EU as the primary forum through which to forge a moreproactive role for Germany on the international stage. German foreign policy in the early- to mid-1990s was almost singly focused on fostering deeper European integration and EU enlargement to the east. This focus, strongly supported by former President George H.W. Bush, was widely understood as based in a desire to quell fear of a resurgent Germany, and to replicate the benefits of West Germany's post-World War II integration in central and eastern Europe.17 Europe's inability and/or unwillingness to intervene to stem conflicts in the Balkans in the early- to mid-1990s fueled calls within Germany and other European countries for a collective European foreign, security, and defense policy. To some analysts, Merkel' s predecessor, Gerhard Schroder, embodied a growing German desire to pursue German interests within the EU more assertively. Merkel has continued this trend, also demonstrating a willingness to forge a more proactive role for Germany within Europe. This growing assertiveness has at times put Germany at odds with other EU member states, causing some to question Germany's long-standing commitment to European unity. As is the case in several other EU member states, German EU policy under Merkel reflects a much tempered enthusiasm for EU enlargement and skepticism of several aspects of European market integration. On the other hand, Germany advocates deeper European integration in areas ranging from climate change policy to police and judicial cooperation, and has assumed an increasingly significant role in Europe's Common Foreign and Security Policy (CFSP) and European Security and Defense Policy (ESDP). Germany was a strong proponent of the proposed EU constitutional treaty rejected by French and Dutch voters in 16

For a more comprehensive assessment of the evolving debate on national interests see Marco Overhaus, "Conceptual Evolution and Domestic Confusion: Germany's Security and Defense Policy from the Schroder to the Merkel Government." World Security Institute, Brussels. Policy Briefing number 1, February 2007; and Hanns Maul, ed., op. cit. 17 At the time of German unification, former French President Francois Mitterrand is said to have remarked to U.S. President George H. W. Bush, "I like Germany so much, I think there should be two of them." Former U.K. Prime Minister Margaret Thatcher is also said to have expressed concerns about German unification. See Bush speech at the German Embassy, Washington, DC, October 3, 2006, [http://www.germany.info/relaunch/ politics/speeches/100306_Bush.html]; see also Ulrike Guerot, "Germany and Europe: new Deal or Deja Vu?" Notre Europe, Studies and Research No. 55, November 2006, [http://www.notre-europe.eu].

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

German Foreign and Security Policy: Trends and Transatlantic Implications

9

2005, and Merkel used Germany's EU presidency in the first half of2007 to forge agreement on the outlines of a new reform treaty aimed at enabling a larger EU to operate more effectively.18 In a development that leads some analysts to suggest a weakening of the FrancoGerman partnership long considered the engine of European integration, Merkel has sought to reorient Germany's EU policy toward its eastern borders to improve relations with many of the EU's newer member states, all former members of the Soviet bloc.19

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

EU Enlargement Germany was an early and strong supporter of the EU's eastern enlargement after the Cold War.20 This support was based largely on the belief that European integration offered an unparalleled mechanism to spread democratic governance and associated values to Germany's immediate neighbors. While analysts agree that the EU's eastward enlargement satisfied pressing German interests by bringing stability and democracy to its new eastern borders, the benefits of further enlargement are not so clear to many Germans. An ongoing debate on the EU's "absorption capacity" highlights possible German concern both about its potentially decreasing decision-and policy-making power within the Union, and growing public pressure to better define Europe's borders and to reform EU institutions. Calls for curbing further EU enlargement, particularly to Turkey, are especially strong within Merkel's CDU/CSU political group. Merkel and others in her party have been careful not to explicitly rule out future EU expansion, particularly to the Western Balkans. However, Merkel has advocated more stringent requirements for new membership, and has advanced proposals for alternatives to full EU membership, especially for Turkey, which she argues could help bring some of the desired political and economic stability to non-EU member states within the European "neighborhood." Germany's position on Turkey's EU accession process highlights the broader domestic debate on enlargement. According to a 2007 survey, 16% of Germans see Turkish accession to the Union as "a good thing."21 Despite the Schroder government's support of a 2005 EU decision to officially open accession negotiations with Turkey, and despite strong U.S. support for Turkish membership, Merkel and other CDU/CSU members are said not to oppose Turkey's entry to the EU.22 Merkel does not explicitly voice such opposition; but she is viewed as at best skeptical, and has advocated imposing relatively vigilant benchmarks and timetables for Turkey's accession process. Merkel and others in her party have also proposed offering Turkey a "privileged partnership" with the EU as an alternative to full membership. 18

For more information on the EU's proposed "constitutional reforms" see CRS Report RS21618, The European Union's "Constitutional"Reforms, by Kristin Archick. 19 German relations with many of some of these states, and particularly Poland, are thought to have suffered markedly during Schroder's seven years in office due in large part to their support of the Iraq war, and his efforts to strengthen German ties with Russia. 20 The Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia joined the EU in May 2004; Bulgaria and Romania in January 2007. For more information on EU enlargement see CRS Report RS21344, European Union Enlargement, by Kristin Archick and Julie Kim. 21 "Transatlantic Trends, Key Findings 2007," The German Marshall Fund, September 2007, [http://www.transatlantictrends.org]. 22 See "Merkel visit to Turkey complicates life at home," International Herald Tribune, October 4, 2006; "Merkel presses Turkey over Cyprus," BBC News, October 5, 2006.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

10

Paul Belkin

Despite a persistently skeptical public, the SPD supports Turkey's efforts to accede to the EU, and continues to view further EU enlargement favorably.23 Disagreement within the governing coalition on Turkey's EU membership suggests that neither party will seek decisive action on the issue before German federal elections in 2009. Nonetheless, public opinion in Germany and across Europe indicates that any and all future proposed enlargements would be the subject of intense scrutiny and debate.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Common Foreign and Security Policy (CFSP) and Relations with Russia German leaders have supported and increasingly sought to influence the development of the Union's evolving Common Foreign and Security Policy (CFSP). In some areas, for example Middle East policy, Germany's growing role has been welcomed both within Europe and by the United States. In others, such as relations with Russia, Germany's position has elucidated and even inflamed disagreements within the Union. Although it continues to emphasize the importance of EU-wide consensus on foreign policy issues, Berlin has exhibited what some consider a growing willingness to pursue independently defined foreign policy interests both within and outside the EU framework, even at the expense of European or transatlantic unity. Germany's pursuit of close bilateral relations with Russia has prompted some analysts to question Berlin's commitment to fostering European unity in foreign and security policy matters. Close German-Russian relations have their modern roots in the 1960s and 1970s when German leaders increased diplomatic and economic engagement with the Soviet Union and other Eastern Bloc countries in an effort to improve relations with and conditions in East Germany. Since the end of the Cold War, Germany has consistently sought to ensure that Russia not feel threatened by EU and NATO enlargement. Germany continues to prioritize relations with Russia. Today, Germany is Russia's largest trading partner, and relies on Russia for close to 40% of its natural gas and 30% of its crude oil needs.24 Some argue that Germany's dependence on Russian energy resources and its pursuit of bilateral agreements to secure future energy supplies has threatened broader European energy security and undermined the EU's ability to reach consensus on energy matters. The EU's newer member states in central and eastern Europe have been especially critical. Polish, Lithuanian, and other leaders take particular aim at a German-Russian gas pipeline agreement negotiated by former Chancellor Schroder, and point to Russia's subsequent manipulation of gas and oil supplies flowing to Europe in early 2006 and 2007 as evidence of Russia's ability to use its energy wealth to divide Europe.25 Since taking office, Merkel has made a concerted effort to improve ties with Germany's eastern neighbors, seeking, among other things, to reassure them that Germany's close bilateral relations with Russia should not be viewed as a threat to European unity or security. While most have welcomed Merkel's efforts, German-Polish have been marked by 23

A May 2007 Eurobarometer survey reports that 34% of Germans favor further EU enlargement. This is 8% less than in 2005. See Eurobarometer 67, June 2007, [http://ec.europa.eu/public_opinion/index_en.htm]. 24 On average, EU member states import about 30% of their natural gas and 25% of their oil from Russia. 25 Within three months of leaving office in 2005, Schroder accepted a position with Russian energy concern Gazprom as board chairman of Nord Stream AG, the German-Russian gas pipeline project he negotiated while in office. For more information see, "Schroder joins Gazprom pipeline group," Financial Times, December 9, 2005; and "Schroder's New Gig Causes Trouble at Home," Stratfor, March 30, 2006.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

German Foreign and Security Policy: Trends and Transatlantic Implications

11

disagreement on a variety of issues, including Germany's close ties to Russia.26 Merkel advocates a "strategic partnership" with Russia — both for Germany and the EU — based on mutual trust and cooperation. Negotiating a new EU-Russia Partnership and Cooperation Agreement was one of Germany's primary goals during its EU presidency in early 2007. However, Merkel allowed negotiations to collapse in May 2007 when faced with strong Polish opposition, and apparent Russian intransigence. Some observers and eastern European leaders took this as an important affirmation of Merkel's commitment to European unity in foreign policy.27 As noted earlier, Merkel is seen by some as taking a harder line on Russia than her predecessor Schroder, a position attributed at least in part to her East German background. Nonetheless, divisions within Germany's governing coalition over how to engage Russia, and the strong historical, economic, and energy ties between the two countries lead analysts to suggest that Germany is likely to continue to seek what could become an increasingly tenuous middle path between Russia and some of the EU's newer member states.28 German leaders on both sides of the governing coalition continue to affirm their commitment to a strong CFSP. Germany has played a leading role in forging a common EU approach to a range of international issues, including the question of Kosovo's future status, the Israeli-Palestinian conflict, the Iranian nuclear program, and policy in Africa and central Asia. In advocating common EU positions on these and other issues, Germany emphasizes the importance of EU-wide consensus, at times demonstrating a willingness to alter national goals for the sake of European unity. However, Germany's pursuit of bilateral energy agreements with Russia signals what could be considered both growing assertiveness within Europe in certain areas, and frustration with what many consider a cumbersome EU foreign policy-making apparatus.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

European Security and Defense Policy (ESDP) Germany has become a strong supporter of a European Security and Defense Policy (ESDP) — or European defense arm — as a means for EU member states to pool defense resources and work collectively to counter emerging security threats. German and European backing for ESDP arose during the mid-1990s as Europeans proved unable and/or unwilling to respond militarily to conflicts in the Balkans. German support has grown since the terrorist attacks of September 11, 2001, and is increasingly driven by an emphasis on boosting civilian crisis management and police training capacity. Germany contributes military and security personnel to ESDP missions in Bosnia and Afghanistan, two of six civilian crisis management, police, and military operations currently overseen by the EU.29 Germany has also committed troop support for 26

For more information on Poland see CRS Report RS22811, Poland's New Government: Background and Issues for the United States, by Carl Ek. 27 "Europe and Russia: the Divorce?" Spiegelonline, May 18, 2007; "German rebuke sets up tense EU-Russia summit," EU Observer, October 5, 2007; "Estonia urges EU to defend small countries against Russia," EU Business, July 11, 2007. 28 Ibid.; Mitchell, op. cit."Talking with Russia — or Not," Spiegelonline, May 21, 2007. 29 EU police training and border crossing missions in the Palestinian territories, and a police training mission in Iraq each consist of fewer than 100 personnel. The police training mission launched in Afghanistan under German leadership in June 2007 is to consist of up to 200 police trainers. For more information on ESDP and ESDP missions, see [http://www.consilium.eu.int/cms3_fo/showPage.asp?id=268&lang=EN].

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

12

Paul Belkin

four of the EU's 13 new rapid-response Battlegroups, each made up of roughly 1,500 soldiers ready for deployment within 10 days of an EU decision to launch operations.30 Merkel is particularly careful to cast ESDP as a complement to, not substitute for, NATO. To this end, Germany has advocated formal agreements between NATO and the EU aimed at preventing the duplication of NATO structures, such as the so-called "Berlin Plus" agreement, which allows the EU to use NATO assets and capabilities for EU-led operations in which, "the alliance as a whole is not engaged."31 Nevertheless, some U.S. critics (including some Members of Congress) remain concerned that ESDP could ultimately usurp NATO's role and weaken U.S. influence in Europe.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

European Leadership and Franco-German Relations A historically strong Franco-German partnership has widely been considered the driving force behind European integration. As two of the EU's largest and most prosperous member states, Germany and France continue to work closely to advance joint interests within the EU. However, the EU's eastward expansion over recent years has both diminished collective Franco-German decision-making power within the Union and compelled Merkel to shift diplomatic focus to managing relations with Germany's eastern neighbors. In directing German EU policy eastward, Merkel reportedly hopes to restore Germany's credibility as a reliable partner with newer member states. Many analysts believe that Schroder's and former French President Jacques Chirac's pursuit of stronger relations with Russia, and their criticism of those EU member states that supported the 2003 U.S.-led invasion of Iraq, fueled harmful divisions between what former Secretary of Defense Donald Rumsfeld once famously dubbed "old" and "new" Europe.32 Neither Merkel nor France's new president, Nicolas Sarkozy, appears to share as strong an ideological commitment to the EU as most of their predecessors, and each espouses what many consider a more pragmatic approach to EU policy. As German policy within the EU has become focused on its eastern borders, France has sought to invigorate EU policy in the Mediterranean. While both appear eager to implement economic reforms aimed at increasing Europe's global competitiveness, each has also displayed a willingness to protect national interests and industries, particularly in the energy sector. Merkel and others in her government have expressed particular concern about Sarkozy's reported desire to increase political governance of EU economic policy, and of his plans to introduce domestic tax cuts, which would likely prevent France from meeting EU-wide deficit-reduction targets.33 Analysts and European diplomats cite these policy differences as evidence of the decreasing influence a Franco-German partnership will have within an EU of 27 or more member states. Others note that Merkel and Sarkozy's more pragmatic approach to the Union and their emphasis on increasing the EU's economic competitiveness, and fostering a more 30

As of January 2007, the EU has the capacity to conduct two concurrent Battlegroup operations. For more information see "Factsheet: EU Battlegroups," EU Council Secretariat, February 2007, [http://www.consilium.europa.eu/cms3_fo/showPage.asp?id= 261&lang=en]. 31 For more information on ESDP and EU-NATO links see CRS Report RL32342, NATO and the European Union, by Kristin Archick and Paul Gallis. 32 Guerot, op. cit. 33 "Sarkozy ist von Merkel genervt," Spiegelonline, September 11, 2007; "Sarkozy faces clash with EU partners over economic policy," EU Business, July 7, 2007.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

German Foreign and Security Policy: Trends and Transatlantic Implications

13

outward-looking EU could present an opportunity for improved relations with the United Kingdom (U.K.), and its new leader Gordon Brown. Brown, Merkel, and Sarkozy are often touted as a new generation of European leaders with the potential to reinvigorate the EU politically and economically. However, while they appear to share an enthusiasm for a more dynamic Union, differences on specific policy issues, including enlargement, economic liberalization, and constitutional reform could ensure that long-standing divisions between Germany and France and the more Euroskeptic U.K. persist.

Evolving Security and Defense Policy

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Perhaps the most profound change in German foreign and security policy since the end of the Cold War is Germany's deployment of troops outside NATO territory for the first time since World War II. Since a 1994 Constitutional Court ruling enabled German leaders to deploy troops abroad, Germany has participated in a number of U.N.- and NATO-sanctioned combat, peacekeeping, reconstruction and stabilization missions, and today, over 7,000 German soldiers are deployed in missions ranging from NATO's stabilization force in Afghanistan (ISAF) to the U.N. Mission in Lebanon (UNIFIL). However, Germans are increasingly questioning the grounds for what many believe has been too rapid a shift in German defense policy. One German security policy expert categorizes the evolving defense policy debate as evidence of "a widening gap between Germany's institutional commitments and official defense posture, and the country's readiness to deal with the practical military consequences of these developments."34 Some observers point out that while German politicians have consistently voiced support for more robust collective European and NATO defense capabilities, budget allocations in the foreign and defense policy sectors have decreased by about 40% in real terms since their peak in the late 1980s.35 Current German Troop Deployments* Afghanistan/ Uzbekistan (NATO - ISAF) Kosovo (NATO - KFOR) Lebanon (U.N. - UNIFIL) Bosnia Herzegovina (EU - EUFOR) Djibouti/Horn of Africa (Operation Enduring Freedom) Sudan (U.N. - UNMIS) Mediterranean (NATO - Active Endeavor) Georgia (U.N. - UNOMIG) Ethiopia (U.N. - UNMEE) TOTAL

3,200 soldiers 2,202 soldiers 877 soldiers 565 soldiers 255 soldiers 41 soldiers 24 soldiers 11 soldiers 2 soldiers 7,186

* As of June 2007 Source: German Defense Ministry

34 35

Overhaus, op. cit. See Hanns Maull, in Hanns Maull ed. op. cit., p. 4; and Michael Zuern, “Edel, hilfreich — nicht gut,” Die Zeit, January 4, 2007.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

14

Paul Belkin

In the early 1990s, public opposition and constitutional constraints prevented Germany from offering more than financial support to multilateral combat and peacekeeping efforts in the Persian Gulf and in the Balkans. Germany's inability to deploy troops to missions supported by many of its leaders led to the landmark 1994 Constitutional Court ruling, which determined that German troops could be deployed abroad, but only under a U.N. mandate and with the prior approval of the German parliament. This paved the way for Germany's participation in its first combat mission since the Second World War—NATO's 1999 air campaign to prevent ethnic cleansing in Kosovo.36 Considerable domestic opposition to German participation in the Kosovo mission was based largely on the contention that Germany's history obligated it to refrain from all military intervention. In response, then German Foreign Minister Joschka Fischer, a member of the traditionally pacifist Green Party, successfully argued that German history, in fact, obligated Germany to intervene — militarily, when necessary — to stop atrocities similar to those perpetrated by Germany during the Second World War. Fischer's argument set the precedent for Germany's growing participation in so-called humanitarian interventions, mostly in the form of U.N. and NATO peacekeeping and reconstruction and stabilization missions, worldwide. Today, Germany's global threat assessments mirror those of many of its EU and NATO partners, including the United States. The government identifies terrorism, proliferation of weapons of mass destruction (WMD), regional conflicts and failed states, transnational crime, energy security, migration, and epidemics and pandemics as the primary security threats facing Germany and its EU and NATO allies. However, Germany's approach to countering these threats is often perceived to be at odds with U.S. policy. Germany highlights the importance of a multilateral approach within the confines of a strengthened system of international law. Germany's 2006 White Paper on security policy emphasizes the importance of non-military means to combat threats to security, arguing for a strong civilian role in all aspects of defense policy. While Germany views terrorism as a primary threat, it does not refer to a war on terrorism, and underscores the need to address root causes of terrorism through development and other policies. The government does not completely rule out military engagement to combat terrorism, but does downplay this option.

Germany in NATO The Merkel government's 2006 White Paper on security policy asserts that "the transatlantic alliance remains the bedrock of common security for Germany and Europe. It is the backbone of the North Atlantic Alliance, which in turn is the cornerstone of German security and defense policy."37 Along with the United States, Germany was one of the first proponents of NATO expansion as an initial step in the Alliance's post-Cold War transformation. Since then, Germany has backed efforts to transform the Alliance to respond to post-Cold War and post-September 11, 2001 global security threats and engage in "out-ofarea" missions. German policy within NATO and its relations with its NATO allies are influenced by several factors which have caused, and may continue to cause, tension within 36

That NATO’s 1999 air campaign against Serbia lacked a U.N. mandate caused considerable dispute as to the legal basis for Germany’s involvement. The U.N.’s subsequent endorsement of NATO’s peacekeeping mission, KFOR, resolved remaining challenges. 37 White Paper 2006, op. cit. German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

German Foreign and Security Policy: Trends and Transatlantic Implications

15

the Alliance. One factor concerns U.S. leadership within NATO, and the degree to which the United States, Germany, and other European allies continue to share a strategic and operational vision for the Alliance. A second factor concerns Germany's ability to undertake the security and defense policy reforms many, particularly in the United States, believe are necessary for Germany to meet its commitments to an evolving Alliance that is expected to increasingly engage in "out-of-area" missions. Over 3,000 German troops contribute to NATO's International Security Assistance Force (ISAF) in Afghanistan, and about 2,000 soldiers serve in NATO missions in Kosovo and the Mediterranean Sea. German participation in ISAF — NATO's largest and most significant mission — has sparked considerable domestic debate over national defense policy, and has fueled tension between Germany and some of its NATO allies. Approximately 2,900 German soldiers are stationed in Afghanistan's relatively safe northern region, where they lead two Provincial Reconstruction Teams (PRTs), one in Kunduz and one in Feyzabad.38 In a February 2007 decision reportedly opposed by 77% of the German public, the German parliament (Bundestag) approved the deployment of six Tornado reconnaissance j ets,and 200 support soldiers to less stable southern Afghanistan.39 The jets are not to be used to directly support combat troops or attack ground positions, but solely to provide reconnaissance. The Bundestag has also sanctioned up to 100 special forces to work against remaining Al Qaeda elements alongside U.S. forces throughout Afghanistan in the U.S.-led counter-terror Operation Enduring Freedom (OEF). The Foreign Ministry reports, however, that German soldiers have not participated in OEF in Afghanistan for at least the past two years.40 Despite having the third largest troop contingent in Afghanistan, Germany has faced pointed criticism, particularly from the United States, for "national caveats" which prevent its soldiers from being deployed to Afghanistan's more dangerous southern region.41 The German response is generally twofold. First, German officials claim that strong public opposition to military engagement and to U.S. policies in Afghanistan leave legislators no other choice but to impose such caveats. In November 2006, Merkel is said to have urged President Bush to resist making public calls for Germany to ease restrictions on its forces for fear that perceived links between U.S. interests and German decisions would limit her ability to act in a manner perceived as favorable to the United States.42 Second, German officials increasingly claim that NATO is overly focused on military action and must devote more resources to civilian reconstruction.43 To this end, German leaders have expressed a willingness to increase financial assistance for development projects in southern Afghanistan (for more information on German engagement in Afghanistan, see Appendix 1.). Some in Germany argue that U.S. policy in Afghanistan indicates a broader U.S. reluctance to view NATO as a credible collective security mechanism. In particular, critics cite the U.S. decision to lead an initial "coalition of the willing" in Afghanistan in 2001 — 38

ISAF's 25 Provincial Reconstruction Teams are joint military-civilian operations designed to strengthen the Afghan government's authority in the provinces, and support stabilization and reconstruction efforts throughout the country. For more information on PRTs see CRS Report RL33627, NATO in Afghanistan: A Test ofthe Transatlantic Alliance, by Paul Gallis. 39 "Berlin Agrees to Send Tornado Jets to Afghanistan," Spiegelonline, February 7, 2007. 40 Interview of German government officials, Washington, DC, June 2007; Judy Dempsey, "Keeping peace abroad a tough sell in Germany," International Herald Tribune, August 9, 2007. 41 For more information on "national caveats," and NATO in Afghanistan, see CRS Report RL33627, op. cit. 42 Interviews of Bundestag officials, December 2006.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

16

Paul Belkin

despite the invocation of NATO's Article 5 collective defense clause — as evidence that the United States prefers to use NATO as a tool box through which to realize independently defined U.S. interests, rather than as a legitimate multilateral forum to define interests collectively.44 In a reflection of this sentiment, some German politicians, including SPD Chairman Kurt Beck, have called for an independent European army with a single European command.45 Some analysts and U.S. officials counter that the United States has essentially been forced to rely on "coalitions of the willing" because many of its NATO allies, including Germany, lack the military capacity to justify NATO- rather than U.S.-led missions. Germany has backed NATO efforts to reassess the Alliance's collective defense strategy and to develop the capacity to more effectively respond to emerging threats. In signing on to the Alliance's 1999 Defense Capabilities Initiative (DCI) and 2002 Prague Capabilities Commitment (PCC), Germany committed to focus national defense procurement practices on specifically defined areas, including strategic air and sea lift. Most agree that meeting these commitments will require Germany and other allies to increase overall defense spending, modernize procurement priorities and procedures, and reduce personnel costs. However, German defense spending has declined steadily since 1991, and by most accounts, Germany has been slow to realign its spending priorities to reflect its NATO commitments. NATO's agreed-upon defense spending target for Alliance members is 2% of GDP. While the NATO average is about 2.2%, German defense spending in 2006 represented about 1.4% of GDP.46

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Force Transformation and Bundeswehr Reform The changing security environment of the post-Cold War and post-September 11, 2001 era has fueled calls for military modernization and structural defense reform. As a condition of the 1990 "Two plus Four Treaty" between the post-World War II occupying powers (France, Great Britain, the Soviet Union, and the United States) and West and East Germany, which restored Germany's full sovereignty over security matters, Germany agreed to reduce its total troop numbers from 500,000 to under 370,000. Since then, Germany has sought to transform its defense forces in order to meet NATO and ESDP targets — specifically, to be able to contribute to the NATO Response Force (NRF) and EU Battlegroups.47 To meet these goals, Germany aims to reform its force structure to include 35,000 troops for high intensity, 43

"Berlin Mulls Limits to Afghanistan Mandate," Spiegelonline, July 2, 2007; "Tornados in Afghanistan, Political Twisters in Germany," Spiegelonline, July 4, 2007. On September 12, 2001, Germany joined its NATO allies in moving to invoke NATO's Article 5 collective defense clause; in November, 2001 German Chancellor Schroder received parliamentary approval to make up to 3,900 German troops available to the U.S.-led Operation Enduring Freedom. Opposition to the U.S. decision to lead a "coalition of the willing" outside the NATO framework compelled Schroder to tie the parliamentary vote to a vote of confidence in his government. See Longhurst, op. cit. pp. 82-90; interviews of NATO and German officials, December 2006, and May 2007. 45 Judy Dempsey, "German proposes European army," International Herald Tribune, November 6, 2006. 46 Overhaus, Op. Cit; Stephen Szabo, "The German Defense White Paper," American Institute for Contemporary German Studies (AICGS), December 2006; "Redefining German Security: Prospects for Bundeswehr Reform," American Institute for Contemporary German Studies (AICGS), September 2001; Proceedings of the AICGS conference, "German Security Policy: Assessing the 2006 White Paper on German Security Policy and the Future of the Bundeswehr." Washington, DC, July 10, 2007. Available at [http://www.aicgs.org]. 47 The NRF is a rapid response force of up to 25,000 NATO troops able to deploy to Article 5 (collective defense) or non-Article 5 crisis response operations within five days' notice. It was created as the result of a 2002 proposal by former U.S. Secretary of Defense Rumsfeld. For more information, see [http://www.nato.int/issues/nrf/index.html]. 44

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

German Foreign and Security Policy: Trends and Transatlantic Implications

17

short duration crisis intervention operations; 70,000 for longer durationcrisis stabilization operations; and support forces of147,500. According to the 2006 White Paper on security policy, such a restructuring could enable Germany to expand its current deployment capabilities to simultaneously deploy 14,000 troops in two larger scale or five smaller scale operations. As mentioned above, just over 7,000 troops are currently deployed worldwide. Observers generally commend Germany's stated intention to transform its military to meet EU, NATO and U.N. commitments, but point to substantial gaps between stated goals and actions taken. Other than to say "there is no room for further reductions in spending," Germany's 2006 White Paper does not address funding mechanisms. German government officials have long appeared skeptical about the prospects for meaningful increases in defense spending. Some express confidence, however, that a realignment of spending priorities and increased EU-wide cooperation could bring the country closer to realizing its defense priorities.48 In addition to stagnant defense spending, many security policy experts, including members of a 2000 high-level commission on Bundeswehr reform, argue that Germany's continued adherence to mandatory military service, or conscription, represents a significant impediment to meaningful reform. These critics call for a voluntary, fully professional force, arguing that the constraints placed on conscripts — they can only be deployed abroad on a volunteer basis — lead to significant operational deficiencies in the armed services. While conscription is suited for defense of national territory, they argue, it impedes Germany's ability to meet its peacekeeping and stabilization obligations abroad by wasting scarce financial resources to fulfill outdated security goals. In 2000, the government reduced the number of conscripts from 130,000 to about 70,000. However, support for conscription remains strong among members of the CDU and some in the SPD. Strong CDU support, based largely in a historically-rooted anxiety about the dangerous potential of a professional army like Hitler's Wehrmacht, indicates that reforms are unlikely during the remainder of Merkel's term. However, the SPD has joined Germany's opposition parties in calling for at least a partial end to conscription.49

Transatlantic Implications For some, the end of the Cold War, Germany's growing assertiveness within the European Union and corresponding enthusiasm for European integration, and more recently, German opposition to the 2003 U.S.-led war with Iraq, all symbolize increasing divergence in U.S.-German relations. However, the countries continue to cooperate in pursuit of common foreign and security policy goals, and share robust bilateral investment and trade relations. Under Merkel's leadership, Germany seeks to bolster U.S.-German and U.S.-EU trade and investment ties, and works closely with the United States on counterterrorism policy, and on a range of foreign policy issues. U.S. Administration officials and many Members of Congress have welcomed the Merkel government's commitment to a foreign and security policy anchored in NATO and the transatlantic relationship, and have expressed confidence in Merkel's ability to improve U.S.-German and U.S.-European cooperation on the world stage. 48 49

Interviews of German government officials, November 2006 - May 2007. Hugh Williamson, "Berlin moves to scrap conscription," Financial Times, August 20, 2007.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

18

Paul Belkin

U.S.-German bilateral relations remain strong, anchored not only by deep economic ties, but by a shared commitment to democratic values. Germany, the European Union, and the United States share similar global security threat assessments, and cooperate closely to mitigate these threats, whether in the struggle against international terrorism, through NATO efforts to combat the Taliban and strengthen the Afghan government, or in pursuit of a two-state solution to the Israeli-Palestinian conflict. Looking forward, several overarching features of Germany's evolving foreign and security policy stand to shape U.S.-German relations. These include Germany's commitment to international institutions, international law, and the multilateral framework; its deep-rooted aversion to the exercise of military force; strong public opposition to U.S. influence in the world; and a potentially widening gap between the foreign policy ambitions of some in Germany's political class and the German public. In addition, ongoing domestic debate over approaches to German national interests and what many consider too rapid a shift in defense policy could increasingly influence German foreign and security policy decisions. German politicians question, and at times openly oppose, aspects of U.S. foreign and security policy they view as lacking multilateral legitimacy, and/or as being overly dependent on the exercise of military force. On Middle East policy, for example, Merkel has urged the United States to diplomatically engage the leaders of Syria and Iran in order to initiate a region-wide effort to address the Israeli-Palestinian dispute and the future status of Iraq. Germany's strong commitment to a unified international front in dealing with Iran suggests it is more willing to accept compromises in exchange for Security Council unanimity than to take unilateral measures in the face of Chinese or Russian opposition. As U.S., German, and European leaders consider increased cooperation to stem global security threats and to promote stability, democracy, and human rights in regions from Africa to central Asia, Germany will likely continue to uphold its commitment to the multilateral process. Germany has criticized what many perceive as U.S. indifference to international institutions, and has consistently urged U.S. Administrations to join the International Criminal Court and U.N.sanctioned climate change treaties such as the Kyoto Protocol. Recent developments suggest that German leaders will remain both reluctant and hardpressed to justify increased German military engagement abroad to a persistently skeptical public, even within a NATO or EU framework.50 Germany's 2006 White Paper on national security indicates that Germany could increasingly emphasize the importance of civilian components to multilateral peacekeeping, stabilization and reconstruction missions, and that it will work within NATO and the EU to bolster such capacities. At the same time, trends in German defense spending, and the relatively slow pace of German defense reform highlight what many consider a notable discrepancy between articulated foreign policy goals and action taken to realize these goals. Germany's ongoing debate on military participation in Afghanistan has exposed a lack of domestic consensus on the goals and limits of German foreign and security policy. Specifically, Germans appear wary of linking reconstruction and development efforts with combat operations. Until now, Merkel and the Bundestag have argued that German 50

The German Marshall Fund of the United States' 2006 Transatlantic Trends survey reports that 22% of Germans would support sending military forces to help democracy by removing an authoritarian regime in which "there is no political or religious freedom;" in 2007, 21% either agreed strongly or agreed somewhat with the statement that "under some conditions, war is necessary to obtain justice." Transatlantic Trends Topline Report, September 2006, and September 2007, [http://www.transatlantictrends.org].

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

German Foreign and Security Policy: Trends and Transatlantic Implications

19

participation in Afghanistan be focused on reconstruction and stabilization efforts. However, as the distinction between development work and combat operations becomes increasingly unclear, especially under unstable security conditions, Germans have begun to re-examine the nature and effect of German military engagement both in Afghanistan and elsewhere. Ensuing calls for a reassessment of the grounds for and rules of military engagement stand to further shape Germany's ability to partner with its allies in multilateral missions worldwide. Germany appears poised to continue to seek a "middle path" between NATO and the EU, promoting the development of an independent European foreign and defense policy as a complement, rather than counterweight to NATO. Successive U.S. Administrations have supported ESDP as a means to enhance European defense capability and interoperability, but Washington has also insisted that EU defense policy be tied to NATO. To this end, U.S. leaders have opposed calls from some in Europe for an independent EU defense identity that could potentially function as a counterweight to the Alliance, and have welcomed Merkel's renewed emphasis on NATO-EU links. While Germany remains committed to NATO as the pillar for European security, some Germans openly question U.S. leadership in NATO, and a perceived U.S. preference to pursue independently defined national interests within the Alliance rather than to define and pursue the collective interests of the Alliance. Domestic political considerations and German public opinion could continue to play a key role in shaping U.S.-German relations, particularly for the remainder of the Bush presidency and until Germany's scheduled federal elections in 2009. Low public opinion of United States foreign policy indicates that Merkel could be more hard pressed to justify her Atlanticist orientation as her term progresses. The degree to which current German dissatisfaction with U.S. influence in the world is linked directly to President Bush and his Administration is unclear. However, some German politicians and other government officials expect German opinion of U.S. policy to improve after Bush leaves office.51 That said, Berlin is likely to continue to react skeptically to foreign policy actions it perceives as unilateral and lacking international legitimacy regardless of who succeeds Bush in the White House.

Appendix 1. Selected Issues in U.S.-German Relations — Current Status Economic Ties Germany's export-based economy is the world's third largest and Europe's largest.52 The United States is Germany's second largest trading partner with two-way trade in goods totaling $184 billion in 2007. U.S. exports to Germany in 2007 were worth about $71 billion, consisting primarily of aircraft, and electrical and telecommunications equipment. German exports to the United States — primarily motor vehicles, machinery, chemicals, and heavy electrical equipment — totaled about $113 billion in 2007. The United States is the numberone destination for German foreign direct investment (FDI); 11.5% of all U.S. FDI is in

51 52

Interviews of German Bundestag members and government officials, November, 2006 - May 2007. Information in this section from U.S. Department of State, "Background Note: Germany," January 2008.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

20

Paul Belkin

Germany. U.S. firms operating in Germany employ approximately 510,000 Germans, and close to 746,000 Americans work for German firms in the United States. In what some considered an effort to shift attention from the more controversial aspects of U.S.-European relations, Chancellor Merkel used Germany's EU presidency during the first half of2007 to advance initiatives to deepen transatlantic economic ties. Her efforts led to the April 2007 adoption of a Framework for Advancing Transatlantic Economic Integration and the formation of the Transatlantic Economic Council (TEC). The TEC, headed by a Cabinet-level official in the president's office (currently Director of the National Economic Council, Allan Hubbard), and a member of the European Commission (currently Commission Vice President for Enterprise and Industry Guenter Verheugen), is charged with identifying opportunities to increase transatlantic economic and trade and integration, with a particular focus on increasing regulatory harmonization and reducing non-tariff barriers to trade. At an April 2007 summit, Merkel and President Bush identified the following areas as initial focal points for regulatory harmonization: industry standards; intellectual property; energy and environment; and financial markets.53 Despite Merkel's effort to bring higher political commitment to deepening U.S.-European economic and trade integration, some analysts contend that formidable obstacles remain, including U.S.-European regulatory differences in areas such as health safety and environmental protection.54 On the other hand, German-U.S., and U.S.-European trade and economic ties remain robust, characterized more by growing convergence than by disagreement.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Counterterrorism Cooperation Most observers consider U.S.-German cooperation in the fight against terrorism to be close and effective. Since discovering that three of the hijackers involved in the September 11, 2001 attacks on the United States lived and plotted in Germany, the German government has worked closely with U.S. and EU authorities to share intelligence. Germany has identified radical Islamic terrorism as a primary threat to its national security, and has passed a number of laws aimed at limiting the ability of terrorists to live and raise money in Germany.55 In June 2007, Germany's Interior Minister Wolfgang Schauble (CDU) proposed a series of domestic counterterrorism initiatives including for increased computer surveillance, and domestic military deployment in the event of a terrorist attack. Schauble's proposals have sparked considerable debate in Germany, where personal privacy and individual civil liberties are strictly guarded, and where domestic military deployment is barred by the constitution. Domestic support for Schauble's proposals appears to have increased following the September 2007 arrest of two German citizens and a Turkish resident in Germany accused of plotting what German investigators say could have been one of the deadliest attacks in European postwar history. According to German and U.S. intelligence officials, the suspected terrorists planned to target U.S. citizens. German authorities are reported to have collaborated 53

See "Framework for Advancing Transatlantic Economic Integration Between the United States of America and the European Union," White House Press Release, available at [http://www.whitehouse.gov/news/releases/ 2007/04/20070430-4.html]. 54 See CRS Report RS22645, U.S.-European Relations and the 2007Summit, by Raymond Ahearn, Kristin Archick, and Paul Belkin. 55 See CRS Report RL33573, European Approaches to Homeland Security and Counterterrorism, coordinated by Kristin Archick.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

German Foreign and Security Policy: Trends and Transatlantic Implications

21

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

closely with U.S. intelligence agencies in foiling the plot, with Homeland Security Secretary Michael Chertoff saying that intelligence cooperation between the two countries is "the closest it's ever been."56 Discovery of the September 2007 terrorist plot has elevated concern in Germany about the possibility of future attacks, with some predicting greater support for antiterrorism measures as proposed by Merkel and Schauble. At the same time, others see the planned attack as designed to raise pressure for a pullout of German troops from Afghanistan, and expect calls for an end to German engagement in that country to increase.57 Though it cooperates with the United States in the Bush Administration's "Global War on Terror," Germany does not consider the effort a war, referring rather to a "struggle against international terrorism." German officials stress the importance of multilateral cooperation and adherence to international law in combating terrorism. Like the United States, Germany advocates a comprehensive U.N. antiterrorism convention. Germany has urged President Bush to close the U.S. prison for terrorist suspects at Guantanamo Bay, Cuba, which it views as violating rights guaranteed to "prisoners of war" under the Geneva Conventions, and has been critical of alleged abuses of prisoners in Iraq and Afghanistan by U.S. forces. German and European parliamentary investigations into alleged CIA "renditions" of German nationals suspected of membership in terrorist organizations have sparked calls in Germany for a re-examination ofU.S.-German counterterrorism cooperation. In January 2007, the District Attorney's office in Munich issued arrest warrants for 13 suspected CIA operatives alleged to have abducted German citizen Khaled al-Masri in Macedonia in 2003, and to have subsequently imprisoned and tortured him in Afghanistan.58 German officials claim to have been unaware of the Al-Masri abduction. However, related investigations suggest that high-level German officials were aware of the alleged post-September 11, 2001 CIA abduction and subsequent imprisonment of German citizen Mohammed Haydar Zammar and German-born Turkish citizen Murat Kurnaz.59

The Middle East60 Germany, along with other European countries, believes the Israeli-Palestinian conflict lies at the root of many of the challenges in the Middle East. Merkel has promoted continuity in a German Middle East policy based on a commitment to protect Israel's right to exist; support for a two-state solution to the Israeli-Palestinian conflict; a commitment to a single EU-wide framework for peace; and a belief that U.S. engagement in the region is essential. Germany has been active in international negotiations aimed at curbing Iran's nuclear ambitions and, despite continuing to rule out a German troop deployment to Iraq, Berlin has provided funded some Iraqi reconstruction efforts and participated in efforts to train Iraqi security forces. 56

See Simone Kaiser, Marcel Rosenbach, and Holger Stark, "How the CIA Helped Germany Foil Terror Plot," Spiegelonline, September 10, 2007. 57 Judy Dempsey, "Plot seen as pressure to pull out of Afghanistan," International Herald Tribune, September 7, 2007. 58 The German government has since decided not to pursue the arrest warrants, announcing in September 2007 that it will not seek extradition of the American suspects. 59 "In Another CIA Abduction, Germany Has an Uneasy Role," Washington Post, February 5, 2007; "Kurnaz Case Continues to Trouble German Foreign Minister," Spiegel Online, January 31, 2007. 60 For more information see CRS Report RL33808, Germany's Relations with Israel: Background and Implications for German Middle East Policy, by Paul Belkin.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

22

Paul Belkin

The Israeli-Palestinian Conflict and Lebanon Since Germany's historic October 2006 deployment of close to 900 German troops to the Lebanese coast as part of an expanded U.N. mission in Lebanon (UNIFIL), Merkel and Steinmeier have increased their calls for revived U.S. and Quartet (the EU, Russia, the U.N., and the United States) engagement in the Israeli-Palestinian peace process. While Germany has welcomed past power-sharing agreements between Palestinian factions, it remains opposed to negotiations with governments that include the recognized terrorist group Hamas, and it continues to emphasize its commitment to the Quartet conditions for relations with such a government.61 Although U.S. officials appear to welcome increased German engagement in the region, the United States has expressed disapproval of German efforts to engage Syria in the ArabIsraeli peace process, and has reacted skeptically to German-supported proposals to link the resolution of other major disputes in the region to the Israeli-Palestinian peace process. For their part, German officials argue that constructive dialogue with Syria is essential to achieving stability in Lebanon and cooperation from Hamas in resolving the Israeli-Palestinian conflict. German Foreign Minister Steinmeier met with Syrian Foreign Minister Walid -al-Muallim in Berlin in January 2008. Steinmeier said he urged his counterpart to cease support for Hezbollah fighters in Lebanon and use his leverage over Hamas to pressure its officials to cooperate in the peace process. Merkel, who has criticized Syria for a perceived unwillingness to cooperate in the peace process, publicly opposed Steinmeier's decision to host al-Muallim.62

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Iraq Although Germany continues to rule out a troop deployment to Iraq, it has trained Iraqi police and armed forces in Germany and the United Arab Emirates (UAE), contributed funding for civilian reconstruction and political reconciliation, and, at the behest of the United States, agreed to write off 80% of Iraq's foreign debt along with other members of the Paris Club.63 Germany's coalition government has endorsed a "comprehensive diplomatic initiative" to the ongoing conflict in Iraq, and has expressed support for an international conference on Iraq that would include discussion of other disputes in the region.64 In a December 2006 meeting, Secretary of State Condoleezza Rice reportedly reacted skeptically to Steinmeier's proposal for German assistance for such an initiative.65 German officials consistently assert that stability in Iraq is in Germany's interest, and some voice concern about the ramifications for Germany and Europe of a potentially swift withdrawal of U.S. forces.66 Although some 61

The conditions stipulated by the Quartet are recognition of Israel's right to exist, renunciation of terrorism, and acceptance of previous Israeli-Palestinian agreements. 62 "Foreign Policy differences hit Merkel coalition," Financial Times (FT.Com), January 18, 2007. 63 The Paris Club is an informal group of 19 creditor nations that seeks to alleviate payment difficulties facing debtor nations. 64 "Germany's Merkel Advocates 'Comprehensive Diplomatic Initiative Over Iraq," Associated Press Newswires, December 9, 2006. 65 Interview with German Foreign Minister Steinmeier: "Splitting Iraq Would Lead to Terrible Bloodshed," Spiegelonline, December 12, 2006. 66 Conversations with German officials and Bundestag members, December 2006 -September 2007.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

German Foreign and Security Policy: Trends and Transatlantic Implications

23

politicians have accordingly expressed a willingness to increase German funding for reconstruction and police and military training efforts, most appear disconcerted by what they perceive as an Administration decision to forgo most of the Iraq Study Group recommendations. Germans, like many in Europe, are skeptical of the Bush Administration's current "surge" in Iraq, and favor engaging Iran and Syria in forging a regional approach focused on achieving political reconciliation in Iraq.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Iran As a member of the so-called EU-3 (France, Germany and the United Kingdom), Germany has been at the forefront of EU and U.N. efforts to prevent Iran from developing nuclear weapons and continues to seek international consensus on more stringent economic sanctions against Iran. At the same time, Berlin has faced pressure from the United States and others to limit civilian commercial ties with Iranand to curb the substantial export credit guarantees it offers companies doing business in the country. Along with Italy and China, Germany remains one of Iran's most important trading partners. However, German-Iranian commercial ties have cooled significantly since 2005. German exports to Iran reportedly dropped 25% between 2005 and 2007, from $6.4 billion (4.3 billion euros) to $4.8 billion (3.2 billion euros), and Germany's two largest banks, Deutsche Bank and Commerzbank AG, say they have withdrawn from the Iranian market. In addition, new export credit guarantees to companies doing business in Iran fell by more than half from 2006 to 2007, dropping from $1.74 billion (1.16 billion euros) to $731.84 million (503.4 million euros).67 While some interpret weakening German-Iranian economic ties as a sign that Berlin is intent on increasing economic pressure on Tehran, others argue that German-Iranian trade remains robust and that politicians in Berlin are unlikely to seek further cuts in commercial ties. They view German officials' emphasis on unanimity with, for example, Russia and China, as evidence that Berlin is unwilling to take bolder action against Iran.68 Merkel and others remain strongly opposed to a military response to the crisis.

Afghanistan Merkel and Foreign Minister Steinmeier consistently express their support for ongoing German military engagement in Afghanistan. In mid-October and November 2007, the Bundestag voted to extend German participation in ISAF and the U.S.-led Operation Enduring Freedom for another year. However, Germany is poised to advocate a shift in its and NATO's Afghanistan strategy toward civilian reconstruction and development projects, army and police training activities, and enhanced political engagement with Afghanistan's neighbors.69 The U.S. Administration has praised Germany for its continued engagement in Afghanistan, but has also urged German leaders to consider both increasing the number of troops serving and easing operational "caveats." The Merkel government has resisted calls to lift "caveats" and to send combat troops to Afghanistan's southern regions. However, Berlin 67

See "German Economy Ministry Reports Lower Exports to Iran," Associated Press, February 13, 2008; and "Berlin Hardens Stance with Iran," Financial Times, February 11, 2008. 68 See, for example, "Berlin's Ambiguous Relationship with Israel," Jerusalem Post, February 11, 2008. 69 "Kabinett beschliesst Staerkung des zivilen Aufbaus," Spiegelonline, September 5, 2007. German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

24

Paul Belkin

has indicated its readiness to deploy 250 combat troops to provide security for NATO operations in the north.70 Public opposition to continued engagement in Afghanistan has grown as German casualties have mounted, and civilian death tolls have risen.71 Critics have taken particular aim at German and NATO support for the U.S.-led Operation Enduring Freedom. As mentioned above, German officials report that despite the Bundestag mandate, German soldiers have not participated in OEF for the past two years. Nonetheless, Germany has renewed its OEF mandate, which Merkel and Steinmeier view as an important sign of solidarity with the United States. Several Bundestag members supportive of enhanced German engagement in Afghanistan have advocated ending the OEF mandate in Afghanistan, but increasing German troop commitments to ISAF police and army training activities, and easing caveats on these troops. They argue that a heightened emphasis on training will provide clearer and more measurable end-goals for German forces.72

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Germany has pledged to send 60 police personnel to participate in an EU police training mission launched in June 2007. The EU mission is expected to include up to 200 trainers. Prior to the EU mission, Germany shared responsibility for police training with the United States. Some criticized German training efforts, carried out by about 50 police trainers in Kabul, for having too narrow an impact and for being overly bureaucratic, while U.S. efforts are said to have not been thorough enough.73 NATO officials and security experts generally argue that German "caveats," which prevent German police and army trainers from accompanying their Afghan trainees to many of their subsequent fields of operation, limit the success of Germany's training efforts.74

70

"NATO Asks Germany to Send Combat Troops to Afghanistan," Spiegelonline, January 29, 2008. As of September 2007, a total of 24 German soldiers had been killed in Afghanistan. 72 "Koalition erwaegt erweitertes Afghanistan-mandat," Franfurter Allgemeine Zeitung, June 29, 2007; For more information on German debate over ISAF and OEF see Markus Kaim, "Expanding ISAF — Ending OEF," German Institute for International and Security Affairs, August 2007. 73 Judy Dempsey, "Deal reached on Afghani police training," International Herald Tribune, August 26, 2007. 74 Spiegel interview with NATO Secretary-General Jaap De Hoop Scheffer, Der Spiegel, September 10, 2007. 71

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Appendix 2. Key Dates in German Foreign and Security Policy

Source: Congressional Research Service

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved. German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

In: German Foreign and Security Policy Editor: Leah N. Bowers

ISBN: 978-1-60692-150-0 © 2009 Nova Science Publishers, Inc.

Chapter 2

GERMANY AND EUROPE: NEW DEAL OR DÉJÀ VU?+ Ulrike Guérot*

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Notre Europe Notre Europe is an independent think tank devoted to European integration. Under the guidance of Jacques Delors, who created Notre Europe in 1996, the association aims to "think a united Europe." Our ambition is to contribute to the current public debate by producing analyses and pertinent policy proposals that strive for a closer union of the peoples of Europe. We are equally devoted to promoting the active engagement of citizens and civil society in the process of community construction and the creation of a European public space. In this vein, the staff of Notre Europe directs research projects; produces and disseminates analyses in the form of short notes, studies, and articles; and organises public debates and seminars. Its analyses and proposals are concentrated around four themes: •

•

+

*

Visions of Europe: The community method, the enlargement and deepening of the EU and the European project as a whole are a work in constant progress. Notre Europe provides in-depth analysis and proposals that help find a path through the multitude of Europe's possible futures. European Democracy in Action: Democracy is an everyday priority. Notre Europe believes that European integration is a matter for every citizen, actor of civil society

Study available in French and English on the Website http://www.notre-europe.eu. With the support of the European Commission : support to active entities at European level in the field of active European citizenship. Dr. Ulrike Guérot is a senior transatlantic fellow with the German Marshall Fund, where she currently works on euro-transatlantic partnership in international relations and the development of a constitutional Europe. Before coming to GMF, Dr. Guérot headed the European Union Unit at the German Council on Foreign Relations (DGAP) in Berlin. She has also worked as professor of European studies at the Paul H. Nitze School of Advanced International Studies of the Johns Hopkins University; as a senior research fellow at the Paris-based think tank Groupement d’Etudes et de Recherches ‘Notre Europe’; and a staff member of Karl Lamers, MP, Foreign Policy spokesman of the CDU-CSU group in the german Parliament. Dr. Guérot is widely published on European affairs. She recently received the French Ordre du Mérite.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

28

Ulrike Guérot

•

•

and level of authority within the Union. Notre Europe therefore seeks to identify and promote ways of further democratising European governance. Cooperation, Competition, Solidarity: « Competition that stimulates, co-operation that strengthens, and solidarity that unites ». This, in essence, is the European contract as defined by Jacques Delors. True to this approach, Notre Europe explores and promotes innovative solutions in the fields of economic, social and sustainable development policy. Europe and World Governance: As an original model of governance in an increasingly open world, the European Union has a role to play on the international scene and in matters of world governance. Notre Europe seeks to help define this role.

Successively presided over by Jacques Delors (1996-2004), Pascal Lamy (2004-05), and Tommaso Padoa-Schioppa (since November 2005), Notre Europe aims for complete freedom of thought and works in the spirit of the public good. It is for this reason that all of Notre Europe's work is available for free from our website, in both French and English: www.notre-europe.eu

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Preliminary Remarks and Acknowledgments I would like to thank a number of French, German and European friends who have read and commented on this article (sometimes with a critical eye) and whom I prefer not to name. Two other important remarks: this article does not contain any secrets for those intimately involved in the discussion on the future of Europe. This paper is a synopsis, resulting from a number of interviews I conducted over the past few weeks with individuals connected to the European debate. For some, one remark or another made on the new directions of Germany and France's foreign policy may seem to be overly critical or abstract. The objective of this paper is not to be critical for its own sake. Rather, the purpose is to illustrate the different paths Germany or France could take to re-infuse energy into the European project and European integration that they had contributed so much to, to everyone's benefit, and the Transatlantic relationship. This goal, however, is difficult to achieve. First, in such a short paper, subjects cannot be addressed in enough detail. Secondly, the problems are simply difficult to resolve and nobody, me included, has the answers. This paper is an attempt to look at the state of German-French relations, or even better, to survey the sentiments in regard to Europe accompanied by my own perplexity regarding the many questions raised by the future development of Europe. The hope is that this paper will trigger a new creative and dynamic discussion. As a German with a French name, closely connected to France, and working for an American think tank, I am personally convinced that only a menage a trois linking Washington, Paris, and Berlin can open the door to a more prosperous and better integrated Europe in the framework of a stable Transatlantic relationship. Throughout the past three years, I was disconcerted by the break in Germany's traditional European policy and the growing self-inflicted marginalisation of France that ended with a "Non" to the European Constitution. This article is therefore very much a call for "Back to the Future"

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Germany and Europe: New Deal or Déjà Vu?

29

My thanks also go to my three wonderful interns Dominic Maugeais, Francois Gagey, and Christopher Pierer von Esch, who participated in the research and conducted the bulk of the translation into French and English. This article represents my own opinion and in no way reflects the opinion of the German Marshall Fund of the United States, nor Notre Europe. The German Marshall Fund considers itself to be a platform for Transatlantic dialogue. This paper was completed November 29th, 2006.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

I. Germany and Europe: Structure of a Relationship It is not necessary to gaze too far into the past to realise that Germany and Europe, even before the Second World War, have had a particularly close and yet curious, and, in part, ambivalent relationship with each other. When looking back at the beginnings of the European integration process, it has always been especially about Germany. The 'German Exception' as a 'European tradition'1, is Wolf Lepenies' description of the process in his fascinating book for which he received the Peace Prize from the German Book Trade. In the frequently quoted 1994 Schauble-Lamers' paper about the "Core of Europe', it is stated: "Although Germany is bigger and stronger than each individual neighbour, it is not bigger and stronger than all of its neighbours put together'2. The idea to embed Germany to prevent it from developing new hegemonic aspirations and secure long standing peace in Europe has always been the main reason behind the European Integration Process. And that was exactly the result. Germany, the largest country on the European continent, was for decades the only true 'big and pro-integration' country in the European Community and, respectively, the European Union. France and Great Britain are entirely different cases, though large countries, each in its own, is less pro-integration than Germany (France has evidently been pro-Europe. However, unlike Germany, it has never been that committed to the specific supranational system); and Italy is indeed pro-integration and supranational, but not as large as Germany. Being both the largest country and the most pro-integration, Germany was for many years in an exceptional position within the European Union. In considering European Integration and strong transatlantic relations as two sides of the same coin -the two main 'parameters' of German foreign policy-, Germany has conciliated two contradictory positions.3 This distinguished the Germans from the British, who always made their transatlantic ties a priority, and the French, who projected their own foreign policy ambitions onto the process of European integration and who have had, since the beginning, a choppy relationship with the US. Germany did share its commitment to transatlantic relations and the European project with Italy, but Italy however, as has already been mentioned, is not exactly Germany. Germany in Europe has thus always provided for the cohesion of two approaches: big and pro-European, transatlantic and pro-European.

1

Deutsche Besonderheit' als 'Europaische Normalitat' in: Wolf Lepenies: Kultur und Politik. Deutsche Geschichten, Munchen 2006, S. 37. 2 Denn Deutschland ist zwar groBer und starker als jeder Einzelne seiner Nachbarn, aber nicht groBer und starker als seine Nachbarn zusammen.', in: Wolfgang Schauble and Karl Lamers: ,Uberlegungen zu Kerneuropa', CDU/CSU Papier 1994. 3 For detailed information see Hans-Peter Schwarz: ,Republik ohne Kompass. Anmerkungen zur deutschen AuBenpolitik', Berlin 2005.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

30

Ulrike Guérot

The EU consequently relied on two basic requirements: American support, or at least the United States' confidence in the European integration process, and German financial backing. Therefore, from Adenauer to Kohl, Germany has always been willing to bargain for Europe, to pay for European compromises and to hold back on its own "national interests' for the good of the European integration process, which represented more than in any other country, the "raison d'Etat'. The rationality behind European integration was at once a substitute for identity and, as Germany had been given a specific multilateral approach by Genscher, a source of pride. For decades, the European discourse was characterised by the congruency of the German and European interest. Germany, the biggest backer of the EU, and completely absorbed in the project of the EU, held back on its own considerations in order to secure its quintessential and vital interest: a peaceful coexistence with its neighbours. In the context of the introduction of the Euro, the discussion followed a similar pattern, although cracks began to show for the first time. Abandoning the Deutsche Mark was a huge decision and had a profound impact. The price to pay for Europe appeared to be too high and, consequently, battles within Germany were fought in order to prevent its adoption. Nevertheless, Helmut Kohl's determined statement that "only the Euro will make European integration irreversible' was carved in stone and the political will of the "wargeneration' was strong. The job would be completed. However, the establishment of the European Central Bank in Frankfurt showed on the other hand that Germany's actions were not purely altruistic. Nevertheless, the key to this dynamic rested in the fact that Germany, providing the anchor currency within the European Currency System (ECS), agreed to adopt a "single currency' (and not only a "common currency'). The abdication of short term "national' advantages for the common good, was for years a key principle of German policy making.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1.1. Germany's Europe Policy: What It Was and What It Is It would be unfair to say that Gerhard Schroder's accession to the Chancellery was the break in this tradition. Even before, during the last years of the Kohl Administration, cracks began to appear. The promotion of the 'subsidy principle' as an alternative to the transfer of powers to Brussels was already the subject of a joint letter signed by President Jacques Chirac and Helmut Kohl in the summer of 1996. The Treaty of Amsterdam in 1997 disappointed those that had wanted more integration, especially in matters of security and justice (the third pillar). The pressure exerted by the German Bundeslander (states), meaning Germany, is part of the reason for the failure. In its efforts to promote integration, Germany had concentrated exclusively on the Euro. It could have done no more. However, on the rhetorical level, there was a radical renewal in the discourse under Chancellor Gerhard Schroder - and this was clearly his goal. The notion of a "historically unencumbered Foreign Policy", as well as the nascent principle of the "German national interest in Europe", was part of this renewal in discourse along with the expression of new "national" aspirations on the international scene. These aspirations culminated in 2005 when Germany expressed its desire for a seat on the United Nations Security Council (this idea was presented to its European partners as a wish for the creation of a European seat). The discourse had truly taken on a new tone.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Germany and Europe: New Deal or Déjà Vu?

31

But a new pitch was not the only change in the discussion. From Gerhard Schroder to Angela Merkel, four transformations in the shaping of Germany's European Policy had slowly evolved: •

•

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

•

4

With the inauguration of the first Schroder Administration, for the first time in Germany history, a post war generation for whom European integration was less essential ascended to power. Europe 'at any cost' was no longer a rationale for integration and this sentiment percolated through the entire administration. A direct consequence was that Germany, historically a strong proponent of both the European Parliament and the European Commission, the Union's sole real supranational institutions, henceforth neglected both institutions and instead concentrated on the European Council, the intergovernmental element of both institutions4. This evolution could be termed the 'francosisation' of Germany's European policy, which had just a decade earlier hoped to gain France's support for a strong Parliament and Commission (this was explicit in the Schauble-Lamers' paper). Seldom had the Commission been so criticised as during the Schroder chancellery. The EU Commission was accused of interfering in German industrial and economic affairs (Volkwagen, Holzmann, Kirch) when it attempted to implement the EU competition law, which had been drafted by EU Commissioner, Walter Hallstein, at the behest of Germany. And in 2000, during the Nice Treaty negotiations, the concept of "regional public services" was put on the table: Germany preferred that specific regional economic structures (such as the public regional transportation networks) remain exempt from the EU's Competition rules. This led to the third point, namely, that the German states (Bundeslander) were increasingly becoming important actors in the shaping of Germany' European policy - and, at that, not always in a constructive fashion. The amendment of article 23 of the Constitution regarding the role of the German Bundeslander in decision making in matters of European policy (the amendment became necessary following the ratification of the Maastricht Treaty in 1992) has led in the last decades to increased participation in European activities on the part of the German states. In the meantime, almost all of them have their own autonomous representations to the EU Commission in Brussels. Former EU Commission President Jacques Delors once joked that 'Germany in Europe' meant 'Germany and its sixteen states'. In all the areas where the Bundeslander have jurisdiction (for example, education and training, policing, Justice and Home Affairs), Germany has increasingly become the partner presenting the most difficulties on the European level. Indeed, the German states do not all always speak with one voice or necessarily in tune with the federal government. In addition to the difficulties regarding the vertical coordination of Germany's European policy between the Federal government and the states, the horizontal coordination of Germany's European policy between, on the one hand, the various ministries and, on the other hand, the Chancellery and the ministries is becoming increasingly problematic. In fact the squabbles over powers between the Ministry of

This is also the case for Germany's human resources policy at the European Commission, which is often described as insufficient.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

32

Ulrike Guérot

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Finance, which has historically seen itself as responsible for the internal market, and the Foreign ministry, which sees itself responsible in a broad range of areas relevant to European policy, dates back to the 1960s and the era of Adenauer and Ehrhardt. Today, however, they have taken on another twist. Unlike other European states, Germany has neither created the position of a Minister for Europe, nor like France, does it have a General Secretariat for Interministerial Coordination (the French SGAE).5 With the investiture of every new government, the appointment of a State Minister for European questions in the Chancellery is immediately considered to be an affront to the Foreign minister.6 And even though the establishment of a strong European section in the Chancellery is discussed at every election, its implementation has been systematically postponed. On this point, another difference between the Schroder Administration and the Grand Coalition must be underlined. Like Kohl and Genscher, Schroder and Fischer made a good team (the division of the office between Chancellor and Deputy Chancellor helped). The Chancellor always had the final say, which worked extremely well in the case of Schroder/Fischer. The important decisions and / or policy orientations in international and European politics, such as a common position with France during the Iraq Crisis or the idea of a "Paris-Berlin-Moscow Axis", were made in the Chancellery and not by the foreign Minister. As head of a Grand Coalition, Merkel has neither been able to maintain the traditional fusion of Foreign Minister and Deputy Chancellor, nor even give the "smaller" party the Foreign Ministry. In addition, the Foreign Minister, Franz-Walter Steinmeier (SPD), comes from the administration rather than the party's policy wing, which is unusual for Germany. On top of that, it is unclear who from the Socialist party is in charge of European policy and could forge compromises on Europe within the SPD. In any case, it is not Party President, Franz Munteferring. Furthermore, following the investiture of the new government in 2005, the Economic Ministry took back a variety of competences in European policy that Schroder had entrusted to his first Finance Ministry, led at that time by Oskar Lafontaine. Today, Michael Glos heads the Ministry and is therefore in the hands of the CSU. Through this Ministry, Edmund Stoiber's euro-sceptical party has sought to take control of key areas of European policy, particularly the Lisbon Agenda and Energy policy in order to leave the Foreign Ministry with only its most plain cross section of traditional competences. And finally the fact that Wolfgang Schauble, perhaps Germany's most eminent expert in European policy, is now Minister of the Interior, lends hope to the idea that progress will be made in the area of cooperation for security and justice, but does not necessarily facilitate interministerial coordination. These may only be the fine details, but they do nevertheless give an idea of the difficulties, as well as how Chancellor Merkel will prosper in the coordination and the implementation of a "Command and Control Structure" in the area of European policy (in this structure the fragile balance of powers between the parties of the Grand Coalition must be taken into account).

5 6

Secretariat General aux Affaires Europeennes Presently, Gunter Gloser is the Secretary of State for Europe in the Federal Foreign Office.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Germany and Europe: New Deal or Déjà Vu?

33

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Let's now turn back to the main changes in the German EU policy: a stronger focus on the German 'national' component in Europe (for example the contribution from Germany to the Union; during Nice Treaty negotiations in December 2000 Germany made clear its wish to have more seats in the council even when that request was to the detriment of France); a Francosisation of German policy vis-a-vis the European institutions; finally the most important change occurred when Germany, on the Iraq question, aligned itself with France and against the U.S.. For Germany, this decision represented a tectonic shift in the parameters of its foreign policy7. The entire European Union was affected by this earthquake. The point here is not to judge whether or not the German position on Iraq was correct, or to say that the Bush administration's irresponsible Middle East policy was the trigger. The point is that in such a situation the EU could not function properly. The combination of a more 'national', more 'commission-reticent' Germany, a Germany, with France, and against the U.S., but also against the majority of the EU member states (Spain, Italy, Great Britain, Poland, etc.) lead to a situation in which Germany broke with its European traditions and deprived the EU of its lifeblood. Germany had abandoned its two European characteristics: being both a large prointegration country and being at the same time pro-European and transatlantic. Following Ms. Angela Merkel's inauguration in 2005, it was immediately noticeable that changes in course, above all in transatlantic relations, had been plotted. Naturally, this change in tone was favoured, or even made possible, by the evolution of the situation in Iraq. Yet, a large number of issues that will be at stake during the German EU Presidency depend on whether Germany will be able to find its way back to its two main and traditional lines of European policy, especially if it wants to re-launch the European Constitution. In this process, the future of Franco-German relations (after the French Presidential elections) as well as the future of US-German and US-French relations will be critical. The re-balancing of this pivotal triangle or menage a trois -Paris-Berlin-Washington- is decisive. The German EU Presidency may be just the right opportunity to re-establish an equilibrium that will lay the foundations for both an advanced integration and, at the same time, a successful enlargement.

1.2. The Germans and Europe: Felt Impressions Sometime between the end of 1990s and the beginning of the 21st Century, the idea of a 'United States of Europe', a 'European Federation', which had long been part of the German discourse on Europe, vanished. Kohl's hope for "the common house of Europe" also vanished, and with it, the passion from the discussion on Europe. Europe became cold. The loss of enthusiasm for Europe took place slowly and quietly. It was a form of asphyxiation. The concept volatilised from the political and intellectual debates on Europe. In the 1990s, the concept of a "Political Union", understood as a necessary complement to the Monetary Union, dominated the debate in Germany. However, the term 'political union' has never really been clearly defined nor have the steps to achieve this union been determined. Slowly, a European policy with an existential orientation, namely that of Europe and more of it, as a priori good for Germany had eroded away. In this context, it is hardly surprising that the press

7

Gregor Schollgen: 'Der Auftritt. Deutschlands Ruckkehr auf die Weltbuhne', Berlin 2004.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

34

Ulrike Guérot

summarised -wrongly - Ms. Merkel's speech on Europe of May 11, 2006 as "less of Europe is more Europe."8

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1.2.1. The Population The main reasons for the gloomy debate on Europe in Germany over the past few years are the introduction of the Euro, which triggered a difficult debate in 2002 on the 'expensive Euro'9 and the worry about the economic and political repercussions of enlargement to the East, including an extremely contentious debate on Turkey. It is of no value to speculate on the real economic consequences of the introduction of the Euro - to know for example if in spite of statistics that attest to a constant inflation rate, the establishment of the Euro led to a rise in prices or if the exchange rate between the Deutsche Mark and the Euro was unscrupulously over evaluated. The fact is that the price hikes, real or imaginary, have led to a loss of credibility regarding the Euro and a great deal of the unhappiness directed at Brussels as a consequence. 51% of Germans believe that the Euro stimulated inflation.10 The statistics do not say if the anticipated price increases for an espresso at the cafe or a dry cleaning actually rose (or if the eventual price hike took place a few weeks before or after the introduction of the Euro). Nonetheless, four years after the introduction of the Euro, many Germans still use the Deutsche Mark as their reference and feel less well off or are at least are under the impression that their buying power has diminished. Also, macroeconomic discussions and analyses of the theoretical impact of international crises such as September 11, 2001 or the bursting of the 'new economy' bubble would have had on the individual national currencies, have been absent from the debate. The introduction of the Euro, which required immense political will considering that 80% of the population was against it, had thus negatively impacted the discussion of the future of Europe. Europe is no longer good per se, at least not for the wallet.11 East Germans remain sceptical: only 50% of them see being part of the EU as being an advantage. Although economic advantages were cited for many years as an important argument for Europe, 57% of Germans in the West believe today that the European Union does not contribute to economic stability in Germany.12 In this environment, it is no surprise that a parallel debate has emerged on Germany's (supposedly) excessive net contribution to the EU budget. 44% of Germans associate the EU with wasting money. The dominant opinion in Germany is that Europe costs more that it produces even when statistics show that Germany benefits from the common market.13 8

Government Declaration made by the Chancellor Angela Merkel on European policy made in the German Bundestag May 11, 2006, Bulletin der Bundesregierung Nr. 44-1 vom 11. Mai 2006. 9 , Teuro' (In German teuer = expensive). 10 Eurobarometer 65. Public Opinion in the European Union, Spring 2006. National Report. Executive Summary. Germany. 11 Ibid; Eurobarometer, Spring 2006: Of all respondents throughout Europe, the Germans are most pessimistic about the coming five years. With only 25% optimism, they are at the bottom of the ranking in Europe. 12 All statistics taken from the Eurobarometer, Spring 2006. 13 Vgl. Canan Atilgan (Ed.), ,Europe is worth it. Why the EU is vital for its Member States', Konrad-Adenauer Foundation, Berlin 2006, pp. 79-89. See also Wolfgang Wessels and Udo Dietrich (Hrsg.): 'Die neue Europaische Union: im vitalen Interesse Deutschlands? Studie zu den Kosten und Nutzen der Europaischen Union fur die Bundesrepublik Deutschland', European Network Movement, Berlin, January 2006. Nevertheless, we cannot deny that a number of economic studies have shown that businesses have profited from the Euro, but not employees. This problem must be closely followed.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Germany and Europe: New Deal or Déjà Vu?

35

Enlargement to the East is the second reason for Germany's more or less diminishing enthusiasm for the European Union. Even if the majority of Germans have supported expansion to the East, the subject is not well understood and people worry that EU identity will be diluted through further enlargement. Moreover, German daily newspapers consistently report on the worst concrete effects of enlargement on specific regions: butchers in Bavaria are exposed to unfair Czech competition and have to fire employees. Petrol stations in the East are more expensive than those in neighbouring Eastern countries. Construction workers in Brandenburg North have to compete against cheap labour from Poland. Without a doubt, positive effects of enlargement also exist. For example, Germans can now easily cross the border and shop more cheaply. Nevertheless, certain German border regions have had to face the reality that collective growth is often accompanied by losses on the individual level. 85% of Germans are concerned about the possibility of outsourcing to cheaper labour countries, 74% are worried about negative effects on social security.14 Extreme right parties, which have made steady progress in recent regional elections, have capitalised on this dissatisfaction. Enlargement to the East, still badly digested, has led Germans to return to the debate on the necessity of "establishing Europe's definitive borders". 'It stops after Romania and Bulgaria' has become a catch phrase in this debate, which is intimately linked with the question of the 'absorption capacit'y of the European Union. As a result, the discussion on the Balkans and a new wave of possible members is conducted with the utmost caution. Only 32% of Germans (8% less than in 2005) are in favour of further enlargement15. Turkey occupies a special place in the debate. A majority of Germans are hostile to Turkey's membership. In fact, approximately only 30% of Germans welcome Turkey's accession to Europe. The argument of intercultural incompatibility, especially regarding religion, is clearly present in Germany16. With over 3.5 million citizens of Turkish origin, Germany is in a unique situation. The question of Turkish accession has a major effect on domestic politics, while it has become clear that the third generation of citizens of Turkish origin is for a large part less well integrated. Furthermore, the geo-strategic consequences of a potential Turkish accession play a minor role whereas human rights arguments such as honour killings and the role of women in Turkish society are at the heart of the debate in Germany. Ms. Merkel is in a difficult situation on this matter. She is bound by the EU decision to open up negotiations with Turkey, but her party is in favour of offering a 'privileged partnership' rather than outright membership. Lastly, there is no clear leadership or direction on the Turkish question, and this could have major consequences for the German EU Presidency, especially if the unresolved Cyprus crisis slowly overwhelms the presidency.17

1.2.2. The Parties Before analysing each of the parties on an individual basis, it is useful to take a look at the agreement drawn up by the Grand Coalition and examine it under a semantic-analytical lens. French psychologist Francoise Dolto stated, "Language is everything." And, after taking a look at the passages regarding European policy in the pact made by the coalition partners 14

Eurobarometer Spring 2006 Eurobarometer Spring 2006 16 Transatlantic Trends 2006 Partners. Key Findings, p. 21. 17 On December 11, the European Council for Foreign Relations will decide on the future steps regarding Turkey's accession negotiations and serious repercussions are foreseeable. 15

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

36

Ulrike Guérot

one cannot help but agree. Noticeably, Germany's Europe policy discourse has discretely evolved. Reading the economic section of the programmeme, one is immediately struck by its skepticism with regard to the common market: it stipulates that the European Commission's powers in the area of regulation should be limited, and that the administration of aid to the regions should be left to the regions themselves. The Grand Coalition programmeme also asks that the European Commission interfere less in the political decisions relevant to the German industrial sector. Furthermore, the government also wants to maintain regional services and to provide the regions with targeted subsidies. Finally, the programmeme requires the restructuring of the European bureaucracy, a task that will fall to the German EU Presidency and could produce some very positive effects. In any case, the scenario sketched out above clearly shows a new German mindfulness of the possible reverberations of the European policy on regulation and the emergence of new sensitivities, which must be taken into account. The section of the agreement dealing with European policy18 is even more striking. Besides emphasising that since 1998, Germany has assumed even greater responsibility on the international scene - seen in Germany's new national demands - the programmeme also insists on a return to the traditional parameters of German foreign policy, namely that European integration and a strong transatlantic relationship go hand in hand. This point of view has been reinforced by a growing number of policy makers which, in matters of security policy, have clearly put the emphasis on NATO as the sine qua non of German security and have given the European Security and Defence Policy (ESDP) a secondary, or even marginal, role. The emphasis on the strict observation of the subsidy principle in European affairs is striking, as well as the discrete change of tone, which contrasts with the traditionally proEuropean standpoint. A new valorisation of the German language within the EU shows also a break with the past, as well as the concern that the powers attributed to the member states do not become empty shells. The desire to reinforce the powers of the European council, on a case by case basis, and scold the European Commission into withdrawing proposed directives, are also ideas that, in the fine print, suggest a new tone in Germany's European policy, which expresses caution toward the European Union previously unseen. THE CDU/CSU Formed in the 1950s by Konrad Adenauer, one of the founding fathers of the Treaty of Rome, the Christian Democratic Union (CDU) was traditionally Germany's pro-European party. However, in the CDU's19 new party platform, concerns linked to overregulation, lavish subsidies, and a democracy deficit in the European institutions are noted, whereas passages devoted to pan-European aspirations and dreams have faded. In general, the language of the party programme of 2006 is much less dynamic and much more prudent than in 1994. Very progressive phrases such as "hence, to cope with its duties that have become more and more 18

19

Koalitionsvertrag von CDU, CSIU und SPD, November 2005, Chapter 1 (Wirtschaftspolitik) and p. 147 on: ,Deutschland als verantwortungsbewusster Partner in Europa und in der Welt', http://koalitionsvertrag.spd.de/servlet/PB/menu/-1/index.html Deutschlands Verantwortung und Interessen in Europa und der Welt wahrnehmen', motion proposed by the Federal Office of the CDU Deutschland, during the 20th Party Congress, November 27 -28, 2006, Dresden

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Germany and Europe: New Deal or Déjà Vu?

37

complicated, we must delegate the faculties, powers, and the political sovereignty necessary to the European Union"20 are missing from the new text. The CDU of 2006 recognises nevertheless that the European Union is a 'Political Union' and, consequently, clearly favours a European constitution that is a 'fundamental treaty on the calling of the Constitution'. All future enlargements should be subordinate to the Constitutional treaty, or rather to the pursuit of institutional reform and require the clear definition of Europe's boundaries21. Regarding Turkey, the CDU is in favour of open negotiations but favours a 'privileged partnership'. The CDU programme clearly lacks a geo-strategic vision regarding the European Union's neighbouring countries, and does not demonstrate responsibility toward its neighbours. The party programme also lacks a vision vis-a-vis the European integration process.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

The SPD Despite Willy Brandt, and especially Helmut Schmidt, who is associated with the establishment in 1978 of European Monetary System resulting from the Franco-German campaign led by Valery Giscard d'Estaing, and although the positive role of the European Union is shared by both major parties, the Social Democratic Party (SPD) has never acquired, unlike the CDU, the reputation of being a traditional pro-European party. In addition, the SPD, unlike the CDU, has always had to struggle against 'dissenters', particularly on the regional level. In 1996 during the state elections in Baden-Wurttemberg, the SPD attempted to garner support with an 'anti-Euro' campaign. Consequently, it received the support of only 29% of the electorate, its lowest score since the end of the war. Recently, the former head of the SPD, Oskar Lafontaine, who in the meantime has left the party, demanded a harsher tone vis-a-vis the European Union. The SPD's party platform22 places a strong emphasis on Europe as a model for peace and social justice. Without going into the details here the SPD (like many other social democratic parties in Europe) is facing a problem as liberal trends in European policy are distancing the party from its traditional working class electoral base. This is due to the fact that the discussions on the future of Europe and globalisation have become confused. Europe as a "fortress" or Europe as an instrument to shape globalisation are the two poles of the debate. The SPD, like other parties of the Left in Europe, are faced with a growing radicalisation of the discourse, which has a tendency to defend a growing protectionism. At the same time, a moderate Left is disappearing.23 The famous debate triggered by Franz Muntefering on the "locusts" (American hedge funds that are buying up large parts of German industry) is a sign of such change. In this debate that shook Germany, there is little space dedicated to the newly disadvantaged classes (the unqualified, those with an immigrant background). It demonstrates the SPD's inability to respond to the needs of those on the fringes of society24. German 20'

Daher wollen wir die zur Bewaltigung dieser wachsenden Aufgaben erforderlichen Befugnisse, Zustandigkeiten und politischen Souveranitatsrechte auf die Europaische Union ubertragen', see CDU Party Program (Parteiprogramm) 1994. 21 An exception was made for Croatia. 22 Grundsatzprogramm der Sozialdemokratischen Partei Deutschlands'. Conclusions drawn from the closing debate of the Social Democratic Party congress of the 20th of December 1989 in Berlin, modified during the Party Congress in Leipzig, the 17th April of 1998. 23 Wenn dir Mitte einknickt", in die Zeit, 30. November 2006, no 49, p. 3. 24 Le ministre-president du Rhenanie-Palatinat, Kurt Beck, a recemment utilise la notion « Unterschicht » pour la premiere fois dans ce debat.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

38

Ulrike Guérot

unions, in decline, share the fate of a party faced with the difficulty of modernising the social welfare system without reverting to past methods. Peer Steinbruck25, Minister of Finance, recently argued that regrettably within the SPD, the debate is limited to the national level and has not been integrated in the larger framework of the debate on the European social model, as is the case in the unions. The Green Party, The FDP In some ways the Green Party26 has adopted the most modern concept of Europe. According to its conceptual framework, Europe must adapt to globalisation and the new global order of the 21st century (failed states, religious fundamentalism, and privatisation of violence) as well as the new global economic environment derived from it. Of the different party programmes, the Greens' looks least to the past. It makes little reference to the past successes of the European project. Rather, it directly confronts the challenges presently facing the EU. Above all, it seeks to export the idea of Europe to the EU's neighbours, aiming to eventually create a 'community of peoples for a larger and more open democracy'. The liberal party of Germany, the FDP, also has an open and liberal conception of Europe, but remains "traditional" in its approach. In any case, it remains far from winning the debate.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

The Others: The Left (die Linke, PDS) the DVU, the NPD Among the parties of the extreme right, the German People's Party (DVU) and the National Democratic Party of Germany (NPD), the ideas are protectionist, nationalistic and, consequently, anti-European. The Left (the Party of Democratic Socialism, PDS) also opposes an open and liberal Europe and must therefore be described as anti-European in the modern sense. This is not to say in this analysis that a modern Europe will undo the social consensus -to the contrary - the social consensus should not be attached to the old social security system as suggested by the "Left" (PDS). An in-depth analysis of the parties on many different levels is ultimately required. Nevertheless, the essential point is that no party in Germany is actually engaged courageously in the European debate, and faced with the fragmentation of the political landscape; the two large popular parties can no longer permit themselves not to engage themselves.27

II. Objectives of the German EU Presidency The German EU Presidency has been so eagerly anticipated because it will play a crucial role in reshaping the parameters of Germany's European policy at a time when public opinion has been largely unfavourable to the European project, as previously outlined. As a result, German civil servants are currently attempting to lower expectations of what can really be accomplished during the German EU Presidency of January to June 2007. Moreover, there are many issues at stake: Germany is the largest country in Europe and, as a pivotal state with 25

Zuruck, zuruck, zur Seite, vor", in die Zeit, 30. November 2006, no 49, p. 5. Die Zukunft ist grun', (The Future is Green) party program of the Bundnis 90/ Die Grunen, March 15-17,2002. 27 We observe a similar situation in many member states. 26

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Germany and Europe: New Deal or Déjà Vu?

39

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

its double policy orientation -Pro-European and Transatlantic- it is without a doubt the most important Presidency. At the same, Europe has been plunged into a deep constitutional crisis provoked by its strategic partner France. Furthermore, there is a general feeling of enlargement fatigue. Also, the 50th anniversary of the Treaty of Rome will take place during the German Presidency. To commemorate this anniversary, the Berlin Summit on March 24, 2007 will attempt to deliver an ambitious political declaration, which will suggest the need for a new attempt at political legitimacy and herald the past achievement of peace. The declaration will also likely define the future challenges, goals, and responsibilities of the European Union in the 21st century. The German presidency faces some huge challenges. Not only will expectations and capacities diverge; the French elections that will occur during the German EU Presidency will hinder efforts to resolve the Constitutional crisis. During the Presidential campaign in France, the traditional German-French engine will not be available. Besides, as yet unforeseeable international crises, of which there could be many, could overshadow the German EU Presidency and possibly sap political energy from Germany. Turkey/Cyprus, Kosovo, the further stabilisation of the West Balkans, Iraq and Iran are only a few examples of situations that may require crisis management. Clearly, the German EU Presidency cannot be expected to provide the breakthrough in the area of institutional reform. On the contrary, the German government sees itself as a "facilitator" and believes that a draft formulation to resolve the institutional crisis will not come from Germany. Rather, the goal of the German EU presidency will be to ensure that all EU states are really communicating with each other and actively listening to each other. If possible, at the end of the Presidency, a "roadmap" and a clear time table will materialise out of this important Presidency and should act as a navigator in approaching questions surrounding both the Constitution and the question of institutional reform. The time frame and organisation of the German EU Presidency will be divided into three phases: 1. The period until the spring will be devoted to the issues of the Lisbon Agenda and Energy. 2. The second phase will deal with the preparations for the 50th Anniversary of the Treaty of Rome. 3. The third and final phase, lasting until the June summit, will ultimately deal with the future of the European Constitution. This does not mean that other important topics will not play a role: Justice and Home Affairs and especially the issues of Migration Policy and the War on Terror, to name a few; the entire EU Neighbourhood Policy (ENP), which should evolve into a 'ENP plus' and in this context must be evaluated; a strategy for Central Asia must be elaborated; and a revised partnership and cooperation agreement with Russia must be prepared and renewed in November 2007. All have triggered a debate in Germany and beyond over the EU's "Ostpolitik"28. Furthermore, other ideas and projects will surely be addressed. This includes

28

Iris Kempe: ,From a European Neighbourhood Policy toward a New Ostpolitik. The potential impact of German Policy', Paper in Print for Medzinarodne otazky (International Issues), Bratislava 2006, p. 10.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

40

Ulrike Guérot

the idea of a Transatlantic Free Trade Zone, which will likely make its way into the political debate29. The agenda is therefore both heavy and complex.30

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

2.1. The Spring Summit The German EU Council Presidency will also focus on the Lisbon Agenda and, in that respect, the main issue is the dismantling of the bureaucracy as well as the full implementation of the European Common Market, in the areas of telecommunications and the energy sector. At first glance, it appears to be a very technical agenda, which is linked and must be seen in connection with a variety of domestic debates within Germany. Behind the desire for an energised Lisbon Agenda lies the ambition to demonstrate clearly to citizens its link with growth and employment. Less cumbersome regulations, more leeway, greater efficiency, are buzzwords and concepts on which the hope to make the European economic space competitive in the age of globalisation is pinned. From this idea comes the desire to make the EU more accessible to "Europeans" and to reduce the fashionable prejudices that exist about "Brussels and its obsession with rules". In this respect, the focus will be on innovation, especially on the development of common European endeavours in the areas of training, research, and development. This, in turn, is connected to the theme of energy policy, which will have to place a specific focus on the development of innovative techniques that take into consideration ways to protect the environment. Energy policy will be a priority, and as a result of the January 2006 Ukrainian gas and pipeline crisis the German EU Presidency will have to lay out a "European Action Plan" as mandated by the Austrian Presidency. This topic is not only new for the EU, but also is also highly complex and extremely sensitive. The EU Commission does not yet have any formal powers in the area of energy policy and in the area of industrial policy; sensitive national interests are at play. This debate also includes a number of non-state actors, in particular the large energy companies. At the same time, the energy question is closely linked to other issues related to the EU's future foreign policy, especially in relation to the Neighbourhood policy, Russia, and Central Asia. The Spring Summit may thus represent a 'first take' at these complex questions. In particular, the German EU Council Presidency is likely to seek an internal EU consensus on energy and climate questions, which it would be essential to achieve ahead of the G8 Summit which Germany will also preside. The goal of the German EU Presidency is certainly not to strive for a type of "common energy policy" or the "communalisation of the European Energy policy" endowed with institutional underpinnings. It must be emphasised that questions relating to the 'energy mix' (oil, gas, renewable sources of energy, nuclear energy etc.) are perceived by member states as prerogatives of national governments. Germany is presently in a very difficult domestic 29

30

In particular, with tempered expectations, by the CDU's European policy spokesperson Matthias Wissmann, Member of the German Parliament. This issue is expected to create tension on both sides of the Atlantic. However, these tensions should be avoided and must not threaten the discussions on the European Constitution. This article cannot and will not address all issues on the agenda, but essentially those questions relating to Franco-German and transatlantic relations. Thus, it will emphasise the three phases of the German Presidency and the 'New Ostpolitik', whereas other themes such as co-operation in the areas of Justice and Home Affairs will not be addressed.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Germany and Europe: New Deal or Déjà Vu?

41

situation. The Grand Coalition quarrels over the possibility of reversing the decision to discontinue using nuclear energy - a position that is advocated by the Minister of the Economy, Michael Glos. What needs to be reached is a common European position on research and development, renewable energy, measures to cut down on energy use, diversification, and energy security, as well as a consensus on the future of the Kyoto Protocol. In all these areas, the devil is in the detail. A number of recent power outages have exposed weaknesses in the German/European electric grid and demonstrated the complexity of energy transfer within the Eurozone. Moreover, there is the question of (national) industrial monopolies. In the past few months, a number of transnational takeovers have failed. The German company Ruhrgas AG was unable (not permitted) to take over the Spanish energy provider Endesa and France supported the consolidation of French firms Gaz de France and Suez to prevent the Italian concern Enel from buying out Gaz de France. Briefly, the consolidation of the energy sector in the Eurozone should be the first step on a bumpy road towards a common European energy policy.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

2.2. The Special Summit for the 50th Anniversary of the Treaty of Rome The 50th Anniversary of the Treaty of Rome will take place during the German EU Presidency and will provide the opportunity to put forward an ambitious political declaration on the future of Europe. The goal will be to fashion a concise and clear statement. This declaration should not illustrate the historical successes of the European Union; rather it must address the opportunities, challenges and goals of the European Union in the 21st Century. Basically, it should be about an effort to develop a new legitimacy, a new basis for the EU at a time when the traditional arguments about the EU Peace Project are starting to wear thin. Developing a closer relationship with the citizen and making those areas more visible where the EU and the citizen really interact (for example where it guarantees the competitiveness of the European economy) should be the central themes of this declaration. In addition, the EU summit will have to put the necessary emphasis on the foreign policy capabilities and thus the readiness of the EU to assume its international responsibilities. The Rome Treaty anniversary will also provide an opportunity to encourage a rapprochement with Europeans and strengthen the European political discussion on the regional and local levels. The German Parliament has already decided that a discussion or an event on Europe should take place in every district. In addition, numerous citizen forums and European associations are mobilising to organise a wide public debate and make an effort to use the anniversary to both encourage an open and frank discussion among European citizens.

2.3. The June Summit The dynamic which should emerge from the spring summit will shape the German Presidency's position regarding the EU Constitution. In this case, the situation is very complex. The stated goal is to reenergise the process and, eventually, present a clear roadmap and time table for the future without immediately circulating concrete proposals on how the EU can abandon the idea of holding referendums.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

42

Ulrike Guérot

The German Presidency will try to conserve as much substance as possible and will not be satisfied in keeping just a few minor points. In addition, the German presidency will stress the idea that the judicial weight of a 'Yes-vote' to the Constitution is as important and significant as a 'No-Vote'. 18 'yes votes' cannot be easily disregarded. For Germany, the European Constitution is not (yet) dead, a position held by other member states. Whether the German position regarding the Constitution is in agreement with the majority opinion within the EU member states is however questionable. Even if France and The Netherlands, following referendum defeats, are still able to find constructive ways to carry on the Constitutional process, Great Britain, Poland, the Czech Republic, Denmark, and Sweden seem unlikely to ratify the Constitutional text in its current form. Furthermore, countries in favour of the Constitution will hardly vouch for it at this point. Among those are Germany, Italy Luxembourg, and Belgium. Many other states, which have formally supported the Constitution, will certainly not be against proposing other solutions. Therefore, for Germany, the Constitutional process will be a balancing act. On the one hand, it will try not to dampen efforts and, on the other, it must avoid unrealistic expectations. It is unclear whether the Constitution in its present form has a future, and, if so, what modifications are necessary. At this point, different solutions are being discussed: •

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

•

The omission of Part III, the most complicated and voluminous part of the Constitutional Treaty, which is not all accessible to the citizen, and was decisive in the rejection of the treaty is the first solution offered. However, the prevailing wisdom from a legal point of view is that the omission of Part III is not an option, as this section contains the entire existing "acquis communautaire" and for that reason must be preserved. The "inverse" proposition is the addition of a number of citizen-relevant chapters, on themes such as the job market and European social policy, immigration, or energy. According to conventional wisdom, the solution is, in adding and not omitting. This option also does not present any legal problems. That such modifications, especially looking at the failed ratification processes in France or the Netherlands, would make a difference isdoubtful. Citizens of these countries may see these changes to be nothing more than cosmetic. • In addition, a number of suggestions to restructure the constitution or remove certain clauses have been made. In his speech on September 8, 2006 French presidential candidate, Nicolas Sarkozy, suggested a two-step plan: the implementation a mini-Constitution, followed, at a later date, by the renewal of Constitutional discussions. This suggestion was met with reluctance by the Germans, who have ambitions of reviving the old treaty. Nevertheless, this partial solution is being studied by the British, which would allow the 'large' Constitution to be avoided.

Apart from the discussion of concrete policy options, there is also an increasing belief (although not yet mainstream) in Germany that the need for a European Constitution or even the need for substantial institutional reform before 2009 is no longer absolute. For many years there was a consensus in Germany, that enlargement and deepening must move in sync and that anticipated future expansion absolutely required further institutional reforms if a new

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Germany and Europe: New Deal or Déjà Vu?

43

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

European constitution was not in place. This also appears to be the case in the recent discussions on the absorption capacity of the EU, especially in relation to their capacity to integrate future expansions. Institutional and financial capabilities, as well as the "acceptance on the part of the population" are thus criteria for absorption capacity. However, there seems to be some movement in the debate to dissolve this measure and that future expansions will depend on the adoption of a new European Constitution. In the meantime, it has been said that for the accession of Croatia, which is presently in negotiations with the EU, without prior comprehensive institutional reforms, other legal solutions are conceivable.31 The substance of this argument cuts two ways and is fuelled by diverging motivations; on the one hand, the principles for future accessions are not threatened (at least for Croatia, Turkey, and the states in the West Balkans) by the collapse of the Constitution. On the other hand, however, the sceptics of expansion, whose commitment to the Constitution is minimal, hope that without a Constitution - or in any case without substantial reforms - no future expansion, perhaps with the exception of Croatia, will take place. In this context, it is unlikely that the Germans, who are pleading for the revival of the ratification process, will support the idea, as some are calling for, that the European Constitutional process be lead by a small group of countries, i.e. a core Europe to the exclusion of those that have yet to ratify the Treaty. Looking at the Constitutional process even in Germany, it is hard to see any good will. In a policy speech given before the German Society of Foreign Affairs on November 8, 2006, Chancellor Merkel hardly mentioned the European Constitution. From her address, one can conclude that Germany will not make the success of their EU Presidency contingent on getting a breakthrough on the Constitution; rather it will concentrate on taking practical steps incertain areas. Progress on the ESDP (European Security and Defense Policy), the WTO, energy policy as well as environmental protection, are four areas that were discussed in Ms. Merkel's address. In fact, three of the four, WTO, Energy, and environmental protection, are not even existing EU topics, but are featured on the G8 agenda as well.

2.4. The Neighbourhood Policy's Objectives The energy policy, the European Neighbourhood Policy, as well as a new Central Asian strategy, a key focus of the German EU Presidency, cannot be overhauled without a new take on the EU's policy towards Russia. Presently based on the Partnership and Cooperation Agreement (PCA), it will in fact have to be renewed in November of 2007. In this context, in Germany and elsewhere, an active debate on the new European "Ostpolik"32 is taking place. In this debate, Germany has placed a special emphasis on its relationship with Moscow. This debate will, nevertheless, depend on two main factors: •

First and foremost, every discussion on the EU's relationship with Russia is seen within the realm of the Transatlantic framework. The European partnership with Russia must be made in coordination with US policy.

31

Only Article 213 (1) of the Treaty of Nice would have to be implemented, meaning with the accession of the 27th Member State, the European Council must unanimously decide on a system of rotation within the European Commission; the number of Commissioners would become inferior to the number of member states. Nevertheless, for the German Presidency, the edification of this decision is not a priority. 32 See Iris Kempe, op. cit.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

44

Ulrike Guérot

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

Furthermore, the outcome of the debate will depend on the vision and political developments that will occur in France and Germany. It was Jacques Chirac and Gerhard Schroder, who suggested a few years ago the idea of a Berlin-Paris-Moscow axis, which irritated a number of other European states, in particular Poland and the Baltic states. Following the Presidential elections, France's new political orientations will be crucial both with regard to Russia and the USA.

It is difficult for Germany and France to have the same point of view on Russia and the East. It has in fact always been thus. Even in the 1970s when Germany, under Willy Brandt, initiated the policy of „Wandel durch Annaherung" (change through rapprochement), France under the leadership of President Georges Pompidou was quite unhappy. Even during the contentious discussions on expansion, the French -quite wrongly- considered Central and Eastern Europe as part of Germany's backyard33. In many French journals, the discussions on Central Europe took on an almost mystical character. Most recently, France lost a great deal of sympathy in the region when Jacques Chirac snapped during the build up to war in Iraq in 2003; "Ils ont encore rate une occasion de se taire" ("they missed another opportunity to keep quiet"). And the old fault lines reappeared once again during the most recent European Neighbourhood Policy (ENP) discussions. Whether or not a distinction should be made in the financial aid given to the neighbours to the East, on the one hand, and those to the south (the Mediterranean sphere) on the other, is a major source of tension. A similar discussion took place between Germany and France at the European Council meetings in Essen in 1994, when the idea of making a financial distinction between those states that should eventually become members of the EU and those that should remain outside was aired. A similar tempest is brewing within the EU at the moment, whereby not only France, but all of the southern EU countries (Portugal, Spain, Italy, and Greece) want the southern states to be treated equally, even when they have no prospect of joining the EU. And because France's geo-strategic outlook is to the South and Germany's to the East, it would be the perfect opportunity to initiate a Franco-German convergence and synergy. This explains why the Germany Presidency does not want to focus on an East/ South divide; rather it prefers an „individualised" ENP based on well developed, country specific bilateral initiatives. The German EU Presidency also underlines that its insistence on a strategy for Central Asia is not necessarily imposing its German priorities, but is a rational way of sharing the load. In essence, by concentrating on Central Asia, it leaves to Portugal (who has more expertise in the matter) the responsibility of looking after the perspectives of the neighbourhood policy toward the South. But the fundamental problem with the neighbourhood policy is that Europe's neighbours are waiting for something that Europe is not prepared to offer - the prospect of membership. The German EU Presidency will therefore not only offer an individualised approach, but an „ENPplus". And yet is not completely clear what this means exactly. This comes from the fact that the ENP appears to be 'nobody's baby'. All states have an interest in the policy, but none have a direct stake. The question is: what can really be offered to the ENP states, when 33

Wrongly, because not only was France economically very implicated in these countries (with its large retail chains - such as Auchan and Carrefour - but, moreover, in the 1920s the countries of Eastern Europe were, equally for France, a "cordon sanitaire". France, a heavyweight in the region, could have built up strong relations with these countries.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Germany and Europe: New Deal or Déjà Vu?

45

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

there is no possibility of joining the EU, and if they will not receive what can actually be offered.34 Perceptions and expectations are very important. The fact is, an ,ENP plus' without any prospective of membership will have a direct or indirect financial cost, which will make necessary substantial policy choices within the EU. Whether is the opening of markets or for imports or labour, deepening of free trade zones, or direct financial aid for the ENP states, there will be an associated cost. The gap between 'short term costs' and 'long term gains' is difficult to bridge. And often, in many policy discussions among the European states, we forget to mention how much political and economic development in the neighbour states helps resolve the most urgent domestic political problems within almost all member states. Whether it is crime or counterfeiting, clandestine workers, energy security, or the fight against terror, or whether is about creating new markets and economic dynamism, the EU's relationship with its neighbours is crucial. Europe cannot develop and really become Europe without its neighbours. It will fall on the political shoulders of Germany and France to develop plausible, dynamic, and very concrete strategies for the countries to the south and to the east without forgetting the essential role they will have to play if accession negotiations with Turkey and Croatia are to succeed and if the accession prospective for the states of the West Balkans should conclude successfully. In both countries, there is strong political pressure to establish fixed borders and to put on hold the deepening process. Both are anachronisms. The debate over the eventual borders of Europe is absurd, as the only eventuality is death. More than ever before, Europe cannot support the status quo and, on the contrary, must remain flexible and ready to respond to the challenges of the 21st century. In particular France and Germany must modernise the political debate. The concept of the geostrategic Europe must be introduced and the idea of an altruistic European Neighbourhood Policy must be swept aside. The ENP must not be alms for the poor! The future of the ENP states is part of Europe's strategic interests.

2.5. A “New Ostpolitik” for the EU In relation to Russia a lot will depend on Germany and the positioning of France following the elections, and also, what they will agree on. The German Presidency may have already placed some emphasis concerning their relationship to Russia, which is actually in preparation for the renewal of the EU-Russia "Partnership and Co-operation Agreement (PCA), set to begin in the summer. (One cannot really say that Germany and France ever have competed with each to have influence on Russia. But, on the other hand "Rapallo" was a longstanding trauma in France and French foreign policy has a Gaullist tradition, where in its 'Aquidistanz' between the former Soviet Union and the United States it did try to carve out some "independent space" for itself). Famous is de Gaulle's speech during his visit to Moscow in 1966 when he said, "Le grand peuple frangais salue le grand peuple russe' (The great people of France greet the great people of Russia) On the other hand, Germany, although had a very close connection to Russia throughout centuries, does not only owe its de facto existence to the United States, which from 1947 to 1989 had to provide for Germany

34For more details and principles regarding the application of „variable geometry" or "staggered integration" in the European Neighbourhood Policy see Charles Grant: 'Europe's Blurred Boundaries. Rethinking enlargement policy and neighbourhood policy', CER 2006. German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

46

Ulrike Guérot

security against Russia, and therefore was transatlantic in nature. Hence, it is important to remember that it was not always a German-French two step. Although these former German and French foreign policy parameters have disappeared, it would be hasty and erroneous to forget their capabilities regarding their current attempt to create a new configuration of the relationship between Paris, Berlin, and Moscow on the one side, and Europe, Russia, and the U.S. on the other. Pushed aside are not only the parameters, but also the attitudes of the populations. The 'thermometer curve'35, which measures German feelings towards other states, showed that today, Germans generally have similar feelings toward Russia and the United States. These large strategic chess board questions are naturally not issues for the German EU presidency. And yet one can observe that Germany must attempt both to clearly improve its relationships with both the United States and Russia. Germany is therefore in a key position, but its position has not yet fully matured. In political conversations in Berlin, they are signs that diverging approaches to Russian policy exist. On the one hand, there is the Chancellor's camp and, on the other, the German Foreign Office. Merkel, under pressure from the public has sought to distance herself from the cosy German relationship of her predecessor Gerhard Schroder with Russia, President Putin, and Gazprom. The latter can be seen in her strong criticisms geared toward Russia over the inability of NGOs to function in Russia, Chechnya. Moreover, she has sought to Europeanise and make Germany's Russia policy more transparent as well. In contrast, the Foreign Office under the leadership of Gerhard Schroder confidant, Franz-Walter Steinmaier, will likely want to put a strong German emphasis on policy regarding Russia; creating what some describe as a "Russia first" policy. With regards to Russia, the fact is Germany has strong national interests at stake and within the EU Germany holds a quasi hegemonic position. Germany has the strongest economic interests and very active (somewhat) uncritical Russia lobby group within the industry sector, the largest bank and financial interdependence, and at the same time the greatest energy dependence. 60% of German natural gas originates in Russia, and German firms (Ruhrgas and Winterhall) hold a 51% stake in the new Baltic Pipeline project, which circumvents the Baltic states as well as Poland. Thus, how can Germany, during its EU Presidency, play the role of an 'honest broker' when it comes to providing a basis for a European policy towards Russia? Germany's position regarding Russia is analogous to its position in the discussion of the introduction of the Euro: Germany had the strongest and most important currency in Europe, and yet it was still a huge benefit for Germany to give up its dominant position for a common currency. In a common market or common currency zone, the goal cannot be to place its preferences above those of others: when the gas is in fact supposed to flow to Germany and no longer to for example Poland or the Baltic States, Germany nevertheless has a problem. If Germany will freely, as in the case of the Euro, "Europeanise" its special relationship with Russia in order to think and act European in the strategic triangle of Energy policy, the European Neighbourhood Policy and a coherent policy towards Russia is questionable. In addition, France's policy orientation cannot be undervalued either: will it support a national and unilateral German approach, or will it support the 'Europeanisation' of its policy towards Russia as part of a strong transatlantic framework

35

Transatlantic Trends 2006. Key findings. The U.S. is at 53 degrees on the sympathy scale, whereas Russia is at 50 degrees.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Germany and Europe: New Deal or Déjà Vu?

47

III. The German-French Duo: A (Quick) Look back and forward No study of German foreign policy would be complete without an analysis of its relationship with France, which has been one of the pillars of its European policy. The Franco-German relationship, which reached its climax during the Mitterrand-Delors-Kohl era, has not always been rosy. Quarrels on the introduction of the Euro, common foreign policy, security and defence policy, the CAP and budgetary questions marked the 1990s.36 Traditionally, these disputes contributed to the efficacy of the Franco-German duo. In effect two countries incarnating two radically opposed conceptions of the state (the centralised state and the federation) and political economical prisms ("dirigisme" versus the social economic market) set the pace for policy adaptation: when Germany and France were able to come to an agreement, all the other states succeeded in recognising their own interests in this compromise. According to Stanley Hoffman, Franco-German relations were "symmetry through asymmetry": the convergence between the politics of sovereignty oriented toward the South on the part France and the economic powerhouse Germany, the resulting tension forged the motor of the Union. And together, France and Germany were the "critical mass" necessary to push Europe into action.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

3.1. From Europe's Engine to Locomotive without Carriages In this context, the original dysfunctions in the Franco-German duo were not a sign of conflict, but on the contrary, the absence of conflict. Of course, there was the clash during the negotiations leading up to the Treaty of Nice in 2000, a consequence of diverging opinions over the creation of the financial and institutional structures of an enlarged Europe, which had already come to the surface at the Berlin Summit of March 1999 in regard to renegotiation of the EU Budget and the future of the PAC. However, Germany and France reconciled shortly thereafter with the Blaesheim Meetings, which sought to rebuild trust. The common fear was if Germany and France were not able to agree on the major themes of European policy, Europe would be without leadership. It is interesting to note that the newly found trust evoked distrust among the other member states. As of 2001, Franco-German deals began to multiply, often to their own advantage, provoking irritation among their partners. Additionally, at the 2001 European Summit in Gothenburg, Germany, backed by France, imposed a seven year delay on the free circulation of persons coming from the new EU member states and, in exchange, Germany accepted France's hostile position on the liberalisation of electricity, which was perceived as a threat to the French energy concession, EDF. Moreover, the Franco-German agricultural compromise negotiated in Brussels in 2002 was made behind closed doors without consulting the other EU member states. Yet another example is the instances in which Germany and France accused the EU members from the East of conducting a 'disloyal' fiscal policy, when they themselves year after year did not respect the deficit allowances stipulated by the stability and growth pact.

36

For more details see Ulrike Guerot: "Frankreich und Deutschland - Lokomotive ohne Anhanger?", in: Johannes Varwick/ Wilhelm Knelangen (Hrsg.): „Neues Europa - alte EU? Fragen an den europaischen Integrationsprozess", Leske und Budrich, Opladen 2004, S. 285-298.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

48

Ulrike Guérot

The pretence to lead Europe and yet consistently ignore core EU rules was not appreciated by many other members. When Germany lined up next to France against the United States during the Iraq Crisis and together - at the 40th anniversary of the Treaty of Elysee- decided to speak 'in the name of Europe', the disenchantment of their partners mutated into anger. And for Germany, it was even more than that - it questioned the very foundations of its foreign policy. With France, against the United States, this had never been seen before! The months that followed demonstrated how difficult it is to construct Europe against the wishes of the United States. And on its part, Germany was clearly able to measure the costs of questioning 40 years of consensus. In this context, the Franco-German duo did not have enough energy nor did it possess enough moral authority necessary to bring the European Constitution to a successful conclusion. The text was not ambitious enough for some; and when its was glumly celebrated by the heads of state at the Rome Summit of 2004, its symbolism was already tarnished by the intra-European disagreement over Iraq, even before the fatal French "Non" to the Constitution.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

3.2. France, Seen by Germany This evolution is all the more worrying as it has been accompanied by a gradual change in the German position vis-a-vis France. Just as Germany no longer unconditionally supports Europe, the partnership with France has also disappeared from Germany's foreign policy discourse. "Une Europe sans la France"37 is the name of a book recently published in Germany. No matter what we think of the title, its very publication demonstrates that the "French reflex", necessity to consult with France before key EU policy initiatives are unveiled, is less present in Germany. The traditional bilateralism is no longer the norm. On the other hand, Franco-German cooperation is still important and poses no trouble in many technical areas. But the time for the (almost) obligatory reference to France is over. In the coalition agreement, the Franco-German relationship is characterised as a "motor for Europe", but the concept of the strategic partnership is conspicuously absent. This evolution is likely the result of a new generation of German politicians and civil servants who have a different background and therefore think differently. In this new context, it will remain to be seen if the two countries will be able to develop a new common project and engine to realise the European project, or, on the contrary, Germany will distance itself from France in the case that Paris will have too many difficulties to return to the centre of the European debate. This last scenario cannot be discounted: the French position in Europe is weakening. On the question of enlargement, France has always perceived to be reticent and the Constitution did fail as a result of the French "Non".

3.3. Keys to Re-launching the European Project To give new momentum to the French-German co-operation, an evolution would be necessary on two levels. 37

Markus C. Kerber: ,Europa ohne Frankreich? Deutsche Anmerkungen zur franzosischen Frage, Francfort on Main, 2006.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Germany and Europe: New Deal or Déjà Vu?

49

First, the Franco-German engine must be rethought. In the last few years, a lack of interest in collaborating actively with the smaller states of the Union, states that had been traditionally wooed and protected by Germany, has been flagrant. At the time when Germany's European policy had become more "French", it abandoned the consensus in favour of integration, long incarnated by the European Commission, and Germany had supported the smaller states. Besides making an effort to reach out to the smaller states, the Franco-German engine will have to cooperate more actively with the larger states of the union. This is already the case in certain areas such the collaborative effort of the "Big Three", including Great Britain, on the question of negotiations with Iran. On the contrary, the "Weimar Triangle", including Poland, has not had the same success. This is clearly linked to the new Polish government's rather unconstructive attitude toward Europe. Yet, a good working relationship with Poland is indispensable to a pan-European approach on a number of delicate issues such as a European energy policy, a neighbourhood policy, and a coherent policy on Russia. Exclusive Franco-German initiatives are doomed to fail. As well, Italy and Spain are impatiently waiting to see if French-German relations will undergo a renaissance following the French presidential elections and what direction they will take. They are concerned that France and Germany will return to their "closed-door format". Their concern is that they will have no input into the policy making process and will only be able react to Franco-German initiatives. This is particularly true in the case of the Constitution. Whatever the solution proposed by Germany or France, especially taking advantage of the momentum generated by the German Presidency in 2006 and the French Presidency in 2008, the Italians, like the Spanish, are concerned that they will be completely abandoned or neglected. Italy and Spain both ratified the Constitution, Spain by referendum. To accept and ratify a new text would be neither prudent, nor in their interest. At the moment Italy is using all of its political energy to underline the de-facto consensus it found with Germany on the Constitution38, which Germany and France have not reached, in order to re-energise the debate. Some Italians wish to launch an Italian-German initiative during the special summit in March of 2007, in order to put some zing back into the Franco-Germanrelationship via the Italian-German initiative, as was the case in 1981 with the Genscher and Colombo plan. A renewed overture towards its other European partners would constitute nothing more than the tactical dimension of an eventual revival. The intellectual bases of Franco-German cooperation need to be likewise reexamined. In Germany, like in France, the level of discussion on Europe contrasts markedly from the more open debates that are taking place in Great Britain, in Poland, but also in Sweden and Italy. Rather than examining the geo-strategic location (and interests) of the Union, the debates in Europe are focused on domestic politics and intra societal national debates (such as the debate on the "European Social Model"). Their semantics and their objectives evoked past problems; they were marked by the regret of the "missed opportunity" of the 1990s, when in 1994 after the publication of the working paper on the "core of Europe", even before enlargement to 15 member states, a further step toward a deeper integration could have been undertaken. Political union, finality, the establishment of its borders, the junction between deepening and enlargement: whatever it is the major themes of the actual debate in and on

38This was noticeable during the conference and debates at the "IVth German-Italian Forum" organized by the Institut fur Europaische Politik and l'Instituto di Afferi Internazionale di Milano on October 26-27, 2006 in Milan. German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

50

Ulrike Guérot

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Europe in France and Germany conveys a rigid image of Europe as a homogeneous ensemble, complete, uniform, which should define once and for all its objectives and boundaries. In the eyes of the French, this definition refers to "real European", who knows precisely what the political union should resemble. But on the other hand, does the strength of the European Union not reside in its ability to change and adapt to new challenges and opportunities? Germany and France are lacking the concepts necessary to solve Europe's problems of tomorrow. The debate on these topics must evolve if France and Germany are to regain their role as Europe's motor. Among the many issues that must be re-examined is notably the nature of relations that Europe must maintain with the United States and Russia, these "two external laboratories where European ideas have been experimented with: communism (in the past) and capitalism" wrote Peter Sloterdijk in 1994 in his magnificent essay "if Europe Awakes".39 These two old rivals who confronted each other with Europe in between, must find their place - again and newly - in the European system, and, in their own way. Because the two fundamental elements of the future of Europe are, on the one hand, its energy policy (which should be looked at though the prism that the implementation of a common administration of vital resources favours peace like was in the case of the European Steel and Coal Community) and, on the other hand, the European defence policy. Recently, German politicians have been very clear about the necessity of common European defence strategy, and eventually, a European army40. Both poles, defence and energy, require an open mind and forward thinking. It requires, at the same time, a clear definition of the interests of all of Europe and not uniquely the national interests of France and Germany. Unilateral initiatives, against the United States in the area of in the area of defence policy, and against the rest of Europe, alone with Russia in the area of energy policy, must be avoided. A detailed analysis of these two questions is beyond the framework of this study. It is up to the new Franco-German duo to come up with concrete solutions to these many challenges.

Previously Published Studies Available on Notre Europe's Website •

Regional Economic Integration in South America Alvaro Artigas - Available in French and Spanish (November 2006)

•

The Impact of Television Media on the French Referdendum Campaign in 2005 Jacques Gerstle - available in French and Englich (November 2006)

•

Plan B: How to Rescue the European Constitution? Andrew Duff - Available in French and English (October 2006).

•

A transition Presidency? An inside View of Finland's Second Presidency of the EU Teija Tiilikainen - Available in French and English (July 2006).

39 Peter Sloterjijk, "Falls Europa erwacht", Francfort on Main, 1994, p. 28 and following. 40See Kurt Beck, SPD Conference on the German EU Presidency of 2007, Berlin, November 6, 2006.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Germany and Europe: New Deal or Déjà Vu? •

51

The Vision of Europe in the New Member States -Notre Europe asked different personalities of the New Member States to give their vision of Europe in 2020 Gaetane Ricard-Nihoul, Paul Damm and Morgan Larhant -Available in French and English (July 2006).

•

Sense and Flexibility - Striking a Balance between Sovereignty and Harmonisation in the Implementation of the EU ETS Stephen Boucher, University of Columbia Workshop on EU ETS - Available in English (May 2006).

•

The Question of European Identity Aziliz Gouez, Marjorie Jouen, Nadege Chambon (January 2006).

•

Report on East Asian Integration: Opportunities and Obstacles for Enhanced Economic Cooperation Co-ordinated by Heribert Dieter, With Contributions from Jean-Christophe Defraigne, Heribert Dieter, Richard Higgott and Pascal Lamy - Available in English ( January 2006).

•

An Honest Broker in Difficult Times: Austria's Presidency of the EU Sonja Puntscher-Riekmann, Isabella Eiselt and Monika Mokre-Available in French, English and German (December 2005).

•

The European Constitution and deliberation: the example of Deliberative focus groups ahead of the French Referendum of 29 May 2005. Henri Monceau - Available in French and English (November 2005).

•

The French "no" vote on May 29, 2005: understand, act.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Gaetane Ricard-Nihoul - Available in French, English and German (October 2005)

•

Defining a new European Social Contract Marjorie Jouen and Catherine Palpant - Available in French and English (September 2005).

•

The best laid plans: Britain's Presidency of the Council of European Union Anand Menon and Paul Riseborough - Available in English (June 2005).

•

European Budget: the poisonous budget rebate debate Jacques Le Cacheux - Available in French and English (June 2005).

•

Analysis of European Elections (June 2004) Celine Belot and Bruno Cautres - Available in French (June 2005).

•

Why they wanted Europe: A call of 12 french Pionners of European integration Jean-Louis Arnaud - Available in French (May 2005).

•

Ratification and revision of the Constitutional Treaty Henri Oberdorff - Available in French (May 2005).

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

52

Ulrike Guérot •

Luxembourg at the Helm; experience, determination and self denial Mario Hisrch - .Available in French and English (December 2004).

•

A driving force despite everything: Franco-German relations and the Enlarged European Union Martin Koopmann - Available in French and English (November 2004).

•

Europe and its Think tanks: a promise to be fulfilled Stephen Boucher, Benjamin Hobbs, Juliette Ebele, Charlotte Laigle, Michele Poletto, Diego Cattaneo, Radoslaw Wegrzyn - Available in French and English (October 2004).

•

A view from outside: the Franco-German couple as seen by their partners Matt Browne, Carlos Closa, Soren Dosenrode, Franciszek Draus, Philippe de Schoutheete, Jeremy Shapiro -Available in French and English (April 2004).

•

Leading from behind: Britain and the European constitutional treaty Anand Menon - Available in French and English (January 2004).

•

US attitudes towards Europe: a shift of paradigms? Timo Behr - Available in French and English (November 2003).

•

Giving euro-Mediterranean cooperation a breath of fresh air Benedicte Suzan - Available in French (October 2003).

•

Italy and Europe 2003 presidency Roberto Di Quirico - Available in French, English and Italian (July 2003).

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

European attitudes towards transatlantic relations 2000-2003: an analytical survey Anand Menon and Jonathan Lipkin - Available in French and English (June 2003).

•

Large and small member states in the European Union: reinventing the balance Paul Magnette and Kalypso NicolaTdis Available in French and English (May 2003).

•

Enlargement and Investment in Central and Eastern Europe Berenice Picciotto - Available in French and English (May 2003)

•

The institutional architecture of the European Union: a third Franco-German way? Renaud Dehousse, Andreas Maurer, Jean Nestor, Jean-Louis Quermonne and Joachim Schild - Available in French and English (April 2003).

•

A new mechanism of enhanced co-operation for the Enlarged Union Eric Philippart - Available in French and English (March 2003).

•

Greece, the European Union and 2003 Presidency George Pagoulatos - Available in French and English (December 2002).

•

The question of the European government Jean-Louis Quermonne - Available in French and English (November 2002).

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Germany and Europe: New Deal or Déjà Vu? •

53

The European Council Philippe de Schoutheete and Helen Wallace - Available in French and English (September 2002).

•

Multilevel government in three Eastern and Central European candidates countries: Hungary, Poland and Czech Republic (1990-2001) Michal Illner - Available in French and English (June 2002).

•

The Domestic basis of Spanish European Policy and the 2002 Presidency Carlos Closa - Available in French, English and Spanish (December 2001)

•

The Convention of a Charter of Fundamental Rights: a method for the future? Florence Deloche-Gaudez -. Available in French and English (December 2001).

•

The federal approach to the European Union or the quest for an unprecedented European federalism Dusan Sidjanski - Available in French, English and German (July 2001).

•

The Belgian Presidency 2001 Lieven de Winter and Huri Tursan - Available in French and English (June 2001).

•

The European debate in Sweden Olof Petersson- Available in French, English and Swedish (December 2000).

•

An enlargement unlike the others ... Study of the specific features of the candidate countries of Central and Eastern Europe

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Franciszek Draus - Available in French, English and German (November 2000).

•

The French and Europe: the state of the European debate at the beginning of the French presidency Jean-Louis Arnaud - Available in French, English and German (July 2000).

•

Portugal 2000: the European way Alvaro de Vasconcelos - Available in French, English and Portuguese (January 2000).

•

The Finnish debate on the European Union Esa Stenberg - Available in French, English and Finnish (August1999).

•

The American Federal Reserve System: functioning and accountability Axel Krause - Available in French, English and German (April 1999).

•

Making EMU work partnership Notre Europe and Centro European Ricerche - Available in French, English, Italian and German (March 1999).

•

The intellectual debate in Britain on the European Union Stephen George - Available in French, English and German (October 1998).

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

54

Ulrike Guérot •

Britain and the new European agenda Centre for European Reform, Lionel Barber - Available in French, English and German (April 1998).

•

Social Europe, history and current state of play (Jean-Louis Arnaud) Available in French and English (July 1997).

•

Reinforced cooperation: placebo rather than panacea Francoise de la Serre and Helen Wallace - Available in French, English and German (September 1997).

•

The growth deficit and unemployment: the cost of non-cooperation

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Pierre-Alain Muet - Available in French, English and German (April 1997).

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

In: German Foreign and Security Policy Editor: Leah N. Bowers

ISBN: 978-1-60692-150-0 © 2009 Nova Science Publishers, Inc.

Chapter 3

COALITION AGREEMENT I. More Opportunities for Innovation and Jobs, Prosperity and Participation 1. Economy and Technology

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1.1. Economic Strategy: New Growth, More Employment Germany needs three things: economic rehabilitation, reform and investment. Consolidating the budget and fulfilling the Maastricht deficit criteria by 2007 are essential. Further reforms to the social security systems are needed. Consolidation and reform alone, however, are not enough. Germany needs a growth strategy, linked to considerably greater investment. A central goal of the coalition is to create new growth and more employment for Germany. Germany must respond proactively to the breakneck pace of global structural change. Time is of the essence, the international competition is not standing still. We need to act quickly. Strengthening the foundations of the social market economy is the prerequisite for new growth and more employment in Germany. For around 10 years economic growth in Germany has been extremely weak. Weak growth is mainly responsible for the appreciable decline in the number of jobs liable to social security contributions. New growth must therefore be generated and more employment opportunities opened up. Without substantially more growth, it will be impossible to consolidate public finances and the social security systems. Half a percent more growth would create around an extra 2.5 billion euros in tax receipts and around 2.3 billion euros in additional revenue from social insurance contributions. Investment and innovation need to be revived to trigger a new spurt of economic growth; we want to stimulate consumer demand by boosting consumer confidence. This is an absolute economic priority. Moreover, the CDU, CSU and SPD reached a number of substantive agreements on 10 October 2005 in advance of the negotiations to form a grand coalition (Annex 1).

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

56

Coalition Agreement

1.2. Reviving Investment Activity If the weak level of investment activity persists, the German economy cannot recover. Reviving investment activity is the key to new economic growth. While the cuts in tax rates in recent years have increased the income of a number of enterprises and their investment ability, the improved earning power has not yet led to adequate domestic investment. The increase in investment capacity must also result in more investment activity. By international comparison we need substantially better terms and conditions with respect to depreciation. Until a reform of corporate taxation comes into effect, more favourable depreciation conditions will be the first step towards creating specific incentives to boost investment activity. Higher depreciation rates are more crucial at this stage to a rapid revival of investment activity than lower tax rates. Public-Private Partnerships (PPPs) are a promising way of closing deficits in relation to the delivery of public services. Moves to improve the legal framework had already been set in train during the 15th electoral term with the Act to Accelerate the Establishment of PPPs (Gesetz zur Beschleunigung der Umsetzung von Offentlich Privaten Partnerschaften). The legislation will be amended to continue progress in this direction and abolish further obstacles. Removing discrimination against PPPs (as contained, for example, in the Hospital Financing Act (Krankenhausfinanzierungsgesetz) and the Social Assistance Act (Sozialhilfegesetz), the Investment Act (Investmentgesetz) and the Private Sector Funding of Trunk Road Construction Act (FernstraBenbauprivatfinanzierungsgesetz) and creating new legal provisions to ensure that small and medium-sized enterprises, in particular, can also benefit from PPPs are urgent priorities.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1.3. Improved Financing for Small and Medium-Sized Enterprises (SMEs) More investment in small and medium-sized enterprises is particularly important since this sector provides around 70% of jobs. As long as the current weak level of investment activity persists, the sector cannot resume its traditional role as the motor of growth and employment. A lack of funding for small and medium-sized enterprises can no longer be allowed to constrict the German economy. We will therefore launch an SME offensive. We propose in this context to: • • • •

improve depreciation conditions, fully maintain the financial support provided by the ERP Special Fund, implement Basel II to the advantage of small and medium-sized enterprises, and make increased use of new financing instruments.

The equity ratio of small and medium-sized enterprises is becoming an increasingly important factor in relation to credit decisions and financing costs. We will therefore further expand the availability of equity capital and equity-equivalent mezzanine capital for SMEs in general. The existing programmes offered by the KfW-Mittelstandsbank (KfW SME Bank) need to be further adapted to the equity needs of small and medium-sized businesses and new

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

57

programmes developed as appropriate. Further improvements will be made to the general conditions for private equity and venture capital financing. In order to improve the financing possibilities for small and medium-sized enterprises, we want to reduce the risk for the lending banks by further strengthening the system of guarantee banks and by altering risk distribution with respect to KfW promotional loans to reflect more strongly the higher risk presented by small businesses. To simplify bank lending, we will reduce regulation by the financial supervision bodies to the necessary level. The supervision of the credit industry by the Federal Financial Supervisory Authority (BAFin) is to be evaluated early in 2006 on the basis of an empirical report. The report is to contain an assessment by the market participants and an evaluation of the transition to 100% cost coverage by the banks. The report will be used as a basis to strengthen the legal and technical supervision exercised by the Federal Ministry of Finance and, if appropriate, to introduce cost sharing by the Federal Financial Supervisory Authority in appraisal costs to raise efficiency reserves. The minimum requirements for risk management in credit institutions imposed by the Federal Financial Supervisory Authority (MARisk and MAK) are to be kept as lightweight as possible. To improve the liquidity of small and medium-sized enterprises, the turnover threshold for VAT liability upon receipt of the invoiced amount rather than at the point in time at which the invoice was issued will be raised. We will make changes to inheritance and gift tax to facilitate business succession.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1.4. Business Start-Up Offensive: Encouraging Independence Jobs that are lost as a result of business closures, insolvency and relocations abroad must be replaced by new jobs. The basis for creating new employment are new business start-ups and surges of innovation leading to the development of new products and the opening up of new markets. A business start-up offensive is needed to help shape a steady and smooth process of structural change and create new employment opportunities. We want to encourage would-be entrepreneurs and to remove the legal obstacles to business start-ups. This applies both to innovative and to conventional new businesses. We need people to have more courage again to become independent. The self-employed rate must rise again to substantially above 10%. We will create a "one-stop shop" for new businesses, exempt them from duties to provide statistics, and allow them to use simplified profit calculation procedures where turnover does not exceed 500,000 euros, rather than the previous 350,000 euro threshold.

1.5. More Money for Research and Development We must achieve a competitive advantage in Germany above all through a process of permanent innovation to ensure that while we may be more expensive, we are also that much better. To achieve this aim we must ensure that by 2010 3% of GDP is spent on research and development.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

58

Coalition Agreement

1.6. Mobilising Venture Capital for Innovations The founders of high-tech companies and young technology businesses need, above all else, venture capital to finance their growth. The venture capital market to finance innovations is conspicuously underdeveloped in Germany. We must therefore make it a priority to create an attractive tax environment for investing in venture capital. Small and medium-sized technology companies are particularly disadvantaged by the restrictions on offsetting losses for tax purposes and also the lowering of the materiality threshold with respect to shareholdings to 1%. We will improve the capitalisation of small and medium-sized enterprises in particular and create internationally attractive conditions for venture capital. The KfW-F6rderbank (KfW Promotional Bank) will offer more pre-seed and seed funding. With our partners in the private sector we will expand the funds for business founders and young technology companies (particularly the High-tech Start-up Fund, the ERP Start-up Fund, and the EIF/ERP Dachfonds (Fund of Funds)) and examine new instruments to close the strategic gaps in research funding.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1.7. Cluster Building and High-Innovation Flagship Projects Through the increased interlinking of application-based research and innovative development in relation to new products and processes, supported by adequate venture capital, we will ensure that Germany's outstanding scientific potential is used to create new businesses, new products and new, well-paid jobs. Building clusters to take advantage of geographical proximity optimises technology transfer between the scientific community and industry. To support particularly high-profile clusters we will allocate promotional funding on the basis of competitive invitations to tender. The Federal Ministry of Education and Research and the Federal Ministry of Economics and Technology will work closely together to ensure the dovetailing of basic research with application-based research and development. Application-based research establishments will be encouraged to make the maximum commercial use of their knowledge. The "Partners for Innovation" initiative will be continued. In an action plan entitled "High-tech Strategy - Germany", we will, among other things, give particular priority to strengthening cutting-edge and cross-cutting technologies such as biotechnology/life sciences, materials research, nanotechnology, microsystem technologies, optical technologies, information and communication technologies (ICT), mechatronics, aerospace, energy and environmental technologies, and we will adopt measures to protect intellectual property rights and to ensure better application of norms and standards by the scientific community and industry. Particular importance will be attached to strengthening the role of the state as a customer for innovations. We will give assistance to high-innovation SMEs planning to expand their business internationally. The work of the Coordinators of German Aerospace Policy and Maritime Policy will be continued. We will continue to provide the appropriate level of support to the aviation industry in Germany in the area of research, development and technology in order to ensure that German companies have a fair chance against international competitors. In view of the importance of the maritime industry, the coalition undertakes to strengthen the industry's competitiveness by supporting innovation in shipbuilding.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

59

Germany's international competitiveness as a location offering cutting-edge technology is enhanced by selected innovative flagship projects including, for example, • • • • •

the GALILEO European satellite navigation system with key mission control and technology centres in Germany, the development of conventional high-efficiency power stations with the target of zero emissions, the introduction of the electronic health card, the further development of fuel cell technology, the expansion of rapid rail systems, including at least one Transrapid test track in Germany.

In order to secure the future of Germany as a location for industry and research, the coalition parties will create incentives to establish and expand modern and broadband telecommunication networks. For this purpose the new markets resulting from corresponding investments will be exempted from regulatory interventions for a certain period of time in order to establish the necessary planning certainty for investors. The relevant legislation is to be included in the forthcoming law to amend the Telecommunications Act (Telekommunikationsgesetz).

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1.8. More Favourable Conditions for the Craft and SME Sectors In order to strengthen the craft and SME sectors and to combat moonlighting, private expenditure on household maintenance and modernisation measures is to be deductible to a limited extent from income tax. An evaluation of the amended Crafts Code which came into force at the beginning of 2004 will show whether and what corrections are needed. The evaluation is to include the possibility of introducing a minimum qualification for those occupations for which the master craftsman's certificate is no longer required. EU requirements in relation to the directives on services and on the recognition of professional qualifications must not be allowed to undermine the master craftsman's certificate. Increased international cooperation is needed with respect to controls designed to more effectively combat abuses of the legally restricted employment possibilities for craftspeople from Eastern Europe employed in Germany. The "National Pact for Career Training and Skilled Manpower Development" has proved effective and will therefore be further developed. The range of initial vocational training on offer will be expanded through graded training regulations in order to better reflect the differences in achievement of the young trainees. It has been agreed that each time training regulations for an occupation are updated or new training occupations developed, it will be examined whether introducing a graduated system would be sensible and possible. In the context of the pact, we appeal to the social partners to examine what additional contributions they could make to create more training places. We will simplify and modernise the complex and unwieldy German public procurement law. In this context we will pay special attention to framing the law to better comply with the needs of SMEs, for example, by dividing orders into lots. The tourism industry, in which SMEs play an important role, must be further strengthened and better positioned

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

60

Coalition Agreement

internationally. The German National Tourist Board must be made more effective and continue to receive a high level of support. We want to improve the legal environment for the craft and SME sectors in those areas where they are evidently disadvantaged. In order to preserve the diversity of Germany's newspaper landscape in the face of far-reaching structural changes, we will examine whether a modernisation of press cartel legislation would give publishers possibilities to secure their economic base and hold their own in competition with other media.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1.9. Active Foreign Trade Policy Open international markets and free trade are central to Germany's economic development. Through an active foreign trade policy German companies are to be assisted in their efforts to access the world market. Companies which operate internationally safeguard and create future-proof jobs in Germany as well. We therefore support open markets and fair competition in Europe and worldwide. A successful conclusion to the Doha world trade round is in Germany's interest. Together with the EU we will, therefore, advocate the continued development of multilateral world trade rules. Appropriate consideration must be given in this process to international labour and social standards, such as the ILO core labour standards. Globalisation and increasing international economic interdependency demand, in addition to WTO rules and regulations, a targeted foreign trade policy on the part of the Federal Government. Foreign trade and development cooperation need to be more closely dovetailed. The aim is to further speed up cooperation between the Federal Foreign Office, the Federal Ministry of Economics and Technology and the Federal Ministry for Economic Cooperation and Development. Small and medium-sized enterprises, in particular, must be more effectively supported in their efforts to access foreign markets. The instruments to promote foreign trade and investment will be geared to a greater extent to the SME sector, for example, through the provision of special assistance to SMEs to enable them to attend trade fairs in other European countries. For German companies which sell knowledge-based products, breaches of intellectual property rights represent a growing threat. The Federal Government, in close association with industry and partner countries, is formulating a strategy with concrete measures aimed at improving the enforcement of intellectual property rights worldwide. We want to use international agreements to combat the trend to seal off markets by using, among other things, patent law. Hermes guarantees are a proven instrument of foreign trade policy and must be continued, in order, above all, to help the technology-oriented export industry gain access to difficult markets in developing and newly industrialising countries. Export credit guarantees and investment guarantees will be geared towards securing the future of Germany as a business location and promoting industry and employment at home. The international guidelines form the basis for state funding of foreign trade. In the area of export controls, licensing procedures will be further speeded up and red tape cut, while at the same time observing international obligations already entered into.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

61

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1.10. A Competitive Europe, Fair Competition in Europe We emphatically support the Lisbon Strategy, relaunched in March 2005, to create more growth and employment by making the European economy more competitive. The success of the competition strategy depends first and foremost on the Member States and their readiness to undertake reforms. However, we regard the initiative to deregulate existing Community legislation and to improve assessment of the impact of Community legislation as a central contribution on the part of the EU to making Europe more competitive. We will offer further deregulation proposals of our own and contribute to the impact assessment of EU legislation with a view to improving the drafting of EU laws. The future EU chemicals policy will be a central test of the competition strategy's credibility. The chemical industry plays an important role in Germany's economic output. Germany's role as an important location for the chemical industry must therefore be preserved and strengthened. The proposed REACH regulation needs radical revision to ensure that the safety of chemicals is improved and public health protected, without in the process adding to the cost of manufacturing chemicals or creating bureaucratic obstacles to their use. We support the further completion of the internal market as an important contribution to more growth and employment. A functioning EU internal market, including in the service sector, is of enormous economic interest to Germany. This will be the criterion which will guide us in the further deliberations on the EU services directive. Within the framework of the general principles of the EC treaty, the Member States must retain the possibility of continuing to enforce high standards of safety and quality in relation to services (for example to protect health, the environment and public safety). As it stands at present, the country of origin principle does not help us to reach this goal. The services directive therefore needs to be revised. We will approve it at European level only if it is socially balanced, ensures access to high quality public goods at fair prices for every citizen and prevents abuses of labour market rules. Tax dumping in the EU, which creates incentives to relocate outside Germany, must not be allowed since it distorts competition. EU regional assistance funds should be cut for those Member States whose tax ratio, measured against their economic potential, fails to reach a certain minimum as regards corporate taxes. In contrast to minimum tax rates, this leaves the new Member States the freedom to frame their tax law according to national requirements if they are prepared to forgo their full entitlement with respect to EU Structural Funds. In order to limit the bandwagon effect of subsidies on German jobs and public finances, we will continue to strive within the EU for agreement on abolishing subsidies with respect to business relocations (similar to the agreement reached under the Joint Lander / Federal Government Scheme for "Regional Economic Support"). The aim of this is to mitigate the effect of enormous differences in support levels and reduce the outsourcing of jobs without national value added within the EU to areas which receive high levels of support. The differential between Objective 1 areas in EU accession countries to neighbouring nonObjective 1 areas must be limited to a maximum of 20 percentage points. Transitional periods of up to seven years were agreed with the new Member States which acceded in 2004, as well as with Romania and Bulgaria, to limit the free movement of workers. After the end of the first two-year transitional period in 2006 we will make use of the possibility of extending these transitional periods by a further three years and

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

62

Coalition Agreement

subsequently, in consultation with the EU Commission, advocate a further two-year extension.

2. Labour market 2.1. Cutting Non-wage Labour Costs The CDU, CSU and SPD will ensure that non-wage labour costs (social insurance contributions) are reduced on a sustainable basis to below 40%. The contribution to unemployment insurance will consequently be cut on 1 January 2007 from 6.5% to 4.5%. One percentage point of this will be financed by the Federal Employment Agency (Bundesagentur fur Arbeit) through efficiency gains and increased effectiveness; a further percentage point will be financed by a full percentage point of value added tax. The contribution to statutory pension insurance will rise simultaneously from 19.5% to 19.9%. For statutory health insurance a broad strategy will be developed in 2006 which will also aim to at least keep contributions to statutory health insurance stable and if possible to reduce them.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

2.2. Priority for Young People We need - more urgently than ever - well trained, highly motivated and creative young people to make our country successful in the 21st century, too. We will therefore make young people a priority area of concern. We want to substantially improve the training and job opportunities available to young people and reduce youth unemployment on a lasting basis. Our aim is to ensure that in future no young person is unemployed for longer than three months. Specifically this means that: •

•

•

We will continue the "National Pact for Career Training and Skilled Manpower" in which the Federal Government and employers have committed themselves to offering training places or an appropriate programme of qualification to all young people willing and able to train. In concrete terms this means the provision of 30,000 new training places annually, 25,000 places in industry and the crafts and trades sector providing vocational preparation schemes, and tailored measures provided by the Federal Employment Agency to promote training. At the same time we invite the trade unions to take an active part in the training pact and to work together with policymakers and industry to improve conditions on the labour market for young people. We will continue to pursue an active labour market policy and shape it to ensure optimum effectiveness. Finding employment for young jobseekers and arranging training for those seeking a training place will remain a central task of the Federal Employment Agency. Measures include, in particular, supporting young people as they enter vocational training, providing assistance during their training, funding vocational training for the disadvantaged and offering specific aid to young people

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

• •

•

63

with disabilities. In addition we provide a broad spectrum of services to help young unemployed people find work. The Lander have a particular responsibility for initial training in school. We will strengthen the support provided to young people by the "Arbeitsgemeinschaften" (associations made up of local employment agencies and agencies responsible for delivering the basic income for jobseekers) and "optierende Kommunen" (municipalities opting to be the sole agency administering the basic income for jobseekers). The new system of basic income for jobseekers is a consistent and proactive strategy targeted in particular at young people of working age who are in need of help. Under the system young jobseekers are assigned a personal contact partner and placement officer. In future the placement officers throughout Germany will have a maximum caseload of 75 young people, enabling them to maintain direct contact with them and to integrate them more successfully into the labour market. The personal placement officer can offer a range of assistance, including debt and addiction counselling. International experience shows that such intensive assistance using personal contact partners can substantially reduce joblessness. This intensive assistance is based on the principle of "support and challenge", with the young people being expected to fulfil the obligations set out in an individual occupational integration agreement. Sanctions apply to those who do not fulfil these obligations. Both elements belong indivisibly together.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

2.3. Stimulating More Employment for Older Employees The CDU, CSU and SPD agree that the employment situation of older employees must be improved. International experience shows that a whole raft of coordinated measures in the area of work, education and health is needed for this purpose. It is also clear that incentives for early retirement need to be abolished, as well as measures put in place to maintain and improve the employability of older unemployed people and to reintegrate them into the workforce. Industry, the social partners, the Lander and the regions must work together to ensure the success of these measures in Germany. Measures to stimulate employment for and by industry We will discuss the following topics with business associations and trade unions with a view to reaching binding agreements: • • • •

Qualification and continuing training for older employees. Possibilities of working time arrangements tailored to the needs of older employees. Creating appropriate working conditions for older employees and maintaining and promoting the employability of older people. Examining employment promotion instruments in terms of their effectiveness for older people.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

64

Coalition Agreement

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

There is agreement that training is essential - where appropriate on the basis of agreements reached by the social partners or at plant level - to upgrade the skills of older employees and hence maintain their employability. The intention is that workplace-related training measures should be financed by the employers, not by those paying contributions to the welfare insurance funds. As a transitional measure, the special regulation with respect to the costs of continuing training for older employees, which is scheduled to end at the end of 2005, will be extended by one year and its effectiveness evaluated. To encourage older people to stay in work, agreements concluded between the social partners or at plant level must strengthen incentives to this effect including, in particular, ageappropriate working hours' arrangements and gradual transition to retirement ("time sovereignty"). Particular importance is attached to improving the legal framework with respect to the use and protection of long-term working time accounts. Long-term working time accounts are to be legally safeguarded. We will examine the possibility of a regulation on the model of the insolvency insurance used for part-time work for older employees. The New Quality of Work Initiative (INQA) will be continued. One of the concerns of the initiative is to promote the employability of older workers and to support businesses in the use and expansion of employment opportunities for older people. In order to be able to reintegrate older workers who have become jobless more successfully into the labour market, the effectiveness of general instruments of labour promotion, in particular as regards the promotion of continuing training, will be examined with industry. The CDU, CSU and SPD are in favour of extending, by an initial two years, the instruments of income guarantees for newly recruited older workers provided for under Section 421j of Book III of the Social Code and responsibility for the contributions to employment promotion applying to older workers under Section 421k of Book III of the Social Code and evaluating their effectiveness. They must be tied to specific quantitative targets. Joint measures of the Federation and Lander The CDU, CSU and SPD believe that these proposed measures will already be showing results in the medium term. In many regions in Germany it is therefore essential for measures to be taken jointly with the Lander to promote socially useful community work for long-term unemployed older people who can no longer be integrated into the labour market in the final phase of their working lives. The first priority should be to use the 30,000 employment opportunities made available by the Federation in the form of three-year supplementary jobs for the long-term unemployed aged 58 and above. If not all these opportunities for community work are taken up by the end of the year, the length of the scheme will be extended; regional imbalances in take-up will be compensated for by a redistribution of funds. In the event that the 30,000 job opportunities are all taken up, we will propose to the Lander that up to a further 20,000 non-profit jobs be financed jointly. More jobs in the regions The regions will receive assistance on the basis of particularly innovative projects to improve the employment situation of older workers. Up to 250 million euros will be made German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

65

available to 62 regions in Germany for this purpose ("Perspective 50 Plus - Employment Pacts in the Region" Initiative). At the same time further regions will be incorporated in a dense and sustainable network to assist older workers, and a cross regional exchange and learning process ensured. A decision on continuing this initiative will be taken at the end of 2007, based on the results of the scheme. Regulations on fixed-term contracts to be brought into line with European law The regulations removing restrictions on the use of fixed-term contracts for workers aged 52 and above which are due to expire at the end of 2006 will be made permanent and the regulations brought into line with European law. The fact that this age limit will remain in force creates more legal and planning certainty for companies. The new provision will conform to European regulations, thus encouraging businesses to recruit more older people.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

2.4. More Employment for the Low Skilled - Examining the Introduction of a Combined-Wage Model Nearly two million, or 39% of, unemployed people in our country are low skilled or have no vocational qualifications. Too few job opportunities are open to this group of citizens. They need better access to the labour market which, unless they undergo further training, often means only low-paid jobs. These low-paid jobs are topped up by various forms of earnings supplement, including supplementary unemployment benefit II, the back-to-work benefit and child supplement. In many cases these individual arrangements do not mesh together properly and hence are not fully effective. The coalition parties agree that the so-called low-wage sector in itself and its relationship to the total level of social transfers to "communities of need" (i.e. households consisting of the benefit claimant and dependants) needs to be overhauled. We want to ensure that wages are not forced down to a morally indefensible level, while at the same time giving people more opportunities to take on low-paid jobs. Despite the very different programmes of the parties, there is agreement that the Grand Coalition must put a stop to this undesirable trend. We will therefore consider introducing a combined-wage model which will make it worthwhile for the low-skilled to take on simple work through a balanced combination of wages and social benefits, while creating new possibilities for additional simple jobs. It is already clear, however, that the CDU, CSU and SPD do not intend through such a measure to subsidise businesses on a lasting basis or create an additional labour market instrument. The aim is to merge existing programmes and measures to supplement earnings, ranging from supplementary unemployment benefit II to back-to-work benefit and child supplement, to provide an effective overall approach to delivering assistance. For this purpose we will set up a working group to present a systemic analysis of the existing regulations, establish the necessary transparency and evaluate the effectiveness of the measures. The working group will include in its analysis the impact of these measures on the system of taxes and welfare contributions and also examine the effects of the reduced burden of contributions with respect to mini- and midi-jobs. In this connection, the working group will also need to examine the Posted Workers Act (Entsendegesetz) and the minimum wage, as well as the impact of the EU services directive.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

66

Coalition Agreement

On the basis of the results presented by the working group, the Federal Government will seek solutions in the course of 2006. At the same time it will work with the social partners to seek ways to establish transparent regulations for the low-wage sector which are compatible with the requirements of the market.

2.5. Active Labour Market Policy The active labour market policy makes an important contribution to integrating and improving the job opportunities of jobseekers. The CDU, CSU and SPD will continue and further develop the active labour market policy in the future. It is almost impossible for people to gain an overview of the large number of different support measures in place. There is considerable evidence that individual measures and the, in some cases, substantial sums paid out in unemployment insurance could be better targeted and used more economically and efficiently. The CDU, CSU and SPD will therefore scrutinise all labour market measures. Those measures which prove effective and help to enhance employability or lead to employment will be continued. Those measures which prove ineffective and inefficient will be scrapped. The review is to be completed by the end of the coming year. On the basis of this analysis, the active labour market policy as a whole will then be radically realigned to ensure that in future contributors' and taxpayers' money is used as effectively and efficiently as possible. In detail this means: •

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

• •

•

In order to ensure that the evaluation is accurately targeted and meaningful, we will extend a number of active labour market policy measures due to expire until the end of the coming year. This applies, for example, to commissioning the relevant agencies to take responsibility for employment integration measures. In the case of some other measures we will already start to make corrections in the coming year: The number of personnel service agencies (PSAs), for example, will be considerably reduced and the obligation for each regional employment office to set up a personnel service agency scrapped. Only where PSAs work successfully will they continue to be funded by the Federal Employment Agency. In addition, we will extend the business start-up grant ("Me" plc microenterprises) for a limited period up to 30 June 2006. Afterwards a new business start-up instrument for the unemployed, to include a tideover allowance, will be developed and the business start-up grant discontinued.

Consideration will be given to whether the new instrument should be an obligatory or a discretionary measure provided by the Federal Employment Agency. In light of all these measures, the CDU, CSU and SPD emphatically declare their intention to support business startups by the unemployed as this offers a way for many people to become independent and secure their own livelihood. The Federal Government is to reach agreement with the Federal Employment Agency to ensure that the Federal Employment Agency fulfils its mandate with respect to employment promotion.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement •

•

67

The CDU, CSU and SPD agree that effective measures must be introduced to combat the recurrent rise in unemployment in the winter months. The collective bargaining partners in the construction industry have established an important basis in this respect. Through the cost-neutral introduction of a seasonal shortterm allowance financed from contributions to unemployment insurance, it is hoped, with effect from this winter already, to avoid lay-offs due to weather conditions or lack of orders and corresponding outlay on unemployment benefit during the months of December to March. At the same time, we must comply with our international obligations with regard to recording unemployment figures and compile reliable data enabling comparison between countries. We will therefore continue in future to comply with these obligations and maintain the ongoing surveys in accordance with ILO standards. We will evaluate and examine the findings of these new statistics.

2.6. Basic Income for Jobseekers (Hartz IV) The CDU, CSU and SPD remain committed to the merging of unemployment assistance and social assistance in the basic income for jobseekers (Hartz IV). Bringing together help for the former recipients of social assistance and unemployment assistance in one system was and remains the right thing to do. However, such a complex and extensive reform project requires a flexible approach to necessary adjustments and improvements. We will therefore respond to the experiences gained this year with detailed and specifically tailored changes and optimise the entire Hartz IV process.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

•

•

•

•

We have agreed to follow the recommendations of the Ombudsrat (appeal council) and bring into line standard subsistence benefits in Eastern and Western Germany. Benefits in the new Lander will rise by 14 euros per month. The CDU, CSU and SPD agree that immediate changes to the legal and administrative provisions are needed to optimise the practical implementation of the Hartz IV reforms. Through organisational changes in the Federal Employment Agency it will be ensured that the Federation's interests in implementing the basic income for jobseekers will be safeguarded. In addition to technical changes there will also be changes to benefit law. Confidence clause for municipalities opting to be the sole agency administering the basic income for jobseekers: if, at the end of the evaluation in 2008, there is no consensus between the coalition partners on the results and consequences, the legal provision currently in force for municipalities to exercise their option will be extended, on the existing scale, for a further three years after 31 December 2010. We will make the definition of "community of need" more precise. In future the "communities of need" formed by parents will in principle include unmarried children who have attained their majority and are under the age of 25. In relation to assets which are exempt for the purposes of calculating benefit entitlement, we will alter the emphasis of the regulations in favour of old-age

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

68

Coalition Agreement

•

• •

•

•

•

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

•

•

• •

•

•

provision. The exempt amounts with respect to old-age provision could in future be raised and the current tax allowances reduced correspondingly. Under-25-year-olds who want to move into their own dwelling for the first time will in future only be entitled to benefits if they have the prior consent of the funding agency. By this means we want to prevent "communities of need" being set up solely for the purpose of claiming higher unemployment benefit II. We will examine the definition of cohabiting partnerships and the reversal in the burden of proof. We will additionally examine whether and, if appropriate, to what extent financial incentives for the funding agencies could be improved if they are successful in helping benefit claimants to find employment. Persons whose ability to work is restricted and who cannot find work on the regular labour market must be given prospects. We will examine whether and how conditions can be created to give such people access to jobs which provide them with meaningful opportunities for personal development appropriate to their individual circumstances. Nationals of other EU Member States who are in Germany solely for the purposes of seeking work and have not previously worked in Germany will not in future be eligible for unemployment benefit II. In future, young people who are in receipt of a grant under the Federal Training Assistance Act (BAf6G) or a training allowance are to receive benefits from these systems which cover their needs so that the amounts in question will no longer have to be topped up with unemployment benefit II. The responsibilities of the "Arbeitsgemeinschaften" (associations made up of local employment agencies and agencies responsible for delivering the basic income for jobseekers) and licensed local authority agencies with respect to careers counselling, training and job placement and those who receive benefits in accordance with the provisions of both Book II and Book III of the Social Code will be legally clarified. With respect to the child supplement, we will clarify whether the claimant has a right to choose between a tideover supplement to bridge the transition from unemployment assistance to unemployment benefit II and the child supplement. We will take energetic and consistent steps to clamp down on benefit fraud, in order to ensure that the readiness to help the really needy in our society in a spirit of solidarity is safeguarded on a long-term basis. In particular: The CDU, CSU and SPD have agreed to create the legal conditions to oblige benefit recipients to take part in a telephone investigation into their current circumstances. The existing possibilities of data comparison are to be used more consistently. We will therefore create the legal basis for making wider use of data comparison in order to identify accounts and deposits held by benefit recipients abroad as well. We will examine, in collaboration with the Lander, the possibility of establishing an external service attached to the "Arbeitsgemeinschaften" and licensed local authority agencies. It is to be made clear to every applicant that the principle of "support and challenge" will be enforced systematically from the beginning of the application process for those claiming the basic income for jobseekers. Those applying for benefits for the

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

•

•

•

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

69

first time, therefore, are to receive offers of employment or training immediately after their individual circumstances have been assessed. These measures may also serve to test an individual's willingness to work. Practice has shown that the existing rules on sanctions are too rigid and are difficult to apply appropriately in individual cases. We have therefore agreed to introduce a change to the law in this respect. Large numbers of people currently claim unemployment benefit II although they are incapable of gainful employment. The result is added expenditure for the Federation and health insurance funds. We will therefore give the health insurance funds the right to demand that a claimant's ability to be engaged in gainful employment be assessed. Finally, it is our duty to anchor in our population an awareness of the need for personal responsibility, participation in gainful employment and solidarity with those in need of assistance. Since the introduction of the basic income for jobseekers, an important role in this respect has been assumed by the Ombudsrat (appeal council). We have therefore decided to extend the work of the Council by six months. The Ombudsrat (appeal council) will present its recommendations in a final report on 30 June 2006. The CDU, CSU and SPD agree that the review instituted on 1 October 2005 to determine the level of the Federation's contribution to accommodation costs must be continued without delay. The target of cutting the amount paid nationwide by the municipalities under the Fourth Law for Modern Services in the Labour Market (Hartz IV) by 2.5 billion euros is to be retained. Immediately after the new Federal Government has been formed, the necessary consultation with the Lander and the local government associations will be set in train. On this basis - in the wake of the legislative process which has already been initiated - the level of the Federation's share in accommodation and heating costs will be fixed both for 2006 and for 2007. A further - final - review will be completed by 1 October 2007.

In total, the proposed measures and improvements to Hartz IV will bring savings of 3.8 billion euros. We will achieve these savings by making the following changes: • • • •

Introducing a basic right for the state to make parents provide for those aged up to 25 years (0.5 billion euros). Limiting funding for young people moving into their own dwelling for the first time (0.1 billion euros). Improving administrative processes and organisational structures with respect to Hartz IV (1.2 billion euros). Reducing the payment for statutory pension insurance from 78 euros to 40 euros per month (2 billion euros).

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

70

Coalition Agreement

2.7. Reforming Labour Law 2.7.1. Further Developing Protection against Dismissal

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

The CDU, CSU and SPD will develop the law on protection against dismissal with the aim, firstly, of encouraging more employment and, secondly, of maintaining on a long-term basis the protective function of the regulations for existing employment relationships. At the same time we want to create more transparency and more legal certainty for employees and employers. We will therefore, on the one hand, abolish the possibility of terminating employment contracts without substantive reason in the first 24 months. We will also give employers the option, with respect to new appointments, of agreeing a waiting period of up to 24 months with a newly recruited employee before making the employment permanent, instead of the statutory standard waiting period of six months. This option will also apply in the case of a re-appointment with the same employer if at least six months have elapsed since the end of the previous employment contract. The founders of new businesses will continue to have the possibility of terminating employment contracts without substantive grounds for up to 48 months in the first four years after starting business. The CDU, CSU and SPD agree, however, that an addition to the special rule applying to founders of new businesses giving them the possibility of extending the period of exemption from dismissal protection will not be allowed. By these measures we are simplifying the rules on dismissal protection and helping to reduce the number of cases brought before the employment tribunal, while at the same time creating a reliable contractual basis for employees. Above all, however, these changes to dismissal protection are designed to boost the recruitment of new employees on contracts with no fixed term over fixed-term employment relationships. 2.7.2. Widening the Scope of the Posted Workers Act The CDU, CSU and SPD will extend the Posted Workers Act on the basis of the EU posting of workers directive to the collective bargaining agreements which have been declared generally binding in the building cleaning trade. For the construction industry the existing Posted Workers Act will remain unchanged. The coalition will examine further extensions of the law to other branches of industry if corresponding unwanted social distortions are identified with respect to posted workers and if collective bargaining agreements apply in these branches which previously were declared generally binding under the Collective Bargaining Agreement Act (Tarifvertragsgesetz). Since a corresponding collective bargaining agreement that has been declared generally binding already applies to the building cleaning trade, the coalition will immediately undertake to extend the Posted Workers Act to cover this trade. 2.7.3. Implementation of the EU Working Time Directive The transitional regulation for the Working Time Act (Arbeitszeitgesetz), which gives the social partners time to adapt their agreements to the rulings of the European Court of Justice on on-call time and which expires on 1 January 2006, will be extended by one year. Statutory German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

71

provisions will limit the number of Sundays on which retail shops may open to a maximum of four Sundays in the year. 2.7.4. Guaranteeing and Shaping Co-determination in Enterprises Cross-border economic activities and structural changes in business enterprises are features of a converging Europe. Securing and shaping the rights of participation of employees at European level has therefore been and remains an important task. We will strive to ensure that European company law is further developed through the speedy adoption of the directive on the cross-border transfer of the registered office of limited companies. In this process we want to ensure that the participation rights of employees are safeguarded on the basis of the solutions already arrived at with respect to the European Company and the mergers directive. The successful German model of co-determination must keep pace with global and European challenges. It is the task of the Government Commission on Codetermination under the chairmanship of Professor Biedenkopf to formulate proposals by the end of 2006 for modernising German co-determination in enterprises to bring it into line with Europe on the basis of existing legislation. We will take up the - consensual - findings of the Commission and, where necessary and appropriate, make changes to our national system of codetermination in enterprises.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

2.8. Measures to Combat Illegal Employment, Moonlighting and the Black Economy Moonlighting, illegal employment and the black economy are not trifling offences; they damage our country. The CDU, CSU and SPD agree that these offences must be prosecuted resolutely and energetically. It is wrong for those who are honest in our society to feel they are being made to look foolish. We therefore intend to clamp down on the whole area of the black economy. There is considerable potential here to consolidate public finances and also to help reduce non-wage labour costs. We intend to make use of this potential. •

•

•

•

We will continue the work of the Task Force on Illegal Employment and Benefit Fraud under the joint direction of the Federal Ministry of Finance and the Federal Ministry of Labour and Social Affairs. The customs service (illicit employment financial control department) will step up its checks. We will pursue a partnership-based dialogue with all new Member States to clear up problems and differences of opinion. Our aim, in particular, is to conclude administrative agreements with the Member States affected in order to improve cross-border controls and cooperation with the authorities. The CDU, CSU and SPD agree that cooperation between the Federation and Lander on combating abuse of the freedom of services and establishment must be stepped up. Since it is believed that the black economy manifests itself particularly frequently on building sites, in the taxi trade and in the catering trade, the Federal Government will examine the findings of a planned pilot project being conducted in the BerlinBrandenburg region which obliges employees in these branches of the economy to

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

72

Coalition Agreement carry chip cards visibly displayed which identify them as being regularly employed and, if appropriate, introduce the chip cards nationwide.

2.9. Seasonal Work With respect to the licensing of foreign seasonal workers, the Federal Government will extend in modified form the regulation governing the employment of seasonal workers which expires at the end of the year. It is important to continue to ensure in this respect that the farming industry is able to adequately cover its demand for seasonal labour. In view of the persisting high level of unemployment, however, it is our aim to find more employment first and foremost for jobless benefit claimants, including short-term seasonal employment. For this purpose it is necessary, firstly, to step up the efforts of the job centres and the agencies administering the basic income for jobseekers to place workers in the sectors relying on seasonal work. Secondly, it is necessary to modify the regulation by imposing limits on the number of work permits to be issued for business enterprises to ensure that the inflow of foreign labour is kept within manageable proportions. The volume of seasonal labour from Central and Eastern Europe attained in recent years must be significantly cut and replaced as far as possible by domestic labour. Under European law seasonal workers from the new EU Member States have become subject, since the accession of these countries, to the social insurance law of their home countries. The registration of seasonal workers and the transfer of contributions by German employers to the social insurance agencies in these countries is still a very complicated process. The Federal Government will push for the development of procedures which reduce red tape to a minimum.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

2.10. European Social Policy The European social model as part of the Lisbon Strategy must be further developed. For the general public the key factor will be whether it is possible to combine the necessary flexibility with social protection and social security ("flexicurity"). At the present time, in the context of labour market and economic developments in Germany, it appears necessary to retain the transitional periods with respect to restricting the freedom of movement for workers from the ten new accession countries. The transitional periods have protected the German labour market from increased migration. With respect to a possible directive on the access of nationals of third countries to selfemployment and dependent employment, it must be ensured that the regulations are flexible and national employment policy is not restricted.With respect to the forthcoming draft directives in relation to labour law (codetermination in relation to change of registered office, working time, temporary work, equal status, optical radiation), the regulations should have the necessary flexibility and, at the same time, keep in focus the justified interests of the employees. With respect to the negotiations at European level, the Federal Government will strive for fair and viable compromises between all the Member States.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

73

3. Education and Training 3.1. Education Is the Key to the Future Education is the key to individual opportunities in life and to cultural participation, to development and innovation. Universal participation in education and training is the essential precondition for ensuring that no talents remain unused. To achieve this goal, our education system as a whole must become more transparent with more transfer opportunities between different educational and training pathways and must ensure better individual support. The cohesion and social development of our society, our prosperity and the competitiveness of our industry depend more and more on the importance which is attached to education. Education is the decisive factor, not only for the future of our country, but also for the opportunities of each and every person. We want Germany to once again generate more prosperity through growth and innovation. We can only achieve this objective if everyone is able to fully develop his or her abilities and talents. Germany needs the formation of responsible elites, drawn from different social backgrounds. A successful education system must promote talents, support people with learning difficulties and eliminate the close linkage between social background and educational success.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

3.2. Equal Opportunities in Education: Improved Childcare, Early and Individual Support Education and care for all children from the very start: The decisive factors which influence a child's development are determined at the beginning of his or her life. We are therefore backing improved and individual support for all young children. We consider it essential that children should learn to speak German before they start primary school. Full-day education and schooling widen the opportunities for fostering all talents and compensate for weaknesses. Furthermore, full-day schemes make it easier for parents to balance a family and a career. This is why we are supporting the expansion of full-day schooling. Federal budget funds of approximately 4 billion euros for building all-day schools will be callable until the end of the current electoral term under the "Future, Education and Care" funding programme. We will also continue to play our part in future to ensure that Germany can take part in international comparative studies such as PISA. Anyone who wants to improve his or her performance must know where he or she stands. We aim to expand educational reporting and to establish it as a constant factor in education policy in cooperation between the Federal Government and the Lander. In addition, we will strengthen empirical educational research within the framework of general research funding in order to gain information which can help the Federal Government and the Lander to expand their respective tasks in the field of education.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

74

Coalition Agreement

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

3.3. Strengthening Training under the Dual System - Training Opportunities for Every Young Person The dual system of vocational education gives Germany an international competitive advantage. It is a success story that we wish to continue. For the individual, it means a good start to his or her successful vocational and personal development and continues to offer the best protection against unemployment. Vocational training is becoming increasingly important for the competitiveness of German industry. Our objective is that every young person who is willing and capable should be offered training. 155,000, or 17.1%, of all 25-year-olds do not hold upper secondary level qualifications; in other words, they have neither completed vocational training nor have they gained higher education entrance qualifications (Abitur). Youth unemployment remains an urgent problem, not only for labour market policy but also for education policy in Germany, and demands a solution. The Federal Government will do everything in its power to achieve its goal of ensuring that no young person under 25 years of age is unemployed for more than three months. It is also banking on the social responsibility of industry and the latter's interest in the availability of skilled young staff. We therefore welcome the commitment of companies to establishing additional traineeships. We will expand the National Pact for Career Training and Skilled Manpower Development, and will involve industry and trade unions in this effort. We will also take into account questions of trainability and possibilities of collective bargaining agreements (such as sectoral contributory funding, increase in the number of traineeships). The Bundestag and the Bundesrat both adopted the reform of the Vocational Training Act (Berufsbildungsgesetz), which came into force in April 2005. We intend to study the effect of this reform with our partners in the course of the electoral term. The range of vocational training will be extended by means of graded training regulations in order to better meet young people's different levels of ability. It has been agreed that the wisdom and feasibility of graded training will be considered whenever training occupations are updated or new occupations introduced. We will continue to modernise training occupations to meet practical requirements and will improve training structures in the regions, as agreed in the training pact. Furthermore, we will make girls and young women more aware of the wide range of occupations available, particularly in technical occupations. Targeted measures will be adopted to encourage young people and entrepreneurs with migrant backgrounds to take an active interest in vocational education and training. Youths and adults without qualifications should be given a "second chance" to either return to education to acquire school-leaving qualifications or to complete vocational training. We will continue to implement tried and tested measures in the field of introductory training and to improve trainability and training maturity. Furthermore, we will continue measures to prepare young people with poor starting chances for vocational training and to improve their trainability and training maturity and we will provide assistance to support training. The individual needs of young people will be the decisive criterion for the structural reorganisation of training preparation schemes.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

75

In order to ensure that adequate account is taken of the German dual system of vocational training within the European Union and that the system remains competitive, we intend to play an active role in shaping European cooperation in vocational training and to encourage developments in Europe with a view to greater transparency and comparability in vocational education and training. We thereby support the development of a European Qualifications Framework (EQF) as agreed under the Copenhagen Process, a European Credit Transfer System in Vocational Training (ECVET) and the introduction of the Europass.

3.4. Improving Opportunities for Transfer between Educational Pathways We want to improve opportunities for transfer between education sectors. Higher education legislation should, as a general principle, allow people who have successfully completed vocational training admission to universities and universities of applied sciences. Initial and continuing vocational training will be comprehensively and systematically interlinked.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

3.5. Lifelong Learning: Increasing Participation in Continuing Education - Using the Growth Potential of Continuing Education Rapid technological progress in the knowledge economy demands that the vocational skills and know-how gained during initial training are maintained, adapted and extended. Continuing education is more than an educational principle. Lifelong learning ensures qualifications and protects people from losing their jobs. Moreover, demographic change demands that older employees remain in active employment and keep up to date with the state of the art in their field of employment. The percentage of people involved in continuing education must be increased considerably if receptiveness, willingness to learn and ability to learn are to be improved across the generations. In the medium term, we intend to make continuing education the fourth pillar of the education system and to establish a continuing education system with standard national framework conditions. Financial assistance for trainee master craftsmen (Meister-BAfoG) has proved successful and will be continued. We will make the wide range of continuing training programmes more transparent by optimising educational and vocational counselling. We will extend quality assurance in the field of continuing education programmes. The general public, industry and the individual must be involved in the funding of continuing education in an appropriate manner. We intend to develop a new funding instrument in the form of educational savings plans and to amend the Capital Formation Act (Vermogensbildungsgesetz). This will have a neutral effect on the budget. In particular, we want to assist the socially disadvantaged in order to increase their participation in continuing education. We are encouraging both sides of industry to set up training-time accounts where employees can collect overtime and days off over extended periods of time. It is the task of the state to ensure appropriate framework conditions. These include, for example, protection for working-time and learning-time accounts in cases of company insolvency.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

76

Coalition Agreement

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

3.6. Enabling Universities to Compete Internationally Universities are the foundation of our academic system. They are providing an ever greater proportion of the rising generation in the knowledge-based society with qualifications. Their research results create the basis for innovations. At the interface between education, research and innovation, they play a crucial role in deciding on the jobs of tomorrow, on societal progress and on social security. Autonomy, excellence, responsibility, freedom and competition are to be the guiding principles for the higher education system of the future. We want to strengthen competition between institutions of higher education. Together with the Lander, it is our task to bring not only the top ranks of the German higher education system up to world-class level. We also want to ensure quality on a broader level that will guarantee excellent and demand-based training with regard to the significant increase in the number of students which we are expecting. We want to establish a European Higher Education Area by the year 2010. The Bologna Process is a step in the right direction to help Europe come together in the field of higher education. We want to promote mobility in the European Higher Education Area and facilitate the compatibility of study courses. Together with the Lander, the institutions of higher education and the science organisations, we want to ensure the success of the Initiative for Excellence to Promote Institutions of Higher Education and the Pact for Research and Innovation. Our aim continues to be that at least 40% of a year group should study at an institution of higher education. Germany needs more highly qualified people if it is to meet the economic and industrial demands of the future. The coalition partners take different views on the question of tuition fees. The structure of Federal Training Assistance (BAfoG) as a social benefit to finance a student's livelihood will remain unaltered (no reduction in the grant). We will expand support for the highly talented. We want to promote young talent and upand-coming researchers and to open up career prospects for them. Germany must be able to offer attractive study and working conditions for the best scholar from around the world. We will enhance the opportunities for independent research and early academic independence and, together with the Lander, we will search for ways to open up reliable career paths for young researchers. By doing so, we want to encourage young German researchers to return to Germany and to persuade foreign scientists to settle here. Furthermore, we will strengthen the funding programmes aimed at excellence for young scientists in all disciplines. Measures must be taken to improve the balance between a family and a career in research and teaching. Opening career opportunities for women in teaching and research remains a central concern of this Federal Government.

3.7. Other Framework Conditions which are Relevant to Research and Education Within the framework of the GATS negotiations and in the further negotiations on the EU services directive, we will continue to endeavour to ensure that there remains a clear distinction between the public and private sectors in education, that foreign education providers may not legally claim the financial support available to German providers, that

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

77

consumer protection regulations and quality assurance are guaranteed and national priorities in education policy upheld. We want copyright legislation which is favourable to education and science.

4. Research and Higher Education Institutions We must find answers to the key challenges of the future. Apart from the questions of an ageing population and globalisation, we must also consider the preservation of our natural basis for life. As a highly industrialised country with few natural resources, Germany must concentrate its strength on those areas where it is able to compete. We are thus developing new products, ideas for resource-efficient processes, and futureoriented services in innovative areas with a high value-added element. Research which benefits human beings and the environment produces innovations which secure jobs and improve the quality of life. The preconditions for these developments are high standards in research and development as well as in the use and advance of modern technologies. The preconditions in Germany are favourable for achieving top results in science and research. We have a good, sometimes even excellent, broad-based higher education and research landscape and innovative companies. Research needs freedom. This is a great good. Basic research is the basis for innovation. We want to provide scope for young talents, new ideas and experiments. Germany stands for competition for the best brains. We want an innovations policy which covers the whole value-added chain from basic research to applications. We support the internationalisation of science as a contribution to shaping globalisation processes.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

4.1. R&D Expenditure: Investing in the Future The members of the European Union have set themselves the goal of becoming the most competitive and dynamic knowledge-based economy in the world by 2010. In order to achieve this aim, the share of expenditure on research and development is to rise to at least 3% of GDP. Germany has already reached a share of 2.5%. Investments in education and research are of key importance for Germany's future viability. We are therefore sticking to the 3% objective and intend to reach it in gradual steps. This requires considerable efforts on the part of the state and business.

4.2. A Seamless Innovation Policy - Ensuring Innovation-Friendly Framework Conditions We are committing ourselves to a policy which encourages innovations. All the federal ministries will contribute towards this course of action. We intend to make the stimulation of innovations a decisive criterion for state action in the same way that environmental protection and sustainability are already important factors when making decisions today. Apart from promoting research and technology, the Federal Government will make framework conditions more friendly, particularly in the fields of bio- and genetic engineering, information and communication technology, chemistry, medicine/pharmacy, energy and transport. We will continue to seek a balance between ethical principles and scientific progress.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

78

Coalition Agreement

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

4.3. Key Areas in Cutting-Edge Technologies and Project Funding We will work together with science and business to develop innovation strategies for cutting-edge technologies in order to expand Germany's lead in markets and technology or to gain such a lead. Important areas include bio- and genetic engineering, information and communication technology, nanotechnology and microsystems engineering, optical technologies, energy technology, environmental technology and aerospace technology. Project funding knits together science and business and has proved to be an effective transmission belt between research and practical applications. It encourages the establishment of networks and clusters which provide a mutual stimulus for first-rate scientists and innovative companies. The Federal Government's project funding is an important instrument for achieving the 3% target. Every euro spent by the state on research and development is matched by more than one euro from industry. We therefore want to ensure an over proportionate increase in the funds available for project funding within the 3% target. We will consider whether it is useful to introduce a separate research funding law as a legal basis for federal project funding. We want to ensure that we in Germany also make use of the opportunities offered by new scientific breakthroughs, for example findings in the life sciences on the causes of the most common diseases or of new infectious diseases, and on ways to combat them. We will therefore strengthen clinical research in Germany. Health research provides innovations which enhance the quality of life for both young and old and, at the same time, secure the fundability of the health system. We will continue to attach special importance to funding research on adult stem cells in order to develop the potential of regenerative medicine, whilst at the same time observing ethical borders. We will strengthen funding for research in the field of sustainability. Germany is making a decisive contribution to preserving our natural basis for life, to securing and exploiting energy resources, to preventing disasters, to protecting the climate, to solving conflicts and to securing peace. One example of a successful German development is the tsunami early warning system now being used off the coast of Indonesia. The Federal Government is therefore supporting environmental technology, earth observation and regenerative energy technologies as well as security and fusion research. The humanities and the social and cultural sciences are of great importance in a world of rapid societal and technical change. Their task is to contemplate changes and to affirm tradition and cultural memory. At this level, they make a decisive contribution towards a critical perception of the present and our future opportunities for action. We will therefore strengthen these areas.

4.4. Strengthening Germany as a Location for Research We want an efficient scientific and research system that is internationally competitive. To ensure this, university and non-university research will be better networked and the transfer of technology managed through a modern policy of cluster development.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

79

We will implement the Initiative for Excellence agreed between the Federal Government and the Lander as well as the Pact for Research and Innovation, and we will take initial steps towards full economic costing. We will provide a secure financial basis for the construction of large-scale research facilities which have already been agreed.

4.5. Strengthening Technological Efficiency, Improving the Transfer of Technology and Stimulating Research in Industry Germany's technological efficiency is largely due to its small and medium-sized companies. The latter's powers of innovation must be further strengthened if they are to survive in the global competition. We will therefore introduce specific measures to gradually introduce those small and medium-sized companies to research and development which have not worked in the field of innovations in the past. We will further simplify access for small and medium-sized companies to existing support programmes and makes these more transparent. We will further improve the conditions for growth-oriented business start-ups through an Entrepreneurship Initiative, particularly for spin-off companies in the field of science. We will create new instruments for improving the transfer of scientific results to products and services. We will make the conditions for obtaining venture capital competitive by international standards. We will further develop the "Partners for Innovation" initiative, taking particular account of innovative small and medium-sized companies.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

4.6. Strengthening Competitiveness in the New Lander We will aim funding policy for the new Lander consistently towards clusters which can make use of their strengths to generate sustainable economic growth in their respective regions. Such growth centres have an effect outside their own regions and contribute to a positive development in the new Lander. The effectiveness of existing programmes will be checked and developed further. The new Lander, in particular, need effective funding strategies which boost innovative potential in the regions, such as, for example, the internationally recognised programme "Entrepreneurial Regions".

4.7. Evaluating the Federal Government's Departmental Research Following the successful evaluation of institutional research funding in the nineties, the Science Council is currently studying the Federal Government's research institutions - its socalled departmental research. The Science Council will present its recommendations on the Federal Government's departmental research in 2006. This will be the basis for improving and developing the system further.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

80

Coalition Agreement

4.8. German Science with Worldwide Appeal We want to continue to contribute towards building and elaborating the European Knowledge Area. We are seeking to assume a central role in shaping European research policy, particularly through efficient participation in the EU Seventh Research Framework Programme 2007-2013 (FP 7). It is our aim to incorporate priorities at European level which we consider important from a national perspective. We intend to use the German presidency in 2007 to emphasise the importance of education, research and innovation as keys to growth and prosperity in Germany and Europe.

4.9. Encouraging People to Enjoy Their Own Abilities - Developing a New Culture of Innovation We intend to fill more young people in Germany with enthusiasm for science and technology. As an industrial nation, we must encourage an interest in scientific and technical training and study courses as well as an awareness of the elementary significance of research and innovation for society and business. We want to further expand the dialogue between the scientific community and society which began with the Science Years.

5. Energy

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

5.1. Halting the Rise in Energy Prices, Stimulating Competition Energy policy is basic economic, structural and climate protection policy. A secure, costeffective and environmentally friendly supply of energy is a fundamental condition for a modern and productive national economy. It is closely linked to policies regarding industry, technology, small and medium-sized enterprises and foreign trade. This is why Germany needs an integrated energy policy concept that includes a precautionary strategy with regard to globally dwindling fossil resources. A sound integrated energy policy concept must be based on a balanced energy mix. The CDU, CSU and SPD do not share the same opinion on the use of nuclear energy for power generation. For that reason, we cannot change the agreement between the Federal Government and power supply companies of 14 June 2000 or the procedures contained therein or the corresponding regulations of the amended Atomic Energy Act (Atomgesetz). The safe operation of nuclear plants is of the highest priority for the CDU, CSU and SPD. In this context, we will continue and expand research on the safe operation of nuclear plants. The CDU, CSU and SPD acknowledge Germany's responsibility to ensure the safe final disposal of radioactive waste and will tackle this issue in a speedy and resultoriented manner. We intend to solve this question by the end of the current electoral term. The Federal Government and the Lander cooperate closely in the supervision of the nuclear industry. An important element of a coherent energy policy is to intensify and expand energy research and to increase its funding. We want to promote innovation and technological development in the energy sector in order to strengthen the competitiveness of our industry,

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

81

to accelerate the market introduction of modern energy technologies and to contribute to climate protection. Together with the German hard-coal mining industry, the Lander of North-Rhine Westphalia and the Saarland, we will determine the future of mining subsidies. The subsidies the RAG group (Ruhrkohle AG) has been granted until the year 2008 are legally binding. There is no legal entitlement for the time after 2008. We have to consider further cuts to promised subsidies without departing from the path of socially acceptable adjustment. Dismissal into unemployment should be avoided. The potential savings should be used to promote structural change in the mining regions. The RAG group's initial public offering holds new development opportunities. In order to achieve a calculable and fair division of opportunities and risks, the first step must be a scientifically sound inventory of contaminated sites as these must not remain an incalculable risk for public budgets. We will start negotiations with all stakeholders at the beginning of 2006.

5.2. Renewable Energies An important element of our climate protection and energy policies is the ecologically and economically sound expansion of renewable energies. We will therefore: • • •

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

• •

•

•

•

•

pursue ambitious goals for further expansion in Germany, namely increase the share of renewable energies in electricity production to at least 12.5% by 2010 and to at least 20% by 2020, increase the share of renewable energies in total energy consumption to at least 4.2% by 2010 and to at least 10% by 2020 and continue to increase it in line with the National Sustainability Strategy (Nationale Nachhaltigkeitsstrategie) after 2020, significantly increase the share of biomass in primary energy consumption inthe medium term; maintain the basic structure of the Renewable Energy Sources Act (EneuerbareEnergien-Gesetz - EEG) but at the same time review the economic efficiency of individual fees by 2007. In this context we will adjust fees, degression steps and funding periods to the development stages of individual renewable energies and, if necessary, define new priorities; concentrate on the repowering of existing wind power installations and on offshore wind energy generation and improve the framework conditions for these activities (e.g. expansion of the power grids); make greater use of the market potential of renewable energies in the heat sector through continuing the market incentive programme in its current scope and through further instruments such as a renewable heat use act; restructure without delay the hardship clause in the Renewable Energy Sources Act so that power-intensive industries have a reliable and calculable basis (abolition of the 10% capping) and their economic burden is limited to 0.05 cent per kWh; create a transparent and reliable calculation method for the apportionment pursuant to the Renewable Energy Sources Act so that energy users are only charged with the effective cost of the electricity fed into the grid;

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

82

Coalition Agreement • •

pursue existing international activities for the expansion of renewable energies and initiate the creation of an international agency for renewable energies (IRENA); intensify the export initiative for renewable energies.

5.3. Biofuels and Renewable Resources Fuels and raw materials derived from biomass can contribute significantly to the energy and resource supply and to climate protection. We will therefore: • • • •

further develop the fuel strategy with the objective of increasing the share of biofuels in the total fuel consumption to 5.75% by the year 2010, replace the exemption of biofuels from the mineral oil tax by the compulsory addition of biofuels to mineral oil; promote the market introduction of synthetic biofuels (BTL) in cooperation with industry by building and operating installations on an industrial scale; promote research, development and marketing of renewable raw materials in cooperation with industry.

5.4. Energy Efficiency Increasing the energy efficiency of buildings, equipment, vehicles, power plants and industrial installations bears an enormous potential for economically sound energy conservation. We will therefore:

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

• •

• • • •

steadily increase the energy efficiency of the national economy with the objective of doubling energy productivity by the year 2020 compared with 1990; increase funding of the CO2 Building Modernisation Programme to at least 1.5 billion euros per year, significantly improve its efficiency and attractiveness (for example by switching to investment grants and tax relief measures and by including rental accommodation) and also introduce an energy passport for buildings. Our goal is to increase the energy efficiency of 5% of existing buildings built before 1978 every year; promote the modernisation of existing power plants and the expansion of decentralised power plants and highly efficient combined heat and power plants; review the funding criteria of the Heat-Power Cogeneration Act (KWK-Gesetz) on the basis of the monitoring report to be submitted in a timely manner. support the European initiatives to improve energy efficiency and work towards a European top runner programme; continue and intensify the dena (German Energy Agency) initiatives for energy conservation in the areas of buildings, electricity use (for example stand-by) and traffic.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

83

5.5. Innovation Offensive "Energy for Germany" We will launch an innovation offensive called "Energy for Germany" to remain a world leader in modern energy technologies. For that purpose, we need adequate energy research. We will therefore: •

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

gradually increase funding for energy research. This will cover renewable energies and biomass, the use of efficiency technologies on the demand side (industry, products, transport, buildings), centralised and decentralised efficiency technologies for energy production (including storage technologies) and a national innovation programme for hydrogen technologies (including fuel cells); arrange with the private sector that it too increases funding for research and the marketing of energy technologies.

Our objective is greater competition among suppliers of electricity and gas. To achieve it, we will attentively follow the effects of the incentives and support the competent authorities in fully using their powers according to cartel law. The instruments of the new energy industry law (with respect to control, laying down fees for grid use and demonopolisation by the regulation authorities) will be consistently applied to determine transmission fees for the use of electricity grids and gas pipelines. We want to counter oligopolies in the German electricity and gas markets by, among other measures, intensifying cross-border competition. For this purpose, it is necessary to create the required transit capacities and, for the German gas market, infrastructures for liquefied natural gas. In the interests of a cost-effective energy supply we will not raise the eco-tax further. The current eco-tax relief regulations for the industry will be retained. We want to improve the international competitiveness of our manufacturing industry, especially of the energyintensive sector. For this reason we will make use of all available relief measures and consider ways of improving our competitiveness when transposing the EU Energy Tax Directive. Important political and economic decisions on energy are increasingly taken at an international level. We will therefore take an active part in the definition of framework conditions in energy policy in the EU and in international organisations, focussing on the innovative ability and the competitiveness of our national economy. We support European strategies for sustainable and affordable energy and resource supply.

6. Infrastructure - Transport, Building and Housing Our transport policymakers are aware of the responsibility they carry for the economy, employment and the environment in Germany. We intend to implement an integrated and sustainable transport policy in order to lay the foundations for the necessary mobility of people and goods, for economic growth and for the creation of jobs. This will involve primarily the maintenance, modernisation, upgrading, better use, adaptation and linking-up of transport infrastructure. The capacity of the transport system as a whole has to be increased. Solutions from the field of information and communication technology, the development of which we are

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

84

Coalition Agreement

promoting, will help us achieve this objective. We will use fiscal instruments to enhance the innovative capacity, competitiveness and sustainability of the transport sector. As European integration progresses, the improvement of cross-border transport infrastructure will become especially important. Germany as a logistics hub We will continue to consolidate Germany's leading position as a logistics hub, which is illustrated by the fact that, to date, around 2.7 million jobs have been created as a result of new logistics chains within the context of growing globalisation. We will promote the creation of an internationally competitive framework to make Germany an even more attractive location for logistics companies and will actively market our logistics assets both at home and abroad. We will cooperate with the transport industry and shippers to develop, with support from the scientific community, a Freight Transport and Logistics Master Plan, the principal goals of which will be to make the transport system as whole more efficient for freight transport and to optimise utilisation of transport infrastructure. We will create an appropriate framework to assist German businesses in developing userfocused services for GALILEO. We will also champion a non-discriminatory European market for transport vehicles and their components. Optimising our transport system will not be possible unless we make further efforts in transport-specific research and development.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

6.1. Upgrading and Enhancing the Capacity of Transport Infrastructure; Sustaining Levels of Investment The traffic forecasts in the Federal Transport Infrastructure Plan (Bundesverkehrswege plan) predict a huge increase in traffic in the years from 1997 to 2015. Over this period, the number of passenger kilometres travelled is set to rise by 20% and the volume of freight moved by 64%. We will increase the level of investment in transport. This will ensure that roads, railways and waterways are maintained and upgraded as required. To satisfy minimum requirements with regard to the maintenance and upgrading of transport infrastructure, we will budget significantly more funds for investment in federal transport infrastructure in the 16th electoral term and sustain funding at this level. Federal funding of transport infrastructure is not to be interpreted as subsidisation. Rail transport is absolutely essential if we are to manage future traffic growth in a manner that is economically efficient and environmentally sound. We will continue to enhance the competitiveness and capacity of the railways. If we wish to maintain and upgrade railway infrastructure and provide the network operator with a sound basis for planning, we have to significantly increase the funds available for railway infrastructure and sustain funding at this higher level. New financial instruments The coalition agrees that, in principle, all modes of transport are of equal importance. Funding must be targeted on those areas where there is an urgent need for action and where

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

85

there are bottlenecks. With regard to the appropriations for roads, railways and waterways, we must retain the flexibility to re-allocate funds if necessary. Our intention is to stabilise transport investment, thereby creating long-term planning certainty. Our aim is to mobilise more private sector capital for the construction of transport infrastructure. To complement public sector infrastructure funding, we are adopting innovative approaches to funding using public-private partnerships (PPPs). With the introduction of the heavy goods vehicle tolling scheme, the establishment of the Transport Infrastructure Financing Company and the use of operator models, there now exists in Germany, for the first time ever, a wider range of sources for infrastructure funding. One of the ways of achieving this is by widening the terms of reference of the Transport Infrastructure Financing Company. We are reviewing its credit standing. The costs of mobility have to remain socially acceptable.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Air transport - a growth industry We support the air transport industry's "German Air Transport" initiative. The master plan for developing airport infrastructure will continue to be the basis for the future activities of the Federal Government, the Lander and the air transport industry. Likewise, the Federal Government will evolve the "Airport Concept 2000" in consultation with the Lander. We consider it to be our duty to evolve German airport infrastructure in order to enhance Germany's competitiveness on the international air transport market. Germany's role as a major air transport hub must not be weakened in global competition. The capital privatisation of DFS Deutsche Flugsicherung GmbH (the German air navigation services), which has already started, is to be brought to a swift conclusion. A level playing field in the road haulage sector To support fair competition, we will ease the burden imposed on the road haulage industry by the HGV tolling scheme in a manner that is non-discriminatory. To this end, we will do everything we can to obtain European Commission approval for the toll rebate scheme, exhausting all legal options if necessary. Pending this approval, the lower toll rate will continue to apply ("toll compromise"). Transport infrastructure planning We will press ahead with the projects identified in the Federal Transport Infrastructure Plan 2003 and the upgrading acts. Further priorities will be established when the five year plan is prepared. We will immediately draft a Federal Waterways Upgrading Act, (BundeswasserstraBenausbaugesetz). We will progress implementation of the trans-European transport network projects, which make a major contribution to European integration. We will promote innovative projects that are of special European and national interest. We intend to press ahead with PPPs, and will thus use our best endeavours to ensure that the fixed Fehmarn Belt link is implemented as an international flagship PPP project.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

86

Coalition Agreement

Cycling Cycling will be promoted in cooperation with the Lander and municipalities by implementing the National Cycling Plan. Promoting local public transport Good local public transport ensures that our towns and cities are able to function properly, enhances their liveability and is at the heart of a socially appropriate and environmentally sound range of mobility services. We will continue to provide an adequately high level of funding for local public transport. State subsidies for local and regional passenger rail services will be used to fund local public transport and to enable it to perform its functions. We will use the Local Authority Transport Infrastructure Financing Act (GVFG) to promote significant investment for upgrading local public transport and to provide investment assistance to municipalities. This assistance is indispensable and is making a major contribution to ensuring socially acceptable fares and to enhancing the attractiveness of public transport. In this context, special attention has to be paid to the aspect of safeguarding the livelihood of small and medium-sized enterprises. Fair conditions of competition, harmonisation In the EU, the coalition will strongly advocate the comprehensive harmonisation of the conditions of competition and a further opening-up of transport markets in Europe. This will include:

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

• • •

fully exploiting the scope for harmonisation that exists in Germany, in order to ease the burden on the transport industry; systematically pushing ahead with the harmonisation of levy regimes and rules; and reducing intermodal and intramodal distortions of competition, especially regarding state aid and derogations.

The coalition will support the European Commission's objectives as set out in the White Paper on the future development of the common transport policy. However, it will also seek to ensure consistent application of the principle of subsidiarity in the drafting and implementation of European legal instruments. In all spheres of the transport sector, we will press ahead with intermodality, removing the barriers between modes, without placing an unreasonable burden on businesses.

6.2. Simplifying and Speeding up Transport Infrastructure Planning We intend to facilitate and speed up the planning and construction of infrastructure. We will introduce an act to speed up planning procedures (Planungsbeschleunigungsgesetz), thereby laying the foundations for streamlining, simplifying and shortening planning processes in a manner that is uniform throughout the country. We will seek to further speed up planning procedures, and in this context we intend to abolish special procedures and bring about a situation in which there are uniform procedures and decisions.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

87

Our experience of speeding up planning procedures in the new Lander has been positive, and we will draw on this experience for the whole of Germany. The lessons we have learned show that simplifying planning is not detrimental to environmental protection and public participation. We want to include suggestions made by the Lander. Plan approvals will be granted for 10 years, with the option of extending them once for a further five years. We want the Federal Administrative Court to be the only court that hears appeals against priority federal projects, on the basis of the bill submitted by the Federal Government. This new planning legislation is due to enter into force early in 2006.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

6.3. Continuing the Reform of the Railways Germany needs modern, high-capacity railway infrastructure and efficient railway undertakings if the rail mode is to perform its important function in an integrated transport policy. The Federal Government will support Deutsche Bahn AG as it continues its course of consolidation to help enhance its efficiency and competitiveness and to make it more customer-friendly. One of the main aspects here is to bring about a growth in the level of rail traffic. Non-discriminatory network access for Deutsche Bahn's competitors will be ensured. The reform of the railways will be continued. Decisions on the future course of actionin the process of reform and on the organisation of the initial public offering of Deutsche Bahn AG will be taken on the basis of an analysis of the consultancy study to be presented to the Bundestag and with the participation of the appropriate parliamentary committees. In addition to capital market aspects, it will also be necessary to consider transport, financial, budgetary, economic and regulatory aspects, as well as aspects of European law and the Federal Government's obligation to provide infrastructure. A service level and funding agreement for the existing network will ensure that the network is operational and that high-quality services are provided. The basis for this is the network condition report. A more binding agreement than in the past will be concluded with Deutsche Bahn on implementation of the Federal Government's obligation to provide infrastructure in the construction of new railway infrastructure and in upgrading the network. This will include effective and transparent monitoring and mechanisms to ensure that the agreement is implemented. In the European Union, we will use our best endeavours to ensure that national borders no longer constitute a obstacle to rail transport and will advocate crossborder competition. Passengers' entitlement to compensation in the event of delays, cancellations, etc. in all modes of public transport will be laid down in law following analysis of the consultancy study on consumer protection that has been submitted.

6.4. Enhancing the Competitiveness of the Maritime Industry and Inland Navigation The maritime industry is a major factor in guaranteeing German competitiveness on the growing global markets. We intend to cooperate with the coastal Lander, businesses and trade unions to continue the approach adopted at the Maritime Conferences for enhancing the

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

88

Coalition Agreement

competitiveness of the maritime industry. To this end, it will be necessary, at European level, to remove international distortions of competition and to remedy shortcomings in harmonisation, exploiting all national scope for action in the process. Competition between European ports is an important step on the road towards effective solutions, and must not be distorted by state aid. Our objective is to upgrade the necessary seaward and landside links to and from German seaports in a targeted and coordinated manner. We will continue to make Germany a more attractive place for shipping companies. We will preserve the instruments that have proved successful, such as tonnage tax and the withholding of wage tax at source. The performance of the Maritime Security Centre will be evaluated after three years. This will also involve examining whether the existing approach is appropriate or whether we should seek to establish a "National Coastguard Service". Safeguarding and preserving the competitiveness of the German inland navigation sector is one of the coalition's key concerns. Inland waterways are a mode of transport that is indisputably safe and environmentally friendly, and the role they play in the transport system as a whole will have to be enhanced significantly in the years ahead. Well maintained waterways that are part of an integrated transport system are just as important to the inland navigation sector as they are to the efficiency of logistics chains. We will take the Inland Navigation Forum's plan of action into consideration in our future activities. The provision of tax incentives under Section 6b of the Income Tax Act (EStG), which was adopted by the Bundestag during the 15th electoral term, is to be embodied in law.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

6.5. Promoting Alternative Fuels and Powertrains, Improving Air Quality and Noise Mitigation To protect people and the environment and to secure the supply of energy for the transport sector, we will take initiatives to develop fuels and powertrains that have a promising future, to meet our international climate change obligations and to continue improving air quality and noise mitigation. Because fossil fuels are finite, we will systematically press ahead with our fuel strategy developing alternative fuels and innovative powertrain technologies with the aim of reducing our dependence on oil. We are committed to dialogue and cooperation with the industry in order to harness innovative capacity to an even greater extent. To this end, ongoing research activities will be expanded to form a research priority. We will: •

•

provide revenue-neutral fiscal incentives for retrofitting motor vehicles with particulate traps and, starting in 2008, increase the tax on vehicles that do not meet this standard; introduce a straightforward method for marking vehicles in such a way that cleaner vehicles can be exempted from traffic restrictions, thereby providing an incentive to fit particulate traps;

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement • •

89

increase the toll rate for HGVs with high levels of emissions and reduce it for cleaner HGVs; Appropriate incentives are to be developed to encourage a reduction in emissions from light goods vehicles, taking care to ensure that they are not placed at a competitive disadvantage compared with foreign vehicles.

We will amend the Air Traffic Noise Act (Fluglarmgesetz), taking the interests of people who live near airports and of the aviation industry into consideration. To create legal certainty for projects involving airport expansion or the construction of a new airport, it will be necessary to lay down noise limits in law. This policy is designed to help our towns, cities and regions evolve and to promote trade and industry while preserving the quality of life in residential areas.

6.6. Road Safety

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

We have to continue our successful road safety activities with the same level of commitment as in the past. However, road safety cannot and must not be solely the responsibility of the state: it is also dependent on activities conducted by other stakeholders. This has to be our starting point, and we must encourage these individuals to get involved. In particular, we will provide assistance to people who are especially vulnerable, such as children, young novice drivers and the elderly. We intend to continue our road safety programme in close cooperation with all partners engaged in road safety activities, intensify research and improve prevention as a whole. Road safety education and road safety campaigns - in other words, mobility education are part of the package of measures designed to enhance road safety.

6.7. Urban Development as a Future Challenge Urban development is an element of a modern structural and economic policy. Urbanity, a multiplicity of uses and vibrancy are the hallmarks of German towns and cities. We will continue to support our towns and cities - including those in rural areas - in their endeavours to tackle demographic and structural change and to conserve the fabric of historic buildings. Urban development assistance will continue to be a joint task of the Federal Government, Lander and municipalities. The funding programmes will create and safeguard jobs, because the investment made by the public sector will have a multiplier effect on private sector investment. The public and the property industry are to be involved in urban development decisions to a greater extent. To this end, we will seek to strengthen integrated approaches to urban development, especially their interlinking with other plans and measures. To help towns and cities as well as the housing industry and public utilities in the new Lander to reduce the number of vacant dwellings and to adapt the technical and social infrastructure, we will continue our programme of urban restructuring in the new Lander and, after a mid-term evaluation, will decide how it should be continued beyond 2009. To regenerate derelict urban sites resulting from the process of economic and military structural change, we will provide assistance to the towns and cities worst affected within the scope of the programme of urban restructuring in the old Lander.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

90

Coalition Agreement

We will consider how the two programmes of urban restructuring can be combined to form one programme in the medium term. Towns and cities are making extensive use of the "Social City" programme, which targets neighbourhoods with development priority. It will continue to help stabilise urban neighbourhoods and encourage the people who live there to develop initiatives of their own, by involving them in local decision-making. This programme is to be evolved and will focus on the statutory objectives. There is to be improvement in the way in which it is combined with funding available from other government departments. Our programme to protect the urban architectural heritage has saved the historic town centres in the new Lander from decay and revitalised them. We will continue this programme and consider when we can include the historic towns and cities of the old Lander. To reduce land take and speed up major planning projects, especially in the spheres of jobs, housing need and infrastructure provision, we will simplify and speed up building and planning law procedures for relevant projects in order to boost inner urban development. We will preserve and, if necessary, widen the legal framework to ensure that town and city centres remain attractive sites for retail outlets and to strengthen the local economy and widen the diversity of uses. We will continue the "City 21" initiative in cooperation with the Lander, local government associations and retail associations. To manage demographic change and migration, we intend to launch pilot projects to assist towns and cities in designing neighbourhoods that cater to the needs of children and families and in converting their infrastructure to make it accessible for the disabled and the elderly. We intend to help towns and cities in their efforts to link up walking, cycling, public transport and car traffic in urban residential neighbourhoods in such a way that residents enjoy mobility but are not exposed to excessive traffic noise.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

6.8. Building and the Construction Sector as a Key Industry The building sector is a key industry for growth and employment. In 2005, the real construction volume is around €220 bn. The construction industry continues to be the most important branch of the economy in Germany. This sector accounts for over 50% of all investment. Public and private sector investment is to be facilitated in order to speed up the modernisation of infrastructure in Germany. We will continue to improve the legal framework and other conditions governing publicprivate partnerships (PPPs) in building and civil engineering. The number of pilot projects is to rise and the activities of the existing PPP Task Force will be stepped up. This will enable us to develop uniform contractual structures and to introduce generally accepted rules for an economic assessment within the framework of procurement. We will assist the construction industry in developing "Construction Industry Vision and Values" as an overall framework for a modern building policy that uses innovation and quality to safeguard investment and jobs with a secure future. The Federal Government's building research activities will be stepped up and better linked to European networks. We intend to press ahead with the establishment of a Building Culture Foundation (Federal Building Foundation). Its purpose will be to make the public at large more aware of just what good design and building can do to make towns and cities more vibrant. In addition,

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

91

we also have to publicise the high level of skill and capabilities of German architects and engineers on the world market. We will simplify the Fee Schedule for Architects and Engineers (HOAI) and make it more transparent and flexible, as well as incorporating even greater incentives for low-cost and quality-conscious building. To speed up public sector investment, we will amend public procurement legislation within the framework of the existing system. The EU rules developed for large-scale projects should only be used for major projects, so as not to block the large number of smaller investments that are important for small and medium-sized enterprises. The Contracting Regulations for Construction Works (VOB) and Services (VOL) enable the public sector to conduct efficient and economical procurement. For this reason, the simplification of public procurement legislation must target qualitative aspects and cater to the needs of small and medium-sized enterprises, while retaining the Contracting Regulations for Construction Works. We will press ahead with the reform of the Federal Building Administration. The objective is to continue optimising it while preserving the unity of the building administration for civil and military projects. We will retain the core technical competencies of the building administration and focus them on construction management tasks.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

6.9. Energy-Efficient Building to Help Tackle Climate Change We want to reduce the consumption of resources in the building sector and lower service costs, in order to help tackle climate change while providing an impetus for more employment. One priority will be the maintenance of the structural fabric and modernisation of the housing stock to adapt it to people's changed housing requirements and to reduce energy consumption. We intend to increase the number of contracting projects on federal property. We will launch a programme to improve the energy efficiency of public buildings owned by the Federal Government. In addition, we intend to make greater use of the proceeds from the sale of surplus public sector property for the purpose of carrying out the necessary modernisation of the remaining properties, thereby preserving the value of federal property assets.

6.10. Housing Owner-occupied housing, rented accommodation and cooperative housing will remain the three pillars of housing provision. Housing benefit will continue to play a role in ensuring that housing is provided for lower income groups. Housing benefit is a welfare benefit, not a subsidy. The Federal Government and Lander will speedily review housing benefit legislation with the aim of significantly simplifying it. Our policy objective will remain the creation of home ownership for families with children. An active family policy, in the interests of the sustainability of our society, must support people's desire to have children by providing a supply of housing that caters to the needs of families. To this end, we will work together with the KfW Promotional Bank to identify how the granting of lower-priority mortgages can be simplified and the loans made less expensive. This will also make it easier for tenants to purchase their dwellings.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

92

Coalition Agreement

Home ownership is to be better integrated into state-sponsored retirement provision. We will evolve cooperative housing on the basis of the recommendations made by the Group of Experts on Housing Cooperatives. We will carefully analyze the internationalisation of the housing industry as regards its impact on society, urban development and the construction industry.

7. Environment The CDU, CSU and SPD are guided by the principle of sustainable development. An intact natural environment, pure air and clean waters are a prerequisite for a high standard of living. We consider environmental protection to be a joint task for the government, citizens and industry. We trust in cooperation and a combination of direct responsibility of private enterprises and citizens, in market forces and competition and in the necessary binding legal norms and their effective enforcement. An ambitious national environmental policy can contribute decisively to the modernisation of our society. It can be a driving force for • •

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

the development and global marketing of future technologies, improving energy and resource productivity and thus the competitiveness of the German economy, creating new skilled and secure jobs.

We are facing great challenges resulting from the dangers of climate change and the foreseeable price and distribution conflicts concerning energy and raw materials.Therefore Germany and Europe need a new approach combining the objectives of successful economic development and effective climate and environmental protection with the social needs of people - the sustainable economy of the 21st century. The most important element thereof is the dual strategy to increase energy and resource efficiency and to expand the use of renewable energies and regenerative raw materials. In the context of a broad energy mix, this is the most promising path towards strengthening the international competitiveness of German industry, reducing the burden on consumers and companies caused by rising energy and raw material prices and at the same time protecting the earth's atmosphere and the environment.

7.1. Climate Protection and Energy - a Strategy, a Programme Germany will continue to play its leading role in climate protection. Our goal is to restrict the increase in the global temperature to a climate-compatible level of 2°C as compared with pre-industrial levels. We therefore intend to: • •

further develop our national climate protection programme and introduce additional measures to ensure Germany reaches its Kyoto target for 2008 to 2012; support the establishment of an international climate protection regime for the post 2012 period by 2009, building on the Kyoto Protocol;

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement •

•

93

support the inclusion of other industrialised countries and economically advanced newly industrialised countries in a new climate protection regime and the adoption of corresponding commitments by these countries in line with their capabilities; propose that within the framework of international climate protection negotiations the EU commits itself to a 30% reduction in its greenhouse gas emissions by 2020 compared with 1990 levels. On this condition, Germany is willing to strive for an even greater reduction in its emissions; evaluate the climate protection agreement concluded with industry in 2000; strive for a partnership on climate and innovation with German industry and civil society, which opens future markets worldwide for small and medium-sized enterprises in particular; promote a new partnership between industrialised and developing countries, based on the G8 initiative, that is geared towards an ambitious modernisation of energy supply for greater energy efficiency and the increased use of renewable energies. This partnership should supplement a binding climate protection regime, but in no way replace it; beyond this, strive for an international afforestation programme in order to make use of the carbon sequestration ability of forests. .

•

•

7.2. Emissions Trading Emissions trading is an important instrument of climate protection. We will make it ecologically and economically more efficient and therefore:

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

• •

• • •

draw up the National Allocation Plan for the period 2008 to 2012, building on the targets as defined in the Allocation Act (Zuteilungsgesetz) 2005/2007, avoid windfall profits and give special consideration to the international competitiveness of the energy-consuming industry; make the allocation system more transparent and less bureaucratic and, where this is possible under European law, exempt small installations; enhance the opportunities of German industry on foreign markets by making it easier to use international climate protection projects according to the Kyoto Protocol (such as JI and CDM); support the EU Commission in studying how to integrate air traffic appropriately into the emissions trading; promote the participation of other industrialised countries and large newly industrialised countries in worldwide emissions trading; ensure that there will be incentives for the construction of efficient and environmentally friendly power stations in the second allocation period.

We want to lower the expense burden for industry through CO2 emissions trading. To this end, we will, if necessary, support a revision of the EU Emissions Trading Directive. In the update of the National Allocation Plan 2 (2008-2012) we will give special consideration to the international competitiveness of the energy-consuming industry. The allocation system must become more transparent and less bureaucratic and other industrialised countries and large newly industrialised countries must be included in emissions trading. In order to

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

94

Coalition Agreement

increase the flexibility of the CO2 emissions trading, it is necessary to speedily implement the flexible Kyoto mechanisms (such as JI and CDM).

7.3. Reorganisation of Environmental Law In European and German environmental law, we focus on achieving a high level of protection of health and the environment with regulations that are as unbureaucratic and costeffective as possible and on strengthening our industry's innovative ability and competitiveness. This also holds true for the current negotiations concerning the registration, evaluation and authorisation of chemicals (REACH). An act to speed up planning procedures will create the necessary conditions for streamlining, simplifying and shortening planning processes nationwide without undermining environmental protection or participation of civil society. We want to build on the positive experiences gathered in planning acceleration in the new Lander which show that this is possible. Our current environmental law has developed over time and is highly fragmented both with regard to subject matter and between the Federal Government and the Lander. This does not meet the requirements of an integrated environmental policy: • • •

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

We want to simplify German environmental legislation and compile it in an environmental code. We want to replace the different licensing procedures with an integrated project authorisation in the context of an environmental code. The Federal Government will launch an initiative in Brussels for the necessary internal harmonisation and simplification of European environmental law. WTO and other trade agreements must not be given priority over agreements on the protection of the environment.

We will create the prerequisites for such a reorganisation of German environmental law in the context of the reform of the German constitution, the Basic Law (reform of the federal system of government).

7.4. National Natural Heritage Our country has a rich natural heritage. We want to preserve it for future generations. We need a new partnership between nature conservation, sustainable agriculture and ecotourism. We will therefore: •

transfer free of charge about 80,000 to 125,000 hectares of nationally representative nature conservation areas in federal possession (including the "green belt") to a federal foundation (preferably the DBU - German Federal Foundation for the Environment) or to the Lander; an immediate freeze on sales will be prescribed to secure the natural heritage in the short term.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement •

• • •

•

95

strive for a reduction in the spread of land use to 30 hectares/day by 2020 in line with the National Sustainability Strategy (Nationale Nachhaltigkeitsstrategie) and develop financial incentive instruments for land resource management; improve nature conservation by introducing a national strategy and combine it with sustainable use; take a common-sense approach to the implementation of the Natura 2000 Directive in the framework of European law; ensure, where reasonable, the protection of semi-natural habitats by applying cooperative solutions, in particular contract-based nature conservation measures. Where necessary, we will apply legal measures; preserve and develop our rivers and alluvial meadows in their function as arteries of landscape and as important elements of preventive flood control.

7.5. Transport and Immission Control In order to reduce fuel consumption of vehicles and CO2 emissions of the total road traffic, we will • •

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

create effective incentives for the introduction of high-efficiency engines by linking the vehicle tax to CO2 and pollutant emissions; support the commitment of ACEA (European Automobile Manufacturers' Association) to limit the average CO2 emission of new vehicles to 140g per km by 2008. We propose that the use of biofuel can be included, up to a certain percentage, in the additional reduction to 120g CO2 per km proposed for 2012; promote the development of alternative fuels and innovative engine technologies in cooperation with industry with the objective of a move away from oil.

We want to reverse the trend regarding noise exposure of the population, especially from traffic noise. We will therefore draw up a noise reduction programme for existing federal trunk roads and railway tracks. At national level, we consider amending the Air Traffic Noise Act (Fluglarmgesetz) to be a priority.

7.6. Waste, Water The CDU, CSU and SPD will give new impetus to an environmentally friendly closed substance cycle at the European and national levels. We need a uniformly high level of environmental protection in Europe with ambitious standards for waste management in order to put an end to environmental dumping by cheap waste management. We will further develop waste management towards a sustainable and resourcesaving materials management, building on the instrument of product responsibility as regulated in the Closed Substance Cycle and Waste Management Act (Kreislaufwirtschafts- und Abfallgesetz). Municipalities will continue to be able to decide independently on the organisation of water supply as well as waste and wastewater management. We intend to maintain the tax privileges for wastewater and waste management.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

96

Coalition Agreement

The Federal Government and the Lander will implement the European Water Framework Directive in close cooperation and strive jointly for a harmonised approach at the European level. The protection of water bodies and the preservation of their ecological functions laid down in the directive have to be taken into consideration when building and maintaining federal waterways.

7.7. Sustainable Development Promoting sustainable development is our goal and the standard by which our actions will be measured, at the national, European and international levels. We will pursue and further develop the National Sustainability Strategy. We will also maintain proven institutions, such as the Committee of State Secretaries for Sustainable Development (Staatssekretarsausschuss fur Nachhaltige Entwicklung) in the Federal Chancellery, the Council for Sustainable Development (Rat fur Nachhaltige Entwicklung) and the Parliamentary Advisory Council (Parlamentarischer Beirat).

8. Agriculture

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

8.1. Promoting Rural Development and German Agriculture We want Germany's farming, forestry, fisheries and food sectors to thrive and improve their competitive standing. These sectors yield great added value, secure jobs in largely rural regions and play a vital role in securing the supply of food, raw materials and energy, in maintaining and conserving the cultural landscape, and in stabilising rural communities and economies. This vital role must be underpinned with fair and dependable governance. We will boost the competitive standing of these sectors and reduce bureaucracy. As an economic sector based on medium-sized enterprise, farming and other segments of the agricultural economy secure around four million jobs and generate some seven per cent of gross domestic product. All farming enterprises must be afforded equal market opportunities independent of their size, production profile and legal form. We reject size-based capping. In terms of reducing bureaucracy, we emphatically support the EU Commission's plans to produce an action plan for 2006 and will implement the National Action Plan for German Agriculture: Fostering Innovation and Reducing Bureaucracy. In drawing up the plan, the Federal Government will set up a working group headed by the Federal Ministry of Food, Agriculture and Consumer Protection and comprising representatives from the governing parliamentary groups in the German Bundestag and the sixteen Land governments. The Federal Government will consider the competitive standing of Germany's farming and food industries in all budgetary and taxation decisions. We will secure and enhance added value and employment in rural regions. This is best achieved with a cross-sectoral approach. The Federal Government will present a German Rural Development Strategy and make it the focus of in-depth dialogue. The "Joint Task for the Improvement of Agricultural Structures and Coastal Protection" must continue, with the ultimate aim of boosting both conventional and organic farming.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

97

In all future administration and privatisation of former state-owned land in Eastern Germany, we will consider the agricultural structures and needs of the region. We call for the telecommunications sector to step up efforts to provide a modern communications infrastructure for our rural regions.

8.2. A dependable Framework for EU Agricultural Policy The last decade has seen fundamental reforms in EU agricultural policy. The Federal Government welcomes this new approach. In the interests of German agriculture and consumer protection, we call for fair market conditions in all regions within the European Union. This includes EU-wide harmonisation, at the highest possible level, of standards for consumer and environment protection and animal welfare. The competitive standing of Germany's farming and food industries must be taken into account in all decisions made at EU level and in their national implementation. The locational advantages gained by German agriculture in process and product quality will not be compromised and must be further enhanced. For reasons of planning certainty and dependability, the Federal Government upholds the unanimous decision reached by the European heads of government and state in October 2002 on financing the first pillar of EU agricultural policy. Secondpillar financing must be adequately safeguarded and balanced development of the two pillars must be secured.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

8.3. Agricultural Trade and a Successful Outcome to WTO Negotiations We want a positive outcome from the Doha Development Rounds. With its agricultural reform in July 2003 and the July 2004 Package of Framework Agreements, the EU has performed much of the groundwork and has thus increased the chances for success. The WTO negotiations must be brought to a successful conclusion in all sectors simultaneously. Liberalisation of agricultural trade should not be the sole outcome. For farming, the aim of the negotiations is to reduce distortion of agricultural trade worldwide so as to give developing countries a larger share of the global market. In principle, this requires the abolition of all forms of export subsidies. At the same time, we intend to improve market access for developing countries' products, among other things by cutting customs duties. In the current round of WTO negotiations, we aim to create opportunities for the European agricultural model with its high farming standards. Given that in many cases compliance goes unrewarded by the markets, we call for the retention of the non-trade distorting "green box" subsidies. Adequate external protection must, however, be guaranteed. We thus intend to make Europe's high standards of animal welfare, nature conservation, environmental protection and food safety an integral component of the negotiations.

8.4. Securing the Agricultural Social Security System The independent system of agricultural social security can only be maintained and secured over time if its systems are modernised and its contributions and services made equitable, aligned with other welfare systems and gradually linked to generic social security systems.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

98

Coalition Agreement

Given the increasing structural changes in farming and, in a more general context, the planned reform of Germany's social security systems, the coalition parties have agreed the following: •

•

•

Retention of the Agricultural Social Security Reform Act (Agrarsozialreformgesetz) of 1995, which ensures that contributions paid into the Farmer's Pension Fund are based on the same ratio of contributions to benefits applied under the state pension scheme. Further development and reform of current legislation on farmers' health and accident insurance to make contribution payments both adequate and equitable throughout the farming sector. Provision of federal funding must take account of the structural conditions specific to farming. Analysis of the structural reform agreed in 2001 and modernisation of organisational structures.

8.5. Promoting Use of Renewable Resources

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

We see huge potential for the use of renewable resources in agriculture. The Renewable Energy Sources Act (EEG) along with activities in research and development and in the marketing of renewable energy sources have opened up opportunities that give farmers a range of major new perspectives. Further opportunities come in the form of feeding biogas into the energy supply grid and notably in the use of renewable resources. The Federal Government will ensure that the use of renewable resources in industrial processes, energy production and the production of goods is further exploited as a key development opportunity for agriculture in particular and thus for sustained value creation in rural areas. We will actively foster interdisciplinary research in this area.

8.6. Active Animal Welfare Policy With animal welfare enshrined as a national policy aim in the German Basic Law, we have both an obligation and a framework for engagement in proactive animal welfare policy. We will lobby at EU level for adoption of high animal welfare standards that accord with this aim and thus where possible do away with the need for supplementary regulation at national level. We aim to reduce the incidence of live animal transports, shorten journey times and improve livestock transport conditions. Development of available alternatives to animal testing must be stepped up at both national and European level. We thus advocate alternative methods to ensure that animal testing is no longer a necessary component of substance risk assessment. Using a practice-focused testing and approval process for mass-produced housing facilities for humane livestock husbandry, we will effect fundamental and lasting improvements in husbandry conditions. We uphold the ban on keeping laying hens in battery cages and will allow animal keepers to adopt other forms of humane husbandry alongside floor housing and freerange production. Due consideration will be given to the findings of the report on the impact on animal welfare

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

99

of current housing and husbandry systems to be published by the EU Commission at the beginning of 2006. The Federal Government will present a draft pig husbandry ordinance in the near future in compliance with the pertinent Bundesrat resolution.

8.7. Sustainable Forestries and Fisheries The Federal Forest Act (Bundeswaldgesetz) has proven effective overall. The Act's provisions on sustainable forest management will, however, be revised for greater clarity and measures will be taken to overcome the structural disadvantages faced by non-state forestries. The Wood Charter will be implemented. The Federal Government welcomes certification of sustainably managed forests and will continue to use wood procured solely from certified stocks. Both the Federal Forest Act and the Federal Hunting Act (Bundesjagdgesetz) are to remain a federal responsibility. The Federal Government sees a need for further development in fisheries as a growth sector. In the ongoing development of European Fisheries Policy, the Federal Government will strive to subject natural fish stocks management to the principle of sustainability and in particular to subject industrial fisheries to stronger regulation that is subordinate to management strategies applicable to all other fisheries, and will promote further development of catch technologies towards maximum selectivity. We will work to ensure that the ban on commercial whaling is upheld.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

8.8. Connecting Agricultural Research German agriculture relies on home-grown agricultural research that produces effective results. We will thus work with the research community and the Lander to develop and implement an overall plan to secure agricultural, food and consumer esearch over time, to adapt available resources to meet the challenges ahead, and to make them more efficient and better connected.

8.9. Responsible Use of Green Genetic Engineering Biotechnology is a key future sector in research and industry and is already established worldwide. Protecting people and the environment, as called for by the precautionary principle, remains the primary objective of German genetic engineering legislation. Freedom of choice for farmers and consumers and the coexistence of differing management practices must be safeguarded. Genetic engineering law will provide the framework for further development and use of biotechnology in all areas of everyday life and industry. We will implement the EU Deliberate Release Directive in a timely manner and will amend Germany's Genetic Engineering Act (Gentechnikgesetz). The legislation will be structured in such a way as to promote research into and use of genetic engineering in Germany. In doing so, it is vital that legal definitions (particularly release and placing on the market) be clearly worded. The Federal Government will strive to ensure that the industrial sectors involved establish a compensation fund to cover any loss or damage that may arise

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

100

Coalition Agreement

despite their compliance with all precautionary obligations and best practices. The longerterm goal is an insurance based solution.

9. Better Regulation

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

9.1. Reducing the Costs of Regulation for the Public and for Industry The desire to ease the burden on individuals, businesses and the administration alike of the strains caused by overregulation and the attendant burdens of regulatory requirements and costs is an important concern of the coalition. To this end, the new Federal Government will introduce the Small Company Act as an immediate measure to amend current legislation. This Act will free companies from excessive regulation which is especially growth-inhibiting and will afford SMEs, and start-ups in particular, more breathing space. The most pressing issues here include reducing obligations with regard to statistics, certification, documentation and accounting; simplifying and accelerating planning and approval procedures; reducing double and multi-audits; harmonising thresholds such as those in tax and accounting rules; limiting the obligation of businesses to appoint officers for certain areas; simplifying the requirements on small businesses as regards company medical service and security; and easing the regulatory requirements in existing support programmes. The past has shown that any attempt at regulatory reform by abolishing individual legislative provisions alone is not enough to eliminate red tape and ease the resulting financial burdens on SMEs in particular. In this, the fact that no method has as yet been adopted in Germany by which present costs of regulation can be measured reliably and the impact of any new regulation assessed with certainty has proven to be a significant obstacle. However, experiences in other countries, particularly in the Netherlands, have shown that such an assessment is possible. Only once this information is in place can the reduction in the costs of regulation be measured. The Federal Government will implement the recommendations of the European Union and of the OECD, and introduce without delay the Standard Cost Model, which has enabled many European countries to provide an objective analysis of the effect of regulation on business. The Federal Government will then arrange for such an impact assessment of existing federal laws to be carried out. Once the results have been obtained, the Federal Government will define a specific goal in terms of reducing regulatory costs by the end of the electoral term. This process will be accompanied by the appointment of the Council for the Review of Legal Norms (Normenkontroll-Rat), a panel of independent experts advising the Federal Chancellery and tasked, inter alia, with assessing legislative proposals of the Federal Government and the coalition parliamentary groups in terms of their necessity and with respect to the related cost. In addition, the Council has the right to single out laws which, in its view, are superfluous or run contrary to other principles of good regulation, and to submit a reasoned opinion on the issue to the Cabinet. The chair of the Council may present this body's views directly to the Federal Chancellor or, alternatively, to the Head of the Federal Chancellery. In line with the recommendations of the European Commission's "Mandelkern Report", the Federal Government will monitor legislation at the European level from the earliest stages

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

101

of its preparation with the same attentiveness it applies to the transposition of European legislation into national law. In future, the introductory page to every bill transposing European law into national law will set out in detail the relation between the individual provisions and EU rules, and provide information on the extent to which other Member States have transposed the relevant provisions into national law.

9.2. Accelerating and Deregulating Planning Procedures We intend to facilitate and speed up the planning and construction of infrastructure. We will introduce an act to speed up planning procedures, thereby laying the foundations for streamlining, simplifying and shortening planning procedures in a uniform manner throughout the country. Our experience of speeding up planning procedures in the new Lander has been positive, and we will draw on this experience for the whole of Germany. The lessons we have learned show that simplifying planning is not detrimental to environment protection and public participation. We want to include suggestions made by the Lander.Plan approvals will be granted for 10 years, with the option of extending them once for a further five years. We want the Federal Administrative Court to be the only court that hears appeals against priority federal projects, on the basis of the bill submitted by the Federal Government. The new planning legislation is due to come into force early in 2006. To ensure that this does not lead to regulatory gaps with regard to the existing legislation to speed up transport infrastructure planning procedures, the present act is to be extended until the successor act enters into force.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

II. Sustainable Fiscal Consolidation - A Tax System Fit for the Future Since the mid-1990s, the financial position of the federal, Lander, municipal and social security budgets has been persistently worsening. Public finances are now in an extremely grave state. In some budgets, current expenditure drastically exceeds regular revenues. The resulting need to consolidate is enormous and cannot be addressed over the short term. Germany needs a national effort at all levels in order to boost economic growth and to eliminate the structural shortfalls in the public budgets by way of joint consolidation efforts and structural reforms. Delaying the necessary attempts to put public finances in order will only accentuate even further the need for consolidation. One of the key challenges of fiscal and budgetary policy, not least with a view to securing intergenerational equity, is to ensure the sustainability and quality of public finances. Budgetary policy cannot operate independent of macroeconomic developments. Nevertheless, experience in other countries has shown that radical budget consolidation can help steer an economy back towards more growth, as it boosts investor and consumer confidence in the continuity of future tax, fiscal and budgetary policy.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

102

Coalition Agreement

1. Sustainable Fiscal Consolidation 1.1. Current Situation The general government deficit in 2005 equals 4% of gross domestic product. The structural gap in the federal budget between current expenditure and current revenue means that €35 billion will have to be saved each year in order to comply with Article 115 of the Basic Law and with the deficit criterion of the European Stability and Growth Pact. The situation is grave, and the pressure to consolidate high if we are to leave the coming generations with sustainable public finances. For decades now, the illusion has been created that government can meet all new and ever-broader expectations. The dynamics of expanding government competences and spending have set in motion a debt spiral which must now be halted. For this reason, we are embarking on a new structural beginning in budgetary and fiscal policy.

1.2. Consolidation Objectives Given the highly unfavourable starting point, it will be impossible - however courageous consolidation efforts may be - to remain within the limits set out in Article 115 of the Basic Law or to comply with the Maastricht criteria in the coming year without simultaneously endangering economic recovery. From 2007, we will meet the following targets: Not only in preparing, but also in executing the federal budget, we will bring net borrowing below the limit set out in Article 115 of the Basic Law.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

•

•

The rules of the European Stability and Growth Pact will be adhered to, and the resulting consolidation effects on public finances respected. This means, first of all, adherence to the Pact's three per cent deficit limit in 2007, at the latest. Secondly, we will continue our consolidation course in the subsequent years, and we expect similar efforts over the medium term from the Lander, the municipalities and the social insurance funds, with a view to securing a balanced budget. In light of their shared responsibility for the escalating government debt, the Federation, the Lander and the municipalities have a duty to contribute to efforts to adhere once again to the European Stability and Growth Pact. We will agree the necessary savings and consolidation steps to be taken at each level of government within a pact to be concluded with the Lander.

1.3. Basic Consolidation Principles In order to reach the targets we have set, the following basic consolidation principles will guide us throughout the electoral term: Our budgetary policy will consistently reflect a desire to economise. As a result, we will not be able to go on as before. Every area of expenditure is under review. All new projects with fiscal consequences, and burdens on the revenue and expenditure side, will be assessed in terms of their necessity and affordability, and will, as a matter of principle, be offset by

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

103

redefining priorities for the respective policy area. All measures contained in this coalition agreement are conditional upon the availability of funds. The general principle applies that revenue and expenditure in the federal budget and the other public funds, including the social insurance funds, will be budgeted prudently on the basis of conservatively-estimated macroeconomic indicators. In consolidating the budget, the expenditure side will first be looked at to assess all costsaving possibilities. The next step will be to increase revenue by eliminating tax planning possibilities, reducing tax privileges and, where necessary, raising taxes.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1.4. Consolidation Measures The promotion of economic growth goes hand-in-hand with a resolute consolidation of public budgets. Indeed, the weak growth of recent years has clearly illustrated the financial problems low economic growth can cause both public budgets and social security systems. Conversely, higher growth and lower unemployment play a crucial role in reducing government debt and in ensuring the sustainability of the social security systems. • With a view to bolstering innovation, investment, growth, employment and consumer confidence, we intend to lend a specific impetus worth some 25 billion euros to five central areas over the coming electoral term. Approximately half of the extra spending will be financed by a Fund for the Future, which will draw on the mobilisation of federally-owned assets. In addition, we intend to boost employment by reducing non-wage labour costs on a sustainable basis to below 40%. To this end, we will reduce the contribution rate to unemployment insurance by two percentage points. • We will dedicate an extra 6 billion euros towards the promotion of innovative sectors, such as biotechnology, genetic engineering, information and communication technology, nanotechnology and microsystems engineering, optical technologies, energy technologies, and environmental and space technology. We will strengthen the international competitiveness of German research with the Initiative for Excellence to enhance academic research and with the Pact for Research and Innovation. We plan to increase spending on research and development to at least 3% of GDP by 2010. Much effort will be needed from the Federation, the Lander and the private sector if this target is to be reached. • As part of a far-reaching reform of corporate taxation, we will reintroduce up to 31 December 2007 the more favourable, pre-2000 depreciation rules in order to lend an immediate impetus to investment. Together with the other actors concerned, we will substantially increase the funds available for the CO2 Building Modernisation Programme to boost the construction and trades sector while simultaneously helping to protect the environment. In addition, we will continue the investment grants in the new Lander, directing them towards projects which foster growth and create jobs. In the new Lander, the practice of imposing VAT liability from the point at which an invoiced amount is received rather than at the point of issue of the invoice will be extended beyond 2006. In the old Lander, the turnover ceiling for such VAT liability will be doubled from 125,000 to 250,000 euros as of 2006. The measures aimed at bolstering economic activity amount in total to 6.5 billion euros.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

104

Coalition Agreement •

•

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

Investment in transport infrastructure will be increased markedly and will be maintained at a high level. The investment volume will rise in the coming electoral term by 4.3 billion euros. This will help to make the transport network more efficient, to be expanded as needs dictate and to be designed to meet the requirements of the future. A basis will thus be created for Germany to secure and extend its position as one of the leading industrial nations. Germany needs more children. The welfare of families and children and the goal of enabling more people to fulfil their desire for children are the most important societal concerns in the coming years for the Federal Government. Thus, we will introduce from 2007 a parental allowance package worth 3 billion euros, under which parents of newborns will receive income-related support payments. One parent will receive, for a period of one year, an amount equal to 67% of the last net income, up to a monthly ceiling of 1,800 euros. The needs of low-wage families will be accounted for by way of a guaranteed minimum amount, thus ensuring social equity. The parental allowance, together with improved childcare, will allow current and future parents to fulfil their desires for a family, and thus make an important contribution towards solving the urgent societal, economic and social problems we are facing. Private households are becoming an ever more important area for new employment opportunities. To this end, we plan as early as next year to provide tax incentives of 5 billion euros for household-related services, private expenditure on maintenance and renovation in the household, and childcare costs. This will create added incentives to generate employment liable to social security contributions. It is not only families, but also the crafts and trades sector as well as service providers who will especially benefit from these two measures.

The state will not be able to provide all the services that would be desirable in the future. Each person will have to bear more individual responsibility. We will shape this change in a socially balanced manner. We need a fresh start in budgetary policy to bolster the confidence of citizens and businesses alike, and thus to promote economic growth. The required consolidation of 35 billion euros by 2007 will be ensured largely by way of a budget support law. This law will be initiated in tandem with the deliberations on the 2006 federal budget. The goal is also to afford relief to Land and municipal budgets where these are burdened by federal regulations (e.g. standards, overregulation, etc.). The largest part of federal spending is determined by substantial legal requirements. As a result, consolidation must address expenditure and revenue. To this end, we will focus on the following: •

•

The Federal Administration will, in a spirit of solidarity and as far as possible, make a contribution to these efforts. The total expenditure of 15 billion euros in this field will be reduced by 1 billion euros yearly. Targeted cuts of individual subsidies, which will grow from approx. 1 billion euros in 2007 to some 1.4 billion euros in 2009, are overdue. To this end, corrections to the subsidies for local and regional passenger rail services, to the Joint Lander / Federal Government Scheme for "Regional Economic Support", and in the agricultural sector will have to be made.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement •

•

•

•

•

•

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

105

We stand by the merging of unemployment assistance and social assistance for those capable of gainful employment, as well as by the principle of "support and challenge". Nevertheless, the basic income for jobseekers must be adjusted. Spending in this area has skyrocketed this year. We will adjust the benefit system, allowing us to save roughly 3 billion euros in 2006 and approximately 4 billion euros in each of the years thereafter. Transfers from the federal budget to the statutory health insurance schemes will be gradually reduced to zero. Transfers to the Federal Employment Agency are not budgeted. The trend of ever-rising transfers from the federal budget to the statutory pension insurance schemes will be stopped. In reducing the extent of tax breaks, we are simplifying German tax law and broadening the tax base. This will lead to relief at the federal level in 2007 amounting to 4 billion euros, a figure which is set to grow in the subsequent years. In order to allow the nascent recovery sufficient time to take root, we will wait until 2007 before raising the VAT rate by 3 percentage points to 19%. Of this, one percentage point will be available to the Federation to lower non-wage labour costs. The lower VAT rate of 7% will remain with a view to maintaining social equity. The CDU, CSU and SPD agree that, as part of the necessary consolidation efforts, personal income tax for very high earners (above 250,000/500,000 for married couples) should be raised from 1 January 2007. Thus, the tax rate for income above these thresholds will rise to 45%. Once the corporate tax reform has come into effect on 1 January 2008, this tax rate will apply only to non-commercial income. For the period from 1 January 2007 to the coming into effect of the reform, transitional provisions will be introduced into current tax law to exempt commercial earnings from this rule.

The success of our consolidation efforts will be measured using the yardstick of the sustainability of public finances, not least with a view to ensuring intergenerational equity. In this context, one of our main tasks will be to comprehensively inform the public about the future burdens imposed by an ageing society, while at the same time indicating the policies to address these changes. Consequently, the Federal Ministry of Finance will again be requested to produce a "Report on the sustainability of public finances" during the coming electoral term.

2. Making the Tax System Fit for the Future The Federal Government will continue its reform of tax law with a view to simplifying German taxation provisions and rendering them internationally competitive. Given the pressures exerted by international competition, the main priority will be to reform the laws governing corporate taxation. It is only by continuing to improve corporate taxation that we will be able to secure the tax base in Germany, create incentives for investment, and thus generate new jobs and boost economic growth. In addition, we must also thoroughly modernise German tax law, stabilise municipal finances and step up our efforts to combat the

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

106

Coalition Agreement

abuse of tax rules. In view of the current pressures to consolidate in all of the public budgets, it is unlikely that any net relief can be attained.

2.1. Reform of Corporate Taxation Germany must continue in the future to be able to hold its own in international tax competition. During this electoral term, we will therefore introduce, as of 1 January 2008, farreaching changes to our corporate tax system and set internationally competitive rates of tax. In addition to incorporated enterprises, this reform must include unincorporated companies, as more than 80% of German companies assume this legal form. In doing so, we will be guided by the following objectives in particular: •

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

• • • •

To improve Germany's international competitiveness and ensure the compatibility of the measures taken with European legislation To keep the reforms largely neutral in terms of legal form and financing To limit the opportunities for tax planning To improve predictability for companies and public budgets To secure the German tax base on a durable basis

We will reach a definitive decision with regard to uniform or dual income taxation. Within this electoral term, we will introduce new rules on the taxation of investment income and private capital gains. A further essential component of the comprehensive reform of corporate taxation will address the issue of determining profit for tax purposes. We will participate actively in the work being undertaken at the EU level to create a common consolidated corporate tax base in order to develop modern and competitive laws governing tax accounting. We will work at the European level towards more effective rules against unfair tax competition. In order to promote small and medium-sized enterprises, we will, in the new Lander, extend beyond 2006 the rule allowing VAT to be paid upon receipt of invoiced amounts, and double the turnover ceiling for companies in the old Lander. In the run-up to an extensive reform of corporate taxation, we will improve the conditions for depreciation for a limited period of time, i.e. until 31 December 2007. This is intended to halt the erosion of the tax base and create incentives for innovative, high-technology investments, which stimulate economic growth.

2.2. Sound Basis for Municipal Finances Municipal finances must remain on a sound basis in the future. Any amendments to trade tax rules will be decided in tandem with the reform of corporate taxation. Our goal is a system of municipal taxation of businesses which is based on economic performance and for which the municipalities may impose a tax multiplier, which is easy to administer, secures a steady stream of revenue for all the municipalities, ensures equity between the municipalities, and does not allow the burden of financing to be shifted to those in employment. We will replace trade tax only if we can assess reliably the distributive consequences of any alternative.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

107

Based on the work already carried out in Bavaria and Rhineland-Palatinate, we will introduce new rules to simplify the taxation of real property.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

2.3. Income Tax Reform - Main Priority to Simplify Taxation Taxation based on economic means will remain the prevailing principle of income tax legislation in Germany. This ensures the equitable and fair taxation of every citizen. We will therefore continue to endorse the linear progressive taxation of income. In this, we agree to simplify income tax legislation in order to create more transparency, efficiency and equity. By simplifying the system, we help make the execution of tax laws easier for citizens, businesses and the administration. Beginning on 1 January 2006, there will thus be fewer exemptions allowed, and classification and standard deductions will enable us to cut red tape and modernise the entire taxation process. With citizens taking on more individual responsibility, we intend to make the provisions governing donations simpler, more concise and more workable. These measures must reflect a social balance in their realisation. Bonuses paid for working on Sundays, public holidays and nightshifts will remain exempt from taxation. The exemption of the bonuses from social security contributions will be limited to basic hourly wages of up to 25 euros. In the interests of promoting growth and employment, we intend to provide more tax incentives for household-related services, private expenditure on maintenance and renovation in the household, and childcare costs. We will limit the deduction to labour costs and thus ensure that the provision is even more focused on the promotion of labour-intensive services and the fight against illegal work. Existing sources of taxation have to be better exploited and tax provisions implemented rigorously. Together with the Lander, we will work towards the more effective and efficient execution of tax laws in the interests of further optimising tax collection with a view to exhausting available tax sources in a less cost- and resource-intensive manner. At the European level, we will seek to close remaining loopholes in how interest income is recorded pursuant to the EU Savings Directive. As a means of reducing the time and effort involved in declaring and assessing taxes, the Federation in tandem with the Lander will substantially extend the scope of the electronic transfer and processing of data. The goal is to make the submission of tax returns by employees wholly unnecessary (pre-prepared tax declarations). Parallel to the structural reform of corporate taxation planned for 2008, we intend to redraft income tax legislation. With a view to ensuring an equitable distribution of the wages tax burden between spouses, and in particular in the interests of eliminating disadvantages for women (re)entering employment, we will modify the tax system to better reflect more flexibility in labour market participation. We will abandon the current system of tax classes reflecting filing status and, instead, introduce a system under which each spouse will pay wages tax corresponding to his or her share in the joint gross wage. In addition to its merits in terms of family and equal opportunities policy, this method of proportioning taxes represents a considerable simplification for married employees, who will now no longer have to opt for a specific filing status. It is also compatible with the new electronic procedure for taxing wages. There will no longer be a need for mandatory

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

108

Coalition Agreement

assessments. The state will now be able to collect taxes earlier than heretofore. The resulting improved liquidity from tax revenue will have a positive effect on the budget.

2.4. Owner-Occupied Homes Premium The owner-occupied homes premium will be abolished as of 1 January 2006. Home ownership enjoys a particularly high level of acceptance among citizens as part of 67 private provisions made for retirement. In acknowledgement of this, we will create the conditions from 1 January 2007 for home ownership, where the owner is occupant, to be better integrated into state-assisted schemes promoting old-age provision. The discrimination compared to other forms of old-age provision will be eliminated in the interests of providing citizens with true freedom of choice.

2.5. Inheritance Tax Each year, the control of numerous companies is passed from one generation to the next. Against this background, we intend to introduce reforms to inheritance tax not later than 1 January 2007, subject to the pending decision of the Federal Constitutional Court. With a view to protecting jobs, the inheritance tax payable upon transfer of company ownership will be reduced for each year that the company continues in operation. The tax will not be payable at all where the company is kept in operation for at least 10 years following transfer of ownership.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

2.6. Promotion of the German Film Industry We wish to improve the framework conditions for the German film industry in order to ensure its international competitiveness. We will create, at the latest by 1 July 2006, internationally competitive conditions and incentives, comparable with those in other EU Member States, to attract more private capital to film production in Germany.

2.7. Fighting VAT Fraud We will step up our efforts in the fight against VAT fraud. All administrative possibilities must be exploited if we are to root out this widespread abuse. To this end, we will make use of the possibility accorded by the Commission on Federalism to the Federation of coordinating the audit services and combating tax crime. We will also examine the extent to which the prosecution authorities must be afforded further instruments to identify VAT fraud more effectively. The current system of allowing input tax deduction on transactions between enterprises will be replaced by the reverse-charge mechanism in order to prevent national and international tax fraud and to reduce revenue losses when a company becomes insolvent. At the European level, we intend to work towards the creation of the legal conditions to support this change of system.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

109

2.8. Tax Policy in Europe We will not delay in reviewing and modifying any provisions which might not be compatible with European law with a view to avoiding legal uncertainty when investing in Germany. We will actively participate in drawing up common tax solutions which are effective across national borders for the Member States of the European Union, as well as within the OECD. We thus intend to continue to work closely with the Commission and the other Member States of the Union. In doing so, we will set particular store by fair tax competition and the adherence to fair taxation practices. In view of the increasing importance of the European Court of Justice in tax matters, we will, where necessary, defend the standards of German tax law in order to safeguard the principles of international tax law achieved to date, and thus to avoid grave financial consequences to our national budgets.

2.9. Energy Taxation Given its location at the heart of the European single market, Germany has a major interest in driving forward the harmonisation of energy taxation within the EU. In this, we will work towards simple and transparent rules. Due to the high energy price levels, it is important not to impair the international competitiveness of energyintensive sectors of the economy.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

3. Financial Markets One of the most important conditions for higher growth and employment is the international competitiveness of Germany as a financial centre. This forms the basis for efficient financial services for consumers as well as for an adequate and costeffective supply of capital for industry. The German financial market has enormous potential, and this potential will be further enhanced in the coming electoral term, while continuing to follow the constant evolution of global financial markets. To this end, we want: •

•

To further improve the financing environment for small and medium-sized enterprises. As such, the promotion of SMEs must be further developed. The need to be able to raise capital in the financial markets has increased for many SMEs. We will seek to promote the level of awareness and the availability of such alternatives to the traditional bank loans. In addition, we will assess the feasibility of establishing a fund for German SMEs (Deutscher Mittelstandsfonds). To push the integration of the European single market for financial services to the benefit of all market participants, both consumers and enterprises. A cost-benefit analysis is to be carried out for each legislative proposal in order to determine whether the new measure will create added value, whether it is better to let the market take care of itself, or whether the subsidiarity principle applies. Directives will be transposed into national law on a one-to-one basis, any room for manoeuvre in formulating national law will be used to foster competitiveness. This principle also applies with respect to the implementation of the new European capital adequacy

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

110

Coalition Agreement

•

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

•

• •

rules (Basel II). For consumers, the better integration of retail markets and payments flows are of utmost importance; we intend to actively support both within the European context. To provide explicit support to product innovation and new channels of distribution. To this end, we will seek to create the framework conditions for new asset classes in Germany. This includes: - introducing Real Estate Investment Trusts (Reits) provided that taxation is ensured at investor level and that they will have positive effects on the real estate market and local conditions, - expanding the securitisation market, - enhancing the investment opportunities for public-private partnerships, - revising the rules for private equity by means of evolving the current Act on equity investment companies (Unternehmensbeteiligungsgesetz) into a private equity law. A supervisory body for financial markets which, in ensuring the primary goal of financial market stability, applies the current standards fairly and in the same manner in which they are applied in the other EU Member States. The results are to be evaluated in light of the experiences made since the creation of the Federal Financial Supervisory Authority (BaFin) as an integrated supervisory body, and the workflows and organisational structures are to be modified where necessary. The legal and technical supervision of BaFin by the Federal Ministry of Finance is to be strengthened. Stock market supervision will be reformed in agreement with the Lander in the interests of integrated supervision. The integration of national financial supervisory bodies within the European single market must be driven forward, taking national market structures into account. At the international level, the Federal Government will work towards the requisite supervision and transparency of hedge funds. To dismantle excessive regulation. To this end, we will establish an interministerial working group which, in consultation with market participants, will be tasked with drawing up an "Opportunities Paper" on achieving better regulation in the financial sector. Existing laws, regulations and other rules will be assessed as to whether they fulfil their objectives in a cost-effective manner or whether they are still necessary. The first opportunity to conduct such a project is afforded by the planned amendments to the Investment Act (Investmentgesetz). To design appropriate rules for investor protection with the informed citizen in mind. To apply the existing corporate governance rules and modify them in light of new requirements as a result of international developments. Both institutional and private investors have a strong interest in the fundamentals and principles according to which companies are organised and managed, in particular with regard to the benchmark of comparability. Ownership structures of companies listed on the stock exchange are to be made more transparent. The modernisation of accounting rules and the mutual recognition of German, European and American accounting standards are vital measures in strengthening Germany's position as a financial centre.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

111

III. Pressing Ahead with the Development of Eastern Germany

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1. General Principles, Consolidating and Concretising Solidarity Pact II The Federal Government will press ahead with the programme to develop Eastern Germany, thereby helping to achieve self-sustained economic growth in the new Lander. The key objective of this programme is to reduce unemployment. The Federal Government will therefore continue its promotion of investment in Eastern Germany at a high level in order to safeguard existing jobs and create new ones. In addition, special emphasis will be placed on education, training and research, in order to promote innovation and improve the competitiveness of Eastern Germany. The Federal Government's budgetary situation will not permit any additional assistance for the new Lander. However, existing assistance and assistance that has already been pledged, plus the necessary funding, are secured by Solidarity Pact II, which the new Federal Government is committed to continuing at its current level. The guiding principle behind the use of the Solidarity Pact funds is the targeted enhancement of the potential that exists in Eastern Germany, to ensure that every euro of funding produces the maximum boost to growth and employment. The coalition parties are thus committed to honouring the funding pledges made by the Federal Government within the framework of Solidarity Pact II (€105 bn in Basket I and €51 bn in Basket II for 2005 to 2019). Regarding the use of funds in Basket I, the Federal Government will reach agreement with the Lander affected on definitions and the submission of annual progress reports. It will coordinate the policy areas relevant to Basket II with the new Lander, thereby meeting their need for a sound planning basis. It will report annually on the use of the funds, with the first report, covering 2005, to be presented in 2006.

2. Making Eastern Germany a More Attractive Place for Business and Enhancing the Environment for Innovation 2.1. Evolving the Policy to Promote Economic Development The Federal Government, in consultation with the new Lander and industry stakeholders, will evolve its strategy for promoting economic development in Eastern Germany with the objective of placing the economy in Eastern Germany on a broad, sustainable basis and facilitating self-sustained development. However, the individual Lander will continue to be responsible for determining the regional or sectoral focus of their policies to promote economic development. A nuanced strategy will be adopted to dovetail support measures from different policy areas (promotion of innovation and investment, labour market and infrastructure policy). The aim is to raise the economic profiles of the new Lander, which offer advantages in the national and international competition for investors. The policy to promote economic development, especially cooperation in the field of research and development, is being coordinated in an intensive dialogue between the Federal

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

112

Coalition Agreement

Government and the new Lander. Industry conferences will be held to support the creation of networks and clusters. With due regard to the objectives of Solidarity Pact II, the Federal Government will progressively evolve its policy to promote economic development into a system that is tailored to the individual Lander and based on indicators (e.g. unemployment rate, income index, taxable capacity, GDP). The Lander should be put in a position where they are able to use their own instruments and funds to redress regional imbalances. This will not affect the possibilities, especially the promotion of investment, that result from the EU funding criteria for Objective 1 regions.

2.2. Extending the Investment Allowance The coalition is committed to continuing the investment allowance scheme and focusing it on investment that is relevant to growth and that will create jobs. To ensure that a gap in funding does not arise, the Federal Government is seeking to draft a bill, coordinated with the Lander and the EU, by the end of March 2006.

2.3. Continuing the Joint Scheme for the Improvement of Regional Economic Structures

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

The Joint Scheme for the improvement of regional economic structures will be retained. Both current and medium-term financial planning envisage continuing it at the same level. Making the programme flexible, for instance to promote cluster management and the commercialisation of innovative products, will be a major element of the evolved strategy. The Federal Government will discuss an extension of the co-financing options with the new Lander.

2.4. Promoting Small and Medium-Sized Enterprises and Business Start-Ups To meet the needs of the economy and the changes that are taking place, the promotion of small and medium-sized enterprises and business start-ups has to be evolved flexibly and with funding preferences for the new Lander, in order to facilitate the growth of SMEs and increase their chances of survival. The Federal Government will develop, by mid-2006, proposals for facilitating the formation of equity capital, improving the supply of credit and ensuring a sufficiently wide range of venture capital. The funding instruments of the Kreditanstalt fur Wiederaufbau (KfW) will be evolved to reflect this.

2.5. Promoting Science and Innovation Enhancing the innovative potential is the key to the economic development of Eastern Germany. So far, however, industrial research in the private sector has been significantly underdeveloped. The objectives of the Federal Government's efforts to promote innovation in the new Lander are thus primarily to step up industrial research activities, to forge links between the scientific community and businesses and to promote innovative enterprises, business start-ups and improved access to the capital market. Top priority will be given to developing the research-intensive high tech locations. To ensure that this remains the case,

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

113

the Federal Government's funding programmes have to be stabilised and continued at a high level. To unlock the innovative potential, the coalition will develop funding strategies that make it possible to integrate the assistance provided to enterprises and research institutes.

2.6. Developing Higher Education and Research Great importance is attached to the further development of the higher education sector and the research community. When new national research centres are established, the new Lander are to receive their fair share. To enhance the attractiveness of Eastern Germany as a base for academic, scientific and research activity, we will continue to shoulder joint responsibility for the construction of institutions of higher education, which has a supraregional impact, and for the promotion of research in the new Lander. 2.7. Sustaining Efforts to Attract Investors The special efforts to attract foreign investors to Eastern Germany will be continued and stepped up.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

3.Safeguarding EU Support for the Development of Eastern Germany In the negotiations on the 2007-2013 financial framework, the Federal Government will champion the particular interests of the new Lander. Assistance from the EU's structural funds should therefore continue to be focused mainly on the regions eligible for the highest rates of aid (previously Objective 1 regions). The Federal Government will use its best endeavours to ensure that the state aid regime for regions eligible for the highest rates of aid continues to apply to all regions of Eastern Germany that are currently Objective 1 regions. It will continue to do all it can to ensure that the structural funds' current percentage share of the EU's total budget is retained. The new regime governing Objective 2 assistance must not disadvantage the regions affected. The Federal Government will seek to ensure that the new Lander can choose the proportions between the structural funds in line with the priorities of their development strategies. New approaches to co-financing using European and national funds will be considered, especially the option of federal funds being matched fully by the European funds to which an individual Land is entitled, if EU regulations allow this. Finally, the Federal Government will seek to ensure that due consideration is given to the special problems faced by the Lander bordering the new accession countries.

4. The Labour Market and the Development of Eastern Germany Given the high level of unemployment, the use of labour market instruments in Eastern Germany continues to be indispensable. The focus is on employment, training and skills schemes to enable people to reintegrate into working life or to ensure that they remain

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

114

Coalition Agreement

employable. The coalition parties believe that direct wage subsidies for unskilled work in the new Lander could be the right approach if they help to reduce unemployment among lowskilled workers. A review is being conducted and proposals on concrete implementation of this scheme will be made in the first half of 2006. Notwithstanding this, a decision will be taken on the necessary changes to the labour market instruments at an early stage, following a thorough analysis of the results of the evaluation. In addition, care must be taken to ensure that the labour market measures do not harm businesses in the region. When the labour market reforms are implemented, special attention must be given to the specific problems of Eastern Germany as a less favoured region: •

•

As long as unemployment in Eastern Germany remains disproportionately high, the percentage of federal funds used to get the unemployed back to work (reintegration budget in Book II of the Social Code) must also be disproportionate. The current percentage is to be maintained. Measures by the Federal Employment Agency to enhance the employment opportunities for all recipients of "unemployment benefit I" (i.e. those out of work for less than 12 months) will continue to be necessary at a high level in the years ahead. Here, too, the share of the Eastern German Lander must be disproportionately high.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

The labour market reforms are to be evolved wherever possible, as provided for in the draft of the Fifth Act amending Book III of the Social Code and other acts. Among other things, extending the temporary labour policy instruments in Book III of the Social Code to the end of 2007 is of particular importance.

5. Youth Training and Employment For young people, in particular, training and work means participation in society. Further initiatives have to be taken to provide young people in Eastern Germany with work or training, not just from a social point of view, but also for economic reasons: • • •

When the labour market reforms are implemented, young people should be taken into consideration as a separate target group. As efforts continue to combine unemployment assistance and social assistance, youth welfare services have to be better dovetailed with labour market policies. The Vocational Training Pact with industry will be implemented. The programme of the Federal Government and the Lander for training opportunities in Eastern Germany will continue to be an indispensable part of the Vocational Training Pact.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

115

6. Demographic Change / Health / Rural Areas 6.1. Demographic Change and Civil Society The Federal Government will support the regions of Eastern Germany in actively shaping demographic change. The spectrum will range from assistance to young people and families to innovative strategies of adaptation in the provision of public services. To this end, the Federal Government is promoting pilot projects in the new Lander to reverse the exodus of young people and encourage them to return to their home regions. A package of appropriate measures is to be developed from these pilot projects. The Federal Government believes that social factors can play an important role in preventing young people moving away from the regions. One priority will be the promotion of education, starting with pre-school children. The solutions developed in Eastern Germany will serve as examples of best practice for a modern and familyfriendly Germany. The Federal Government will continue to evolve initiatives that have already been launched to promote tolerance and moral courage.

6.2. Ensuring Adequate Health care Provision Because of the rapid pace of demographic change in the new Lander, they are increasingly experiencing problems in the supply of medical care, especially in rural areas. This situation calls for a response: •

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

The continuing expansion of integrated care and medical care centres is to be promoted. Appropriate measures will be taken to ensure there are an adequate number of family practitioners.

Measures to compensate for the different risk structure of the statutory health insurers in the old and new Lander are to be consolidated and evolved.

6.3. Rural Areas in the New Lander The potential inherent in the rural regions of Eastern Germany has to be enhanced. The competitiveness of enterprises is to be preserved and developed. To this end, the Joint Task for the Improvement of Agricultural Structures and Coastal Protection will be continued at the current level with the objective of making the schemes to promote businesses and infrastructure in rural areas more flexible. Integrated rural development will also be enhanced within the framework of this joint scheme. Significant scope for developing the rural areas in the new Lander lies in making even more extensive use of renewable resources for the production of energy and materials. The German Biomass Research Centre will be established in Eastern Germany.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

116

Coalition Agreement

7. Culture Funding The Federal Government's activities to fund culture in the new Lander will be continued.

8. Upgrading the Infrastructure - Urban Restructuring, German Unity Transport Projects and BBI We intend to bring the German Unity Transport Projects to a conclusion as quickly as possible and close the remaining infrastructure gap that is a result of the division of Germany by means of disproportionate investment in the new Lander. The construction of BerlinBrandenburg International Airport (BBI) and linking it to the road and rail networks is a project of nationwide importance. We will press ahead with implementing the projects of the trans-European transport network, and will champion in particular projects that have to be given priority as a result of the enlargement of the EU to the East. To help towns and cities as well as the housing industry and public utilities in the new Lander to reduce the number of vacant dwellings and to adapt the technical and social infrastructure, we will continue our programme of urban restructuring in the new Lander at a higher level beyond 2009 by combining existing programmes.

9. Sports Funding

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

The coalition parties will continue the special funding programme known as the "Golden Plan for the East" to promote the construction of sports facilities in Eastern Germany.

10. Siting New Federal Agencies When new federal agencies are established, they are to be located in the new Lander. The decisions taken by the independent Commission on Federalism will continue to apply. The Federal Government Commissioner for the New Lander is to be involved at an early stage in any decision on where to locate new federal agencies.

11. Support for Victims of the SED Dictatorship We intend to take appropriate measures to improve the situation of those who suffered under the SED dictatorship. Possible action includes increasing funding for the Political Prisoners Foundation, introducing a victims' pension scheme or establishing an effective procedure for the recognition of health problems resulting from persecution. The Foundation for the Study of the SED Dictatorship and the Federal Commissioner for the Files of the State Security Service of the former German Democratic Republic will be supported by the adoption of an overall approach.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

117

12. Limiting the Burden Imposed by Special and Supplementary Pensions of the Former GDR The Federal Government will seek ways of limiting the burden imposed on the new Lander by the special and supplementary pension schemes of the former GDR.

13. Speeding up Planning Procedures and Cutting Red Tape There are to be tangible improvements to the framework for investment in Eastern Germany. The suggestions made by regions of Eastern Germany in the federal competition entitled "Regions of Innovation" on how to simplify procedures are thus to be promptly translated into federal legislation. Federal legislators will allow the new Lander to flesh out federal legislation themselves for a certain time, so that they can better address existing structural problems. To this end, less favoured Lander, which include those of Eastern Germany in particular, will be given the opportunity to derogate from federal law for a limited period. To ensure that this does not lead to a regulatory gap with regard to the forthcoming legislation to speed up transport infrastructure planning procedures, the present act is to be extended until a successor act enters into force. The Federal Government will do everything it can to ensure that EU legislation does not excessively hamper economic development in the priority assisted areas.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

IV. Making Social Security Reliable and Fair

1. Pensions Statutory pension insurance is and will remain the most important pillar of provision for retirement. It must be supplemented by occupational and private pensions to secure people's standard of living throughout old age. Rising life expectancy and the related demographic shift constitute major challenges for our system of old age security. The current employment and labour market situation is causing a substantial loss in contribution revenue for the social security systems. The pension reforms already adopted have provided the basic answers needed to ensure the financial sustainability of statutory pensions. The extra expenditure arising from longer periods of pension receipt has to be shouldered jointly, and in a well-balanced manner, by the young and the old, by pensioners as well as those paying contributions and taxes. In taking the necessary pension-policy decisions, this approach will be supplemented by the principles of demographic sustainability, intergenerational equity and opportunities for labour market participation. The financial sustainability of the statutory pension insurance system hinges decisively on a reduction of unemployment levels and the creation of new jobs liable to social security contributions. We therefore need to ensure that the contribution rate remains stable and that the legally prescribed framework in respect of the contribution rate, the income-replacement

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

118

Coalition Agreement

ratio as well as the envisaged protection levels are observed. Nevertheless, there must be no cuts in pensions. The present weak development of wages and salaries has created a situation where the attenuation factors included in the pension-adjustment formula for these purposes cannot take full effect. However, to achieve the above-mentioned objective of contribution stability, it is necessary to implement the attenuations in pension adjustments that were not realised in the past. Increasing life expectancy goes hand in hand with longer periods of pension receipt. This changes the ratio between the period of active life and the period of receiving a pension. In order to ensure long-term stabilisation and achieve the above-mentioned objectives, it is therefore necessary to raise the statutory pension age gradually in the long term, while continuing to pursue the successful measures for increasing the effective retirement age that have already been taken. At the same time, it must be ensured that, in the future too, insured persons who have completed at least 45 years of compulsory contribution payments based on periods of employment, child raising and caring for dependent family members will be able to draw their pension at age 65 without any reductions. In 2007, we will create the necessary legislative framework to raise the standard pension age to 67, starting in the year 2012. This increase in pension age will be made in steps, depending on the year of birth, and is meant to take full effect for the first age cohort by the year 2035 at the latest. Thus planning security will be ensured for both employees and business. Raising the pension age requires a sustained improvement in the employment situation of older workers. We therefore intend to improve the legal framework to facilitate a higher participation rate for older workers and to initiate further action in this area. At the beginning of the next decade, the legislature will have to decide whether the rise in the standard pension age is acceptable, in the light of the then prevailing labour market situation and the economic and social situation of older employees, and whether the statutory measures taken should be upheld. In the future, even greater emphasis will have to be placed on supplementary retirement provision if the standard of living achieved during working life is to be maintained throughout old age. For this purpose, a comprehensive set of instruments, including tax incentives and bonuses, is available. Support for families with children will be stepped up by increasing the child allowance from 185 euros to 300 euros per year for children born on 1 January 2008 or after. In 2007, we will examine how widely occupational and private retirement provision is used and how it is expected to expand further. Should we find that the incentives provided by the present instruments are not sufficient to ensure an adequate uptake of supplementary retirement provision, decisions on other suitable measures will have to be taken. We intend to make not only the social security systems, but also the retirement scheme for civil servants, secure in the long run. We will therefore be extending the measures taken in the statutory pension insurance system to the retirement scheme for civil servants in such a way that the same effect is obtained whilst respecting the differences in the systems.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

119

2. Modern Occupational Accident Insurance Globalisation and the shift from an industrial to a service society increasingly affect the statutory occupational accident insurance scheme. We will respond to the mandate given by the German Bundestag in the last electoral term and set up a working group of the Federation and the Lander to develop a concept for reform of the statutory occupational accident insurance scheme so as to make it viable for the future. The primary aims are to streamline the organisational structures, to establish efficient accident insurance funds and to draw up better-targeted legislation on benefits. A bill is to be submitted to the legislative bodies by the middle of the electoral term.

3. Social Protection for Artists The coalition partners are committed to the social insurance scheme for artists as an important instrument to promote culture and the social protection of artists. We must continue to strengthen the artists' social insurance scheme - also in dialogue with the representatives of artists, journalists and the commercial users liable to contributions. To stabilise the scheme's financing, the group of beneficiaries needs to be 79 adequately defined and it must be ensured that the obligations arising under the scheme are met.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

4. Reliable Social Assistance With the benefits it provides, in particular the subsistence allowance, integration assistance for disabled persons, nursing care assistance and basic protection in old age and in the event of reduced earning capacity, social assistance is a catch-all social safety net. Moreover, as a reference system for the benefits, providing basic security for jobseekers, it is also an indispensable pillar of Germany's welfare state. These two social assistance functions must be maintained in the long run so as to ensure that, in emergencies and in cases of need, people will continue to enjoy the necessary protection.

5. Social Participation of People with Disabilities We will continue the process of achieving disabled people's full participation in society, which was initiated as part of government policies to promote the interests of the disabled. Society has a responsibility to empower disabled people to live independent and selfdetermined lives on the basis of self-help. Together with the Lander, municipalities and disabled people's organisations, we will continue to develop the structures for the provision of integration assistance so that an efficient and well-functioning system remains in place in future. In doing so, priority will be given to out-patient over in-patient care, linkage of outand in-patient services, service delivery from one source, and the introduction of the personal budget. We intend to ensure that the benefits which are designed to promote disabled people's participation in society and working life are comprehensive and delivered on time. This requires effective cooperation between the social insurance funds.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

120

Coalition Agreement

We will adopt more intensive measures to promote the occupational integration of disabled people. We want more of them to have the opportunity to earn their living within the mainstream labour market, rather than in workshops for the disabled. To this end, we will also review the system of allowances paid to employers for hiring disabled workers in order to improve predictability in planning the permanent integration of disabled workers in new jobs. To improve training and employment opportunities for people with disabilities, we will continue the successful "Jobs Without Barriers" initiative developed in association with the social partners and disability organisations.

6. Poverty and Wealth Report We will continue to produce the Federal Government's Poverty and Wealth Report with the aim of achieving fair participation and equal opportunities and preventing and reducing poverty and social exclusion in the national and European framework. The research gaps in the reporting of poverty and wealth must be closed, especially in relation to wealth and the future income and asset situation of retired persons. We will continue the monitoring of social reforms, which was initiated in cooperation with the welfare organisations during the last electoral term.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

7. Health Germany has a modern and efficient health-care system that gives the population access to high-quality health care as well as providing work for some 4.2 million employees and self-employed persons. The health-care system is a dynamic sector of the economy with great innovative potential and plays an important economic role in enhancing Germany's standing as a business location. The system of health care, however, must undergo constant development in the face of major challenges, especially demographic change and progress in medicine and medical technology. Our aims in overseeing this development are to guarantee an efficient health service that can cope with demographic change and go on providing patients with highquality care and to ensure that the system is funded in accordance with the precepts of solidarity and the satisfaction of needs.

7.1. General Issues of Health Policy Germany as a location for health-related businesses Steps will be taken to enhance the advantages offered by Germany as a location for pharmaceutical businesses and the scope for innovation in the pharmaceuticals industry. The work of the Pharma task force, focused on objectives such as improving the marketing authorisation system in Germany, boosting clinical research and creating better conditions for biotechnology in Germany, will be continued with due regard to the interests of small and medium-sized pharmaceutical businesses. The Federal Institute for Drugs and Medical Devices (Bundesinstitut fur Arzneimittel und Medizinprodukte) will be restructured into a modern German Agency for Drugs and Medical

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

121

Devices, which will make it into an internationally competitive marketing authorisation agency. We will act quickly to introduce the necessary legislative proposal. In the context of an ageing society, a flagship project for concerted action on the treatment of dementia is a necessity. We will engage in the requisite cooperation with all the relevant parties.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Disease prevention, preventive health care and rehabilitation Prevention will become a separate pillar of the system of health care. A Preventive Health Care Act (Praventionsgesetz) is designed to improve, across the board and without unnecessary red tape, cooperation and coordination in the field of preventive care as well as enhancing the quality of the schemes provided by social insurers. To this end, initiatives will be geared to the achievement of prevention targets. The Federation and the Lander must continue to exercise their responsibilities to supplement the efforts of the social insurers. In the context of the present demographic trends, an overall care and assistance strategy is required for persons in need of long-term care, people with disabilities and the elderly. Services must be designed to counteract the effects of disabilities, chronic illnesses and invalidity. In this respect, particular importance attaches to medical rehabilitation. Accordingly, greater emphasis must be placed on the principle that prevention and rehabilitation come before long-term care. The fact that people are in need of long-term care must not result in failure to provide essential medical rehabilitation and to enable people with disabilities to participate in the life of society. We intend to fight widespread diseases such as cancer and cardiovascular disease. To this end we will optimise the present recording systems, link them together and supplement them where necessary in order to guarantee the collection of valid nationwide information. The post-marketing surveillance of medicinal products, including identification and assessment of their risks will be improved through the creation of a network of national pharmacovigilance centres. Patients' rights We will continue the efforts that have been initiated to promote patient participation with a view to developing the rights of patients to receive information and be involved in decisions concerning their treatment as well as to increasing transparency. Measures will be taken to strengthen the legal force of living wills. Biomedicine Genetic research on humans will be regulated by law in those areas where the information potential of human genetics makes it necessary to apply particularly stringent safeguards in order to protect personal privacy. This legal regulation will also serve to guarantee the quality of genetic diagnoses. Protection against infection The key role of the Robert Koch Institute in the field of health policy, particularly with regard to the increasing potential for serious threats to public health, as illustrated by the SARS outbreak and the danger of a flu pandemic, will be developed with institutional support. In view of the dramatic increase in the numbers of new HIV cases and AIDS victims worldwide, including a sharp rise in the HIV infection rate in Germany, measures to combat this disease and education campaigns must respond effectively to changes in people's

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

122

Coalition Agreement

preventive behaviour and to international developments. The anti-HIV/AIDS strategy adopted in July 2005 will be implemented by means of an action plan to be developed together with the Lander, municipalities and associations. Policy on narcotic drugs and addiction Government policy on narcotic drugs and addiction will continue to be built on the four tried and tested pillars of prevention, therapy, damage limitation and suppression. The basis for the pursuit of this policy is the Action Plan on Drugs and Addiction. The guidelines set forth in the EU Drugs Strategy (2005-2012) for the reduction of supply and demand will be systematically applied.

7.2. Health Insurance

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

7.2.1. Guaranteeing Sustainable and Fair Funding The high quality of our health-care system is internationally recognised and must be maintained for the sake of all those who depend on its efficiency. The health care system generates more employment than any other sector of the German economy, providing more than four million jobs. This is another very important political factor. Even today, high-quality medical care for everyone has its price. This price is set to increase still further as medical progress and demographic trends continue to push up costs. Our health-care system can only meet this challenge if its financial basis is strengthened by economic growth and particularly by the preservation and creation of jobs liable to social security contributions. If the health-care system is to cope with the pressure of rising costs, it will also need to be modernised. We must give the system a competitive character to increase its efficiency. The coalition also sees one of its greatest challenges in the need to safeguard the longterm viability of our system of health care by means of stable financial structures. The parties have developed different approaches, namely the solidaritybased flat-rate premium proposed by the CDU and CSU and the citizens' insurance, a compulsory basic health-insurance system proposed by the SPD, two ideas that cannot be easily reconciled with each other. We intend to seek a joint solution to this problem in the course of 2006. What is needed is an approach that firmly cements the foundations for a sustainable and efficient health-care system based on solidarity and built to cope with demographic change. In this quest, we will examine with open minds the experiences of other countries and scientific models. Competition between private health insurers and statutory health-insurance funds, besides being fair, must be designed to preserve the pluralist system and the diversity of insurance schemes. People will remain free to choose a doctor and an insurer. A growing number of people today have no insurance cover. A modern welfare state must ensure that nobody remains uninsured and that those who have lost their insurance cover are given the opportunity to return to their respective insurance schemes. In order to widen the choices available to insured persons and to intensify competition among private health insurers, accrued age-related reserves are to be transferable when individuals switch between private insurers. In addition, we will examine whether and how a transfer of accrued age-related reserves can take place in cases where insured persons switch from a private to a statutory health-insurance scheme.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

123

7.2.2. Competitiveness and Freedom of the Health-Care System The Statutory Health Insurance Modernisation Act (Gesetz zur Modernisierung der gesetzlichen Krankenversicherung), a product of cross-party consensus, has made discernible structural changes to the system of health care through the introduction of competitive incentives. The systematic pursuit of this approach must be continued. This applies to both health insurance and the provision of health services. The aims of the aforementioned Act, in particular

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

• • • •

wider choice and more decision-making rights for insured persons, intensified competition to provide the best and most cost-effective service, greater transparency regarding supply, services and charging systems, and reduction of red tape,

must be more resolutely pursued. In a competitive system of statutory healthinsurance funds, the same conditions must apply, as a matter of principle, to all participants. Scope is to be created for mergers between social-insurance funds of different types with a view to increasing the efficiency of their organisational structures. To this end, the law governing liability will have to be tightened and defined more precisely, and measures will be required to prevent insurers from securing dominant market positions. The function and organisation of the control exercised by associations and joint self-governing bodies must be redefined with a view to ensuring that decisions are taken more quickly and more transparently and that decision-making processes become more reliable. This reorganisation must be accompanied by an adjustment of the existing supervisory powers of the Federation and the Lander. If health insurance is to become more competitive, it will be absolutely imperative to simplify and further develop the risk-structure compensation scheme so that it is more precisely targeted and reflects morbidity risks more accurately. Suitable criteria for this purpose will be jointly developed, and to this end an adequate set of baseline data needs to be created. We will jointly review the proposals that have already been made on the consideration of morbidity risks.The domain of health care will be made systematically more competitive through the creation of more flexible framework conditions. Health-insurance funds and health-care providers will be given more scope to negotiate on the extent, price and quality of services, but this flexibility will not erode the service mandate of the Panel Doctors' Associations. 7.2.3. Structural Reform of the Individual Service Categories Medical care Not only in rural areas of the new Lander is it foreseeable that the shortage of doctors may result in logjams in the provision of out-patient care. For this reason, the obstacles to nationwide medical care must be removed as quickly as possible. Appropriate ways to liberalise the activity of panel doctors include measures facilitating the employment of panel doctors and the engagement of associates by the latter, greater flexibility for the Lander to plan for future needs or the creation of a framework in which a doctor can provide both outpatient and in-patient medical care.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

124

Coalition Agreement

We will simplify and further develop the remuneration system for doctors in order to continue guaranteeing high-quality care for all persons insured in the statutory health scheme. The aim must be to create a remuneration system which is transparent and in which the present system is gradually replaced by a combination of flat-rate remuneration with the possibility of fee-for-service payments. The complex rules required for the introduction of a new remuneration system must be simplified and formulated in a professional procedure in which morbidity criteria are taken into account. Comparable remuneration systems should be created for out-patient services in hospitals and for established doctors' services in their surgeries. The duties and responsibilities of the Panel Doctors' Associations will be adapted to new conditions. We will examine the extent to which the services of paramedical professions can be more fully integrated into care strategies. An obligation will be established to provide treatment at specific rates of payment for groups of privately insured persons, such as civil servants entitled to government aid in case of sickness and those insured at the standard rate, in respect of both the services of freely chosen doctors in hospitals and out-patient services provided by established doctors at their surgeries. The reduced rates of payment for these services will be laid down in binding form in the statutory scale of fees for doctors (GOA) and for dentists (GOZ) .

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Dental care The effects of diagnosis-related fixed grants for dentures, including the question of appropriate remuneration for dental laboratory services, must be examined. The statutory scale of dentists' fees must be further developed. In-patient care The regulatory framework for in-patient care following the end of the so-called convergence phase (period of gradual adjustment of hospital budgets to the medium level of standard rates per case applicable at Land level) must be completed no later than 2008. In order to avoid undesirable developments, attention should be given to the question whether the method used to calculate the reimbursement rates for the various diagnosis-related groups (DRGs) of patients adequately reflects the costs of care and continuing training. A set of rules will be established within the DRG system for the remuneration of Belegarzte - practitioners who, though not hospital employees, are allowed to provide care and treatment for their patients in reserved blocs of hospital beds. The Statutory Health Insurance Modernisation Act has created scope for flexibly structured contracts in order to eliminate the strict separation of out-patient and inpatient care. In practice, however, such contracts have not taken root. For this reason, there is a need to assess the extent to which obstacles to the framing of such contracts can be removed. Special forms of care In the realm of integrated care, start-up funding will be extended beyond the year 2006 until 1 January 2008. The aims of integrated care must be to cross the divides between medical specialisations and sectors of the economy, to improve the quality of care, to establish transparency of supply and effect and to provide coverage for the entire population. It is essential to create a uniform framework for all disease-management programmes (DMPs) in order to reduce the volume of red tape involved in the programmes and to take

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

125

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

account of multi-morbidity. At the same time, we will examine the possibility of requiring all statutory health-insurance funds to implement DMPs in accordance with a uniform quality standard, thereby dispensing with individual certification. The link with the risk-structure compensation scheme will be refashioned once the decision on a refined compensation scheme has been taken. There is a particular need for improvement in the care and treatment of people in the final stages of their lives. Many people, even patients with serious illnesses, would like to be cared for at home to the very end. The services we offer today take insufficient account of this need. For this reason, the legal provisions governing the services, the contractual rights and obligations and the funding of statutory health and long-term care schemes must include rules designed to guarantee better palliative care. To take account of demographic changes, care structures and processes must be adjusted to meet the needs of elderly people, with rehabilitation taking precedence over care and outpatient over in-patient treatment. Health care must be more carefully tailored to the specific characteristics of each age group and of both sexes. Supply of medicinal products Deficiencies in the supply of medicinal products must be rectified. It will be illegal to grant rebates in kind to pharmacists. The financial reserves generated by this rationalisation will benefit the statutory health funds by generating a 5% reduction in the price of generic products. In order to prevent compensatory price increases, there will be a two-year freeze on the prices of all medicinal products. If Germany's standing as a location for pharmaceutical companies is to be enhanced, genuine innovations with additional therapeutic benefits are desirable. These must be clearly defined and unmistakably distinguished from pseudoinnovations and will not be subject to the regulations on maximum reimbursement rates for medicinal products. The maximum reimbursement rate system will be adjusted accordingly in order to speed up decision making processes. Potential savings within the reimbursement groups will be exploited. Greater emphasis will be placed on the individual responsibility of doctors for their own prescribing practice. Consideration will have to be given to ways in which opiates and other medicines which have not been administered to a dying patient could be used in hospices and homes after his or her death. 7.2.4. Safeguarding Current Projects Work on the introduction of the electronic health card will be systematically pursued. Abuse of the insurance card must be consistently combated. The Maternity Benefits (Employer's Contribution) Act (Gesetz uber die Arbeitgeberum lagfurMutter-schutz eistungen) will be adopted as soon as possible. The need to adhere to the timetable for amendment of the statutory time limits relating to integrated health care, refinement of the risk-structure compensation scheme and doctors' remuneration must be taken into consideration. Where a patient refuses to pay the quarterly consultation fee, court costs will be imposed on the debtor, with neither the service provider nor the insurer incurring any financial burden.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

126

Coalition Agreement

8. Long-Term Care Insurance Long-term care insurance remains a cornerstone of the social-security system. Coverage of long-term care risks will continue to be guaranteed and will remain based on solidarity and on the ideal of dignified care. Like the other social-security schemes, however, it must rise to the challenges of the future. This applies especially to demographic trends. Like the other insurance schemes, the social long-term care insurance will also be governed by the principle that the working generation must not be overburdened. Self-reliance and initiative must be encouraged and solidarity practised - not only within generations but between generations too. Particular importance attaches to people's willingness to help themselves and to their active involvement in voluntary work.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

8.1. Safeguarding Sustainable and Fair Funding In order to ensure, against the background of current demographic trends, that dependent persons continue to receive, at affordable prices, the services they need in order to be properly and adequately cared for, it is essential to create a demographic reserve fund by introducing funded elements to supplement the pay-as-you-go system. At the interface between health and long-term care insurance, prevention and rehabilitation services must be significantly improved in order to prevent the need for longterm care. The funding of therapeutic care, on the other hand, will remain a permanent responsibility of the long-term care scheme. Unlike the health-insurance funds, the statutory and private long-term care schemes provide the same range of services. The assessment basis for insurance contributions and the risk structures, however, are different. Both insurance systems will continue to offer longterm care insurance. In order to redress an imbalance between their respective risk structures, a financial redistribution will be introduced between the statutory and the private system. This will not involve the depletion of capital stock. The bill for an Act Safeguarding the Fair and Sustainable Funding of Long-term Care Insurance (Gesetz zur Sicherung einer nachhaltigen und gerechten Finanzierung der Pflegeversicherung) will be presented to Parliament by the summer of 2006.

8.2. Improvements to Benefits The benefits and services available under the long-term care scheme have remained unchanged since 1995 and are therefore subject to creeping devaluation. As a result, dependent persons are having to rely more and more on social assistance. Longterm care benefits and services will therefore be indexed. The wide differentials that currently exist between the various grades of long-term care must be revised with regard to the incentive effect of care benefits and their satisfaction of real needs. The benefits also require adjustment with a view to reinforcing the principle of 'out-patient over in-patient care'. More consideration will be given to the special assistance and care required by some people, such as dementia sufferers. To make this happen, it will also be necessary in the medium term to revise the concept of long-term care in the light of the latest specialised knowledge.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

127

Numerous regulations, administrative rules, documentary requirements and other bureaucratic impositions make it difficult to run long-term care facilities and outpatient care services. Professional carers spend a good part of their working time on dispensable administrative tasks. Quality-assurance measures must be based primarily on results. The current provisions will therefore be simplified and harmonised accordingly, and the burden of red tape will be reduced. The proposals made at the Round Table on Long-term Care will be incorporated into the new arrangements. The numerous coordination and demarcation problems between health and long-term care insurance, ranging from the definition of the respective needs profiles to issues of funding and service provision, must be overcome. In particular, it will be necessary to examine how the principle of 'rehabilitation before and during long-term care', including geriatric and geropsychiatric rehabilitation - a principle that has hitherto been insufficiently adhered to can be more effectively applied through more appropriate targeting of benefits and financial resources. The use of respite care in cases where care is being provided within the family should be extended. Suitable measures, such as training in integrated long-term care, must be taken in order to recruit enough professional care workers and safeguard the quality of longterm care. Alternative residential and assistance schemes should be promoted, along with services of a less skilled or strenuous nature such as the provision of support for family carers.

V. More Effective Government

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1. Reforming and Modernising Germany's Federal System of Government The Grand Coalition has reached agreement on modernisation of Germany's federal system of government on the basis of the preliminary work performed by the Bundestag and Bundesrat, as outlined in Annex 2. From the floor of the German Bundestag, bills prepared in consultation with the Lander for an amendment of the Basic Law and for an Artikelgesetz, a composite act covering the amendment and enactment of the related legislation, will be tabled and adopted without delay. In a further reform measure during the 16th electoral term, financial relations between the federal and Land levels will be adapted in the light of new circumstances within and outside Germany, particularly as regards growth and employment policy. To this end, the Federal Government is proposing to the Lander that it identify, at the beginning of 2006, on what conditions and by which means the Basic Law could be amended so as to enhance the self-reliance of the regional and local authorities and ensure that the funding they require for the performance of their tasks is enhanced.

2. Modern State - Efficient Administration Our modern state needs an innovative, capable and efficient administration. For this reason we will continue along the path begun with the Deutschland online scheme and will

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

128

Coalition Agreement

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

reorganise cooperation within the machinery of government on the basis of information technology (IT), thereby systematically reducing administrative costs. Through the introduction of central IT-based procedures for the most important government services for business and the general public (e-government), we intend to play a leading role in bringing about innovative and cost-cutting administration. The Federal Ministry of the Interior, as the department responsible for internal organisation and security, will be in charge of the continuing development of the IT strategy and of IT security. The law on the protection of personal data needs to be reviewed in the light of technical developments and will have to be revised and further developed in various respects. In performing this task we will also examine whether changes can be made with a view to eliminating superfluous red tape. We intend to press ahead with the reduction of bureaucracy and of unnecessary regulation. Both at federal level and in the EU, all tasks and administrative processes must be scrutinised so that we can establish whether they are really necessary. Germany will participate in the new EU-level census scheduled for 2010-2011, which is to be conducted as cost-effectively as possible and at the least possible inconvenience to the citizens of EU Member States. Germany needs a modern public service that can provide citizens with efficient administrative services. We intend to go on increasing the emphasis on performance in our service regulations and to create pay regulations that can reward achievement without giving rise to expensive new bureaucracy. The outline paper entitled New Approaches in the Public Service (Neue Wege im offentlichen Dienst) and the Structural Reform Bill should be part of these deliberations. We intend to continue the development of civil-service law on the basis of the proposals made by the Commission on Federalism.

VI. A Family-Friendly Society Our aim is to pursue a holistic policy for families, senior citizens, women and youth which promotes and reinforces solidarity between the generations and therefore of society as a whole. We want to encourage families to have more children, and we want a stronger role for the family in society. We want to make it clear that without children, Germany has no future. Families are key contributors to our society. We intend to strengthen their capacities and individual responsibility, starting with traditional families and extending to patchwork, stepand lone-parent families. The family embraces all the generations. The multigenerational family, in its modern form, offers the chance to take responsibility for each other. We want to help empower women and men to fulfill their aspirations. Most of them want to achieve career success and have children. But regardless of the choices made, every lifestyle model deserves the same respect. It is not for politics to dictate how people should live their lives, but to establish a policy framework which enables young people to decide in favour of children and a family as they see fit. Our family policy starts from the premise that parents deserve more support to enhance their capacities and fulfill their primary responsibility for child-raising. For vulnerable

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Coalition Agreement

129

families in particular, this means developing a range of services which offer the children better learning opportunities; it also means equipping mothers and fathers with essential parenting skills. We want to ensure that no child is lost and that the best possible support is provided to children and their families at the earliest possible stage. We do not want a child's background to determine his or her educational prospects and life chances. Young people have a right to education, a healthy upbringing, social participation and, above all, protection from physical violence and mental cruelty. We will therefore continue to uphold these and the other objectives set out in the "National Action Plan for a Germany Fit for Children (20052010)" and implement them together with children, young people and the organisations which represent them. Equality policy must be guided by the expectations and life plans of men and women in all areas of life. Women today have better occupational qualifications than ever before. That is why we are working pro-actively to achieve better, non-discriminatory access to decent paid work and career advancement for women. Children must no longer be an obstacle to an occupation and career. We want both women and men to be able to achieve a work-life balance. In view of the depressingly high rate of unemployment, we believe it is essential to coordinate our family, youth and labour market policies. People in Germany have a right to both distributive and participative justice. Today, life expectancy is steadily increasing. We see this as an opportunity to draw more extensively on the knowledge and experience of the older generations. We also want to achieve a significant increase in their labour force participation while boosting the already high percentage of older persons working in the voluntary sector. For those requiring care and assistance, we will redress the balance in the "care triangle" - family, full-time carers and volunteers - to reflect current conditions and fulfill older persons' need to live a selfdetermined life. Government policies must be geared towards reasserting and protecting the value of every individual. The state therefore has a particular duty to care for those who cannot help themselves. In view of Germany's changing demographics, the state - in the interests of future generations -must deploy its resources as efficiently as possible. No generation should demand more of the next generation than it is prepared to contribute itself. In response to ever-greater financial constraints, the state must review its spending on investment and consumption to determine whether it is line with the principle of sustainability.

1. Better Infrastructure for Families We will continue to drive forward the expansion of childcare facilities in Germany. The coalition partners endorse the legal obligation to expand childcare services for the underthrees, established in the Child-Day-Care Expansion Act (TAG), as an essential social policy task for which the Federation also bears responsibility. By 2010, 230,000 additional places will be created. From 2005, the funding required for this expansion, which TAG calculates as 1.5 billion euros per annum, must be made available as a result of the merger of unemployment benefit

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

130

Coalition Agreement

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

and social assistance, which will relieve the municipalities' financial burden by some 2.5 billion euros. It is important to ensure that this reduction is genuinely achieved and is based on valid data. The net reductions in the financial burden borne by the Lander, which must also be based on accurate data, should be passed on to the municipalities. Early childhood education supplements parental care and provides extra learning opportunities beyond those afforded by the home environment, thus creating the conditions for genuine equality of opportunity in the sphere of education and early learning. It also facilitates parents' individual life planning and is the prerequisite for a work-life balance. Establishing quality-oriented, needs-related educational and day-care facilities for children in all age groups is therefore a major, urgent and future-oriented priority. In cooperation with the Lander and the municipalities, the new Federal Government will closely monitor the implementation of the expansion goals defined in the TAG. A needs-related range of childcare facilities for the under-threes should be in place by 2010. A forecast of progress in the expansion of childcare provision, projected to 2010, must be produced in 2008 on the basis of the reports prepared under Section 24a (3) of Book VIII of the Social Code. If this forecast indicates that more than 10% of municipalities cannot guarantee to deliver the range of services specified in Section 24 (2-6) of Book VIII of the Social Code by 1 October 2010, the legal entitlement established under Section 24 (1) of Book VIII of the Social Code will be extended to all children from the second year of life. Childcare costs must not be an insurmountable barrier to parents who want to send their child to kindergarten, thus enabling them to benefit from good early childhood education. We therefore intend to work with the Lander to identify ways of providing one year of free preschool education during the last year of kindergarten on a nationwide basis, in line with the system already planned or operating in other countries. In Germany, we want to guarantee early childhood education for all children, with a particular focus on promoting language skills at pre-school level. Multigenerational homes (MGHs): The progressive weakening of traditional social support networks (family, neighbours), the increasing reluctance and lack of capacity to take on parental responsibility, the entrenchment of the dividing lines between the generations, and the divisions between those with children and those without, mean that a new community-oriented approach to family development, support and assistance is required. This should take the form of an integrated, combined and accessible system of services extending into the community. Our aim is therefore to establish neighbourhood-based "focal points" which offer support services for families and generations under one roof and from one source. These homes or centres will be open to the community and will demonstrate intergenerational solidarity in daily life. The homes will develop their own specific range of services such as early learning, care facilities, education and life skills. They will also provide a contact point, network and "hub" for family-oriented services, advice on child-raising and family counselling, health promotion, crisis intervention, and the planning of support services. As part of the delivery of early childhood education, the key focus will be on the following: •

childcare and education services for children and parents (day-care/child-minding, integration and development) with a particular emphasis on early learning, with extra provision in specific areas (e.g. nature, language),

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement • • • •

131

advisory services (e.g. on child-raising issues, health), support in crisis situations (e.g. separation, debt), education and development (e.g. development of language skills), practical life skills (e.g. home management, cooking, nutrition), which may include support for (re-)integration in the workplace.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

At the same time, the centres should also promote intergenerational solidarity by involving the older generations, harnessing their untapped skills and experience and preventing loneliness and isolation. The centres will offer a sound basis for this process. They will be accessible to the local community, encourage civic engagement, revitalise intergenerational solidarity, foster the development of practical life skills, and target the delivery of professional support to where it is needed most. The MGHs will be established as drop-in centres. However, they must also interface with the youth welfare agencies' crisis management services; the same applies to linkage with the mainstream school and childcare system. The centres may be run by the municipalities or the voluntary sector. In either case, agreements must be reached on integrating the services provided by the centres with the public-sector youth welfare bodies in order to ensure reliable and coordinated delivery of basic services. Existing services will be networked through an Internet-based action platform. As part of a pilot programme (pioneering model), an MGH should be set up in every county and unitary authority in Germany during this electoral term. Start-up funding should amount to 40,000 euros annually over a five-year period, giving rise to a total budgetary burden of 88 million euros. "Early Support and Prevention for Children at Risk" Project: Children who face social and health risks need targeted support from the very beginning. This means that more dependable and better-networked support for socially disadvantaged and affected families must be provided earlier on, in the local community or district. The state's guardianship role and the community's duty of care must be strengthened and social early warning systems developed. Youth welfare, preventive health services and civil-society engagement should be integrated to create a new quality in the early childhood support services provided for families. For socially disadvantaged families in particular, the classic "drop-in" structures which are the basis for a wide range of services must be improved and geared more specifically towards the target group, and new outreach services developed. With this project, our aims are as follows: • • • •

to improve child protection through the establishment of early warning systems and through early intervention, to coordinate health services, youth welfare services and civil-society engagement, to strengthen the state's duty of care, to reinforce parenting skills and responsibility.

We are providing 10 million euros for the project's implementation over the next five years and will: German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

132

Coalition Agreement • • • •

launch, fund, monitor and evaluate pilot programmes, establish a service bureau at federal level which will coordinate, monitor and evaluate the activities undertaken in the Lander, e.g. the establishment of parentchild centres; it will also initiate the implementation of appropriate programmes in the Lander, and ensure an exchange of experience, alongside the service bureau at federal level, funding will also be provided for the academic monitoring and evaluation of the programme.

We will introduce income tax relief on childcare costs in order to reflect working parents' reduced capacities to pay tax and to comply with the rulings of the Federal Constitutional Court. Support services for families should be developed as a way of helping parents achieve a work-life balance; they are also a means by which to develop the household-related services segment of the labour market. Promoting the market viability of service agencies and providing tax incentives for those demanding these services also help to combat illegal work. In this context, the provision of care by qualified child-minders who are fully covered by social insurance plays an especially important role. By improving the framework conditions for child-minding, the aim is to expand this segment as a supplement to formal day-care facilities.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

2. Family-Friendly Working Conditions The welfare of families and children and the goal of enabling more people to fulfil their desire for children should be a matter for society as a whole. Germany needs more children. The "alliances for the family" at federal, Land and local level, which focus on various familyrelated themes, are the expression of society's concept of a sustainable family policy. We will develop this concept. At federal level, strong partners from the business community, associations, foundations, academia and politics have launched initiatives within their specific fields of activity with the aim of making Germany family-friendly. The "Family-Friendly Working World" campaign aims to highlight the issue of parenthood, especially among senior managers, and put forward practical recommendations on how companies can help employees achieve a better work-life balance. A corporate programme has now been launched which prioritises the expansion of incompany and company-run childcare schemes and aims to dismantle bureaucratic obstacles, improve employees' reintegration prospects during and after parental leave, and encourage family-friendly human resources policies, as well as promoting and implementing companylevel and collective agreements to achieve a familyfriendly working environment. The federal authorities' role as a model of best practice for a more family-friendly workplace should be highlighted through audits of these authorities. The "Local Alliances" initiative is now under way within the municipalities. A familyfriendly strategy is a locational factor which not only enhances quality of life but also adds value and increases the economic performance of municipalities and regions. The "Local Alliances" bring together the municipalities, the chambers of commerce, associations, the business community and social organisations in a successful partnership to create attractive

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

133

conditions of life for families. The growing number of companies which are active partners in the alliances will form the target group for the above-mentioned corporate programme. 200 alliances already exist and a further 200 are currently being established, with further expansion planned. The concept should continue to be developed and reviewed to determine its lasting impact on families and business locations. The "Responsible Child-Raising" initiative - agreed primarily with the Protestant and Catholic churches, the welfare organisations and their respective childcare agencies enhances the corporate-based alliance with measures to improve parenting skills and encourage value-based child-raising. The right to work part-time, established under the Act on Part-Time Work and FixedTerm Employment Contracts (TzBfG), and the right to three years of parental leave will be maintained.

3. Financial Support We want to provide effective and sustainable financial support for families from the moment their children are born; this will take the form of a parental allowance which • • •

avoids any interruption in income flows by providing a replacement income, creates a genuine choice between maternal or paternal care, facilitates economic independence for both parents, with appropriate compensation for opportunity costs.

The key elements of this strategy are as follows:

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

•

• •

•

Parental allowance will take the form of a replacement income amounting to 67% of previous averaged net earned income (to a maximum of 1800 euros per month) and will be paid to the person who has reduced their working hours or given up work in order to care for the child. As an alternative, consideration may be given to using the parents' joint net earned income (in the interests of gender equality) - or, in the case of lone parents, the single parent's net earned income - as the basis for assessment. The parental allowance will be topped up by an additional element for parents on low incomes or non-working parents (e.g. a basic amount which depends on the family income). All persons who are bringing up children will receive at least the minimum payment (equivalent to the full amount of the child-raising allowance which was previously payable for six months). All persons who were entitled to claim benefits under the previous Federal ChildRaising Allowance Act can now claim parental allowance. Welfare benefits will be taken into account when calculating parental allowance. Parental allowance is not deemed to be income for the purpose of calculating housing benefit. Parental allowance will be paid for one year, with account being taken of maternity benefit, which is intended to achieve the same objectives. Parents can choose whether to spread the full parental allowance budget over a period of up to two years.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

134

Coalition Agreement • • •

•

Parents can opt to split the twelve-month benefit period between them. Two months are reserved for the father and two months for the mother. The benefit is funded from taxation, is tax-free and is not subject to social contributions. However, the "exemption with progression" rule applies. The current rules on parental leave will remain in force. Part-time activity is permitted while claiming parental allowance. The amount of parental allowance which can be disbursed if the parent takes on paid work during parental leave, and the level of household income at which eligibility for parental allowance may lapse, have yet to be determined. The introduction of parental allowance is planned for 2007.

We want to reduce child poverty and are therefore developing the child supplement scheme with effect from 2006. Greater incentives must be provided to encourage parents to move out of unemployment and into jobs and encourage their systematic integration into the workforce. The child supplement meets these needs and will reach its target group provided that it is developed and expanded appropriately, especially since more than 90% of applications currently have to be rejected.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

• • • • • •

The children's allowance combats the risk of poverty. It increases the incentive to move out of joblessness. It promotes employment, not unemployment. It avoids any stigmatisation of recipients as "charity cases". It requires recipients to end their dependence on benefits within 36 months. Despite the higher financial incentives provided to encourage a move out of joblessness, it is affordable and reduces overall expenditure (over the medium term).

We want to increase the number of people entitled to claim the children's allowance in order to reach more children and enable their parents to care for them without claiming unemployment benefit II. This requires greater flexibility in the current marginal areas of the scheme's application, e.g. by offering unemployment benefit II on an optional basis. The application procedures and processing system must also be simplified. Benefits for families in Germany are currently processed and disbursed by a variety of agencies, which in some cases apply different income definitions and thresholds. These discrepancies make it difficult for families to understand the family benefits system, which often appears bureaucratic and cumbersome. We want to harmonise the legislation governing the various benefits and integrate the processing systems. The ultimate aim is to facilitate the emergence of a new type of "Family Fund". By concentrating and merging the various transfer benefits for families within a "Family Fund", more transparency can be achieved and the basis created for a fairer and more targeted family benefit system. Initial studies on the implementation of a "Family Fund" are already available. They must be evaluated and - during the period 2006/2007 - expanded if necessary to include:

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement • •

135

a feasibility study on harmonising income definitions and thresholds, clarification of whether "Family Funds" should be established at Land or federal level. In this context, it is important to bear in mind that we do not want any increase in bureaucracy (no new federal authority); simplicity and transparency must be the guiding principles.

4. Parent and Child Law As regards shared custody rights and access rights, we want to work with the Lander to achieve improvements for the benefit of the child. This includes holding hearings of all parties, especially the child, at an early stage and providing information on counselling services. A further aim is to reduce the duration of legal proceedings, if necessary by tightening deadlines, and providing better training and professional development for judges in the family courts, who should be given appropriate support from the judicial administrations. Innovative procedures, in and out of court, to encourage cooperation between the parties in the enforcement of custody and access rights should be trialled.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

5. Equality and Women's Policy We intend to reinforce gender competence and in order to achieve the effective implementation of § 2 of the Joint Rules of Procedure of the Federal Ministries (GGO), will ensure that the appropriate and necessary instruments are available for this purpose, e.g. the Gender Competence Centre. In each electoral term, we will produce a "Report on Gender Equality" which will be followed by a government policy statement in which we highlight the progress made, identify any remaining shortcomings, and outline the lessons learned. This Report will replace all the detailed Federal Government reports on women's and equality policy which have hitherto been produced by the Federal Ministry for Family Affairs, Senior Citizens, Women and Youth (BMFSFJ).

5.1. Equal Opportunities in the Labour Market We want women and men to have equal access to decent paid work with social security provision. Women's employment rate should be increased to above 60 percent in line with European criteria. We will continue to pursue the objective of "equal pay for equal work and for work of equal value" in accordance with our European commitments. Women today are better qualified than ever before. We are therefore working proactively to ensure that they benefit from the same career opportunities and equal access to leadership positions in business, academia and research. Based on the second review to be produced during this electoral term, we will then decide whether binding legal instruments are required. We want to raise the lower-than-average rate of self-employment among women to the European average. The coalition partners agree that the framework conditions for trainees, students, new entrants to the labour market and young people in continuing training who have children must

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

136

Coalition Agreement

be improved. Besides the provision of financial support, the provisions of university law, for example, should be reviewed in conjunction with the Lander and amended if necessary to ensure that they facilitate a study-life balance. The coalition partners agree that the impacts of the Hartz laws must be reviewed with specific reference to women and improved if necessary. The principle of gender equality must be taken into account in the development of Book II of the Social Code. The individual funding instruments must benefit women - especially the long-term unemployed and non-claimants - at least in line with women's share of the total unemployment figure and must also take account of their specific needs. In "communities of need" claiming benefit, we intend to guarantee health insurance and long-term care insurance cover for the non-claimant partner. All labour market data and unemployment statistics must be produced on a genderspecific basis so that gender-relevant impacts can be identified and evaluated.

5.2. Combating Violence against Women

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

The provisions of criminal law which combat the sexual exploitation of the victims of human trafficking, especially by "clients", must be reviewed to determine whether they are effective and should be amended if necessary. Alongside the legal provisions, other measures should be adopted promptly to tackle the problems of human trafficking and forced prostitution. The Act Regulating the Legal Situation of Prostitutes (Prostitutionsgesetz) will be reviewed in light of the available research and amended if necessary. We will continue to develop the Action Plan to Combat Violence against Women. The Protection against Violence Act (Gewaltschutzgesetz) will be evaluated and amended if necessary.

5.3. Legal Sanctioning of Anonymous Births Experiences with anonymous births should be evaluated and appropriate legislation adopted if necessary.

5.4. Late Abortions In 1992, the Federal Constitutional Court, in its ruling on Germany's abortion laws, imposed an obligation on Germany's legislature to monitor the situation and, if necessary, adopt amendments. We will continue to fulfil this obligation during the 16th electoral term and will ascertain whether, and, if necessary how, the situation relating to late abortions can be improved.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

137

6. Youth 6.1. Improving Children's and Young People's Participation Involving children and young people in policy-making, planning and future-oriented decision-making processes and activities is essential for the long-term viability of any democratic polity. Projects undertaken at local level are most likely to bear fruit. We will work with youth organisations on the further development of activities designed to increase participation, and we will also raise public awareness of the importance of children's rights and provide targeted information for parents, teachers and education specialists. Early involvement of children and young people in politics is an important building-block in developing political awareness. Children and young people should be able to participate - in an age-appropriate way - in planning activities and projects which affect their interests. To this end, we will work with the Lander and municipalities to promote models of best practice and include this topic in the longterm work undertaken at federal level. The European Union offers a framework in which to develop new educational, occupational and life chances for young people. National youth policy actors must therefore be involved in European policy-making, and the European dimension must be taken into account when developing services for children and young people at local, regional and national level. The European Youth Pact offers the best prospects here. We will work pro-actively to ensure that the funding for the EU's Youth in Action programme for the period 2007-2013 fully reflects the increase in the number of participating countries, the growing importance of European cooperation on youthrelated matters, and the wider age limits for young people's participation.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

6.2. Equal Opportunities in Education The transition and transformation from an industrial society to an information and knowledge-based society can only be managed successfully if education and research policy is put at the very top of the agenda. Policymakers therefore have a responsibility to help develop core qualifications for children, provide the requisite resources and deploy them efficiently. Children's upbringing, care and education in families, day-care facilities and schools provide the framework for our children to grow and flourish in a rapidly changing world. However, the process of educating children and young people is not confined to a formal institutional environment but takes place in many different settings. Youth services, arts education for young people, informal education processes in the peer group and media access - besides the family, school and day-care facilities - are all relevant in this context. We want all our young people to have the same chances in education. We intend to review the support provided under the Federal Child and Youth Plan to determine whether it is tailored to the specific situation of young people in Eastern Germany. We want to help improve conditions so that young people can remain in their home region for training and jobs. We will support a variety of measures - such as Girls' Day and better career counselling to ensure that the range of careers open to girls and boys is expanded and that special priority is given to overcoming gender stereotypes.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

138

Coalition Agreement

6.3. Growing up Without Violence We are adopting vigorous and sustained measures to eradicate child abuse and neglect by improving prevention, especially in cooperation with our European and international partners, and through innovative pilot projects which focus on crime prevention and better victim protection. The coalition partners are committed to achieving a lasting improvement in the protection afforded to children and young people. In view of the rapid developments taking place in the new media, the present legislation is inadequate to counteract the growing risks posed to young people by some of the new media. The new regulations in the field of youth protection will be evaluated as quickly as possible - and well before March 2008, which was the agreed date - so that the necessary lessons can be learned promptly. To this end, we intend to engage without delay in targeted dialogue with the Lander. The following points will be discussed as priority issues: • •

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

• •

the effectiveness of "regulated self-regulation" as a concept, age restrictions for films and games/labelling of computer games as suitable for a specific age group, reliable monitoring and security standards for automatic video dispensers, a ban on "killer games".

We will work actively at European and international level to develop and ensure compliance with minimum standards for the Internet. The state's guardianship role and the community's duty of care towards children affected by violence and neglect have been reinforced by the reform of the Child and Youth Welfare Act (KJHG). The Federation will support the practical implementation of the Act through appropriate activities. In cooperation with consumer protection organisations, we are encouraging credit institutions to undertake voluntary commitments to prevent young people from sliding into debt and also to provide guidance and support for indebted young people. Successful cooperation must aim to achieve a noticeable reduction in the debt burden of young people in Germany.

6.4. Opportunities for Disadvantaged Young People The Federal Government's stated objective is to prepare, train and integrate young people into the labour force and employment on a sustainable basis. Combating youth unemployment must be the key priority. The primary goal is to open up futureoriented educational, occupational and employment opportunities to young people. The agencies operating in the sectors governed by Books II, III and VIII of the Social Code must coordinate their strategies and funding programmes more effectively and, in cooperation with the business community, expand employment opportunities for young people. Special consideration must be given to young people with individual social problems which make it difficult for them to enter the primary labour market without assistance.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

139

Alongside the labour market actors, the child and youth welfare agencies have a role to play here. Young people who leave school with no qualifications, especially those with a record of truancy, are an especially important target group in this context. The Federal Government intends to achieve sustainability for effective local initiatives which aim to integrate young people into the workplace; in particular, it will review the compatibility, efficiency and stringency of funding structures and instruments. During the next ESF funding period, too, measures targeted towards youth integration will be supported by the Federal Government as one of the social policy priorities within the Federal-Lander "Social City" programme. We want to create the legal conditions to ensure that in the award of public contracts at local, Land and federal level, preference is given to companies which offer training places.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

6.5. Young People for Tolerance and Democracy We intend to continue, and achieve sustainability for, the campaign against right-wing extremism and xenophobia and for democracy and tolerance. Our stated aim is to develop young people's understanding of our shared values and cultural diversity and thus to promote respect for human rights and combat every form of extremism, including left-wing extremism. This means widening the scope of action programmes in this field. We can thus make a major contribution to countering the growing levels of latent and overt violence among young people. We want to safeguard diversity, respect for others, democracy and tolerance; we also want to combat anti-Semitism. We want young people at local level to feel motivated and to be able to count on reliable support for their commitment. To this end, we are developing closer links with the Lander and municipalities, the media, churches, the business community, trade unions, sports clubs, youth organisations and many other agencies. Integrated local strategies are especially promising. It is also important to build even stronger links in future to projects which work with young people at risk and those who are already part of the rightwing scene. The Federal Government will work pro-actively to establish a holistic integration strategy which not only focusses on labour market access, especially for socially disadvantaged young people and for young migrants in particular, but which also supports measures relating to social, cultural, religious, linguistic and country-specific diversity. Positive prospects for the future, a satisfactory quality of life and young people's active participation in the community and society are important prerequisites in preventing recruitment by radical groups. The Lander and municipalities must be involved to a greater extent in order to ensure project sustainability and longevity. The Federal Government is also seeking to reinforce and intensify its dialogue with churches, faith communities and religious organisations.

6.6. Child and Youth Welfare The municipalities - which are responsible for child and youth welfare under Book VIII of the Social Code - must have broader scope for action in order to expand their range of prevention and outreach measures (priority should be given to prevention, not remedial measures). The coalition partners agree to review promptly, at the end of 2006, those

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

140

Coalition Agreement

provisions of Book VIII of the Social Code which have been amended following the adoption of the Act on the Further Development of Child and Youth Welfare Services (KICK) and, where necessary, to introduce new amendments in order to avoid any adverse impacts. The further development of Book VIII of the Social Code, especially in cost-intensive areas of regulation, must also be reviewed in this context. A productive shift in education policy requires the involvement and cooperation of all educational settings. Only if targeted support is given to non-school education actors - the family, the various branches of child and youth welfare, and occupational training - will it be possible to improve young people's opportunities for education and participation. We intend to take up and develop further the proposals put forward in the 12th National Youth Report. This involves improving structures for cooperation, fulfilling the educational mandates of the home, school and youth welfare agencies through joint responsibility, and exploiting their potential more effectively on the basis of equality in future without professional rivalry. The youth welfare and education services should be coordinated more effectively. The Federation will drive forward the funding, networking and transfer of good practice. We want to develop and draw more extensively on young people's individual and social skills through prevention work in the context of "peer group advice", e.g. through tutoring and mentoring projects in cooperation with youth organisations and schools. Parenting skills should be reinforced through the adoption of a new direction in family education, and parents who have little access to education must also be reached. In this context, the new media should be utilised more intensively in providing parental education and advice. In the interests of greater efficiency, appropriate professional development should be provided in the youth welfare services. The gap in the research on the impacts of youth welfare programmes must be closed as a matter of urgency, and these services should demonstrate their successes more clearly by producing "hard evidence". The coalition partners agree to review the funding provided under the Federal Child and Youth Plan according to the following criteria: impact, efficiency, fitness for purpose, and sustainability, and will overhaul its funding structures. Any funding structures and linkages which can no longer be justified must be modified. Based on this review, we will work proactively to ensure the longevity of the work undertaken by the youth organisations.

7. Senior Citizens 7.1. Identifying and Utilising the Capacities of Senior Citizens The contribution made by older people to society and the family is essential for the functioning of the social state and is very significant in economic terms. Active ageing is a goal which benefits all social groups equally. This means that: • •

Demographic change requires a paradigm shift in the role of older people. This development will be driven forward by the EU, too, in the coming years. Older people's active participation in the economy and society and their voluntary commitment must be given more effective support.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement •

•

141

Greater emphasis must be placed on older people's economic potential, including their role in the labour force. There must be a greater focus on employment opportunities for older workers, e.g. through the "Experience is the Future" initiative. In order to be able to utilise older people's potential more effectively for the benefit of society, age-discriminatory regulations need to be abolished.

The demand for products and services for older people will continue to increase in the coming years. A greater focus on this target group can therefore open up good opportunities for growth and employment, especially in the delivery of householdrelated services. Older people want to live a self-determined and independent life for as long as possible. Better products and services help to improve their quality of life. In order to achieve this goal, we are working with the Lander, municipalities, companies and service providers to ensure that products and services are targeted more effectively to the older age groups. 7.2 Helping the elderly We want to improve the quality of care provided to the elderly. We also want to increase home-based care and network the full range of geriatric services (physicians, hospitals, outpatient and in-patient care, therapists, hospices). A catalogue of objectives will be drawn up, outlining the rights and responsibilities of persons requiring assistance and care. The catalogue will be prepared in conjunction with all the agencies responsible for providing care. The operators of care facilities and services, as well as organisations representing the elderly, are invited to adopt this catalogue on a voluntary basis as a quality benchmark for their work. The CDU, CSU and SPD are in favour of reforming the Residential Homes Act (Heimgesetz). The key elements of a reform are as follows:

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

•

• • •

• • •

the Federation and the Lander will work pro-actively to utilise the scope to streamline the bureaucratic elements of legislation governing residential care for the elderly and phase out redundant provisions and regulations, cooperation between the Medical Advisory Service of the German Compulsory Sickness Insurance Bodies (MDK) and the Residential Homes Supervisory Body will be developed with a focus on the content and scheduling of inspections, so that duplicate and multiple inspections can be avoided, residential home operators' duty of disclosure will be limited to necessary, practiceoriented measures, better support will be provided for innovative living and care options, the Residential Homes Act which is currently in force will be reviewed to ascertain whether, and to what extent, it promotes innovative living and care strategies - e.g. communal living for the mobile elderly - and appropriate amendments to the legislation will be adopted if necessary, when carrying out inspections, the focus must be on the quality of outcomes rather than on the quality of processes and structures, quality must be ensured through a properly maintained record of care, the legal requirements which must be met by residential homes providing day- and night-care must be made more specific, both in relation to human resources and the physical environment,

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

142

Coalition Agreement •

the numerous conflicting provisions of the Residential Homes Act and Book XI of the Social Code must be harmonised.

We want to boost the role of the hospices and palliative care so that people can die with dignity.

8. Strengthening Civil Society Sixty years after the end of the war, democracy in Germany is well-established. Nonetheless, every generation requires political education, and the state's support is essential to encourage people's active participation in social and political life. We will therefore boost political education. We will examine the introduction of elements of direct democracy. Without citizens' strong voluntary commitment to the development of community relations, our society cannot survive. That is why we will adopt further measures to support an active civil society, e.g. by promoting civic engagement. We will also support civil society initiatives targeted towards conflict prevention and the integration of migrants, as well as those which aim to prevent and eradicate extremism.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

8.1. Improving the Legal Framework for Civic Engagement The state should encourage civic engagement by improving the legal framework, taking account of the impacts of all proposed legislation on this field of activity and providing targeted support for the development of a "recognition culture". This includes reforming the laws governing the non-profit sector, streamlining bureaucracy, and safeguarding the scope for creativity and innovation in other areas of the law. The further development of foundation and tax law should create incentives for citizens to set up foundations with a view to contributing to the public good. Besides traditional forms of civic engagement, the state is also expressly committed to new forms of citizens' participation in activities which promote the common good and will provide appropriate support for this purpose.

8.2. Voluntary Services In order to promote volunteering, the conditions will be put in place to offer better opportunities to utilise the potential of applicants to the voluntary services. This includes improving the legal framework based on the ongoing evaluation of the law, expanding the number of available places, providing support for services abroad, harmonising social and residency provisions, and focussing more intensively on the arts and sport. In light of demographic change, it is apparent that the expansion of youth voluntary services alone is not enough. In addition to boosting civic engagement, we will therefore expand intergenerational voluntary services as a means of opening up prospects for volunteers from all generations to work in schools, families, community centres, in-patient services and hospices.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

143

VII. A Germany Worth Living in

1. Consumer Policy Consumer policy is a cross-cutting task which touches on almost all areas of the political agenda. Alongside the issues of food safety and general consumer health protection, legal and economic issues have gained in importance. For particularly in these fields, consumer policy faces new challenges due to increasing globalisation and technological advances. Consumer policy is economic policy seen from the demand side. We want a consumer policy which releases creative forces in competition and is not encumbered with bureaucratic regulations. A balance must be struck in consumer policy between the interests of consumers and those of business. That is the only way to guarantee a high quality of life for the individual while fostering economic growth and innovation. Consumers should have sufficient information to enable them to decide and choose for themselves. We uphold the ideal of responsible citizens as consumers and participants in the market. The Federal Government will publish a regular report on consumer policy in order to document the progress made in consumer protection.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1.1. Strengthening Consumers' Position We want a Consumer Information Act (Verbraucherinformationsgesetz) which meets consumers' high demands for information on products which pose health or other risks and does not give rise to excessive bureaucracy. The Consumer Information Act will regulate consumers' rights to information and prevent any negative impact on entrepreneurs whose products give no cause for complaint. We want to safeguard independent consumer counselling so that consumers are on an equal footing with industry. The consumer advice centres of the Lander and of the Federation of German Consumer Organisations, as well as the German Consumer Foundation "Stiftung Warentest", play a crucial role in providing consumers with advice and information. Adequate annual funding through the federal budget should be guaranteed. In addition to this, we will examine the option of foundation funding for consumer advice centres in order to secure their financial independence on a long-term basis. Alongside the traditional core field of consumer policy, i.e. consumer health protection, issues relating to legal and economic consumer protection which, however, do not lie within the area of responsibility of the Federal Ministry of Consumer Protection, Food and Agriculture are gaining in importance. In particular, this applies to the forthcoming reform of insurance contract law, the necessary strengthening of passengers' rights in rail transport, telecommunications, digital consumer protection, investor protection and construction contract law. Numerous consumer protection regulations are decided in the European Union. Our task must be to influence European decision-making processes as early as possible, also in the interests of German consumers. At present, this applies especially to the drafting of the Consumer Credit Directive, the draft regulation on nutrition and health claims and the current discussion on banning alcohol and tobacco commercials.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

144

Coalition Agreement

Small and medium-sized companies bear the brunt of the sometimes ruinous price competition which is most commonly found in the retail food trade. The ban on selling goods below cost price is of limited help as it is still permitted to sell below cost price under certain circumstances. The Federal Government will amend anti-trust law in order to prohibit altogether the sale of foodstuffs below cost price.

1.2. Food Safety Has Priority Private voluntary controls and notification requirements, as well as state food controls and inspections are key instruments in effective consumer protection. The safety of all food has priority. Responsibility for food controls lies with the Lander. However, past food scandals have shown that better national coordination of food controls is necessary. The coordination powers of the Federal Office of Consumer Protection and Food Safety should therefore be strengthened with the consent of the Lander. Furthermore, private quality assurance systems and state food controls should be better coordinated. The Federal Government will call at European level for national private quality assurance systems to be recognised and taken into account.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1.3. Healthy Diet and More Exercise Obesity and malnutrition are problems which affect all of society and require joint solutions. Children and young people are particularly affected by this. Due to treatment costs, diseases caused by an unhealthy diet or a lack of exercise are not just an individual but also a national economic problem. We will focus more on the issue of a healthy diet and more exercise involving all age groups and various institutions, as well as the Lander. In particular, this concerns industry's responsibility towards children and young people in advertising. We support the work of the Platform for Diet and Physical Activity and call upon the Lander to step up their efforts within this framework. The Federal Government will advocate at European level that the school milk programme be further developed into a healthy school meals initiative.

2. Culture Funding of the arts and artists is at the centre of our cultural policy. Their creativity is a key prerequisite for making our society fit for the future. Arts funding is not a subsidy but, rather, an investment in the future. Even if funding of the arts and culture is primarily a task for the Lander and municipalities under our constitution, the Federal Government has a number of essential tasks to perform in order to fulfill Germany's obligation as a European nation which prizes culture. The budget for culture and the media is the smallest within the overall federal budget and is therefore especially vulnerable. As significant budgetary increases are unlikely, it is all the more crucial to use the available funds efficiently. New projects must be financed by restructuring the budget.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Coalition Agreement

145

Bureaucratic obstacles - for example in tax law - should be removed. The funding instruments indispensable for preserving Germany's vibrant and diverse cultural scene should be strengthened. In performing the Federation's tasks, the coalition partners will pay special attention to ensuring that children and young people in particular take advantage of the range of cultural activities on offer. The funding of cultural institutions in the new Lander will be continued. The basic conditions which civil society has and needs must be improved in the cultural sphere. This includes promotion of civil engagement, especially with regard to the law of association. The legal status of copyright holders in the digital age must be strengthened. We want to further develop foundation law in order to facilitate the establishment of foundations and to create additional incentives for donations. The special interests of culture and the media as well as of artists and cultural workers should be taken into account in the legislative process. In revising Hartz IV, special attention should be paid to ensuring that there are no restrictions on the employment of freelancers in the cultural and media sphere. The coalition partners want to merge the Federal Foundation for Culture and the Cultural Foundation of the Lander and draw up appropriate regulations geared to guaranteeing that culture of national importance is effectively funded and that the Federation and Lander preserve our cultural legacy. The Federation has a special responsibility for culture in Berlin. Germany's commitment to culture must be visible in the capital. The coalition partners stand by the provisions of the Capital Culture Contract and the decisions on completing Museum Island. Further decisions on the rebuilding of the Stadtschloss should be made on the basis of the feasibility study. The Federal Government's policy on funding memorials launched in 1999 will be continued with the aim of ensuring that sufficient attention is given to the two dictatorships on German soil. Fifteen years after reunification, the implementation of the programme to create branches of the Federal Commissioner's Office for the Files of the State Security Service of the former German Democratic Republic and the amendment of the Stasi Records Act (StasiUnterlagengesetz) will enable the Commissioner's Office to further develop so that it can master the challenges ahead. The coalition declares its commitment to dealing with forced migration, flight and expulsion, both socially and historically. In a spirit of reconciliation - and in collaboration with the European Network for Remembrance and Solidarity beyond the countries involved at present, namely Poland, Hungary and Slovakia - we want to send a signal from Berlin in order to remind everyone that expulsions are unjust and should be banned for good. Germany's cultural relations and education policy must again become the third main pillar of our foreign policy and serve German interests abroad. This presupposes an adequate allocation of funds. Those who put this policy into practice, above all the Goethe Institute and German schools abroad, make an invaluable contribution towards close relations based on mutual trust between Germany and its partners and perform vital tasks in fostering understanding between cultures. One focus is the teaching, promotion and enhancement of the German language abroad. The Deutsche Welle broadcasting service should receive greater support in carrying out its tasks. The cooperation between Deutsche Welle TV and the public ARD and ZDF TV stations should be intensified on the basis of agreements with the stations and experience with

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

146

Coalition Agreement

German TV, in order to make possible comprehensive, up-todate and attractive German broadcasting abroad. In particular, we will continue our intensive negotiations with Russia on the return of German cultural goods which were taken after the Second World War. Moreover, we should discuss new ways of bringing about progress in returning these cultural goods with the institutions in question. Germany will implement the 1970 UNESCO Convention on the Means of Prohibiting and Preventing the Illicit Import, Export and Transfer of Ownership of Cultural Property as well as the recently adopted UNESCO Convention on Cultural Diversity. In international trade agreements, the special character of cultural services as cultural and economic goods should be taken into consideration. The leeway of state cultural funding visa-vis the WTO (for example within the framework of GATS) and the EU must be guaranteed. A basic agreement at EU level on the compatibility of state funding of culture in view, among other things, of European state aid legislation and the EU Services Directive is being sought. The autonomy of the EU Member States to shape public broadcasting within a future-oriented dual media system must be guaranteed. At European level, we must stay involved in the amendment of the EU Television without Frontiers Directive and, in particular, maintain the separation of programmes and advertising. We want to improve the basic conditions for the German film industry in order to ensure its international competitiveness. This includes internationally competitive regulations on commercialisation and tax conditions comparable to those in other EU countries in order to mobilise private capital for film production in Germany. The 2001 media decree should be amended to ensure that there are no more obstacles to coproductions with German involvement. The basic legal conditions for Germany's media landscape must be adapted totechnical developments in cooperation between the Federal Government and the Lander, first and foremost by reforming the media and communications code. Rapid changes in the spheres of telecommunications, broadcasting, the telemedia and the increasing convergence of the media make a uniform legal framework necessary. In creating this framework, the coalition partners are keen, in particular, to safeguard press diversity, civil rights and special protection of journalists.

3. Germany - Land of Sport Germany is known as a land of sport with a sports-mad population. Sport moves people and fosters social integration. It should be used and supported to a greater degree as an antidote to the increasing lack of exercise among children and young people in particular. The backbone of German sport are the clubs which, in turn, depend on the dedication of many volunteers. We want to further promote mass and top-level sport as well as sport for the disabled. Mass and top-level sport are interdependent and need each other. Top-level sport has always recruited the cream of mass sport and top performances by athletes attract millions of spectators. We are looking forward to the many world and European championships in our country and, in particular, to the 2006 World Cup, at which Germany will present itself as a hospitable, outward-looking and sports-mad country. We will continue to bid for firstclass international sport events.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

147

We will carry on supporting the reorganisation of German top-class sport and back its efforts to stay clean and fair. Germany will implement its obligations under the World AntiDoping Code.

VIII. Security for Citizens

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1. Domestic Policy: Germany - A Safe and Free Country Protecting citizens' freedom and security is one of the state's key tasks. Freedom is inconceivable without security. A balance has to be struck time and again - in line with changing external conditions - between these two values. Citizens have a right to be protected from crime. The terrorist attacks around the world have revealed a new dimension to this threat. There have been no attacks by Islamist terrorists in Germany so far. That is partly due to the good work done by the security authorities. However, such attacks can by no means be ruled out. The fight against terrorism thus continues to be a very important task for all German security authorities. The security authorities in Germany are in good shape. However, we will further develop the security architecture, which has proven its worth in principle, wherever necessary and review to what extent certain legal provisions, for example in the field of data protection, stand in the way of fighting terrorism and crime effectively. We will take the necessary legal measures based on our evaluation of the CounterTerrorism Act (Terrorismusbekampfungsgesetz). In this connection, we will also examine to what extent amendments to penal law - for instance provisions relating to the drumming up of support for terrorist organisations or activities - are necessary. The Federal and Land security authorities must have the legal powers to cooperate in order to combat terrorism effectively. On the basis of the preliminary work done by the Conference of Interior Ministers, we want to create an anti-terrorism database as quickly as possible. In view of the threat posed by international terrorism, the border line between external and internal security is becoming increasingly blurred. Nevertheless, the basic distinction between police and military tasks continues to apply. Following the decision by the Federal Constitutional Court on the Act on Aviation Security (Luftsicherheitsgesetz), we will examine whether and to what extent there is a need for constitutional amendments. In this connection, we will also introduce an act on maritime security.

1.1. Organising Security The establishment of the Joint Counter-Terrorism Centre in Berlin was a first key step in the cooperation among Federal and Land security authorities on improving the exchange of information in the fight against Islamist terrorism. We want to further improve the work done in this Centre. The Federal Criminal Police Office should be granted preventive powers to combat the dangers of international terrorism.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

148

Coalition Agreement

In order to enhance the communications capability of the authorities and organisations responsible for public safety in Germany, we will work together with the Lander to advance the introduction of digital radio within the framework of the selected operator model. Our goal must be to achieve nationwide coverage, a uniform coverage standard and a fair distribution of the costs between the Federation and the Lander as quickly as possible. A modern security architecture must include modern information technology while maintaining data protection. We therefore want to make greater use of biometric procedures (passports, identity cards, visa, residence permits) and amend the Act Governing Passports and Identity Cards (Pass- und Personalausweisgesetz) to this end. We will protect our vital information structures by implementing the National Plan for Information Infrastructure Protection. Problems as diverse as the consequences of climate change and the threat posed by terrorism present civil protection and disaster management with new challenges. We will therefore strengthen the Federation's management and coordination powers in tackling major disasters and serious accidents affecting more than one Land. The Federal Agency for Technical Relief is indispensable both to the disaster response in Germany and to humanitarian assistance worldwide. We will therefore preserve it as a federal institution. The Federal Police play an important part both among Germany's security authorities and within the context of international cooperation.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1.2. Managing Migration - Fostering Integration Migration and migratory flows are a major challenge of our time. Successful integration of those intending to stay in our country on a long-term basis is of fundamental importance for maintaining harmony within our society. Integration can only be successful if migration is managed and restricted. The tasks this involves can only be mastered through interdepartmental cooperation in an overall strategy. In order to combat the causes of migration, we want to step up and coordinate cooperation in all areas of policy with migrants' states of origin and transit countries and support this course of action at European level. The integration of foreigners and ethnic German immigrants into German society is a cross-cutting task involving many areas of policy. It remains a focus of the Federal Government's policy. We will harness the integration measures at federal level in the Federal Office for Migration and Refugees and thus strengthen it as a centre of excellence for integration. We will conduct an intensive dialogue with the major Christian churches as well as with Jews and Moslems. An interreligious and intercultural dialogue is not only an important part of integration policy and civic education; it also serves to prevent and combat racism, antiSemitism and extremism. The dialogue with Islam is especially important in this connection. Within this context, clearly naming the differences which separate the partners in dialogue is a vital sign of mutual respect. This dialogue will only succeed if we better integrate young Moslems in particular both into society and into the world of work. The Federal Government is working towards a Europe-wide refugee policy. However, regulating access of non-EU citizens to the labour market should remain a matter for national governments and parliaments.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Coalition Agreement

149

The Federal Government will introduce a second bill amending the Residence Act, which serves to implement 11 EU directives relating to foreigners and asylum seekers, into parliament without delay. The General Administrative Regulations relating to the Foreigners Act and to the Freedom of Movement Act/EU necessary for the uniform application of foreigners law throughout the Federal Republic should be drawn up as quickly as possible. We will evaluate the Immigration Act (Zuwanderungsgesetz) by looking at its practical application. In particular, it should be examined whether a satisfactory solution to the problem of the successive suspensions of deportation has been found. Within the scope of the evaluation, it should also be examined whether all security issues and humanitarian problems, for instance those relating to children brought up in Germany, have been satisfactorily resolved as intended. We will also examine the sphere of "illegality" and the question of the right to vote and stand for election in local government elections for non-EU citizens. We want to make citizenship law more precise in order to ensure uniform implementation in all Lander. This applies in particular to naturalisation involving multiple nationality and the implementation of the options model. In order to stress the importance of German citizenship to the integration process, the person being naturalised should commit themselves to the free democratic basic order during the naturalisation ceremony. In the visa procedure, too, special consideration must be given to Germany's greater security needs by adequately involving the security authorities in visa processing. To this end, the conclusions drawn by the Parliamentary Committee of Inquiry on the Visa Affair should be considered by a joint Federal Foreign Office/Federal Ministry of the Interior working group. Within the context of issuing visas, special measures should be taken to make it possible to subsequently identify foreigners who have destroyed their identity papers or travel documents. In order to combat visa abuse and illegal entries, we need a terror-suspect database for all German missions abroad and foreigners offices, to which the security authorities should have access. The Federal Government will call at European level for the EU visa information system planned for 2006 to be shaped accordingly. Should these efforts not be successful by then, a national database will be created. We want to implement suitable measures to facilitate the repatriation of foreigners required to leave the country and to remove practical obstacles to the deportation of criminals in particular as quickly as possible. We want to prevent acknowledgements of paternity being abused to gain advantages under foreigners and nationality law by introducing appropriate measures, for example by granting public authorities the right to challenge. We also continue to recognise our responsibility both for the ethnic Germans who suffered in Eastern and South-Eastern Europe as well as in the Soviet Union in the aftermath of the Second World War and now want to stay in their current home countries and for those who came to Germany. This applies in particular to the Germans in the successor states to the Soviet Union on whom the war had the longest-lasting impact. The culture of the Germans expelled from their home countries is part of the legacy of the entire German nation and we want to cultivate and preserve it. Members of the German minority in the ethnic Germans' home countries should be granted assistance from Germany, whose effectiveness we intend to enhance, in order to provide them with better opportunities and prospects for the future. Protection and promotion of recognised national minorities in Germany, with whom we want

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

150

Coalition Agreement

to continue the dialogue about their special needs, remains an important task for the Federal Government. 1.2.1. Strengthening Intercultural Skills in Child and Youth Services The special situation of migrant children must be taken into consideration when developing and reshaping the range of educational and childcare facilities in and outside school so that they, too, have a chance of gaining good qualifications. Closely involving parents in schools and other institutions is particularly important for migrant children. As well as better cooperation with migrant organisations, we want to further develop youth migration services. Cooperation between educational institutions and childcare facilities as well as child and youth services must be enhanced in an education partnership. 1.2.2. Equal Rights for Women and Girls from a Migrant Background

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

With regard to the integration process of women of foreign origin, our priorities are their equal participation in political, economic and cultural life as well as teaching them the German language so that they can enter education and the world of work. The measures aimed at integrating foreign women already launched should be further strengthened and their integration into society and the world of work advanced. The equality of women and men will be included as a key focus in the interreligious dialogue. Forced marriages cannot be tolerated. We want to prevent them and we are examining all instruments to this end. It is crucial to build awareness of rights and obligations and to enhance girls' and boys' self-confidence and ability to make their own life choices. In order to prevent and combat forced marriages, the legal status of those affected should be improved, while care, advisory services and specific help as well as preventative measures should be extended. Forced marriages will be made an offence under the Penal Code.

1.3. European Cooperation Numerous domestic issues have to be resolved at European level. In the sphere of internal security, we will canvass for all Member States to participate in the successful cooperation under the Prum Agreement. Furthermore, we want the advanced Schengen Information System (SIS II) to become operational as quickly as possible. We intend to make crucial progress in this project during the German EU Presidency in the first half of 2007.

2. Legal Policy 2.1. People Have a Right to Freedom and Security People want to live in freedom and safety in stable legal structures. Legal policy strikes a balance between people's need for security and their right to freedom guaranteed under the Basic Law. We will continue to guarantee the legal framework that enables us to fight crime at all levels. This includes effective penal laws, efficient and swift prosecution and dealing firmly with criminals.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Coalition Agreement

151

We will therefore close any loopholes in criminal law: Stalking is becoming ever more frequent and has a dramatic impact on a victim's life. It will therefore be made an offence in its own right. We want to prevent forced marriages. To this end, we will examine all suitable legal instruments. Likewise, we will provide the victims of forced prostitution with better protection and prosecute their clients. The provisions which entered into force on 8 September 2005 on the criminal liability of those responsible for graffiti will be reviewed after two years. Due to numerous amendments in recent times, criminal law in respect of sexual offences has become increasingly obscure and is no longer truly effective. We will therefore strive to carry out a radical reform of this area of penal law with a view to eliminating contradictions and unclear terminology. We will take the necessary legal measures based on our evaluation of the CounterTerrorism Act. In this connection, we will also examine to what extent amendments to penal law - for instance relating to the drumming up of sympathy for criminal or terrorist organisations - are necessary. We are drafting general sentencing rules for the Penal Code which provide for reduced sentences or exemption from punishment for witnesses for the prosecution and ensure that any crimes committed are prosecuted effectively and that possible offences are successfully prevented. The use of such rules will only be possible until the start of the trial. With the help of those involved in day-to-day practice, we will examine whether a regulation on reaching agreements in criminal proceedings is necessary. We will revise the provisions on telecommunications surveillance in the Code of Criminal Procedure with a view to creating a uniform overall regulation of secret investigative measures. Through these amendments, we will strengthen the legal protection of those affected by such measures, eliminate existing uncertainties and loopholes in the application of the law and review the catalogue of offences with an open mind. As part of the legislature's obligation to evaluate the practical and constitutional implications of the legal norms in question, we will review the new regulation on the acoustic surveillance of the private home, which entered into force on 1 July 2005, once the first Federal Government reports have been submitted to the Bundestag in accordance with Article 13 (6) of the Basic Law. DNA analysis has proved to be an excellent tool in criminal prosecution and in investigating crimes. With the amendment of 1 November 2005, DNA analysis can now be used in a wider range of criminal proceedings. This act will be reviewed after two years. Within this context, we will have to examine whether DNA analysis has to be extended as part of our policy on crime. The legislative process to implement the Framework Decision on the European Arrest Warrant will be initiated as soon as the Government has been formed. We want to continue improving cooperation within Europe on penal and civil law. We are advocating more effective transboundary criminal prosecution. In doing so, we will be committed to protecting the rights of the individual (whether they be the accused, a witness or any other third party) in keeping with strict legal requirements and also to guaranteeing them through the justice system within the scope of European cooperation.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

152

Coalition Agreement

The Council of Europe's Convention on the Transfer of Sentenced Persons should be implemented in such a way that foreign prisoners can be deported against their will to serve their sentences if they are required to leave the country once they have been released. Offenders should be resocialised so that they do not commit crimes in future. However, that will not succeed with all offenders. We therefore continue to pay particular attention to dealing firmly with those who have committed crimes. For the sensitive area of offenders undergoing measures of correction and prevention, which concerns in particular the treatment of ill offenders, there should be more flexibility coupled with tighter security. We want the capacities available to be better used, successful therapies fostered and protection from dangerous offenders improved. When offenders are released from prison or from measures of correction and prevention after serving their sentences, they must, if necessary, be subject to special controls and receive special assistance. Supervision of conduct should be stricter and more efficient. We will introduce an act to provide a reliable basis for the pre-trial detention of adults and young prisoners. We will place the execution of sentences passed on young offenders on a reliable legal basis. It should also be possible to impose subsequent preventive detention in particularly serious cases, including those of offenders convicted under juvenile criminal law of the most serious crimes against life, freedom from bodily harm or sexual self-determination. Such preventive detention will only be imposed if the offender has proved to be especially dangerous during his imprisonment. We will set up a working group to review the legal provisions on judicial measures in cases where the welfare of a child is at risk (in particular Sections 1666 and 1631 of the Civil Code and Section 34 of the Juvenile Courts Act (JGG)) with the aim of facilitating the imposition of measures by family courts relating to children and young people with severe behaviour disorders, especially those who have committed offences. In particular, the aim is to oblige parents or legal guardians to take advantage of the assistance provided by the youth welfare services, to take corrective measures which will have an impact on the behaviour of children or young people and, if necessary, to put them into care. It should be established whether the necessary conditions to create suitable accommodation exist in the Lander.

2.2. Legal Policy for a Social Market Economy The market economy only functions with strong consumers. Our policy is therefore guided by our desire to protect them and, at the same time, to enhance their ability to take responsibility for their own affairs. In the insurance contract act (Versicherungsvertragsgesetz), we will ensure that the interests of the persons insured are given greater consideration. While safeguarding the interests of consumers, we will create a new procedure on forgiving the debts of those without means. We will adopt a claims enforcement act. In order to safeguard Germany as a business location and its attractiveness to investors, we are planning further changes to commercial law in the coming electoral term: The amendment of the Limited Liability Companies Act (GmbH-Gesetz) is intended to make it easier and quicker on a long-term basis to establish companies, to increase the

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

153

attractiveness of limited liability companies as a form of enterprise, also in competition with businesses with a foreign legal form, as well as to combat abuses in cases of insolvency. The creativity and inventiveness of its people are Germany's capital for the future. That is why we need legal protection for intellectual property which meets the needs of the 21st century. We will therefore push ahead with the modernisation of copyright law as one of the focuses of our work. The public sector must set an example when it comes to performance and transparency. We are therefore striving to introduce a statutory obligation to disclose managers' salaries for companies in which the Federation has a majority share.

2.3. For Self-determination and Tolerance Our society has become more tolerant. It shows consideration for minorities. It accepts different lifestyles. Our legal policy will continue to support and foster this development. The EU directives on gender equality will be incorporated into German law. We want to further improve the situation of families with children. The maintenance laws will therefore be reformed. Child support should be given priority in this context. Taking responsibility for one's own affairs after a marriage has broken down should be strengthened. We will aim to harmonise tax and social provisions. The coalition partners propose that the discussion on legal safeguards for living wills be continued and concluded. The coalition partners agree that the procedure for establishing paternity should be simplified while reconciling the interests of everyone concerned and regulated independent of proceedings to challenge paternity.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

2.4. A Modern Justice System for the Rule of Law and Responsiveness to Citizens' Needs The coalition will ensure that the German justice system maintains its high standards and performance and that it continues to have a stabilising impact on society as a whole in the medium and long term. The legal system is faced with major challenges owing to demographic change, economic upheaval and the budgetary constraints this involves, the ever greater complexity of substantive law due to the increasing number of European regulations and the increase in lawsuits. The German legal system and in particular the rules of procedure are not optimally prepared for these challenges. The existing legal protection system is complicated, difficult to administer and confusing, at times even for legal experts. The coalition partners will look at all the proposals made by the Conference of Justice Ministers and the preliminary work done by the Federal Ministry of Justice on reform of the justice system and subsequently draw up an overall strategy for ensuring the long-term efficiency and future of the justice system while fully safeguarding rule-oflaw standards. We want to streamline the organisational, institutional and procedural structures and make them less confusing, to standardise and simplify judicature and procedural laws, as well as to foster a change in our attitude towards litigation.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

154

Coalition Agreement

The implementation of the SLIM IV Directive on electronic commercial registers provides for access to commercial register entries on the Internet as of 1 January 2007. Access via the Internet is not intended to fully replace the traditional notices in daily newspapers until the end of a reasonable transitional period. We are striving to comprehensively modernise investigations under the enforced collection system with a view to enabling the creditor to gain quick and targeted access to the debtor's assets and to easing the burden on the authorities responsible for carrying out such actions. With a reform of legal counselling, we will continue to ensure the quality of advice provided by lawyers. We will protect consumers from unqualified legal advice. Modern and clearly structured procedural law will be applied to jurisdiction over noncontentious matters. All disputes relating to marriage, separation and divorce are to be dealt with in future by a grand family court. Likewise, we will simplify procedures in matters relating to home ownership and strengthen the capability to decide and act of the owners of the some five million privatelyowned flats in Germany. Training in the legal professions must be adapted to the changing demands in this field. However, there is no need for new academic qualifications. The coalition partners therefore reject the application of the Bologna process to such training.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

IX. Germany as a Responsible Partner in Europe and the World German foreign, European and development policy serves to promote peace in the world. Our shared aim is to seize the opportunities globalisation offers our country and make an effective contribution to conflict prevention and settlement, the struggle against international terrorism, and poverty alleviation. The foundation for this is a reliable foreign, European and development policy which enjoys the trust of our allies and partners. For peace, freedom and security, as well as a policy which fosters democracy and social justice, European integration and Atlantic partnership remain of paramount significance. Maintaining continuity in German foreign policy, we will be guided by the interests and values of our country. Adherence to international law and respect for human rights, as well as the commitment to a comprehensive concept of security, are cornerstones of German foreign policy. We will seek to strengthen European policy within multilateral bodies, promote transatlantic relations and shape our relations with neighbours, allies and partners with balance and good judgement. Since the major political changes in the world after 1989, Germany has increasingly taken on international responsibility and has gained in international standing. European integration and Atlantic partnership are not at odds; rather, they are the two most important pillars of our foreign policy. Together, they form the basis for our relations with other countries, particularly our close friendship and cooperation with France, Poland and our other neighbours, with the United States of America, and also our relations with Russia. At the same time, we affirm Germany's special responsibility towards Israel.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

155

We support the implementation of the European Security Strategy. It combines a forward-looking peace policy, preventive capabilities and an emphasis on negotiated solutions to conflicts, with an expansion in capacities for joint military action. European and Atlantic security cannot be separated. NATO remains for us the central instrument of our security and defence policy. Through our development policy we will make a central contribution to combating poverty worldwide, safeguarding peace, protecting the environment, preserving the natural resource base and Creation, making democracy, the rule of law and human rights reality, and shaping globalisation in a just fashion. To this end, we will create conditions at international and national level which allow globally sustainable development. This is all the more necessary since the development of the global population, together with the refugee flows stemming in part from poverty, armed conflict and the effects of climate change, represent dramatic challenges for the industrial nations too. We intend to tackle the roots of these problems and give people in the developing countries opportunities and perspectives in their home countries. Not only does development policy arise from the responsibility we bear; it also serves our own security policy interests. In order to tackle the major global challenges, we will work together with our partners and allies, in particular at the United Nations, the international financial institutions, the OSCE, the Council of Europe and other international institutions.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1. Europe The European Union is the guarantor of political stability, security and prosperity in Germany and Europe. Only by working together can the Europeans successfully safeguard their interests. Due to its history, and its political and economic weight, Germany bears a particular responsibility for preserving and developing the European integration process. Europe is founded on the appropriate combination of unity and diversity. Different experiences of civilisation and culture make up the richness of Europe. We view the current crisis in the EU as an opportunity to adapt the European project to the needs of our time. We must regain the trust of the citizens which has been lost. This will only be possible if we in Europe concentrate together on the essentials, if we agree on the goals and tasks, competences and limits of the enlarged European Union, strictly respect the subsidiary principle, coordinate our national efforts towards reform more effectively, particularly within the eurozone, and inform our citizens better about the further development of European policies. We will seek to ensure that European rules and regulations promote functioning competition, growth and economic dynamism and safeguard social cohesion. We intend to strengthen the citizens' Europe, shape German European policy on the basis of fair cooperation between larger and smaller states and give the people of our continent hope for their future. During the first half of 2007, Germany will assume the European Union presidency. We bear a particular responsibility for the European project at a decisive point in time. We will do everything in our power to make our presidency a success. German-French cooperation and the important momentum it creates remain vital and will serve the interests of our partners within the European Union. In addition, we intend in

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

156

Coalition Agreement

particular to lend a new quality and intensity to cooperation with our neighbours and the new Member States. We intend to further intensify forms of cooperation such as the Weimar Triangle.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1.1. A Citizens' Europe We will actively seek to ensure a stronger democratisation of the European Union, to safeguard the European institutions' ability to act in an enlarged EU and to further develop Europe's many-faceted model of society. We will therefore actively use the period of reflection agreed by the European Council to enter into a wide-ranging debate with citizens, the social partners, churches and groups within society. We are committed to the European Constitutional Treaty. It represents important progress in the process of achieving a values-oriented and socially just Europe, greater rights for citizens, a clearer division of responsibilities between the EU and the Member States, the reduction of overregulation and red tape and stronger involvement of the national parliaments. This will make the European Union more democratic, capable of acting, efficient and transparent. We are therefore in favour of the process of ratification of the European Constitutional Treaty being continued beyond the first half of 2006 and given fresh momentum during the German presidency in the first half of 2007. In this context, we will support a strengthening of the role of the national parliaments through the use of the subsidiarity early warning system even before the Constitutional Treaty enters into force, something which does not require any changes to the existing treaties. We are determined to use the possibilities provided for in the Act to Extend and Strengthen the Rights of the Bundestag and the Bundesrat in EU Affairs (Gesetz uber die Ausweitung und Starkung der Rechte des Bundestages und des Bundesrates in Angelegenheiten der Europaischen Union) in a positive way for Parliament and will immediately begin discussions with the Bundestag on the conclusion of an agreement to this effect. Such an agreement does not prevent the Federal Government, even though it is aware of the views expressed in Bundestag votes, from exercising its right to take divergent decisions for compelling reasons of foreign policy and integration policy. We will work to ensure that the German language enjoys a status in Europe which reflects its importance. We intend to ensure that German interests are represented in a coordinated and efficient manner within the European institutions. Successfully cutting red tape and limiting European legislation to what is strictly necessary will be decisive in gaining public support. This also applies to transposing European directives into national law. We will seek to ensure that the European Union uses its competences responsibly, in order to prevent an erosion of the responsibilities of the Member States. We welcome the proposals put forward by the European Commission on reducing overregulation and improving impact assessment for new EU proposals. In addition, we are in favour of the European Council making use, in individual cases, of its right to call on the Commission to withdraw a legislative proposal, or, where necessary, even existing legislative provisions. We support the Lisbon Strategy, relaunched in March 2005, which aims to create more growth and employment by enhancing the European economy's competitiveness. The Member States and the EU must rigorously implement the Lisbon Strategy in their respective areas of responsibility and work together to develop it further. In light of globalisation,

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

157

strengthening Europe's competitiveness is of central importance. The Lisbon Strategy provides the appropriate framework for economic and social renewal in Europe. Sustainable growth, social cohesion, education, research and innovation must be given priority. European industrial policy will have to place our value creation on a competitive and secure base for the future. The eurozone states have a particular role to play in modernising Europe. By coordinating their policies more closely, they can make a major contribution towards demonstrating Europe's ability to act and willingness to reform. We need to strike a new balance between economic performance and social cohesion which is conducive to growth. The principles of social market economics can only be made to prevail at European level if we improve our competitiveness on a sustainable basis and, at the same time, take into account people's justified needs for protection. We are aiming to achieve a common tax base for corporate taxation and an approximation of minimum tax rates, in order to prevent unfair tax competition. In the future too, we will seek to ensure that the abolition of frontiers within the Single Market does not lead to deterioration in the security situation here in Germany and in our neighbouring states. In the European framework, we are in favour of closer and more efficient cross-border cooperation between the Member States in combating terrorism and organised crime, and of strengthening the responsible European institutions like Europol and Eurojust. In European environmental policy, our goal will be to achieve a high level of environmental protection, without damaging the competitiveness of our companies.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1.2. Financial Framework We would like to see a rapid conclusion of the negotiations on the Financial Perspective. EU financial planning must take into account Germany's economic situation and support consolidation of the national budgets. We would therefore like to see a relative reduction in the burden placed on Germany and we reaffirm our position that Germany should not contribute more than 1% of gross national income to the EU. To this end, the EU's spending structures need to be streamlined. A correction mechanism to balance out excessive net burdens should also be used to help ensure that no extra burden is placed on Germany. The commitments contained in the 24/25 October 2002 compromise on agricultural financing will not be called into question. Reform of agricultural policy will be continued along the current lines. We view the European Union's structural policy as an important expression of intraCommunity solidarity. The EU's spending on regional policy and the burden on individual countries paying into the system must, however, be shaped in a more just manner. In the future too, the new Lander will be important beneficiaries of European structural funding, but the same applies to German regions bordering the new EU Member States, which have to cope with particular adaptation processes. Germany must not be put at a disadvantage compared to the other Member States by the new arrangements for Objective 2 funding. In addition, we will actively support an increase in national leeway in regional policy. We are committed to the European Stability and Growth Pact and wish to ensure that the stability criteria are met in 2007. Our policy for more growth, employment and innovation will also contribute to sustainable consolidation of public finances.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

158

Coalition Agreement

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

1.3. Enlargement A circumspect enlargement policy, which does not overtax the European Union's capacity to absorb new members, constitutes an important contribution to peace and stability on our continent. In this context, the further development of an ambitious and differentiated EU Neighbourhood Policy is gaining in significance. Past enlargement represented a major step towards overcoming the painful division of our continent. Germany, in particular, is one of the beneficiaries. We stand by the commitments which have been made. Accession negotiations with Romania and Bulgaria have been completed. The schedule for Romanian and Bulgarian accession is tied to the fulfilment of clearly defined requirements. We will take a decision on ratification of the accession treaty with Bulgaria and Romania based on the European Commission's progress reports and recommendations. We welcome the fact that accession negotiations have begun with Croatia. We stand by the European perspective for the other states of the Western Balkans, too, as agreed at the European Council in Thessaloniki. We will ensure compliance with fair conditions of competition within the enlarged Europe and see to it that social distortions, for example through wage dumping and illegal employment, do not arise. Transitional periods will ensure that the German labour market remains protected from an uncontrolled influx of workers for up to seven years. Moreover, checks on persons at borders to the new Member States will only be discontinued once the strict security standards of the Schengen Agreement have been met. Germany has a particular interest in a deepening of mutual relations with Turkey and in binding the country to the European Union. The negotiations launched on 3 October 2005 with the aim of accession are an openended process which does not imply any automaticity and whose outcome cannot be guaranteed at the outset. This poses a particular economic, demographic and cultural challenge. Against this background, we welcome the reform efforts undertaken in Turkey. We want to make every effort to foster development in the areas of democracy, the rule of law and economic affairs in Turkey, with which we are also closely linked within NATO. There must be strict compliance with the conditions contained in the negotiating mandate and the Declaration by the European Community and its Member States of 21 September 2005, also as regards the EU's absorption capacity. In accordance with the Copenhagen criteria, this also encompasses the exercise of basic liberties, including religious freedom. Should the EU not have the capacity to absorb Turkey, or should Turkey not be able to comply completely and in full with all of the commitments which membership entails, Turkey must be linked to the European structures as closely as possible and in a way that further develops its privileged relationship with the EU.

2. Transatlantic Cooperation and European Security Policy We want to shape transatlantic relations in a way that looks to the future without forgetting our shared history. For this, close, mutual trust between the USA and a selfconfident Europe which sees itself as a partner, not a counterweight, is essential.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Coalition Agreement

159

That does not rule out the possibility of differing views, which must be dealt with in a dialogue based on partnership and in a spirit of friendship. The Atlantic partners are linked by a shared foundation of values and many common interests, arising not least from the fact that they are the most closely intertwined, and thus the most interdependent, economic areas in the world. We want to endeavour, inter alia, to improve the procedures for settling trade disputes, and to promote a better understanding of the USA among the German public, as well as of Europe and Germany in the USA. Together with the USA, we will continue in future to support peace, democracy and freedom in the world. Cooperation with the USA is particularly important in ensuring fruitful relations between the Islamic world and the West, in securing peace and stability in the Middle East and the Balkans, in the struggle against poverty and hunger, in dealing with failing states, the plight of refugees and persistent structural imbalances of the world economy, in the struggle against terrorism and the proliferation of weapons of mass destruction, and in tackling the consequences of natural catastrophes and epidemics. NATO is the strongest anchor of our security and defence policy. We are in favour of the Atlantic Alliance becoming the central forum of the transatlantic security-policy dialogue, where the transatlantic partners consult each other and coordinate their strategic concepts on an equal basis. In this way, too, we want to strengthen the alliance. Attention must be paid in this context to close and seamless coordination and cooperation between NATO and the EU. The European security and defence policy is not intended to compete with the transatlantic security partnership. In our view, European action in the field of security policy should be guided by the European Security Strategy of December 2003. With a view also to strengthening the European pillar of the Atlantic security partnership, we are in favour of enhancing the EU's capacities and options for action. In this context, we will avoid unnecessary and costly duplication with NATO. To be able to fulfil its international responsibilities and represent its interests, the EU needs, in this framework, civilian and military means for conflict settlement and conflict prevention. We want to further develop the European security and defence policy into a Security and Defence Union. For the purpose of conducting joint European operations as part of a broader understanding of security, the EU needs planning and command capabilities which can be deployed within the framework of the agreements concluded between the EU and NATO. The development of EU multinational task forces will be continued. They will remain interoperable with NATO. We will adhere to the currently applicable regulations governing arms exports, and support harmonisation of arms exports guidelines within the EU. European foreign policy and Atlantic partnership must prove their worth with respect to joint action. German foreign policy will endeavour to help bring about positions coordinated between the European and transatlantic partners. Such a policy is having a positive effect in the Balkans and Afghanistan. We will also pursue this approach towards other crisis spots or problem areas, including the Middle East peace process, the stabilisation of the Middle East and its integration in global development, the fostering of democracy and modernisation efforts in the Arab world, support for peaceful conflict resolution in the East Asian region, the strengthening of disarmament, arms control and the non-proliferation regime, the dangers of nuclear and biological terrorism, and a global climate policy.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

160

Coalition Agreement

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

3. The Bundeswehr as an Instrument of National and International Security The Bundeswehr's fifty-year existence is the success story of an army in a democratic society which, in addition, has played an important part in bringing the reunified Germany closer together. Security-policy developments are a major factor in determining the Bundeswehr's future spectrum of tasks and the structural consequences. Accordingly, the Bundeswehr serves the objectives of international conflict prevention and crisis management, support for Alliance partners, national defence, rescue and evacuation operations, partnership and cooperation, as well as national disaster relief. Germany gears its security-policy structures towards these tasks, and is willing to make a contribution to strengthening international security commensurate with its size and importance. The EU's security-policy capabilities must be consistently strengthened within the framework of a credible European Security and Defence Policy. Germany will therefore continue in future to participate, within its means, in further developing and making available necessary capabilities. The Federal Government will make every effort to advance European defence cooperation while maintaining the core capabilities of the German defence technology industry and its international competitiveness. The Bundeswehr is an operational army. Its structures must ensure that Germany has the ability to act in the field of foreign and security policy, and that the Bundeswehr can be deployed to secure the borders of the Alliance area, is capable of fulfilling commitments to the UN, NATO and the EU, and can continue in future to protect Germany and its population. The Federal Government is willing to continue to take on responsibility within the multinational framework in future. The Federal Government can decide to deploy the Bundeswehr abroad, subject to the German Bundestag's consent, in so far as this is necessary in terms of security policy and is in the national interest. It will ensure that the Bundeswehr receives the necessary resources for this. By the end of 2006, the Federal Government will produce a white paper on Germany's security policy and the future of the Bundeswehr, under the direction of the Federal Minister of Defence. This white paper will also set out the tasks and procedures for cooperation of the institutions responsible for security within a comprehensive national system of preventive security. On this basis, the constant further development of the Bundeswehr since German reunification will be continued in a way which will enable the armed forces to successfully carry out their tasks in the security-policy environment of the 21st century. The Parliamentary Participation Act (Parlamentsbeteiligungsgesetz) will remain the procedural basis for Parliament's binding decision on Bundeswehr missions abroad. If experience should indicate a need for further development, the coalition parliamentary groups will table bills. Alongside involvement in international conflict management, national defence remains the Bundeswehr's core constitutional task, despite changed conditions and tasks. Particularly in view of asymmetrical threats, posed in particular by terrorist activities, it is no longer possible to draw a sharp distinction between external and internal security. Where there is a need for statutory or constitutional regulation to counter particular threats to our country's security, the Federal Government will introduce legislation.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Coalition Agreement

161

Efficient national defence requires reliable regional structures as well as cooperation between the civil and military authorities in the use of existing capabilities. The concept of civil-military cooperation will be further developed. The Federal Government is committed to general conscription, which remains the best form of military service. It determines the development of the Bundeswehr and the way in which it perceives its role while maintaining a strong bond between the armed forces and society. Alternative civilian service will remain as a substitute for military service. Given the great social importance of civilian service (for example in the realm of support for persons with disabilities) and its role in youth policy, it undoubtedly merits retention, not least as an important field enabling young men to acquire key knowledge and skills. General compulsory military service for men and women is rejected. The performance and duration of civilian service will continue to be based on the rules governing military service. We will look into the question of whether the system of compulsory military service and the call-up system can be further improved in terms of their fairness, with a view to providing a secure planning basis for all parties involved in civilian service. We will examine the extent to which the time spent acquiring practical vocational skills and theoretical knowledge during civilian service can be deducted from the duration of subsequent training periods to an even greater extent. The practical arrangements for the induction of conscripts into civilian service will be further developed. As part of the same process, we will examine whether the number of training centres for civilian service should remain at twenty. Bundeswehr planning will be continued on the basis of task-based funding, with a balance being struck between operational and capital expenditure. The implementation of the Bundeswehr stationing concept will be continued. Within the overarching aim of guaranteeing the operational capability of the Bundeswehr, armaments planning will seek to preserve appropriate core industrial capabilities. We will strive to ensure that capital expenditure in the defence budget is categorised in the budgetary guidelines as investment, in accordance with European rules. Enhanced cooperation with business, privatisation measures and public-private partnerships are suitable means by which additional capital and know-how from the private sector can be made available to the Bundeswehr. The decisive criteria must be that the Bundeswehr makes efficiency gains and is relieved of responsibilities that lie outside its core tasks. A critical review will be undertaken and any necessary adjustments made. This review will cover budgetary and procurement law as well as planned projects, with consideration being given to experience gained to date. The special characteristics of military service will be taken into account in social legislation and welfare rules. In this context, the possibility of creating a separate system of remuneration for members of the armed services will be examined. We will also examine how structural surpluses of older military professionals can, in light of the needs of the armed forces, be reduced as part of the transformation process. An efficient military administration is essential to the operational capability of the Bundeswehr. The adjustment and restructuring measures that have already been initiated are based on that goal. In setting up new structures, consideration will continue to be given to the social welfare of civilian staff.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

162

Coalition Agreement

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

4. Stability, Security and Cooperation in Europe and the World Germany has a vital interest in the permanent stabilisation of the western Balkans. For this reason, we will actively endeavour, together with our partners and allies, to bring the countries of the western Balkans closer to the EU and NATO, to support political and economic change in those countries and to settle unresolved issues. Together with our European partners, we will work towards a strategic partnership with Russia, which we will advance in all fields at the level of bilateral relations and at EU level. Germany has a particular interest in supporting the country's difficult modernisation process through increased political, economic and societal cooperation. The aim remains a Russia which prospers and which - guided by the values to which Europe is committed, and taking into consideration its traditions -successfully completes its transformation into a stable democracy. We want to increase trade and create a long-term energy partnership without onesided dependencies. Russia remains an important partner for us in dealing with regional and global challenges, in the struggle against international terrorism, and in the context of relations with its immediate neighbours. Offers by Germany and the EU to support Russia in creating better conditions for a political solution to the Chechen conflict still stand. We want to shape our relations with Russia in a way that includes our common neighbours in a spirit of friendship and trust. We will continue to develop, on the basis of shared values, our relations with the other states of Eastern Europe and the countries of the southern Caucasus and Central Asia. It remains our aim to make every effort to support the democratic and economic reform process in Ukraine. We are committed to implementing the path towards deepening and strengthening relations between the EU and Ukraine set out in the EU action plan adopted on 21 February 2005. We are in favour of Ukraine finding its place in Europe. Together with our partners in the EU, we support a strengthening of democracy, the rule of law and human rights in Belarus. In light of its history, Germany's relationship with Israel is marked by a special responsibility. We affirm Israel's right to exist and the right of its citizens to live within secure borders, free of fear, terror and violence, as well as the right of the Palestinian people to their own state, existing side by side with Israel in security and within recognised borders. We want to work together with our partners, on the basis of the roadmap, towards a peace solution which is in the interests of all involved and lays the foundations for the lasting, peaceful coexistence of Israelis and Palestinians in two sovereign states. Bilaterally and together with our partners, we will provide targeted support for reform processes in the countries of the Middle East, while respecting their independence and traditions, and will also thereby make a contribution towards overcoming the problem of Islamist terrorism and easing the migratory pressure emanating from that region. Beyond the bounds of the region, improving mutual understanding with cultures shaped by Islam is an important objective which, besides cultural and economic aspects, also serves to safeguard peace. In this rapidly intertwining world, we want to intensify further our relations with the states in Asia, Latin America and Africa on the basis of shared values and guided by the principles of democracy, the rule of law and human rights. We will place special emphasis on promoting and reinforcing subregional and interregional cooperation.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Coalition Agreement

163

We will devote increasing attention to the political, security and economic challenges facing Asia. In this context, in addition to our established links with Japan and other Asian states, we intend to develop long-term partnership strategies with China and India in particular. The economic and political potential of these countries is growing, and we would like to seize the opportunities this offers. We want to intensify our dialogue with China on the rule of law with the aim of strengthening democracy, the rule of law and human rights. We wish to give our relations with the states of Latin America and the Caribbean the emphasis this traditional partnership deserves, thereby pursuing our interest in regional stability, democracy, prosperity, thriving economic relations and cultural exchanges as well as helping to combat drug-trafficking and terrorism. In so doing, we intend to take a firm stand against dictatorial tendencies and human-rights abuses. Developments in our neighbouring continent of Africa confront us with important humanitarian tasks and affect our strategic and political interests. Africa faces enormous social, political and economic challenges. Among the priorities of our involvement in Africa are combating poverty, protecting the natural resource base and pursuing policies for the stabilisation and reconstruction of weak or failed states. We are therefore resolved, for the sake of both continents, to support the emergence of self-sustaining development in Africa for which Africa itself would take ownership. To this end, we want to lend active support and bolster Africans' efforts to solve problems themselves, particularly in the framework of NEPAD, but at the same time we will also take the extent to which African states exercise responsibility for their own destiny as a yardstick. African states are increasingly developing their own sense of political responsibility for the security of their region; we will support this by helping to develop the bodies responsible for security policy in the African Union and African regional organisations. Cultural and education policy abroad is the third pillar of German foreign policy. We wish to strengthen intercultural dialogue and to awaken interest in Germany and Europe, especially through cooperation in the realms of research and higher education. In order to enhance the efficiency of our cultural policy abroad, we intend to streamline its instruments, interlink them to a greater degree and improve their quality. The Deutsche Welle broadcasting service, as the voice of Germany, and the system of German schools abroad must be strengthened.

5. The United Nations German action in the foreign-policy field is primarily taken in multilateral contexts. We will make particular efforts to strengthen the common foreign policy of the EU and to gain support for common European positions, particularly in international forums such as the United Nations. We support effective multilateralism, in which each specific problem is entrusted to the international organisations best equipped to solve it. The United Nations continues to have a key role to play in preserving peace and solving global challenges for the future. We are in favour of a reform of the United Nations which enables it to meet future requirements. We will advance the reform initiatives of the UN summit held in September 2005, such as the new Peacebuilding Commission and the Human Rights Council, and actively support management reform. We will also advocate the further strengthening of the rule of law in international affairs. Any reform of the UN which does not

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

164

Coalition Agreement

involve reform of the Security Council would be incomplete. Germany remains ready to accept more responsibility, including by taking up a permanent seat on the Security Council. As a long-term perspective, we will continue to strive for a permanent seat for the EU. We will maintain our commitment to the development of Bonn as a location for UN offices and international non-governmental organisations.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

6. Global Issues German foreign policy is rooted in a comprehensive security concept, which combines elements of foreign, security and development policies. In this context, we intend to develop the range of instruments available to us for crisis prevention and response in particular. This priority cross-cutting task requires the pooling of available financial and human resources, as well as additional funding. Besides military capabilities, these resources must also include enough civilian personnel for the establishment or restoration of viable democratic institutions subject to the rule of law, such as the police force, the judiciary and the public prosecution service. The Interministerial Steering Group for Civilian Crisis Prevention should be strengthened, and early-warning mechanisms should be improved. National and EU mechanisms should be even more neatly dovetailed. We will implement the Federal Government's Action Plan on Civilian Crisis Prevention. Germany will remain ready to exercise its international responsibility and participate in international peace missions in the framework of the Charter of the United Nations and of the Basic Law. This commitment will be honoured on the basis of international law and in close coordination with our partners and allies in the EU, NATO and the UN. In this context, Germany supports the process of stabilisation, nation-building and reconstruction, especially in Afghanistan and the Balkans. This support is reflected in a comprehensive approach involving the use of political, economic, developmental and military resources. We will take decisions on Bundeswehr missions abroad with our allies, having due regard to the need for a fair distribution of burdens, and we can be relied upon to honour the pledges we have made. Bundeswehr missions abroad will always be accompanied by overarching political strategies and will be closely coordinated among the departments of the Federal Government involved. Missions in other countries are dangerous. Our service personnel, police, diplomats and development and reconstruction workers deserve our thanks and our recognition. Their welfare is our special concern. We want to enhance our contribution to the struggle against international terrorism. To combat terrorism efficiently, we must intensify our international cooperation on the basis of a comprehensive long-term strategy, with particular emphasis being placed on tackling the causes of terrorism. This means that agreement must be reached on a comprehensive UN antiterrorism convention and implementation of all UN conventions relating to terrorism; it also means engaging in dialogue with Islam and ensuring close cooperation among intelligence services. Where necessary, consideration must also be given to the use of military resources. Treaty-based non-proliferation, disarmament and arms control are core priorities of German foreign and security policy. We stand by the long-term goal of complete abolition of all weapons of mass destruction. We are committed to nuclear disarmament and the reinforcement of the international non-proliferation regime. We advocate strengthening the

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Coalition Agreement

165

role of international organisations such as the International Atomic Energy Agency (IAEA). International capabilities to monitor and verify compliance with the non-proliferation regime and to enforce the provisions of the Non-Proliferation Treaty must be improved. In the conflict about the Iranian nuclear programme, our aim is to achieve a negotiated solution. We want to work together with our European and American partners to ensure that the international community receives objective guarantees that the Iranian nuclear programme serves peaceful purposes only. With this aim in mind, we want to continue the negotiations and, as a first step, ensure ratification of the Additional Protocol to the Non-Proliferation Treaty by Iran. We are in agreement with our European and American partners that Iran has the right to use nuclear energy for peaceful purposes, but not to possess nuclear weapons. We will make every effort to ensure that Iran makes its necessary contribution to peace and stability in the region and recognises the right to exist of all states in the region. We will continue to press for progress in the control of small and light weapons of war. Our policy on human rights is an important component of our political efforts to promote peace and security. Systematic violations of human rights can also pose a threat to peace and international security. Human rights are indivisible. Our foreign and development policies will not fail to respond when democracy, freedom, the rule of law and minority rights are in danger. We are committed to credible foreign and development policies, policies that can address shortcomings openly, while at the same time actively seeking to promote the interests of our country. Bilateral dialogue on the rule of law, measures to strengthen civil society and promotion of democracy in the multilateral framework can underpin this process. Familiar and new infectious diseases, such as HIV/AIDS, malaria, tuberculosis and bird flu, as well as the ever greater number of natural disasters, are endangering more and more people and, increasingly, entire regions. We want to take part in international efforts to combat such diseases and disasters. We intend to develop a comprehensive strategy for energy security in order to ensure that energy supplies to Germany and Europe are also safeguarded in the long term. Part of this strategy must focus on the efficient use of increasingly scarce global resources and the promotion of energy from renewable sources. In 2007, Germany will be hosting the G8 summit, and will make every effort to bring the summit to a successful conclusion.

7. Development Policy Development policy is a distinct component of our overall German foreign policy. The consequences of increasingly critical development problems, particularly in Africa but also in parts of Asia and Latin America, pose a direct threat to peace and prosperity in Germany and Europe. We are pursuing the aims and applying the principles of the Millennium Declaration, especially the Millennium Development Goals for 2015, including the results of their review conducted at the UN Millennium Summit in 2005, the Monterrey Consensus adopted at the International Conference on Financing for Development and the Plan of Implementation agreed at the Johannesburg World Summit on Sustainable Development. We regard development cooperation as a task of the international community, to which German development policy makes effective and visible contributions.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

166

Coalition Agreement

Our main aim is to pursue a highly effective development policy. We want to achieve this by raising the profile of our policy, by establishing a clear national and international division of labour, successfully coordinating our activities with other donors and by improving the coherence and efficiency of bilateral and multilateral organisational structures and instruments. Through close interweaving of our foreign, security, development, human-rights, external-trade and cultural-relations policies, we intend to forge a coherent policy on relations with developing countries. In order to improve cooperation in tackling global challenges, we wish to advance the further development of international institutions and global regulatory instruments such as the world trade order. In this context, we will focus on the following objectives: • • • •

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

•

greater fairness in the way in which global structures are shaped, further reform of EU development policy, continuing reform of the international financial institutions the World Bank and the International Monetary Fund, enhancement of the negotiation and implementation capacities of developing countries, and better opportunities for developing countries to mobilise their own resources for their own development.

We are in favour of the world trade order being adjusted so as to ensure that greater emphasis is placed on reducing poverty. Debt relief should be consistently focused on the Millennium Goals, and its effectiveness should be efficiently monitored. Along with our partners in the WTO, we want to improve market access for developing countries. We intend to support the efforts at the Doha round of trade negotiations to reduce tradedistorting tariffs and agricultural export subsidies while creating differentiated marketopening mechanisms for developing and newly industrialised countries and to ensure that these efforts are successful. Successful development depends on good governance - based on democracy, the rule of law and respect for human rights - as well as on gender equality and on a peaceful environment. These criteria, coupled with efforts to enhance good governance, promote the potential for self-help and strengthen and support civil society in developing countries, along with sustained efforts to fight corruption, are defining elements of our development cooperation. For cooperation with countries where governance is inadequate, we intend to devise a new concept designed to establish the basis for a development-orientated transformation in the longer term. With our partners in the EU, we will strive to ensure that the dangers of destabilisation posed by contrasting demographic trends and by increasing pressure causing people to migrate to Europe can also, by means of development measures, be confronted effectively at their source. By promoting the use of energy from renewable sources and energy efficiency in developing countries, we make an important contribution to worldwide sustainable development, to the creation of more jobs in Germany, to protection of the global climate, to reduced dependence on oil in energy supply and to the fight against poverty.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Coalition Agreement

167

Preserving biological diversity for future generations is imperative to ensure our planet's sustainable development. We want to set new priorities and launch fresh initiatives designed to help the developing countries preserve biodiversity and promote the development-friendly use of resources. In our bilateral cooperation, we will, in close consultation with other donors, review our priority areas for the achievement of the Millennium Goals and the number of our partner countries with a view to reducing this number. Our medium-term objective is to concentrate our bilateral cooperation on 60 countries. In this context, we will also re-examine the balance between the resources available for bilateral, as opposed to multilateral, development cooperation. We have committed ourselves to automatic increments in the resources allocated to official development cooperation and have included these increases in the timetable agreed at EU level. Accordingly, we will devote 0.33% of our gross national income to public development cooperation by 2006, at least 0.51% by 2010 and the UN target figure of 0.7% by 2015 at the latest. These increases will be achieved with the aid of additional budgetary resources, debt relief and innovative funding instruments. In the international arena, we will remain active and focused on results in the framework of cooperative efforts to introduce innovative funding instruments for global sustainable development, particularly in the EU, the G8 and the Lula Group (Action against Hunger and Poverty). Increasing the efficiency of German development policy and improving its structures will depend on further streamlining. This applies especially to the need to forge closer links between Technical and Financial Cooperation. Budgetary assistance will only be granted if the criteria of good governance are met. Successful cooperation with non-governmental organisations, churches, foundations and business will be further developed. We will further improve cooperation between governmental and nongovernmental players. The political foundations will play a prominent role in our development policy. German development policy will use the instruments of bilateral, multilateral and EU development policy in a targeted manner with due regard to the relative advantages of each, coordinating them more closely. We want to raise the profile of our development policy by means of consolidation and prioritisation and to ensure that it is a visible and effective part of the efforts of the international community. We will be seeking strategic partnerships with major newly industrialised countries. We want to develop our presence and our influence in multilateral development organisations and their supervisory bodies.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

168

Coalition Agreement

X. The Working Methods of the Coalition

I. Cooperation between the Parties This coalition agreement is valid for the 16th electoral term. The coalition partners undertake to translate this agreement into government action. The partners bear joint responsibility for all of the coalition's policies. The coalition partners CDU, CSU and SPD will continuously and comprehensively coordinate their work in parliament and government and reach consensus on procedural, material and personnel issues. The coalition partners will meet regularly at least once a month for coalition talks in the coalition committee. Furthermore, this committee will convene at the request of any of the coalition partners. It will discuss matters of fundamental importance requiring coordination between the coalition partners and bring about consensus in cases of conflict. It will consist of the Chancellor, Deputy Chancellor, the chairpersons of the parliamentary groups (in the case of the CDU/CSU parliamentary group also the first deputy chairperson) and the party chairpersons, should they not already be included.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

II. Cooperation between the Parliamentary Groups In the Bundestag and all bodies to which it sends representatives, the coalition parliamentary groups will vote unanimously. This will also apply to matters which are not the subject of agreed policy. The possibility of changing majorities is excluded. Agreement will be reached between the coalition parliamentary groups on parliamentary procedures and work. Motions, legislative proposals and interpellations at parliamentary group level will be tabled jointly or, exceptionally, by mutual agreement. The coalition parliamentary groups will reach agreement on this.

III. Federal Government 1. Work in the Cabinet In Cabinet neither side will be outvoted on issues which are of fundamental importance for one coalition partner. Positions to be introduced into EU bodies will be coordinated. In all Cabinet committees and all bodies to which the Cabinet sends representatives, both coalition partners will hold seats where the number of federal representatives permits. The filling of posts on Cabinet committees and advisory boards etc will be arranged by mutual agreement.

2. Composition of the Cabinet The power of organisation lies with the Federal Chancellor. Major departmental changes during this electoral term will be subject to agreement between the coalition partners.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Coalition Agreement

169

3. Distribution of Ministries The CDU/CSU will provide the Federal Chancellor. The SPD will provide the Deputy Chancellor. The CDU/CSU will head the following Federal Ministries: • • • • • •

Economics and Technology Interior Defence Family Affairs, Senior Citizens, Women and Youth Education and Research Food, Agriculture and Consumer Protection

The Head of the Federal Chancellery with the rank of Federal Minister will be provided by the CDU/CSU. The SPD will head the following Federal Ministries:

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

• • • • • • • •

Federal Foreign Office Finance Justice Economic Cooperation and Development Labour and Social Affairs Health Transport, Building and Urban Affairs Environment, Nature Conservation and Nuclear Safety

The right to nominate persons for each post lies with the parties responsible. CDU, CSU and SPD will each provide an equal number of Parliamentary State Secretaries and Ministers of State. The same procedure will apply to Federal Government Commissioners. The Federal Ministers will have the right to nominate Permanent and Parliamentary State Secretaries and Ministers of State at their respective Federal Ministries.

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved. German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

INDEX

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

A abduction, 21 abortion, 137 absorption, 9, 35, 43, 159 academic, 76, 103, 113, 132, 155 access, 60, 61, 65, 68, 72, 79, 87, 97, 113, 120, 129, 135, 136, 138, 140, 149, 150, 154, 167 accidents, 149 accommodation, 69, 82, 91, 153 accountability, 53 accounting, 7, 100, 106, 110 accounting standards, 110 achievement, 39, 59, 121, 128, 168 acoustic, 152 acquis communautaire, 42 adaptation, 47, 83, 115, 158 addiction, 63, 122 adjustment, 81, 123, 124, 127, 162 administration, 31, 32, 36, 50, 91, 97, 100, 107, 127, 128, 162 administrative, 67, 69, 71, 108, 127, 128 adult, 78 adult stem cells, 78 adults, 74, 153 advertising, 145, 147 aerospace, 58, 78 Afghanistan, vii, 2, 6, 7, 11, 13, 15, 16, 18, 21, 23, 24, 160, 165 Africa, vii, 2, 11, 13, 18, 163, 164, 166 African Union, 164 age, 40, 63, 65, 67, 74, 118, 119, 125, 130, 137, 138, 141, 145 ageing, 77, 105, 121, 141 ageing population, 77 agricultural, 47, 96, 97, 99, 104, 158, 167 agricultural sector, 104

agriculture, 94, 97, 98, 99 aid, 36, 63, 113, 114, 124, 168 AIDS, 122 air, 14, 16, 52, 61, 85, 88, 92, 93 air quality, 88 air traffic, 93 airports, 89 Al Qaeda, 15 alcohol, 144 allies, 5, 14, 15, 16, 19, 155, 156, 163, 165 alluvial, 95 alternative, 9, 30, 88, 95, 98, 106, 134 alternatives, 9, 98, 109 ambivalent, 29 amendments, 106, 110, 137, 140, 142, 148, 151, 152 Amsterdam, 30 analysts, 8, 9, 10, 11, 12, 16, 20 anger, 48 animal welfare, 97, 98 anti-HIV, 122 anti-Semitism, 139, 149 anti-terrorism, 148, 165 anxiety, 4, 17 application, 45, 58, 69, 86, 135, 149, 152, 155 appropriations, 85 Arab world, 160 argument, 14, 34, 35, 43 armed conflict, 156 armed forces, vii, 1, 5, 22, 161, 162 arms control, 160, 165 arrest, 20, 21 arteries, 95 Asia, 11, 18, 39, 40, 44, 163, 164, 166 Asian, 43, 51, 160, 164 assertiveness, 8, 11, 17 assessment, 8, 57, 61, 90, 100, 121, 126, 134 assets, 12, 68, 84, 91, 103, 154

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

172

Index

asymmetry, 47 athletes, 147 Atlantic, 5, 8, 40, 155, 156, 160 atmosphere, 92 Atomic Energy Act, 80 atrocities, 14 attacks, 7, 11, 20, 148 attitudes, 46, 52 attractiveness, 82, 86, 113, 153 Austria, 51 authority, 15, 28, 48, 68, 132, 135 automaticity, 159 autonomy, 147 availability, 57, 74, 103, 109 aversion, vii, 1, 4, 18 aviation, 59, 89 awareness, 69, 80, 109, 137, 151

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

B balanced budget, 102 Balkans, vii, 2, 7, 8, 9, 11, 14, 35, 39, 43, 45, 159, 160, 163, 165 Baltic States, 44, 46 banking, 74 banks, 23, 57 bargaining, 70 barriers, 20, 86,131 Basel II, 57, 110 basic research, 58, 77 basic services, 132 battery, 98 Belarus, 163 Belgium, 42 benchmark, 110, 141 benefits, 8, 9, 34, 65, 67, 68, 69, 77, 98, 119, 120, 125, 127, 134, 135, 141 Big Three, 49 bilateral relations, 2, 10, 18, 163 bilateralism, 48 binding, 63, 70, 81, 87, 92, 93, 124, 136, 159, 161 biodiversity, 168 biofuel, 95 biofuels, 82 biogas, 98 biomass, 81, 82, 83 biometric, 148 biotechnology, 58, 99, 103, 121 bipartisan, 3 bird flu, 166 birth, 118, 137 black economy, 71 Bologna Process, 76 border crossing, 11

borrowing, 102 Bosnia, 11, 13 bottlenecks, 85 bounds, 163 boys, 138, 151 breaches, 60 breathing, 100 Britain, 51, 52, 53, 54 broad spectrum, 63 broadband, 59 Brussels, 8, 30, 31, 34, 40, 47, 94 bubble, 34 budgetary resources, 168 buildings, 82, 83, 89, 91 Bulgaria, 9, 35, 62, 159 bureaucracy, 36, 40, 96, 128, 135, 143, 144 Bush Administration, 21, 23, 33

C campaigns, 89, 122 cancer, 121 candidates, 53 CAP, 47 capacity, 9, 11, 12, 16, 43, 56, 83, 84, 88, 112, 119, 131, 159 capital expenditure, 162 capital gains, 106 capitalism, 50 carbon, 93 cardiovascular disease, 121 career success, 129 Caribbean, 164 cartel, 60, 83 cast, 12 catastrophes, 160 Catholic, 133 Caucasus, 163 cell, 59 Central Asia, 39, 40, 43, 44, 163 Central Bank, 30 Central Europe, 44, 53 certificate, 59 certification, 99, 100, 125 CFSP, 8, 10, 11 channels, 110 Chechnya, 46 chemical industry, 61 chemicals, 19, 61, 94 child abuse, 138 child poverty, 134 child protection, 132 childcare, 104, 107, 130, 131, 132, 133, 150 childhood, 130, 131, 132

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Index children, 67, 73, 89, 90, 91, 104, 115, 119, 129, 130, 131, 133, 134, 135, 136, 137, 138, 139, 145, 147, 149, 150, 153, 154 China, 23, 164 chronic illness, 121 CIA, 21 circulation, 47 citizens, 20, 27, 35, 40, 41, 65, 92, 104, 107, 108, 123, 128, 129, 142, 143, 144, 148, 149, 150, 156, 157, 163 citizenship, 27, 150 civil engineering, 90 civil law, 152 civil liberties, 20 civil rights, 147 civil servants, 38, 48, 119, 124 civil society, 27, 93, 94, 129, 142, 145, 166, 167 civilian, 5, 11, 14, 15, 18, 22, 23, 24, 160, 162, 165 classes, 37, 107, 110 classification, 107 cleaning, 34, 70 clients, 136, 151 climate change, vii, 2, 4, 8, 18, 88, 91, 92, 149, 156 Clinton Administration, 7 clusters, 58, 78, 79, 112 Co, 9, 11, 13, 14, 20, 21, 28, 37, 39, 42, 43, 45, 51, 60, 108, 132, 136, 137, 139, 148, 151, 157, 159, 160, 163, 168, 169, 170 CO2, 82, 93, 95, 103 coalitions, 16 coherence, 167 cohesion, 29, 73, 156, 157, 158 cohort, 118 Cold War, vii, 1, 4, 5, 6, 8, 9, 10, 13, 17 collaboration, 68, 146 collective bargaining, 67, 70, 74 Columbia, 51 commerce, 133 commercials, 144 Common Foreign and Security Policy, 8, 10 Common Market, 40 communication, 58, 77, 78, 83, 103 communication technologies, 58 communism, 50 communities, 65, 67, 68, 136, 140 community, 27, 38, 58, 64, 67, 80, 84, 99, 113, 131, 132, 133, 139, 140, 142, 143, 166, 168 compatibility, 76, 106, 139, 146 compensation, 87, 99, 123, 125, 126, 134 competence, 136 competition, 31, 35, 55, 60, 61, 76, 77, 83, 85, 86, 87, 88, 92, 105, 106, 109, 112, 117, 123, 143, 153, 156, 158, 159

173

competitive advantage, 58, 74 competitive conditions, 108 competitiveness, 12, 41, 59, 73, 74, 80, 83, 84, 85, 87, 88, 92, 93, 94, 103, 106, 108, 109, 111, 116, 147, 157, 158, 161 complement, 12, 19, 33, 85 complexity, 41, 154 compliance, 97, 99, 100, 138, 159, 166 components, 18, 84 conception, 38 concrete, 35, 41, 42, 45, 50, 60, 62, 114 confidence, 16, 17, 30, 56, 101, 103, 104 configuration, 46 conflict, 5, 11, 18, 21, 22, 47, 142, 155, 160, 161, 163, 166, 169 conflict prevention, 5, 142, 155, 160, 161 conflict resolution, 160 Congress, 1, 2, 12, 17, 36, 37 consensus, 7, 10, 11, 18, 23, 38, 40, 41, 42, 48, 49, 67, 123, 169 consent, 68, 144, 161 conservation, 82 consolidation, 41, 87, 101, 102, 103, 104, 105, 158, 168 Constitution, 28, 31, 33, 37, 39, 40, 41, 42, 43, 48, 49, 50, 51 constraints, 5, 14, 17, 130, 154 construction, 27, 67, 70, 79, 85, 86, 87, 89, 90, 91, 92, 93, 101, 103, 113, 116, 144 consulting, 47 consumer protection, 77, 87, 97, 139, 144 consumers, 92, 99, 109, 143, 144, 153, 154 consumption, 81, 82, 91, 95, 130 continuity, 5, 21, 101, 155 contracts, 65, 70, 125, 139 control, 32, 59, 71, 83, 95, 108, 123, 166 convergence, 20, 44, 47, 124, 147 cooking, 131 coordination, 6, 31, 43, 121, 127, 144, 149, 160, 165, 169 Copenhagen, 75, 159 corporate governance, 110 corruption, 167 cost-benefit analysis, 109 cost-effective, 80, 83, 94, 110, 123 costs, 16, 34, 45, 48, 57, 62, 64, 69, 71, 85, 91, 100, 103, 104, 105, 107, 122, 125, 126, 128, 131, 132, 134, 145, 148 Council of Europe, 51, 152, 156 counterfeiting, 45 counter-terror, 15 counterterrorism, vii, 2, 6, 17, 20, 21 country of origin, 61

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

174

Index

courts, 135, 153 coverage, 57, 125, 148 covering, 111, 128 creativity, 143, 145, 153 credibility, 5, 7, 12, 34, 61 credit, 23, 57, 61, 85, 113, 139 creditor nation, 22 creep, 127 crime, 14, 45, 108, 138, 148, 151, 152, 153 criminals, 150, 151 crisis intervention, 5, 17, 131 crisis management, 11, 39, 131, 161 criticism, 3, 4, 6, 12, 15 Croatia, 37, 43, 45, 159 cross-border, 71, 83, 84, 158 CRS, 1, 6, 9, 11, 12, 15, 20, 21 crude oil, 10 Cuba, 21 culture, 116, 119, 143, 145, 146, 150, 156 currency, 30, 46 cycling, 90 Cyprus, 9, 35, 39 Czech Republic, 9, 42, 53

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

D danger, 122, 166 database, 148, 150 DCI, 16 death, 24, 45, 126 debt, 22, 63, 102, 103, 131, 139, 168 debtor nation, 22 debts, 153 decay, 90 decision-making process,31, 123, 137, 144 decisions, 15, 18, 32, 36, 57, 77, 83, 86, 89, 96, 97, 116, 118, 119, 122, 123, 146, 157, 165 deduction, 107 defense, 1, 4, 6, 7, 8, 11, 13, 14, 15, 16, 17, 18, 19 deficit, 36, 47, 54, 55, 56,102 definition, 37, 50, 67, 68, 83, 127 delivery, 56, 120, 131, 132, 141 demand, 56, 60, 69, 72, 83, 122, 130, 141, 143 dementia, 121, 127 democracy, 9, 18, 36, 38, 139, 142, 155, 156, 159, 160, 163, 164, 166, 167 Democratic Party, 3, 37, 38 democratisation, 157 demographic change, 75, 90, 115, 120, 121, 123, 125, 143, 154 demographics, 130 denial, 52 Denmark, 42 dentists, 124

dentures, 124 Department of State, 19 deported, 152 deposits, 68 depreciation, 56, 103, 106 deregulation, 61 desire, 5, 6, 7, 8, 12, 30, 36, 40, 91, 100, 102, 104, 133, 153 detainees, 4 detention, 153 Deutsche Mark, 30, 34 devaluation, 127 developing countries, 93, 97, 156, 167, 168 development assistance, 89 development policy, 155, 156, 166, 167, 168 dictatorship, 111, 117 diet, 145 dignity, 142 directives, 36, 59, 72, 149, 154, 157 disability, 120 disabled, 90, 119, 120, 147 disaster, 149, 161 disclosure, 142 discourse, 30, 33, 36, 37, 48 Discovery, 21 discretionary, 66 discrimination, 56, 108 diseases, 78, 121, 145, 166 disenchantment, 48 disputes, 22, 47, 155, 160 dissatisfaction, 19, 35 distortions, 70, 86, 88, 159 distribution, 57, 92, 107, 110, 148, 165 divergence, 1, 2, 5, 17 diversification, 41 diversity, 60, 90, 123, 139, 140, 147, 156, 168 division, 32, 81, 116, 157, 159, 167 divorce, 155 DNA, 152 doctors, 124, 126 Doha, 60, 97, 167 domestic factors, 2 domestic investment, 56 donations, 107, 145 donors, 167, 168 doors, 47 draft, 39, 72, 85, 99, 112, 114, 144 drugs, 122 dumping, 61, 95, 159 duplication, 12, 160 duration, 17, 135, 162 duties, 36, 57, 97, 124

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Index

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

E early retirement, 63 early warning, 78, 132, 157 earning power, 56 earnings, 65, 105 earth, 78, 92 earthquake, 33 East Asia, 51, 160 Eastern Europe, 44, 52, 53, 59, 72, 163 Eastern Germany, 97, 111, 112, 113, 114, 115, 116, 117, 138 ecological, 96 economic activity, 103 economic change, 163 economic competitiveness, 12 economic development, 45, 60, 72, 92, 112, 113, 117 economic efficiency, 81 economic goods, 146 economic growth, 55, 56, 83, 101, 103, 104, 105, 106, 111, 122, 143 economic liberalization, 13 economic performance, 106, 133, 158 economic policy, 12, 89, 143 economic problem, 145 economic reform, 2, 3, 12, 163 economic reforms, 2, 3, 12 economic stability, 9, 34 eco-tourism, 94 Education, 55, 73, 75, 76, 77, 113, 138, 170 educational institutions, 151 educational research, 73 educational settings, 140 EEG, 81, 98 elderly, 89, 90, 121, 125, 141, 142 election, 32, 150 electricity, 47, 81, 82, 83 emission, 95 employability, 63, 64, 66 employees, 34, 35, 63, 64, 70, 71, 72, 75, 107, 118, 119, 120, 125, 133 employers, 62, 64, 70, 72, 120 employment, 40, 55, 56, 57, 59, 61, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 75, 83, 90, 91, 96, 103, 104, 105, 106, 107, 109, 111, 114, 118, 120, 122, 124, 128, 135, 136, 139, 141, 145, 157, 158, 159 employment relationship, 70 EMU, 53 energy, 3, 6, 10, 11, 12, 14, 20, 28, 39, 40, 41, 42, 43, 45, 46, 47, 48, 49, 50, 58, 77, 78, 80, 81, 82, 83, 88, 91, 92, 93, 96, 98, 103, 109, 116, 163, 166, 167 energy consumption, 81, 91

175

energy efficiency, 82, 91, 93, 167 energy supply, 83, 93, 98, 167 energy transfer, 41 engagement, 3, 7, 8, 10, 14, 15, 18, 19, 21, 22, 23, 24, 27, 98, 124, 131, 132, 142, 143, 145 engines, 95 enlargement, 6, 9, 10, 13, 27, 33, 34, 35, 39, 42, 45, 48, 49, 53, 116, 159 enterprise, 96, 153 enthusiasm, 8, 13, 17, 33, 35, 80 entrepreneurs, 57, 74, 144 environment, 16, 20, 34, 38, 40, 58, 60, 61, 77, 83, 88, 92, 94, 97, 99, 101, 103, 109, 111, 130, 133, 138, 156, 161, 167 environmental policy, 92, 94, 158 environmental protection, 20, 43, 77, 87, 92, 94, 95, 97, 158 environmental technology, 78 epidemics, 14, 160 equality, 130, 136, 140, 151 equilibrium, 33 equipment, 19, 82 equity, 57, 101, 104, 105, 106, 107, 110, 113, 118 erosion, 106, 157 Estonia, 9, 11 ethical principles, 78 Ethiopia, 13 EU enlargement, 8, 9, 10 Euro, 30, 34, 46, 47 Europe, v, vii, 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, 14, 19, 22, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 41, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 60, 61, 71, 75, 76, 80, 86, 92, 95, 97, 109, 150, 152, 155, 156, 157, 158, 159, 160, 163, 164, 166, 167 European Central Bank, 30 European Commission, 20, 27, 31, 36, 43, 49, 85, 86, 100, 157, 159 European Community, 5, 29, 159 European Court of Justice, 70, 109 European Higher Education Area, 76 European integration, 4, 6, 8, 9, 12, 17, 27, 28, 29, 30, 31, 36, 37, 51, 84, 85, 155, 156 European Monetary System, 37 European Parliament, 31 European policy, 28, 31, 33, 34, 35, 36, 37, 38, 40, 46, 47, 49, 137, 155, 156 European Security and Defense Policy, vii, 2, 6, 8, 11, 12, 16, 19, 36, 43 Europeanisation, 46 Europeans, 11, 40, 41, 156 evacuation, 161 evolution, 31, 33, 48, 109

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

176

Index

exchange rate, 34 exclusion, 43 execution, 107, 153 exercise, vii, 1, 2, 4, 5, 18, 67, 121, 145, 147, 159, 164, 165 expansions, 43 expert, 13, 32 expertise, 44 exploitation, 136 export controls, 61 export credit guarantees, 23 export subsidies, 97, 167 exports, 19, 23, 160 exposure, 95 expulsion, 146 extradition, 21 extremism, 139, 142, 149 eyes, 50

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

F fabric, 89, 91 failed states, 14, 38, 164 failure, 30, 121 fairness, 162, 167 faith, 140 family, 73, 76, 91, 104, 107, 115, 118, 127, 129, 130, 131, 133, 134, 135, 138, 140, 141, 153, 155 family development, 131 family income, 134 family members, 118 farmers, 98, 99 farming, 72, 96, 97, 98 fatigue, 39 FDI, 19 FDP, 38 fear, 8, 15, 47, 163 February, 3, 8, 12, 15, 21, 23, 163 federal budget, 102, 103, 104, 105, 144, 145 federal elections, 3, 10, 19 federal funds, 114 federal government, 31 federal law, 100, 117 Federal Reserve, 53 federalism, 53 fee, 126 feeding, 98 feelings, 46 fees, 76, 81, 83, 124 fighters, 22 film, 108, 138, 147 finance, 58, 76 financial aid, 44, 45 financial institution, 156, 167

financial markets, 20, 109, 110 financial planning, 112, 158 financial problems, 103 financial resources, 17, 127 financial sector, 110 financial support, 14, 56, 76, 134, 136 financing, 57, 97, 106, 109, 119, 158 Finland, 50 fire, 35 firms, 20, 41, 46 fiscal policy, 47, 102 fish, 99 fisheries, 96, 99 fitness, 141 flexibility, 72, 85, 94, 107, 124, 135, 152 flight, 146 flood, 95 flow, 46 focus groups, 51 focusing, 3, 112 food, 96, 97, 99, 143, 144, 145 food safety, 97, 143 foodstuffs, 144 forced migration, 146 foreign direct investment, 19 foreign policy, vii, 1, 2, 3, 4, 5, 6, 7, 8, 10, 11, 17, 18, 19, 28, 29, 33, 36, 40, 41, 45, 46, 47, 48, 146, 155, 157, 160, 164, 165, 166 foreigners, 149, 150 forestry, 96 forests, 93, 99 forgetting, 45, 159 fossil, 80, 88 fragmentation, 38 framing, 60, 125 France, vii, 1, 2, 12, 13, 16, 23, 28, 29, 31, 32, 33, 39, 41, 42, 44, 45, 46, 47, 48, 49, 50, 155 fraud, 68, 108 free trade, 45, 60 freedom, 18, 28, 61, 71, 72, 76, 77, 108, 148, 151, 153, 155, 159, 160, 166 freedom of choice, 108 freight, 84 friendship, 155, 160, 163 frustration, 11 fuel, 59, 82, 83, 88, 95 fuel cell, 59, 83 funding, 17, 22, 23, 56, 58, 61, 63, 68, 69, 73, 74, 75, 76, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 89, 90, 98, 111, 112, 113, 116, 117, 125, 126, 127, 128, 130, 132, 136, 137, 139, 140, 141, 144, 145, 146, 158, 162, 165, 168

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Index funds, 37, 58, 61, 64, 69, 73, 78, 84, 85, 102, 103, 110, 111, 112, 114, 119, 120, 123, 124, 125, 126, 145, 146 fusion, 32, 78 futures, 27

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

G G8, 2, 3, 40, 43, 93, 166, 168 games, 138 gas, 10, 40, 46, 83 GATS, 76, 146 Gazprom, 10, 46 GDP, 3, 16, 58, 77, 103, 112 gender, 134, 136, 138, 154, 167 gender equality, 134, 136, 154, 167 generation, 13, 31, 35, 48, 76, 80, 81, 108, 126, 130, 142 genetics, 122 Geneva, 21 Geneva Convention, 21 Georgia, 13 geriatric, 127, 141 gift tax, 57 girls, 74, 138, 151 global competition, 79, 85 global markets, 87 global resources, 166 Global War on Terror, 21 goals, 5, 7, 11, 16, 17, 18, 39, 41, 81, 84, 130, 156 Gordon Brown, 13 governance, 9, 12, 28, 96, 167, 168 government, 2, 3, 4, 5, 6, 7, 8, 9, 12, 14, 15, 16, 17, 19, 20, 21, 22, 23, 31, 36, 39, 40, 49, 52, 53, 69, 90, 92, 94, 96, 97, 102, 103, 120, 124, 127, 128, 136, 149, 150, 169 government policy, 136 grades, 127 graffiti, 151 grants, 82, 103, 124 Great Britain, 16, 29, 33, 42, 49 Greece, 44, 52 green belt, 94 greenhouse gas, 93 grids, 81, 83 gross domestic product, 96, 102 groups, 91, 96, 100, 124, 125, 126, 130, 140, 141, 145, 157, 161, 168, 169 growth, 3, 35, 40, 47, 54, 55, 56, 58, 61, 73, 79, 80, 83, 84, 85, 87, 90, 99, 101, 103, 104, 105, 106, 107, 109, 111, 112, 113, 122, 128, 141, 143, 156, 157, 158 Guantanamo, 4, 21 guidance, 27, 139

177

guidelines, 61, 122, 160, 162 guiding principles, 76, 135 gut, 13

H Hamas, 22 hands, 32 harm, 114, 149, 153 harmonization, 20 harmony, 149 health, 20, 59, 61, 62, 63, 69, 78, 94, 98, 105, 111, 115, 117, 120, 121, 122, 123, 124, 125, 126, 127, 131, 132, 136, 143, 144 health care, 120, 121, 122, 123, 124, 126 health insurance, 62, 69, 105, 123, 136 health problems, 117 health services, 123, 132 heart, 35, 86, 109 heat, 81, 82 heating, 69 hedge funds, 37, 110 heme, 119 Hermes, 60 Hezbollah, 22 higher education, 55, 74, 76, 77, 113, 164 high-level, 17, 21 high-tech, 58 hiring, 120 HIV, 122, 166 HIV/AIDS, 166 holistic, 129, 140 home ownership, 91, 108, 155 Homeland Security, 20, 21 hospital, 124 hospital beds, 125 hospitals, 124, 141 host, 22 household, 59, 104, 107, 134 household income, 134 households, 65, 104 housing, 55, 89, 90, 91, 92, 98, 116, 134 housing benefit, 91, 134 hub, 84, 85, 131 human, 5, 6, 18, 31, 35, 77, 122, 133, 136, 139, 142, 155, 156, 163, 164, 165, 166, 167 human resources, 31, 133, 142, 165 human rights, 5, 6, 18, 35, 139, 155, 156, 163, 164, 166, 167 humane, 98 humanitarian, 6, 14, 149, 164 humanitarian intervention, 14 humans, 122 Hungary, 9, 53, 146

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

178

Index

husbandry, 98, 99 hydrogen, 83

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

I ice, 11 id, 11, 12, 98 identification, 121 identity, 19, 30, 35, 148, 150 illusion, 102 ILO, 60, 67 imbalances, 64, 112, 160 immigrants, 149 immigration, 42 Immigration Act, 149 impact assessment, 61, 100, 157 implementation, 32, 40, 42, 50, 67, 85, 86, 87, 95, 97, 109, 114, 130, 132, 135, 136, 139, 146, 150, 154, 155, 162, 165, 167 imports, 45 imprisonment, 21, 153 inauguration, 31, 33 incarceration, 4 incentive, 81, 88, 95, 127, 135 incentive effect, 127 incentives, 56, 59, 61, 63, 64, 68, 83, 88, 89, 91, 93, 95, 104, 105, 106, 108, 119, 123, 134, 135, 143, 145 incidence, 98 inclusion, 93 income, 56, 59, 63, 64, 67, 68, 69, 72, 91, 104, 105, 106, 107, 112, 120, 132, 134, 135, 158, 168 income tax, 59, 105, 106, 107, 132 incomes, 134 incompatibility, 35 independence, 76, 134, 144, 163 India, 164 indication, 3, 4, 7 indicators, 103, 112 Indonesia, 78 induction, 162 industrial, 31, 36, 40, 41, 76, 80, 82, 98, 99, 104, 113, 119, 138, 156, 158, 162 industrial policy, 40, 158 industrial sectors, 99 industry, 20, 37, 46, 57, 58, 59, 60, 61, 62, 63, 64, 67, 70, 72, 73, 74, 75, 78, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 92, 93, 94, 95, 99, 108, 109, 112, 115, 116, 121, 144, 145, 147, 161 infection, 122 infectious, 78, 166 infectious diseases, 78, 166 inflation, 34 information and communication technologies, 58

information and communication technology, 58, 77, 78, 83, 103 Information System, 151 information technology, 128, 148 infrastructure, 83, 84, 85, 86, 87, 89, 90, 97, 101, 104, 111, 112, 116, 117, 129 inheritance, 57, 108 inheritance tax, 108 innovation, 40, 55, 56, 57, 58, 59, 73, 76, 77, 78, 79, 80, 83, 90, 93, 96, 103, 110, 111, 112, 113, 117, 121, 143, 157, 158 inspections, 142, 144 institutional reforms, 42 institutions, 4, 5, 6, 8, 9, 18, 31, 33, 36, 55, 57, 76, 79, 96, 113, 139, 145, 146, 150, 156, 157, 158, 161, 165, 167 institutions of higher education, 76, 113 instruments, 57, 58, 60, 64, 79, 81, 83, 84, 86, 88, 95, 108, 112, 113, 114, 119, 136, 139, 144, 145, 151, 164, 165, 167, 168 insurance, 56, 62, 64, 66, 69, 72, 98, 102, 103, 105, 117, 118, 119, 120, 123, 126, 133, 136, 144, 153 integration, 4, 6, 8, 9, 12, 17, 20, 27, 28, 29, 30, 31, 33, 36, 37, 45, 49, 51, 63, 66, 84, 85, 109, 110, 119, 120, 131, 134, 139, 140, 142, 147, 149, 150, 151, 155, 156, 157, 160 intellectual property, 20, 58, 60, 153 iintelligence, 20, 165 intensity, 16, 156 interdependence, 46 interdisciplinary, 98 interface, 76, 126, 131 intergenerational, 101, 105, 118, 131, 143 International Atomic Energy Agency (IAEA), 166 international financial institutions, 156, 167 international law, 2, 4, 5, 6, 14, 18, 21, 155, 165 international markets, 60 International Monetary Fund, 167 international relations, 5, 27 international standards, 79 international terrorism, 5, 18, 21, 148, 155, 163, 165 international trade, 146 Internet, 138, 154 interoperability, 19 intervention, 5, 14, 17, 131, 132 interview, 6, 24 interviews, 16, 28 inventiveness, 153 investigative, 152 investment, 17, 19, 55, 56, 60, 61, 82, 84, 85, 86, 89, 90, 91, 103, 104, 105, 106, 110, 111, 112, 116, 117, 130, 145, 162 investors, 59, 110, 112, 113, 153

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Index ions, vii, 2, 7, 14, 17, 56, 62, 93, 97, 126, 133 Iran, 18, 21, 23, 39, 49, 166 Iraq, vii, 1, 2, 9, 11, 12, 17, 18, 21, 22, 32, 33, 39, 44, 48 Iraq Study Group, 23 irritation, 47 Islam, 149, 163, 165 Islamic, 20, 160 Islamist terrorism, 148, 163 isolation, 131 Israel, 21, 22, 23, 155, 163 Israeli-Palestinian conflict, 11, 18, 21, 22 Italy, vii, 1, 2, 23, 29, 33, 42, 44, 49, 52

J January, 4, 9, 12, 13, 19, 21, 22, 24, 34, 38, 40, 51, 52, 53, 62, 70, 105, 106, 107, 108, 119, 125, 154 Japan, 6, 164 Jerusalem, 23 Jews, 149 jobless, 64, 72 jobs, 55, 56, 57, 58, 60, 61, 64, 65, 68, 75, 76, 77, 83, 84, 89, 90, 92, 96, 103, 105, 108, 111, 112, 118, 120, 122, 134, 138, 167 journalists, 119, 147 judges, 33, 135 judiciary, 165 jurisdiction, 31, 155 justice, 18, 30, 32, 37, 130, 152, 154, 155

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

K kindergarten, 131 knowledge economy, 75 knowledge-based economy, 77 Kosovo, 11, 13, 14, 15, 39 Kyoto Protocol, 18, 41, 92, 93

L labour, 35, 45, 60, 61, 62, 63, 64, 65, 66, 68, 71, 72, 74, 103, 105, 107, 111, 112, 114, 115, 118, 120, 130, 132, 136, 139, 140, 141, 149, 159, 167 labour force, 130, 139, 141 labour market, 61, 62, 63, 64, 65, 66, 68, 72, 74, 107, 111, 112, 114, 115, 118, 120, 130, 132, 136, 139, 140, 149, 159 labour market policy, 63, 66, 74 land, 90, 95, 97, 143, 147 language, 36, 131, 146, 151, 157 language skills, 131 large-scale, 79, 91 Latin America, 163, 164, 166 Latvia, 9

179

law, 2, 4, 5, 6, 14, 18, 21, 31, 59, 60, 61, 65, 67, 69, 70, 71, 72, 78, 83, 87, 88, 89, 90, 93, 94, 95, 99, 101, 104, 105, 109, 110, 117, 122, 123, 128, 129, 136, 143, 144, 145, 148, 149, 150, 151, 152, 153, 154, 155, 156, 157, 159, 162, 163, 164, 165, 166, 167 laws, 20, 61, 100, 105, 106, 107, 110, 136, 137, 143, 151, 154 lawyers, 154 lead, 11, 15, 16, 17, 33, 43, 48, 66, 78, 101, 105, 117, 158 leadership, vii, 1, 2, 3, 4, 11, 15, 17, 19, 35, 44, 46, 47, 136 learning, 65, 73, 75, 129, 130, 131 learning difficulties, 73 learning process, 65 Lebanon, 7, 13, 22 legal protection, 152, 153, 154 legislation, 56, 59, 60, 61, 71, 75, 77, 87, 91, 94, 98, 99, 100, 101, 106, 107, 117, 119, 128, 135, 137, 138, 142, 143, 146, 157, 161, 162 legislative, 69, 100, 109, 118, 119, 121, 145, 152, 157, 169 legislative proposals, 100, 169 lending, 57 lens, 35 liberal, 37, 38 liberalisation, 47 liberalization, 13 licensing, 61, 72, 94 life expectancy, 118, 130 life sciences, 58, 78 lifestyle, 129 lifestyle model, 129 lifestyles, 154 limitation, 122 limited liability, 153 linear, 107 linguistic, 140 linkage, 73, 120, 131 links, 12, 15, 19, 88, 113, 140, 164, 168 liquefied natural gas, 83 liquidity, 57, 108 Lisbon Strategy, 61, 72, 157 listening, 39 Lithuania, 9 litigation, 154 livestock, 98 loans, 57, 91, 109 lobby, 7, 46, 98 local authorities, 128 local community, 131, 132 local government, 69, 90, 150

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

180

Index

location, 49, 59, 61, 84, 109, 120, 121, 125, 153, 165 locusts, 37 logistics, 84, 88 loneliness, 131 longevity, 140, 141 long-term, 64, 68, 70, 85, 118, 121, 122, 125, 126, 127, 136, 137, 144, 149, 153, 154, 163, 164, 165 long-term care insurance, 126, 127, 136 loopholes, 107, 151, 152 losses, 35, 58, 108 Lula, 168 Luxembourg, 42, 52

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

M Maastricht criteria, 102 Maastricht Treaty, 31 Macedonia, 21 machinery, 19, 128 macroeconomic, 34, 101, 103 mainstream, 42, 120, 131 maintenance, 59, 83, 84, 91, 104, 107, 154 malaria, 166 malnutrition, 145 management, 11, 39, 57, 91, 95, 99, 112, 131, 149, 161, 164 management practices, 99 mandates, 7, 140 manipulation, 10 manufacturing, 61, 83 marginalisation, 28 maritime, 59, 87, 148 market, 8, 23, 32, 34, 36, 42, 46, 47, 55, 57, 58, 60, 61, 62, 63, 64, 65, 66, 68, 72, 74, 81, 82, 83, 84, 85, 87, 91, 92, 96, 97, 99, 107, 109, 110, 111, 112, 113, 114, 115, 118, 120, 123, 130, 132, 136, 139, 140, 144, 149, 153, 158, 159, 167 market access, 97, 167 market economics, 158 market economy, 153 market position, 123 market stability, 110 marketing, 82, 83, 92, 98, 121 markets, 45, 57, 59, 60, 61, 78, 83, 86, 93, 97, 101, 110 marriage, 154, 155 marriages, 151 married couples, 105 maternal, 134 meals, 145 measures, 18, 21, 41, 46, 58, 59, 60, 62, 63, 64, 65, 66, 67, 69, 70, 74, 79, 82, 83, 89, 92, 95, 99, 103, 104, 106, 107, 110, 112, 114, 115, 117, 118, 119,

120, 122, 123, 124, 127, 133, 136, 138, 139, 140, 142, 148, 149, 150, 151, 152, 153, 162, 166, 167 media, 60, 138, 140, 145, 147 medical care, 115, 122, 124 medicine, 77, 120 Mediterranean, 12, 13, 15, 44 membership, 3, 9, 10, 21, 35, 44, 159 memory, 78 men, 129, 136, 151, 162 mentoring, 140 mergers, 71, 123 microsystem, 58 Middle East, vii, 2, 3, 7, 10, 18, 21, 33, 160, 163 migrant, 74, 150 migrants, 140, 142, 149 migration, 14, 72, 90, 146, 149, 150 military, vii, 1, 2, 4, 7, 8, 11, 13, 14, 15, 16, 17, 18, 20, 23, 89, 91, 148, 155, 160, 162, 165 military tasks, 148 milk, 145 Millennium, 166, 167, 168 Millennium Development Goals, 166 minimum wage, 66 mining, 81 Ministry of Education, 58 minorities, 150, 154 minority, 150, 166 mirror, 14 missions, vii, 1, 5, 6, 7, 11, 13, 14, 15, 16, 18, 19, 150, 161, 165 mobility, 76, 83, 85, 86, 89, 90 models, 85, 123, 137 modernisation, 59, 60, 82, 83, 90, 91, 92, 93, 98, 110, 128, 153, 160, 163 modernization, 16 momentum, 48, 49, 156, 157 money, 20, 34, 66 morbidity, 124 mortgages, 91 Moscow, 43, 45, 46 mothers, 129 motion, 36, 102, 146 movement, 43, 62, 72 multilateral, 2, 4, 5, 7, 8, 14, 16, 18, 19, 21, 30, 60, 155, 164, 166, 167, 168 multilateralism, vii, 1, 164 multiplicity, 89 multiplier, 89, 106 multiplier effect, 89 mutual respect, 149

N naming, 149

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Index nanotechnology, 58, 78, 103 narcotic, 122 nation, 80, 145, 150 national, 4, 5, 7, 8, 11, 12, 15, 16, 17, 18, 19, 20, 30, 33, 34, 36, 38, 40, 41, 46, 49, 50, 61, 71, 72, 75, 77, 80, 82, 83, 85, 87, 88, 92, 95, 96, 97, 98, 101, 108, 109, 110, 112, 113, 114, 120, 121, 137, 144, 145, 146, 149, 150, 155, 156, 157, 158, 161, 162, 167, 168 National Economic Council, 20 national income, 158, 168 national interests, 5, 7, 8, 12, 18, 19, 30, 40, 46, 50 national security, 4, 18, 20 nationality, 150 nation-building, 165 NATO, vii, 1, 4, 5, 6, 7, 10, 12, 13, 14, 15, 16, 17, 18, 19, 23, 24, 36, 156, 159, 160, 161, 163, 165 Natura 2000, 95 natural, 10, 46, 77, 78, 83, 92, 94, 99, 156, 160, 164, 166 natural disasters, 166 natural environment, 92 natural gas, 10, 46, 83 natural resources, 77 nature conservation, 94, 95, 97 navigation system, 59 negative attitudes, 4 neglect, 138, 139 negotiating, 159 negotiation, 167 neighbourhoods, 90 NEPAD, 164 net income, 104 Netherlands, 42, 100 network, 5, 65, 84, 85, 87, 104, 116, 121, 131, 141 networking, 140 new media, 138, 140 New York, 5 newspapers, 35, 154 next generation, 130 NGOs, 46 noise, 88, 89, 90, 95 nongovernmental, 168 non-profit, 64, 143 non-tariff barriers, 20 norms, 58, 92, 152 North Atlantic, 14 nuclear, 11, 21, 23, 40, 80, 160, 165, 166 nuclear energy, 40, 80, 166 nuclear program, 11, 166 nuclear weapons, 23, 166 nursing, 119 nursing care, 119

181

nutrition, 131, 144

O obligation, 7, 8, 66, 87, 98, 100, 124, 130, 137, 145, 152, 153 obligations, 17, 61, 63, 67, 88, 100, 119, 125, 147, 151 occupational, 63, 117, 118, 119, 120, 129, 137, 139, 140 OECD, 100, 109 offenders, 152, 153 offshore, 81 oil, 10, 40, 82, 88, 95, 167 old age, 118, 119 older people, 64, 65, 141 oligopolies, 83 omission, 42 online, 128 open markets, 60 Operation Enduring Freedom, 6, 13, 15, 16, 23, 24 operator, 84, 85, 148 opiates, 126 opinion polls, 3 opportunity costs, 134 opposition, vii, 2, 4, 5, 6, 9, 11, 14, 15, 17, 18, 24 opposition parties, 17 optical, 58, 72, 78, 103 optimism, 34 organic, 96 organised crime, 158 organization, 6, 7 organizations, 3, 21 orientation, 19, 33, 39, 46 OSCE, 156 outpatient, 127 outsourcing, 35, 61 overtime, 75 ownership, 92, 108, 164

P pacifism, 7 palliative, 125, 142 palliative care, 125, 142 pandemic, 122 pan-European, 36, 49 Paper, 4, 5, 7, 14, 16, 17, 18, 28, 29, 31, 39, 49, 86, 110, 128, 161 paradigm shift, 141 parental care, 130 parenthood, 133 parenting, 129, 132, 133

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

182

Index

parents, 67, 69, 73, 104, 129, 130, 131, 132, 134, 135, 137, 140, 150, 153 Paris, 22, 28, 46, 48 Paris Club, 22 Parliament, 27, 31, 40, 41, 127, 157, 161 partnership, vii, 1, 2, 3, 4, 9, 11, 12, 27, 35, 37, 39, 43, 48, 53, 93, 94, 133, 151, 155, 160, 161, 163, 164 partnerships, 68, 85, 90, 110, 162, 168 passenger, 84, 86, 104 passports, 148 paternal, 134 paternity, 150, 154 pathways, 73 patients, 121, 122, 125 pay-as-you-go, 126 PCA, 43, 45 peace process, 22, 160 peacekeeping, vii, 1, 2, 5, 6, 13, 14, 17, 18 peer, 138, 140 peer group, 138, 140 peers, 3 pension, 62, 69, 98, 105, 117, 118, 119 pension reforms, 118 pensioners, 118 pensions, 111, 118 perception, 78 performance, 3, 73, 88, 106, 128, 133, 153, 154, 158, 162 permit, 38, 111 Persian Gulf, 14 personal, 4, 20, 63, 68, 69, 74, 105, 120, 122, 128 personal responsibility, 69 personnel costs, 16 persons with disabilities, 162 pharmaceutical, 121, 125 pharmaceutical companies, 125 pharmaceuticals, 121 pharmacists, 125 physical environment, 142 physicians, 141 pig, 99 pipelines, 83 PISA, 73 pitch, 31 placebo, 54 planning, 59, 65, 84, 85, 86, 87, 90, 94, 97, 100, 101, 103, 106, 111, 112, 117, 118, 120, 130, 131, 137, 153, 158, 160, 162 plants, 80, 82 play, 19, 28, 35, 38, 39, 40, 45, 46, 54, 60, 73, 75, 76, 88, 91, 92, 96, 103, 115, 128, 139, 144, 149, 158, 164, 168

poisonous, 51 Poland, 9, 11, 33, 35, 42, 44, 46, 49, 53, 146, 155 police, 8, 11, 22, 23, 24, 148, 165 policy choice, 45 policy initiative, 3, 48 policy instruments, 114 policy makers, 36, 83 policy making, 30, 49 policy reform, 15 political legitimacy, 39 political parties, 6 political stability, 156 politicians, 5, 7, 8, 13, 16, 18, 19, 23, 48, 50 politics, 8, 32, 35, 47, 49, 129, 133, 137 pollutant, 95 poor, 45, 74 population, 34, 43, 69, 77, 95, 120, 125, 147, 156, 161 ports, 88 Portugal, 44, 53 post-Cold War, 5, 7, 14, 16 posture, 13 poverty, 6, 120, 134, 135, 155, 156, 160, 164, 167 poverty alleviation, 155 power, 2, 4, 5, 9, 12, 31, 34, 41, 56, 59, 74, 80, 81, 82, 93, 156, 169 power generation, 80 power plants, 82 power stations, 59, 93 powers, 16, 30, 31, 36, 37, 40, 79, 83, 123, 144, 148, 149 PPPs, 56, 85, 90 pragmatic, 12 predictability, 106, 120 preference, 19, 139 premium, 108, 123 presidency, 2, 3, 9, 11, 19, 20, 35, 39, 42, 46, 52, 53, 80, 156, 157 president, 12, 20 President Bush, vii, 1, 2, 7, 15, 19, 20, 21 President Vladimir Putin, 3 presidential elections, 49 pressure, 2, 3, 9, 21, 22, 23, 30, 45, 46, 102, 122, 163, 167 prevention, 5, 89, 121, 122, 126, 138, 140, 142, 152, 153, 155, 160, 161, 165 preventive, 95, 121, 122, 132, 148, 153, 155, 161 price competition, 144 prices, 34, 61, 92, 125, 126 primary school, 73 priorities, 16, 17, 44, 56, 77, 80, 81, 85, 103, 114, 139, 151, 164, 165, 168 prisoners, 4, 21, 152, 153

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Index prisoners of war, 21 privacy, 20, 122 private, 57, 58, 59, 76, 83, 85, 89, 90, 92, 103, 104, 106, 107, 108, 110, 113, 118, 119, 123, 126, 145, 147, 152, 162 private enterprises, 92 private sector, 58, 76, 83, 85, 89, 90, 103, 113, 162 private sector investment, 89, 90 privatisation, 38, 85, 97, 162 proactive, vii, 1, 5, 7, 8, 63, 98 production, 81, 83, 96, 98, 108, 116, 147 productivity, 82, 92 professional development, 135, 141 professional qualifications, 59 professions, 124, 155 profit, 57, 93, 106 program, 38 progress reports, 111, 159 progressive tax, 107 proliferation, 5, 14, 160 promote, 18, 28, 30, 60, 62, 64, 73, 76, 80, 81, 82, 84, 85, 86, 89, 93, 95, 99, 104, 106, 109, 111, 112, 113, 115, 116, 119, 120, 122, 131, 137, 139, 143, 147, 155, 156, 160, 166, 167, 168 promote innovation, 80, 111, 113 property, 20, 58, 60, 89, 91, 153 property rights, 60 proposition, 42 prosperity, 73, 80, 156, 164, 166 prostitution, 137, 151 protection, 20, 43, 64, 70, 72, 74, 75, 77, 80, 81, 82, 87, 92, 93, 94, 95, 96, 97, 101, 110, 117, 118, 119, 128, 129, 132, 138, 139, 143, 144, 147, 148, 149, 151, 152, 153, 154, 158, 167 protectionism, 37 Provincial Reconstruction Team, 15 psychologist, 35 public, vii, 1, 2, 3, 4, 5, 6, 9, 10, 14, 15, 18, 19, 27, 28, 31, 38, 41, 46, 56, 60, 61, 71, 72, 75, 76, 81, 85, 86, 87, 89, 90, 91, 101, 102, 103, 105, 106, 107, 115, 116, 122, 128, 137, 139, 143, 146, 147, 148, 150, 153, 157, 158, 160, 165, 168 public awareness, 137 public broadcasting, 147 public finance, 56, 61, 71, 101, 102, 105, 158 public funds, 103 public health, 61, 122 public opinion, 2, 3, 4, 10, 19, 38 public safety, 61, 148 public sector, 85, 89, 91, 153 public service, 31, 56, 115, 128 public support, 157 publishers, 60

183

punishment, 152 Putin, 46

Q qualifications, 65, 74, 75, 76, 129, 138, 139, 150, 155 quality assurance, 75, 77, 145 quality of life, 77, 78, 89, 133, 140, 141, 143 quality of service, 124 questioning, 7, 13, 48

R racism, 149 radiation, 72 radical, 4, 20, 30, 61, 101, 140, 152 radio, 148 radioactive waste, 80 rail, 59, 86, 87, 104, 116, 144 railway track, 95 range, 11, 17, 32, 59, 63, 74, 75, 85, 86, 98, 113, 115, 126, 129, 130, 131, 132, 138, 140, 141, 145, 150, 152, 165 rationalisation, 125 rationality, 30 raw materials, 82, 92, 96 real estate, 110 real property, 107 real terms, 13 reality, 35, 156 rebates, 125 recognition, 22, 59, 110, 117, 143, 165 reconcile, 4, 5, 8 reconciliation, 22, 23, 146 reconstruction, vii, 1, 2, 5, 13, 14, 15, 18, 21, 22, 23, 164, 165 recovery, 102, 105 redistribution, 64, 127 reduction, 76, 89, 93, 95, 100, 118, 122, 123, 125, 128, 130, 139, 157, 158 reference system, 119 reflection, 4, 16, 157 Reform Act, 98 reforms, vii, 1, 9, 17, 43, 55, 61, 67, 97, 106, 108, 114, 115, 120 refugee flows, 156 refugees, 160 regenerate, 89 regenerative medicine, 78 regional, 14, 23, 31, 35, 36, 37, 41, 61, 64, 66, 86, 104, 112, 128, 137, 158, 162, 163, 164 regional policy, 158 regular, 6, 68, 101, 144

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

184

Index

regulation, 36, 55, 57, 61, 64, 70, 72, 83, 98, 99, 100, 110, 122, 128, 140, 144, 152, 161 regulations, 40, 59, 60, 65, 66, 68, 70, 72, 74, 77, 80, 83, 94, 104, 110, 114, 125, 127, 128, 138, 141, 142, 143, 144, 146, 147, 154, 156, 160 regulatory framework, 124 regulatory requirements, 100 rehabilitation, 55, 121, 125, 126, 127 reimbursement, 125 reinforcement, 165 rejection, 42 relationship, 2, 4, 17, 28, 29, 36, 41, 43, 45, 46, 47, 48, 49, 65, 70, 159, 163 religion, 35 religious fundamentalism, 38 renewable energy, 41, 98 renewable resource, 98, 116 repatriation, 150 reputation, 5, 37 research, 3, 27, 29, 40, 41, 58, 59, 73, 76, 77, 78, 79, 80, 82, 83, 84, 88, 89, 90, 98, 99, 103, 111, 112, 113, 120, 121, 122, 136, 137, 138, 141, 157, 164 Research and Development, 41, 58, 77, 78, 79, 84, 98, 103, 112 research funding, 58, 73, 78, 79 researchers, 76 reserves, 57, 123, 125 residence permits, 148 residential, 89, 90, 127, 142 resolution, 22, 99, 160 resource management, 95 resources, 10, 11, 15, 17, 31, 50, 77, 78, 80, 91, 98, 99, 116, 127, 130, 133, 138, 142, 161, 165, 166, 167, 168 responsibilities, 7, 39, 41, 68, 121, 124, 141, 157, 160, 162 restructuring, 17, 36, 89, 90, 111, 116, 145, 162 retail, 44, 71, 90, 110, 144 retention, 97, 162 retirement, 64, 92, 108, 118, 119 retirement age, 118 returns, 107 reunification, 146, 161 revenue, 56, 102, 103, 104, 106, 108, 118 risk, 57, 81, 98, 115, 126, 135, 140, 153 risk assessment, 98 risk management, 57 risks, 7, 81, 121, 124, 126, 132, 138, 144 rivers, 95 road safety, 89 roadmap, 39, 41, 163 Romania, 9, 35, 62, 159 Rome, 36, 39, 41, 48

rule of law, 156, 159, 163, 164, 165, 166, 167 rural, 89, 96, 97, 98, 111, 115, 116, 124 rural areas, 89, 98, 111, 115, 116, 124 rural communities, 96 rural development, 116 Russia, 3, 4, 6, 9, 10, 11, 12, 22, 23, 39, 40, 43, 44, 45, 46, 49, 50, 146, 155, 163 Russian, 3, 10, 11, 18, 46

S safeguard, 60, 89, 90, 109, 111, 122, 127, 139, 143, 144, 147, 153, 156, 157, 163 safeguards, 122, 154 safety, 20, 61, 89, 119, 144, 151 salaries, 118, 153 sales, 94 sanctions, 23, 69 SARS, 122 satellite, 59 satisfaction, 121, 127 savings, 69, 75, 81, 102, 126 scepticism, 36 scheduling, 142 Schengen Agreement, 159 school, 63, 73, 131, 138, 139, 140, 143, 145, 146, 150, 164 school meals, 145 schooling, 73 scientific community, 58, 80, 84, 113 scientific progress, 78 scientists, 76, 78 search, 76 Second World, 4, 14, 29, 146, 150 Second World War, 4, 14, 29, 146, 150 secret, 152 Secretary of Defense, 12, 16 Secretary of State, 22, 32 Secretary-General, 24 secrets, 28 securitisation, 110 security, vii, 1, 2, 4, 5, 6, 7, 8, 10, 11, 13, 14, 15, 16, 17, 18, 19, 20, 21, 24, 30, 32, 35, 36, 38, 41, 45, 46, 47, 55, 56, 72, 76, 78, 97, 98, 100, 101, 103, 104, 107, 118, 119, 122, 128, 136, 138, 148, 149, 150, 151, 152, 155, 156, 158, 159, 160, 161, 163, 164, 165, 166, 167 Security Council, 7, 18, 30, 165 seed, 58 selectivity, 99 self-confidence, 151 self-employed, 57, 120 self-employment, 72, 136 self-help, 120, 167

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Index self-regulation, 138 semantics, 49 semi-natural, 95 senior citizens, 129 sentences, 152, 153 sentencing, 152 separation, 125, 131, 147, 155 September 11, 7, 11, 12, 20, 34 Serbia, 14 series, 20 service provider, 104, 126, 141 services, iv, 17, 31, 36, 56, 59, 61, 63, 66, 71, 76, 77, 79, 84, 85, 86, 87, 97, 104, 107, 108, 109, 115, 120, 123, 124, 125, 126, 127, 128, 129, 130, 131, 132, 135, 137, 138, 140, 141, 143, 146, 151, 153, 162, 165 sexual offences, 151 shape, 18, 19, 37, 41, 57, 63, 104, 147, 148, 155, 156, 159, 163 shaping, 19, 31, 71, 75, 77, 80, 115, 156 sharing, 44, 57 shipping, 88 shortage, 124 short-term, 72 shoulder, 113 shoulders, 45 sign, 23, 24, 37,46, 47, 149 signals, 11 sine, 36 single currency, 30 single market, 109, 110 SIS, 151 sites, 71, 81, 89, 90 skills, 64, 75, 114, 129, 131, 132, 133, 140, 162 Slovakia, 9, 146 Slovenia, 9 SMEs, 56, 57, 59, 60, 100, 109, 113 social assistance, 67, 105, 115, 117, 119, 127, 130 social benefits, 65 social cohesion, 156, 157, 158 social consensus, 38 Social Democrat, 3, 37 social development, 73 social exclusion, 120 social factors, 115 social group, 141 social infrastructure, 89, 116 social integration, 147 social justice, 37, 155 social market economy, 55, 56, 57, 59, 60 social participation, 129 social policy, 42, 130, 139 social problems, 104, 139

185

social responsibility, 74 social security, 35, 38, 55, 56, 72, 76, 97, 98, 101, 103, 104, 107, 117, 118, 119, 122, 136 social skills, 140 social support network, 131 social welfare, 38, 162 soil, 146 solidarity, 7, 24, 28, 68, 69, 104, 121, 123, 126, 129, 131, 158 solutions, 28, 42, 43, 50, 66, 71, 88, 95, 109, 115, 145, 155 South America, 50 sovereignty, 8, 16, 37, 47, 64 Soviet Union, 5, 10, 16, 45, 150 Spain, 33, 44, 49 special interests, 145 spectrum, 63, 115, 161 speech, 8, 34, 42, 43, 45 speed, 60, 86, 90, 91, 94, 101, 117, 126 spheres, 86, 90, 147 sports, 116, 140 spouse, 107 stability, 9, 18, 22, 34, 47, 110, 118, 156, 158, 159, 160, 164, 166 Stability and Growth Pact, 102, 158 stabilization, vii, 1, 2, 5, 13, 14, 15, 17, 18, 19 stages, 81, 100, 125 stakeholders, 81, 89, 112 standard of living, 92, 118, 119 standards, 2, 4, 5, 20, 58, 60, 61, 67, 77, 79, 95, 97, 98, 104, 109, 110, 138, 154, 159 state aid, 86, 88, 114, 146 state-owned, 97 statistics, 34, 57, 67, 100, 136 statutory, 62, 69, 70, 90, 105, 115, 118, 119, 123, 124, 125, 126, 153, 161 statutory obligation, 153 stem cells, 78 stereotypes, 138 stimulus, 78 stock, 91, 110, 127 stock exchange, 110 storage, 83 strains, 100 strategic, 3, 11, 15, 16, 39, 45, 46, 48, 58, 160, 163, 164, 168 strategies, 7, 45, 78, 79, 83, 99, 113, 114, 115, 124, 139, 140, 142, 164, 165 strength, 50, 77 stress, 21, 42, 150 strikes, 151 structural changes, 60, 71, 98, 123 structural funds, 113, 114

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

186

Index

structural reforms, 101 structural surpluses, 162 students, 76, 136 subsidiarity, 86, 109, 157 subsidies, 36, 61, 81, 86, 97, 104, 114, 167 subsidy, 30, 36, 91, 145 subsistence, 67, 119 Sudan, 13 summer, 30, 45, 127 supervision, 57, 80, 110 supplements, 130 suppliers, 83 supply, 80, 82, 83, 88, 91, 95, 96, 109, 113, 115, 122, 123, 125 support services, 131, 132 suppression, 122 surgeries, 124 surplus, 91 surprise, 34 surveillance, 20, 121, 152 survival, 113 suspects, 21 suspensions, 149 sustainability, 77, 78, 84, 91, 99, 101, 103, 105, 118, 130, 139, 140, 141 sustainable development, 6, 28, 92, 96, 156, 167, 168 sustainable economic growth, 79 Sweden, 42, 49, 53 switching, 82 symmetry, 47 sympathy, 44, 46, 152 Syria, 18, 22, 23 systems, 55, 56, 59, 68, 97, 98, 99, 103, 118, 119, 121, 123, 124, 126, 132, 135, 145

T talent, 76 Taliban, 18 tangible, 117 tanks, 52 targets, 12, 16, 64, 90, 93, 102, 121 tariffs, 167 task force, 121, 160 tax base, 105, 106, 158 tax collection, 107 tax cuts, 12 tax deduction, 108 tax incentives, 88, 104, 107, 119, 132 tax rates, 56, 61, 158 tax receipt, 56 tax reform, 105 tax system, 101, 106, 107

taxation, 56, 96, 103, 105, 106, 107, 109, 110, 134, 158 taxes, 61, 65, 103, 107, 118 taxpayers, 66 teachers, 137 teaching, 76, 146, 151 technical change, 67, 78 technological progress, 75 technology, 55, 58, 59, 77, 78, 80, 83, 103, 120, 161 technology transfer, 58 Tehran, 23 telecommunications, 19, 40, 97, 144, 147, 152 Telecommunications Act, 59 telephone, 68 temperature, 92 tenants, 91 tension, 2, 14, 15, 40, 44, 47 territory, 7, 13, 17 terrorism, 5, 14, 18, 20, 21, 22, 148, 149, 155, 158, 160, 163, 164, 165 terrorist, 6, 7, 11, 20, 21, 22, 148, 152, 161 terrorist attack, 7, 11, 20, 148 terrorist organization, 21 terrorists, 20, 148 therapeutic benefits, 125 therapists, 141 therapy, 122 Thessaloniki, 159 thinking, 50 third party, 152 threat, vii, 1, 4, 10, 14, 18, 20, 47, 60, 148, 149, 166 threatened, 5, 10, 43 threats, vii, 1, 2, 5, 6, 7, 11, 14, 16, 18, 122, 161 threshold, 57, 58 thresholds, 100, 105, 135 time, 3, 4, 8, 13, 18, 21, 23, 30, 31, 32, 33, 37, 38, 39, 40, 41, 46, 48, 49, 50, 57, 59, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 72, 75, 78, 81, 85, 92, 94, 97, 99, 105, 106, 107, 117, 118, 120, 125, 126, 127, 131, 148, 149, 153, 155, 156, 158, 162, 164, 166 time accounts, 64 time frame, 39 timetable, 126, 168 title, 48 tobacco, 144 tolerance, 115, 139 tolls, 24 total energy, 81 tourism, 60 trade, 2, 17, 19, 20, 23, 45, 60, 62, 63, 70, 71, 74, 80, 87, 89, 94, 97, 106, 140, 144, 146, 160, 163, 167 trade agreement, 94

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Index trade policy, 60 trade union, 62, 63, 74, 87, 140 trading, 10, 19, 23, 93 trading partners, 23 tradition, 29, 30, 45, 78 traffic, 82, 84, 87, 88, 90, 93, 95 trainees, 24, 59, 136 training, 11, 23, 24, 31, 40, 55, 59, 62, 63, 64, 65, 68, 69, 73, 74, 75, 76, 80, 111, 114, 115, 120, 125, 127, 135, 136, 138, 139, 140, 155, 162 transactions, 108 transfer, 30, 41, 58, 71, 72, 73, 75, 78, 79, 94, 107, 108, 123, 135, 140 transformation, 14, 31, 138, 162, 163, 167 transition, 50, 57, 64, 68, 138 translation, 29 transmission, 78, 83 transnational, 14, 41 transparency, 65, 70, 75, 107, 110, 122, 123, 125, 135, 153 transparent, 46, 66, 73, 75, 79, 81, 87, 91, 93, 109, 110, 124, 157 transport, 55, 77, 83, 84, 85, 86, 87, 88, 90, 98, 101, 104, 116, 117, 144 transportation, 31 traps, 88 trauma, 45 travel, 150 treaties, 18, 157 Treaty of Amsterdam, 30 Treaty of Nice, 43, 47 Treaty of Rome, 36, 39, 41 trend, 4, 8, 60, 65, 95, 105 trial, 152 truancy, 139 trust, 11, 47, 92, 146, 155, 156, 159, 163 tsunami, 78 tuberculosis, 166 tuition, 76 Turkey, 9, 10, 34, 35, 37, 39, 43, 45, 159 turnover, 57, 103, 106 tutoring, 140 two-way, 19

U U.N. Security Council, 7 Ukraine, 163 uncertainty, 109 unemployment, 3, 54, 62, 65, 66, 67, 68, 69, 72, 74, 81, 103, 105, 111, 112, 114, 115, 118, 130, 134, 135, 136, 139 unemployment insurance, 62, 66, 67, 103 unemployment rate, 112

187

UNESCO, 146 unhappiness, 34 unification, vii, 1, 4, 5, 6, 8 uniform, 50, 86, 90, 101, 106, 125, 147, 148, 149, 150, 152 uninsured, 123 unions, 38 United Arab Emirates, 22 United Kingdom, vii, 1, 2, 13, 23 United Nations, 5, 6, 7, 8, 30, 155, 156, 161, 164, 165, 166, 168 United States, 1, 2, 3, 4, 5, 6, 7, 10, 11, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 29, 30, 33, 45, 46, 48, 50, 155 universities, 75 Uzbekistan, 13

V value added tax, 57, 62, 103, 105, 106, 108 values, 2, 9, 18, 139, 148, 155, 160, 163 variable, 45 vehicles, 19, 82, 84, 88, 89, 95 vein, 27 venture capital, 57, 58, 79, 113 Vice President, 20 victims, 111, 117, 122, 136, 151 violence, 38, 129, 139, 163 visa, 148, 150 visas, 150 visible, 41, 146, 166, 168 vision, 15, 37, 44, 51 vocational, 59, 62, 63, 65, 74, 75, 162 vocational education, 74, 75 vocational training, 59, 63, 74, 75 voice, 9, 22, 31, 164 voters, 8

W wages, 65, 107, 118 walking, 90 war, 1, 2, 4, 9, 14, 17, 18, 21, 31, 37, 44, 142, 150, 166 war on terror, 4, 14 War on Terror, 21, 39 warning systems, 132 warrants, 21 Washington Post, 21 waste management, 95 wastewater, 95 water, 95, 96 waterways, 84, 85, 88, 96 wealth, 10, 120

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,

188

Index workforce, 63, 135 working class, 37 working conditions, 64, 76, 129 working hours, 64, 134 workplace, 131, 133, 139 World Bank, 167 World War I, 13 World War II, 13 worry, 34, 35 WTO, 43, 60, 94, 97, 146, 167

X xenophobia, 139

Y yield, 96 young men, 162 young women, 74 youth unemployment, 62, 139

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

weapons, 5, 14, 160, 165, 166 weapons of mass destruction (WMD), 5, 14, 160, 165 wear, 41 welfare, 64, 65, 91, 97, 98, 104, 115, 119, 120, 123, 131, 132, 133, 139, 140, 141, 153, 162, 165 welfare state, 119, 123 welfare system, 97 White House, 19, 20 wind, 81 winning, 38 winter, 67 wisdom, 42, 74 withdrawal, 22 witnesses, 152 WMD, 5, 14 women, 35, 76, 107, 129, 136, 151, 162 wood, 99 workers, 35, 45, 62, 64, 65, 70, 72, 114, 118, 120, 127, 141, 145, 159, 165

German Foreign and Security Policy, edited by Leah N. Bowers, Nova Science Publishers, Incorporated, 2009. ProQuest Ebook Central,