Download COUNTRY: Germany

COUNTRY: Germany
COMMITTEE: Council of the European Union
DELEGATES: Austin Becker and Aaron Drews
Moving Forward with the Treaty of Lisbon
On May 9, 1950, French foreign minister Robert Schuman proposed the original concept of the
European Union. From an original count of six nations, the European Union (EU) has expanded
to include 27 nations across both eastern and western Europe. In 1992, the Maastricht Treaty
was signed, allowing for the amending of all treaties. The Treaty of Nice, effective as of
February 1st, 2003, set new rules on the size of EU institutions and how they will work. It also
set up the double majority system, in which a majority of both the total population of the EU and
the number of member states is required for treaty to pass. After the failure of the European
Constitution, in 2003, several member states still sought to find a way to bring Europe closer
together to become more effective on the world stage. Thus, the Treaty of Lisbon was created.
Germany believes that it is imperative that the EU works together economically, politically, and
socially. To promote unity, Germany strongly supports this measure. Not only does it allow
more equality between the bilateral legislative branch of the European Union, but allows national
parliaments a guarantee that the EU will not intervene unless it can attain better results at an
international level. The Treaty also brings about a cohesiveness that will allow for a unified
response to natural disasters, terrorist attacks, and economic downturns.
Germany prioritizes the protection of the rights of the people.. To ensure these rights, the Treaty
of Lisbon makes the Charter of Fundamental Rights legally binding to all members of the
European Union (except the UK and Ireland due to opt-out compromises). As a safeguard to
humanity, it would ensure life, education, and equality, and several other rights. The treaty also
ensures the “four freedoms” of European trade, which are the movement of: goods, persons,
services, and capital.
If the Irish referendum was to fail again, Germany will respect its decision. German Chancellor
Angela Merklel and French President Nicolas Sarkozy have said “We take note of the democratic
decision of the Irish citizens with all due respect, even though we regret it.” Still, it is Germany’s
hope that Ireland will see the benefits of the Treaty of Lisbon. Germany is willing to make
compromises with Ireland, as well as the skeptical Czech Republic. Germany would like to
address the most important concerns of these nations and create and agreement that would gain
their favor while still retaining the principles of the Treaty of Lisbon.
Germany feels that by working with all nations in the European Union, a unanimous decision
towards unity is attainable. The Treaty of Lisbon is an important document that will both aid the
European Union in its ability to address the problems it faces now and the problems it will face
in the future. Chancellor Merkel has stated the treaty is “Good for Europe” and “a win for
Germany.” She also said it creates “nothing less than a new foundation for Europe.” Germany
intends to work with each nation to ensure peace and prosperity throughout Europe.
Reforming the Common Agriculture Policy
Born in the ashes of a continent still struggling to recover from the horrors of World War II, the
idea of a Common Agricultural Policy for Europe was initiated in 1958 as a part of the Treaty of
Rome. It created an opportunity for Europe to become self-sufficient in agriculture and food
production at a regional level. The Treaty set up a basis for the modern-day Common
Agricultural Policy (CAP) of the European Union (EU) by establishing secure markets and a
common price for agricultural producers.
The present system of the CAP was established in 1963 and has provided a framework for
Europe’s food and agriculture programs ever since. The four basic principles cited in the
establishing papers of the CAP are financial solidarity, a unified market to allow the free
movement of agricultural products throughout the EU, community preference, and parity and
productivity (farmers incomes are equal to incomes in other sectors of trade, and reasonable
prices are set to give access to consumers).
Several reform attempts have been made in the past to make this system more effective. The first
was the introduction of milk quotas in 1984 to control dairy production throughout the EU. A
more recent reform was made in 2003, in which direct payments to farmers were separated and
the farmers were obligated to keep their land in good agricultural and environmental conditions.
Many subsidies are also eliminated, however, EU members are allowed to keep certain subsidies
if they choose.
Germany feels that further reforms are necessary to make the CAP as efficient as possible.
Subsidies put on agricultural exports distort prices in the markets of other nations, and this has
created large inflation rates in the third world nations the international community has been
trying so hard to aid. Also, the current policy allows for many farmers to leave land unused for
seasons at a time, allegedly to prevent “overproduction”. However, the German Agricultural
Minister, Horst Seehofer, has stated that, “We need a farming renaissance and an increase in
agricultural production in Germany, in the whole of the European Union and, more especially, in
the developing countries.” It is clear that this incredibly inefficient use of land must be
eliminated, especially considering the entrance of ten new developing nations into the EU in
2004. Germany donates large amounts of money to the CAP funds to assist in the development of
these nations, but receives only about 13% of the CAP funds back, an amount far less than is
given. As a net contributor to this Common Agricultural Policy, Germany would like to see the
euros given out to more developing nations, and in a more effective manner.
Germany believes that it is possible to work with all the members of the Union to reform the
agricultural system that unites us all. If the member states are willing to look at the benefits of
reform, it is probable that a collective decision can be reached in which everyone can participate
in the new CAP.
The Current Economic Climate of the European Union
In 2002 twelve of the then current fifteen member nations of the European Union (EU) adopted
the Euro as their form of currency. The transition from several national currencies to an
international currency went smoothly, with little to no major economic consequences. Now,
sixteen countries have adopted the Euro as their form of currency. These countries make up what
is know as the Eurozone. Although adding new European nations is a target of the European
Union, nations that have struggling economies generally slow down economic growth, and
cannot yet adopt the euro as a form of currency. This has been the case with the ten new nations
that joined the EU in 2004. However, what these nations lack in economic stability, they make
up for with a large, skilled labor force and new markets for EU goods.
Currently, the EU is facing one of its worst recessions in years. Unemployment throughout the
Eurozone has reached 8% and pressure has increased on the European Central Bank (ECB) to cut
interest rates to bolster the economy. Currently, a 200 billion euro stimulus package is on the
way and will be injected into the European economy. Extra cash that is pumped into one country
will flow across boarders creating a “positive overspill.”
Germany, the largest net contributor in the European Union, has been hit particularly hard.
Going into a recession last year due to falling demand for exports, the GDP is expected to
contract another 2% this year. The EU has called for member nations to supplement the EU wide
stimulus package with stimulus packages for their own countries, targeting around 1.2% of each
nation’s GDP. Germany has already risen to this call with a 50 billion euro stimulus package of
its own, which is more than what the EU called for. This stimulus package will target
infrastructure investments, tax relief, money for families, and also aims to reduce contributions
needed for health care. Chancellor Angela Merkel, however, has cautioned that the EU should
avoid getting “into the race for billions.” She has told the lower house of the parliament of
Germany, the Bundestag that “We should walk a measured path and keep to the middle ground,
which is made-to-measure for the situation in Germany.” The EU must assess what will be good
not only for the short term, but what is necessary for the long term
Germany feels that reform is necessary to get out of this economic downturn. Alongside other
leading nations in the EU like France and Luxembourg, Germany agreed to press for sanctions on
tax havens, create caps for managers’ bonus pay, and also calls for an increased roll of the
International Monetary Fund (IMF). To do so, Germany believes that nations will have to double
monetary donations to the organization. Germany would also like to see a higher level of
transparency in the global markets and Chancellor Angela Merkel hopes to create a “charter of
sustainable economic activity,” which would subject financial markets around the globe to
regulation. Combined with the “positive overspill” of the stimulus packages supplied by the EU
and its member states, the Union will be able to climb out of this recession without lasting
damage.
Germany hopes to work every all nation in the European Union. If all member states work
cooperatively, this recession which has caused so many hardships throughout the Union will soon
fade into memory as we enter an era of economic prosperity.