Deputy Prime Minister,
Chairman of the Board of Trustees,
Director,
Excellencies,

Ladies and gentlemen,First, I would like to thank you very much for the warm welcome we received here in Singapore – also on behalf of our entire delegation, which comprises Members of the German Bundestag as well as business representatives. For us, it is both a pleasure and an honour to be your guests and to get a sense of your country’s dynamic spirit. Of course, I am especially glad to be able today to contribute to the renowned Singapore Lecture series. Many thanks to all representatives of the Institute of Southeast Asian Studies for this.

I believe that Singapore is a particularly fitting place to talk about Asia’s future and its close ties with Europe and Germany. Singapore is a symbol of dynamism and stands for innovation. It provides important impetus to the entire region. That is why your country is held in high esteem throughout the world.

Relations between Singapore and Germany have developed especially well, one could even say ideally. Your country is our largest economic partner in Southeast Asia. Following the economic downturn during the crisis of 2009, our trade volume rose sharply again last year, to some 10.6 thousand million euro. More than 1,200 German companies are active in Singapore. German investment here amounts to more than eight million euro. Some 7,000 Germans live in your country, including more than 200 scientists who value Singapore as an extremely attractive research location.

Companies in our two countries know they are strong, and are ready to compete on the global market. This open-minded approach has always paid off in terms of success. Both countries have managed to swiftly overcome the international financial and economic crisis that deeply shook countries around the world. We Germans are rather proud of our growth rates – 3.6% last year – but of course we must admit without envy that, with its 14%, Singapore is in another league. This is an incentive for us to work even harder.

Nevertheless, Germany last year saw the largest increase in economic growth since reunification twenty years ago. Also for 2011, rather good growth rates can be expected. Against the background of global discussions about imbalances, it is very interesting to note that, although initial growth following the crisis was export driven, this year some two-thirds of our growth are being driven by domestic demand. This means that we, too, are contributing to balanced worldwide economic growth and to global recovery.

May I add that we are particularly pleased about developments on the labour market. We now have the lowest unemployment rate since reunification. We are very glad about this, although Germany is still struggling with a problem that you do not have, namely rather tenacious long-term unemployment; we must do all we can to again and again encourage especially young people to take up a job, and to provide the appropriate incentives.

Singapore and Germany – as again became clear during my talks with Prime Minister Lee yesterday – believe in an open global economy, free trade, and sound investment conditions. This is what political institutions can contribute to spur economic growth. That is why we share the conviction that the world trade negotiations must be brought to a conclusion. Success of the Doha talks would be the best guarantee for worldwide growth. It is the only way to ensure that industrialized, newly-industrialized, and developing countries, without any discrimination, can take advantage of free trade and seize real growth opportunities. Free trade is the best guarantee of growth. That is why our two countries deeply regret that the Doha Round has still not been concluded after ten years. Realistically speaking, we know the road ahead will be difficult. Actually, we only have a few metres to go. But it is not yet clear if the international community will summon the necessary strength – at the G8 Summit in Deauville, we again addressed this issue. At any rate, I am and remain convinced this would provide a strong impetus, and it would be the final lesson that remains to be drawn from the global economic crisis.

In terms of international trade, the reaction to the deep economic crisis of the 1930s was wrong. Nations resorted to protectionism, thus exacerbating the problems. We should have learned something from this, but drawing these lessons is not proving easy. So what can we do to contribute? For one thing, bilateral negotiations. Germany is vigorously campaigning for rapid finalization of a free trade agreement between the European Union and Singapore, and for conclusion of a partnership agreement. I believe this would provide additional momentum to our mutual economic relations.

We both are convinced that open markets, free trade, and free societies drive innovation, and that we will be especially competitive internationally if we lead the field in innovation. We want to be the worldwide leader in many cutting-edge technologies. You do, too. We of course want to continue our German success story. That is why we intend to spend three percent of our gross domestic product on research and development. We are well on track. We just discussed that Singapore is aiming even higher: you have already reached three percent, and are striving to achieve 3.5 percent. Yet the key question is: what is the state’s share, and how can we complement this with private sector funds? Of course, it is the right balance that enables us to transform innovations into marketable products.

We believe that technological innovation is also required to guarantee sustainable development in our countries. Sustainability will be the great task in our world, the population of which continues to grow. This year, the seven thousand millionth person will be born. Especially Germany, as a relatively densely populated country, but also Singapore, which is dependent on imports of energy and other commodities, should have a keen interest in using resources efficiently.

I think it is precisely electromobility that could be of the utmost importance for Germany and Singapore. That is why I am pleased to report that a few weeks ago Germany adopted a Federal Government programme on electromobility. It is a clear commitment to viable propulsion technology. From 2011 to 2013, we will make available one thousand million euro for related research and development. Singapore is a very strong partner for us in this area. The Technical University of Munich and Nanyang Technological University have jointly set up a Centre for Electromobility. Singapore is providing 60 million euro for this cooperation project. During the next five years, the Centre is to design innovative solutions together with leading German companies – be it for energy storage technologies or car design. This will keep the more than 80 doctoral students very busy. We of course will follow this project with keen interest.

Allow me one more remark in this regard: In Europe, there is intensive debate on how to promote electromobility. Germany does not believe that individual vehicle subsidies are the right answer; yet we do believe that we must focus on research and development, and then also rapidly provide incentives for the introduction of electromobility, for example through sensible infrastructure design. We should not, however, support long-term subsidies, at least that is not our approach.

Singapore is an important partner of ours in the development of many other technologies as well. Let me give a few examples: Siemens is developing new water technologies here, more than 200 Infineon engineers are conducting microelectronic research, Bosch is working on new solutions for harnessing renewable sources of energy. The list goes on and on.

The Federal Government intends to set up a programme to assist scientists of both countries in expanding existing cooperation, establishing new contacts, and initiating joint projects. Above all, we want to reach junior scientists and facilitate their long-term cooperation planning. I want to tell everyone in this audience that, in Germany, we now have numerous courses of study that are also taught in English. This means the language barrier should no longer prevent anyone from going to Germany. We warmly invite all of you to come study in Germany. It can be a truly enjoyable experience. Brilliant minds are and remain a country’s most important asset. Singapore has known this from the start, and has acted accordingly. The ability to innovate is of course not only an issue for us in Germany, but also a central topic throughout Europe.

I know that here in Singapore you are paying extremely close attention to developments in the euro area. That is why I want to clearly repeat here that we do not have an issue with the euro as such. The euro is a stable currency. It is strong against the dollar. At times, we even feel it is very strong, which is not exactly beneficial to our exports. But we do have a debt problem in some Member States. The deeper cause of this debt problem is also a problem of competitiveness. Competitiveness of euro area Member States varies greatly. In some cases, it is too weak. Therefore, in looking for ways to overcome the crisis we are facing, we again and again have emphasized that the focus must be on improving competitiveness and providing a solid financial basis.

Let me make clear once more: Germany is well aware of the importance of the euro, Germany is committed to the euro, and Germany has benefited a great deal from the euro. We have an export economy. The European internal market, with the single currency and the non-existence of transaction costs, boosts our economic strength.

Yet we must not beat about the bush: A single currency requires that the individual  countries draw closer together as regards their competitiveness. This competitiveness must not be determined by averaging the weaker and stronger countries; if we want to remain competitive compared to regions such as the ASEAN countries or others, this benchmark must be either the best among us or our best strategic partner, instead of the average. That is what we are discussing in Europe.

We therefore have introduced the so-called Euro Plus Pact – a pact for competitiveness that also looks at measures and indicators outside the European Commission’s remit, such as social systems, unitized labour costs, and other aspects that we compare in order to move forward. If you look at the European Union today, you will find that last year we achieved enormous results. Numerous European countries carried out reforms that two years ago were unthinkable – on the labour market, regarding pensions, and in many other areas as well.

Yet we are still working on righting the wrongs of the past, that is to say we cannot yet show that we have made sufficient provisions for the future. We have meanwhile tightened the stability pact. We have concluded a pact for competitiveness. However, all this does not relieve us of the duty to first compensate for what has occurred. We are still working on this. Yet it is Germany’s position that there must be a mix of solidarity between, and solidity of, all Member States. On this condition, Germany is prepared to show solidarity, as we did in many instances last year.

Ladies and gentlemen, for us Germans, the European Union and the euro are close to our heart. Sixty-six years have now passed since the end of the Second World War. It has now been 21 years since the collapse of the Iron Curtain, the fall of the Berlin Wall, and the division of Germany. We should never forget how fortunate we are to live in peace, freedom, and democracy. The European Union is a community of peace and values that has been ensuring prosperity and stability for more than five decades.

In an increasingly interconnected world, the European Union is presenting itself as a unified force that can assert Europe’s interests. Germany is the largest country in the European Union. Yet compared to countries such as India and China, which have more than one thousand million inhabitants, our country, with a population of 80 million, is not that impressive. As a community of 500 million Europeans in 27 countries, we are in a much better position to more clearly state what we want to do and how we intend to go about it.

Singapore is a founding member of ASEAN. It has earned a reputation as an intellectual pioneer and a motor of regional integration in Southeast Asia. Like Europe, ASEAN began with economic integration. I can only encourage you again and again to continue down this path. Free trade and the objective of creating a common internal market brought your countries together. Meanwhile, political cooperation in the ASEAN region is becoming increasingly important. Singapore has played a large role in this, and has become a major political actor in the region. The European Union sees ASEAN as a close partner and holds it in high esteem. Especially given the different cultures of the ASEAN Member Countries, close cooperation is an important and rewarding, although certainly not always easy, task.

We in Europe know from our own experience what it is like to build such a community. It is important that member countries adhere to agreements both in letter and in spirit. In Europe, we have now learned what can happen if the Stability and Growth Pact is not complied with by all. Mechanisms must be established to settle conflicting interests among member countries. This may also mean that national competencies must be transferred to the supranational level. In terms of quality, perhaps the most interesting aspect of what we have experienced in Europe is that we have gotten used to no longer holding certain national competencies. It is sometimes not easy to accept being reproached or praised by Brussels, that is to no longer be in charge of your own national decisions. But for the great good of common action, we decided to do so. And it has paid off. This means that national egos and differences over security policy must be permanently sidelined. If we succeed in doing so, all member countries will benefit in the long run.

Against this background, and in connection with discussions about Myanmar’s interest in the ASEAN Presidency, I am of course concerned – as long as the new civilian government in Myanmar has not yet proven it has embarked on the path of democracy. Therefore we expect Myanmar to clearly commit to human rights, both in word and deed. The ASEAN countries should discuss these problems. Speaking up for human rights, freedom, and democracy is not only a regional obligation. It is a global one. In this respect, too, Singapore is a valuable partner for us.

We jointly shoulder international responsibility, for example with our service members in Afghanistan. Citizens of both our countries are risking their lives in the fight against terrorism and for the stability of the country. We are jointly engaged in securing maritime routes. Singapore and Germany are making an important contribution in this regard – be it in the Strait of Malacca or off the Horn of Africa.

As you have just said, Deputy Prime Minister, upheaval in North Africa and the Middle East also represents a common challenge. It will decisively change the region’s political landscape. It is of course in our vested interest that as many countries as possible around the world embark on the path towards openness, transparency, and democracy.

Looking at our neighbour North Africa, we Europeans see a great task ahead. These countries’ demographic development differs from that in our countries. Rather than facing an ageing society, some 50 percent of these populations are under 25 years of age. This means the great task there will be educating the young generation, and creating opportunities for them. Maybe our two countries can also help in this regard. Because if the economic outlook is bleak – you have witnessed this, and we have witnessed this in Europe – there will also be no political stability.

Ladies and gentlemen, I could continue the list of areas in which we are jointly engaged – for example, the fight against the proliferation of nuclear weapons, global energy security, and many other issues. I think that Germany and Singapore are very much predestined to act in concert and to learn from one another.

Therefore I would like to thank you for the opportunity to be your guest this morning. Also on behalf of all German companies may I express my gratitude that Singapore is such a wonderful location for many of them. This morning, I visited the botanic gardens, where I saw the amazing variety of plants and flowers you have. I must say that your region’s natural beauty is breathtaking. Germany cannot compete with the diversity of your flora, nor with your country’s temperatures; but apart from that there is so much that we can do together.

Thank you very much for this opportunity to speak to you.