Charlie McCreevy (Kildare North, Fianna Fail)

I spent a very pleasant five months as Minister for Finance with my colleague, Mr. Oskar La Fontaine, who was Minister for Finance in the German Republic until he decided to vacate the position. He was a most pleasant individual and we had many interesting talks. I notice that he is making his presence felt again in the German press although many people thought he was going to retire. He has announced his retirement three or four times.

The Senator will have noted in recent weeks that Mr. Schröder intends to make several economic and social changes. He has announced very tough proposals regarding the welfare state. I do not know whether the German political system will allow this to occur. I do know the difficulties for my friend Mr. Eichel and the proposals he made regarding some taxation changes and the problems Mr. Schröder has in trying to implement them. I make this point because the German Government recognises that it is necessary to have a pretty flexible and attractive system in the business and the personal tax areas. Germany is not alone in seeing that low taxation policies have helped economic success.