Berlin must add ‘social dimension’ with fiscal reforms

Germany's Europe minister Michael Roth has said the EU must put as much emphasis on social cohesion as on fiscal policy.

In a speech in Dublin yesterday, minister of state Michael Roth said Berlin is ready to take a leading role in the European Union’s future but won’t “stand alone”.

“When talking of reform of economic and monetary union we always have to include the social dimension in our thinking and actions,” said Mr Roth to the Institute for International and European Affairs, also attended by German politicians and economists.

"Germany will continue to play an important role but it can never be a stand-alone role, there are many other players on the European field," he said, congratulating the Irish government and its people on how they had mastered the crisis.

Germany's ambassador-designate to Ireland Matthias Höpfner said he hoped, despite recent hardship in Ireland and elsewhere in the EU, the legacy of the euro zone crisis would be a boost to European integration thanks to greater awareness of debates elsewhere in the continent.

“The euro crisis might contribute to an even higher level of European awareness and add a new European dimension to how we discuss economics and policy,” he said.

A politician from the opposition Left Party, Dr Gesine Lötzsch, was critical of the focus that Berlin had on balanced budgets. The, chairwoman of the Bundestag budget committee, criticised Angela Merkel's government for proposing austerity "medicine" it was not prepared to take itself.

Other German participants were similarly critical. Economist Dr Benjamin Weigert, secretary general of Germany's economic advisory council, criticised Germany's communication of its economic priorities and traditions in the recent euro crisis. "I would have loved to see Frau Merkel increase [her presence here] and support the [Irish] government personally."

IIEA member Pádraig Murphy, a former Irish ambassador to Germany, said Berlin’s neighbours were waiting impatiently for Berlin to take on its leadership role in the EU.

“Germany is the dominant political and economic system on the European continent,” he said. “Germans don’t want to accept it, Angela Merkel doesn’t want to accept it. But until that becomes clear we in Europe are suffering from a lack of leadership.”