Economic Policy

In the Federal Republic, we are faced with the need for comprehensive reform. The implementation of necessary reforms and a further rise of prosperity are only possible with a growing economy and healthy finances. But this government has a difficult legacy of economic policy adopted that forced to act quickly: Since yesterday, the parity of the D-Mark is improved by 8.5 percent. The external security tax on ways was finally lifted.
We will meet the requirements of the law to promote the stability and growth. This law, one of the major reform achievements of the 5th German Bundestag obliged to act if the economic situation is at risk. This duty had been neglected since the spring of 1969.
The decision of the Federal Government of 24 October ended a period of uncertainty and eliminate the fundamental imbalance in our balance of payments. External side, we thus have a decisive contribution to liberalize world trade and stabilize the international monetary system.
domestic economy will dampen the appreciation of the price development in 1970. However, more would have been achieved if the previous federal government had acted in time. The highlight of the price for this failure may develop even before we have.
Without appreciation would be a further deterioration in economic conditions, with the risk of a subsequent recession was hardly avoidable. Our goal is to stabilize without stagnation. This goal is our economic and fiscal emergency program. It includes: A fiscal policy that promotes a gradual reorientation of the goods offered on the internal market through. Further consultation with the Bundesbank on one of the new situation after the DM revaluation appropriate line of the monetary and credit policy. the continuation and intensification of the established cooperation with the unions and business associations in the framework of concerted action that will bring together in the future, representatives of agriculture. The intensification of cooperation between federal, state and local authorities in the Business Cycle of the public sector. Active participation of the federal government for stronger coordination of economic and financial policy in the Member States of the European Community and the necessary development of the international monetary system. The appreciation of the Deutschmark get a compensation of income required for agriculture. Our commitment to the German farmers, we need to bring the Rome Treaty on the common market in line. The Council of the European Communities has recognized that the income loss of German agriculture must be fully compensated. After hours of discussion, it was decided in today's morning hours as follows: At the request of the German delegation, a transitional arrangement was made ​​for the duration of 6 weeks. During this period, the prices for the previous parity is maintained and secured by a border adjustment system. After this period, the agriculture income compensation. This compensation may partly offset by a change in the VAT law will be brought about. How this happens in detail, it is this House must advise shortly. The rest is covered by direct compensation, in which participate the Community. The Council of the European Communities will meet soon again to determine the details of the long-term settlement . Unfortunately, the Council has put forward several times and with great emphasis the request of the Federal Government, the current price level by a border adjustment system has to maintain in the long run, is not complied with. Our partners in the EEC and the Commission took the view that in the light of the common agricultural policy and the Common Market would be called into question. This compromise clearly shows that a conflict between the far-ahead-driven integration of the agricultural market and the lack of coordination of economic - and monetary policy is. A further development of agricultural policy within the EEC must therefore be in the future more in line with progress in economic and monetary policy. It remains the goal of the federal government, the national ownership of the agricultural structural policy to obtain. During the needed structural improvement of agriculture must be avoided that a policy of price pressure is being operated. The early realization of the common agricultural market has exacerbated the internal problems of adaptation of the German agriculture is essential. We therefore consider it to be inevitable, the agricultural sector to help in overcoming their difficulties. You should become a part of our modern economy sibling who takes part in the general income and wealth creation in its entirety. This emergency program is a clear offer of the Federal Government to all who wear our economy. A steady economic development is the best foundation for social progress. It creates the climate in which to develop private initiative, risk taking and performance. It secures the jobs, rising incomes and protects the growing savings from exhaustion due to price increases. In the long term stability and growth can be achieved only in a functioning market economy. Effective competition, both internally and externally is and remains the surest guarantee for the performance of a national economy. All protectionist tendencies in the issue at home and abroad, we clearly reject. Act against Restraints of Competition will be modernized. Corporate concentration, while necessary in many areas. But it should not lead to the elimination of effective competition. Therefore, a preventive merger control is required. This should cover all sectors of the economy. The establishment of an independent commission monopoly may to be an important tool. The control of abuse of dominant market positions and strong market must be expanded. In contrast to the performance enhancing cooperation between medium and small enterprises in trade and commerce will be facilitated. You must not fail on the Prohibition of Bagatelle. The small-and medium-sized businesses have a right to equal starting chances in the competition and to provide effective protection against discriminatory practices. The merger will also apply to the press. The government intends to submit a press law, under the law. On television, new technical possibilities are used to best benefit the company, especially for educational tasks, but in each case the interests of the public are to secure a priority. An improved anti-trust law has become an instrument of effective and progressive middle-class policy. On this basis, further measures to improve financing opportunities for the expansion of consulting services and to the operating independent pension build up to the self. to focus on the economic and social policies of this government is striving for a specific asset policy. The wealth creation in large sections - especially employee-owned - is woefully inadequate and they must be reinforced strongly. The Federal Government will present a draft for the expansion of the Capital Formation Act. It should be increased to DM 624, the next step of the favored setting for saving schemes of 312. The federal government expects to acceptance by unions and employers' organizations that offer. In addition to the wealth creation will be designed so that at the same time the accumulation of capital in the economy and the system can be relieved in equity values. A non-consensual forced savings does not correspond to our free society. According to the intention of the government to save the in-operation in promoting the overall savings involved and the possibilities for building savings to be expanded. More suggestions for property policy, particularly in connection with promotion of the necessary reform of the savings will be examined. The improvement in the protection of depositors and the reform of the exchange system are important accompanying measures. Lasting security can not exist in a developed society only through change. It will be seen more clearly in the seventies. the permanent economic and social change is a challenge to us all. It can not be mastered without the initiative of the individual. The initiative, however, need the support of the policy. We can be no society of vestigial talents. Everyone must be able to develop his skills. The affected people should not simply be left to their fate. Conscious of the responsibility for the economic future of our country in the seventies, we will take care of particularly intensive education and training and research and innovation. This applies in particular to reduce the still existing educational gap between urban and rural areas. I am sure that we mobilize in this way considerable reserve capacity of our society and improve the chances of each can.