I am very happy to be here today to talk with you. I know that many of you have probably been asking yourselves why it has taken so long to form a new government in Germany. So much for our famous efficiency!
 
But the question is a legitimate one: Why has it taken the two main parties in Germany, having governed well together over the past four years, so long to find common ground this time?

The simple truth is that, even after two periods in government together in the last twelve years, we still have differing ideas of what is best for our country and our citizens.

And this is a good thing.

At a time when, in other countries, parties obsessed with the past are gaining strength, the coalition partners in Germany wanted to show that we have a clear focus on the future: on a strong and united Europe, on social justice, on human values and on a society that stands together and is not fragmented.

The federal government is now up and running and ready to address the tasks which are facing us. And before we go in to discussions, I would like to say a few words briefly on the situation as I see it.

The first thing to say is that Germany is doing very well, economically speaking. Our economy has been experiencing continuous growth, unemployment levels are historically low, and wages and salaries are rising in real terms.

And yet, many people still look with worry to the future. The world is changing at an ever-increasing pace. Digitalization and globalization are, for many, and not just in Germany, a cause for concern rather than hope. Some feel mistreated, left behind by society, not listened to by politics. Some worry what the future will bring and whether their job will still exist in two, three or five years down the line.

The old intrinsic promise that anyone can succeed with education and work no longer seems to hold today, if it ever did.

As an example: In 2015, we introduced the minimum wage in Germany, something many thought would spell the end of our economy. Well, our economy is still there, stronger than ever, in fact. Nevertheless, as it currently stands, those on the minimum wage will not able enjoy a pension on retirement beyond the basic living standard.

This is not right and it is the job of politicians to address such imbalances.

So the first concern for me is to see how we can ensure that increased prosperity is actually felt by as many people as possible in society.

For this, I believe that we need good and inclusive growth. Globalization and technological advance on the whole has lifted hundreds of millions across the globe out of poverty. It has allowed many previously disenfranchised people to have some form of control over their own destiny, to shape their lives as they see fit. But it has created both winnersand losers. The benefits of globalization have not been fairly shared. The result is that many people feel betrayed and left behind.

This is why I said that we need good” growth. Growth that creates more winners, and fewer losers.
 
The basis for any sustainable and good growth and this should come as no surprise to you, I am, after all, the German Minister of Finance is formed by solid fiscal and budgetary policy. The more solid your public finances, the better prepared you are for the future, and the more confidence you generate in your own country. A sound budgetary policy is one of the reasons why Germany is doing so well at the moment.

And we will continue with this budget policy in the new government. Because this policy allows us the leeway necessary for the urgently needed investments in Germany, which have been neglected for too long. Germany can and must do better, for example, with respect to education, infrastructure, social housing.

Good budget policy is thus two-sided: It is solid, and it allows the necessary investment. 

And what we have agreed in our coalition agreement shows that there is no contradiction between sound fiscal policy and improving social cohesion. On the contrary, they go hand-in-hand.

But we cannot talk about Germany without also talking about the European Union. Germany’s interests are irredeemably anchored to those of the EU. It is true that we have had some trying times in recent years in the EU. The financial crisis, migration, Brexit, financial assistance programs these have all acted as a sort of stress test for the EU and the euro zone especially. And at times we seem to have forgotten just what the purpose of the European Union is. We have to return to tackling our challenges from a European perspective, rather than the national one.

Germany has so much to be thankful to the EU for. After the devastating and unimaginable horrors of the Second World War, it was the European idea that allowed Germany to take its place again among the international community. It was thanks to ideals of cooperation, trust and honest exchange that Germany was rehabilitated.

And it is thanks to this spirit of combined effort, the decision to pool our resources and destinies, that Germany has grown into the strong, peace-loving democratic country that it is today. Germany has, more than others, benefitted from the EU.

The Germany of today, and the Germany we wish for tomorrow, are unimaginable without a strong European Union.

The EU always was, and will remain, a process of integration for mutual benefit.

In a way, it is like a family of nations. Like in every good family, we will sometimes argue about money. And, like in every good family, there will always be differences of opinion. Some of the issues we have faced in the EU in recent times have highlighted this.

But, in all this, we have always seen a readiness to work together, to enter into dialogue to try and find a common solution. Even with the fundamental challenge of Brexit, the response from the other member states has been to come closer together.

That is why I was happy to see President Macron put forward his views on the future of the EU. They remind us of what we need to do together, what binds us and not what drives us apart. The German government looks forward to discussing these views with France and all the other partners to see what common ground we can find to improve the lives of our citizens in Europe:

How do we tackle youth unemployment?

How do we create added value in the EU budget?

How do we increase investment capacity in the euro zone?

How do we combat unfair tax practices?

How do we complete the banking union and make it more resilient to future crises?

These are all questions which require a cooperative, constructive approach in the EU.
 
Of course, the importance of cooperation and multilateralism is not limited to Europe.

The problems we are facing today are so global in nature, so complex, that they can only be addressed together. In a multipolar world, where geopolitical forces are steadily changing, it is vital that we know what we want.
 
If we want to shape globalization for the better, if we want to counteract the rise of demagogues and warmongers, if we want to ensure that the centrifugal forces brought by rapid change and technological advance do not tear our societies apart and leave our voters disoriented, disillusioned, and despairing, we have to work together to find common ground.

This is why the transatlantic relationship is so vital. Europe and the US share a long history of common values. We know the importance of democracy, strong institutions, the rights of man and the rule of law. It is up to us to ensure that these principles born of western traditions, continue as other regions of the world grow stronger.

We want to strengthen and deepen our ties with the US. And we want the US to recognize that a strong, integrated EU is in its own interests.

International cooperation is not a zero sum game, where one side necessarily loses if the other prospers. For the US, the best insurance against hegemony and despotism on the other side of the Atlantic is a strong and democratic European Union.

And history has shown us that no matter how difficult the question, the answer was never to be found in isolation and a return to nationalism. Protectionism has never been to the benefit of any party. The national route has never been the right one to take. On the contrary.

And now, more than ever, where nationalism and unilateralism seem to be regaining credibility in some quarters, we must work to uphold and strengthen the multilateral approach.

Our peoples need to be able to look again to the future with hope and optimism. They need to be able to share in the benefits of globalization and digitalization, which fair and open trade brings. They need to feel more part of the societies they live in. It is our job, those of us in Europe and in the US, as powers that can actively shape globalization, to ensure that they do.

Together, we have to develop and promote models for globalization that ensure freedom, universal prosperity and democratically agreed standards.

If we can do this, our liberal democracies will retain their legitimacy and their attractiveness for all our citizens and beyond.

Nothing generates prosperity more than cooperation and peace. Let us both, the USA and Europe, work together to this end.