Articles
Working together for sustainable economic activity
Thu, 02.07.2009
Chancellor Angela Merkel expects progress to be made on reforms for international financial markets at the upcoming G8 Summit in the Italian town of L'Aquila. In addition, she stated that it makes sense to secure a binding commitment of the major industrial nations on climate protection. Merkel made this clear in a government statement to the German Bundestag.
Merkel described the meeting of the G8 heads of state and government as a brief stop on the way to the third G20 World Summit at the end of September and the Copenhagen Climate Conference in December.
The G8 Summit will demonstrate that the G8 format is no longer sufficient to cope with common challenges", said the Chancellor. For this reason, after a day of internal preparations, the eight heads of government met the heads of the emerging markets ("G5”) and developing countries. This year will show if politics can embrace the human shape of globalisation, said the Chancellor.
Not just crisis management
This year’s summit is very much influenced by the biggest global economic crisis in post-war history. World trade has slumped by 16 per cent. Germany as a export nation has been particularly affected by this.
"Germany is numbered among countries that provide the strongest economic stimulus across the globe”, stressed the Chancellor. With the packages to stimulate the German economy, Germany has made a contribution to overcoming the crisis, she said.
In all cases of crisis management, we must not lose sight of the task of combating the causes of the crisis, the Chancellor warned again. It makes sense, she said, to pursue planned reforms in the financial markets and financial institutions in a consistent manner. Merkel warned against the industry’s defence reflexes against effective regulations, which have recently re-emerged.
At the same time, she stated, decisively: "We shall insist on reforms for international financial markets so that we never see a repeat of such a crisis.” There shall be no return to "business as usual", she said.
Merkel is convinced that the G20 community is the right format for the reform of the markets. "The world is increasingly integrated and the problems we face can no longer be dealt with by the industrial states alone.”
Export item – social market economy
"I am deeply convinced that we must secure the principles of social market economy across the globe”, Merkel continued. The crisis has shown that the state must be the guardian of social order, she said. Nobody should be able to deny that on the international stage, she concluded.
The Chancellor spoke out again in favour of pushing ahead with the development of a UN Charter for Sustainable Economic Activity at the next G20 Summit in Pittsburgh.
The issue of two degrees Celsius
Merkel welcomed the new commitment of the United States on climate protection. The legislative advance made by the government of President Barack Obama this week was considerable, she said, but also inevitable. The USA intends to reduce its CO2 emissions by 17 per cent by 2020 compared with 2005. The European Union (EU) has already committed itself to 20 per cent compared with 1990, and if others join in, this rises to 30 per cent.
"Europe has the clear lead in this regard”, said the Chancellor. And its function as a role model is essential, too, she added. As, even if the Europeans reduce greenhouse gas emissions not just by 80 but by 100 per cent by 2050, the two degrees Celsius initiative cannot be successful without the emerging markets.
The aim is to limit global warming to two degrees Celsius by 2050. This, according to renowned experts, would mean grave effects on nature and humankind could be prevented.
Helping in one’s own interest
Growth is important for people in Africa, too. Here, too, it is a question of sustainable growth: in the interest of the whole world.
Merkel recalled in her government statement the development policy obligations adopted by the G8. Growth in Africa is ultimately in the best interests of the industrial states, she said. "If we do not provide for reasonable living conditions locally, we will have a giant problem on our hands.” This would result from a lack of markets and threat of streams of refugees.
Germany is now the world’s second largest provider of development aid, the Chancellor reminded the German Bundestag. This is money well spent.
