German Experiences with the Adoption of the Euro

1
German Experiences with the Adoption of the Euro

• Andreas Lux
• German Ministry of Finance, Berlin

2
Discussion in Germanyon the way to EMU

• Maastricht Treaty and Stability and Growth Pact

3
Inflation rates (increase of HICP in )
4
Long-term interest rates (nominal, in )
5
Nominal compensation per employee (annual
increase in )
6
Unemployment rate (in , Definition Eurostat)
7
Annual Growth of German Exports in 1999 - 2006
(Goods and Services, in )
8
Nominal Effective Exchange Rate for Germany
(vis-a-vis 23 countries, 2000100)
9
GDP Growth (in )
10
Changeover 2002 in Germanywas successful

• Legal (legal instruments, dual display of prices,
  )
• Logistics
• Crime (fraud, robberies, counterfeiting,)
• Symbol of European Integration

11
Public OpinionFlash Eurobarometer 193 , Report
November 2006 (in )
12
still a big issue

• Euro Teuro ?
• A closer look at inflation rates
• (factual vs. perceived)

13
HICP vs. perceived inflation in Germany (in
perceived inflation lhs)
14
Bottom line

• Transition is hard work but it pays
• Close co-operation with Commission and ECB
• Early and comprehensive information of the public
  is necessary
• Proven framework for the euro it deserves trust

15
OutlookSecuring the long-term success of the
Euro

• Safeguarding the legal framework
• Strict application of the legal framework
• Convergence Criteria
• Art. 99 and 104 EC Treaty
• Respecting ECB independence