Mr. Alexander Radwan:

I thank the members for their questions. I wish to focus on the questions on the economic and monetary union. I will start with the question of youth unemployment. The figures quoted for youth employment are figures that have been achieved at the end of the implementation of a ten-year reform programme. For a significant period of time wealth creation in Germany has been modest, facilitated by acceptance by the unions of such modest growth of wealth. While these figures are very positive, they are on the basis of a ten-year reform programme.

With regard to the separation of banking and sovereign debt, there is certainly a need for greater unity at European level when it comes to the banking sector with regard to monitoring mechanisms, facilities to manage the banking sector, regulation and the issue of a financial transaction tax. We need to speak with one voice and come to a common position on these issues and others such as the highly speculative transactions which to date have not been regulated in Europe. It is necessary and important to realise that if guaranteeing banking debt comes into effect at European level, it will be as the final step rather than the first step of the process.

In the first instance it is the responsibility of each member state to secure its own banking sector, and if this and other steps fail then such banking debt can be guaranteed at EU level. In Germany we very clearly recognise that a number of member states must make big asks of their people. We make a great effort to promote the idea that the German taxpayer must make a contribution to the situation. For this reason we are in the process of sharing the burden, which was mentioned at the beginning. It is necessary for us to address the issues and the mistakes made over the past decade, and this concerns all member states; I do not want to single out any one member state of the European Union. We must draw conclusions, learn lessons and ensure such a situation does not arise again.

The Irish Presidency has concrete experience of how difficult it is to go beyond fixing on paper something such as the six pack or two pack and new regulations, and implement them and ensure such regulations are observed and respected. For this very reason we are heartened to see a combination of austerity measures and budget consolidation in Ireland. This process, which is so successful in Ireland, will be seen as a model for future developments with regard to how a country can emerge from such a situation. We must learn from the mistakes made in the past and not repeat them.