The euro area needs solidarity mechanisms for extreme events that are out of reach of national policies. But beyond that there is no strong case for further fiscal centralisation. Fiscal discipline starts at home. Governments have to take responsibility for delivering sound budgetary policies. Germany also has challenges to confront to maintain its economic performance.
One challenge is the effect of an ageing society on the workforce. Another challenge is to raise domestic demand with reforms and investment. Ladies and gentlemen, Thank you for inviting me to speak to you today. It is an honour for me to speak in this place that played such an important role in German history.