THE GERMAN foreign minister, Guido Westerwelle, expressed the confidence of Germany in the measures taken by the Irish Government to address the economic crisis.
He also called for tougher binding budgetary rules to guarantee the future stability of the euro zone.
Mr Westerwelle was in Dublin yesterday to meet Minister for Foreign Affairs Micheál Martin. Earlier he held talks in London with British foreign secretary William Hague.
Speaking at a press conference in Iveagh House, he said both countries had a common interest in a stable European Union and a stable currency in the union.
In a reference to the euro zone currency crisis triggered by the prospect of a Greek default earlier this year, Mr Westerwelle said: “If we will not work now we will be back in this drama we had earlier this year. I want to express our confidence in the measures of the Irish Government.”
Mr Martin said the current forecast was for 1 per cent growth in GDP this year. The European Union, he added, remained central to both Germany and Ireland.
Earlier, responding to questions from The Irish Times, Mr Westerwelle said EU stability needed common and binding rules.
“That’s why we have implemented a new debt rule that obliges the state to fiscal sustainability,” said Mr Westerwelle, referring to Germany’s so-called “debt brake”.
“Berlin would like to see this new law, forcing it to balance its books in the coming years, implemented across the continent.
“For the EU we need to draw the lesson that the existing rules need to be made binding. I am convinced that we need to sharpen the instruments of the Stability and Growth pact,” he said.
Mr Westerwelle played down recent disagreements between Berlin and France over EU economic policy, in particular French claims that excessive German wage restraint and low consumer consumption is hurting its European neighbours.
“Not every discussion is a blame game,” said Mr Westerwelle. “One lesson from the recent crisis is that we have to strengthen economic policy co-ordination in the EU. Germany has implemented crucial structural reforms that were demanded not at least from our European partners.”
Mr Westerwelle, leader of the liberal, pro-business Free Democrats (FDP), indicated he had little time for recent talk of an “EU tax” and said that he thought European institutions were adequately financed under current rules.
“As far as the next EU budget is concerned, we believe the EU should not increase its expenses,” he said. “In a time of Europe-wide fiscal tightening we would like to see a sign of fiscal stability and financial discipline coming from Brussels.” At the conference, he said that both the German and Irish economies were growing once again.
“That is a clear expression of the fact that budgetary consolidation is not something that takes place at the expense of growth,” he said.
“What we can see is that this difficult time and hard work of both governments [has borne fruit],” he added.
The German foreign minister expressed the thanks of the German people for Ireland’s crucial contribution to German unification two decades ago at the EU summit in Dublin Castle.
“I want to say thank you to the Irish people for the friendship Ireland has shown to us during its Irish presidency in 1990,” he said.
“It was here in Dublin that European leaders gave a green light for taking on board reunited Germany as a member of the European Community. Germany will never forget that.”