# German Minister of Finance at Princeton University

https://www.youtube.com/watch?v=khFbTAmYNls

[00:06] foreign students welcome to everybody we're very pleased to have the finance minister of Germany with us.
[00:15] Christian is also the chief and the leader of the FTP the German party for the liberals or the three Democratic Party and advocate for the free Society.
[00:29] and I'm Marcus coromand the director of the Ben 10 Center for finance I'm the professor in economics.
[00:34] and Mr Linda will talk about a liberalism for tomorrow and will outline his vision.
[00:41] this is our liberal society and our free Society faces many challenges at the moment.
[00:46] it's under threat from many levels at the local level and also at a global level.
[00:51] and you know just to mention some cancel culture makes it harder to exchange ideas.
[00:56] social media distorts ideas industrial policies abuse for protectionism and you know we also have new technologies artificial intelligence.
[01:07] it might lead to something like AI Kasi.
[01:09] like an autocracy.
[01:11] um that you know the autocracy can control our way we express ourselves and how much we can make free decisions or not.
[01:19] so citizens freedom and privacy is potentially constrained.
[01:25] so I thought I also use AI I use chat GPT to find some fun facts about Mr limpner.
[01:31] um and I can't vouch that it's actually correct because I'm hallucinations.
[01:38] um but it told me that his is known for his love for fast cause he owns a Porsche 911.
[01:47] I'm not sure whether that's true but I double checked that he's a proponent of masculine liberal economic policies and often sites completely Hayek.
[01:57] I double check that that's correct.
[02:00] so today at the minister trust arrived from the IMF World Bank Spring meetings and he will bring us a new estate uh.
[02:08] what's going on in the global economy in a global World Order and how we can make it more resilient in the presence of so many shocks our societies face?
[02:18] and before that you just hit a 36 hour marathon negotiations in Berlin among the coalitions so you know can handle without sleep he doesn't need sleep uh to these negotiations and it's surely on high demand so we're very pleased therefore that he spends some time with us and he came specially for us here to outline his vision about liberalism here in Princeton.
[02:44] and I'm very pleased for all the help from the center to organize it also then I'm Center core formed with this forum in Berlin.
[02:54] so thanks again for coming and uh enjoy the feast and we're looking forward for your presentation thank you.
[03:14] Thank you very much.
[03:18] Neither have I.
[03:20] Come with my Porsche.
[03:23] Nor will I be delivering a speech for 36 hours today.
[03:29] Dear Professor of una Maya, the students, their guests, good evening everyone.
[03:34] Thank you very much for inviting me to Princeton and institution where so many leading scholars have studied, researched and taught and continue to do so today.
[03:48] Important German-speaking economists such as Frerish Lutz and Oscar Morgan Stan came to this University in the late 1930s where they found refuge from the Nazi regime.
[04:04] The fact that at the same time reminds us of the darkest hours of German history and of the liberal character of Princeton.
[04:16] so it is an honor to be here today in the company of so many bright students and distinguished guests.
[04:23] for Germany it is a matter of Pride said one of the influential professors in Princeton is our compatriot.
[04:29] I owe this invitation to speak to you today to Marcus bunamaya thank you for this opportunity Marcus.
[04:41] of course he invited me less because of who I am as person and more because of the office I hold as finance minister of Germany.
[04:51] I'm completely aware of this and I imagine that could also be the main reason you are here too.
[05:01] which also means it would have been obvious to me to talk about current International Financial policies.
[05:09] I won't do so you have spoiled it already.
[05:13] I'm not only a finance minister I am an advocate of the idea of freedom and even
[05:18] if it entails a risk for the success of this event today
[05:26] I feel that a different focus is more urgent than International Financial policies
[05:34] the United States has always been a global Beacon of freedom
[05:39] you will doubtless be familiar with the roads
[05:43] behold these tools to be self-evident that all men are created equal that they are endowed by the creator of a certain unalignable rights that among these are life liberty and the pursuit of happiness
[05:57] the 1776 Declaration of Independence is uncertainly one of the most important documents for Liberal philosophy of government
[06:08] of course you have politics has always been subject to controversy
[06:14] but for some time now the liberal order itself
[06:20] has been questioned and challenged as never before.
[06:23] let's put it this way.
[06:26] liberal liberalism is said to be failing politically and intellectually.
[06:34] this is why I decided to speak to you today as an advocate of the idea of Liberty and as someone who earlier studied political science and philosophy.
[06:45] I want to sketch out why and how why and how liberalism has a future as an idea for structuring Human coexistence by addressing the major attacks that are made against it and I also want to talk about why the future of human coexistence should be shaped by the idea of liberalism.
[07:10] just to avoid any misunderstandings many of you will have heard the the term liberalism in a different context.
[07:20] so I kindly ask you to put U.S domestic policy discussions aside.
[07:28] the semantics of the term liberalism is not the same in the United States and in Germany in your country in this country.
[07:37] my impression is that some in the political public sphere do not use the adjective liberal as a compliment.
[07:45] rather it is used to describe the left-wing role of a state that actively corrects the market and is mostly framed negatively.
[07:53] the German understanding is closer to what might be called Classical liberalism in terms of the history of ideas.
[08:03] however I think it's neck legible semantic problem for the purpose of my lecture today.
[08:10] is there any liberal doctrine that is widely shared in all its aspects.
[08:13] hardly but at least one undeniable characteristic can be gleaned from
[08:21] shortage philosophy the French Revolution the German Enlightenment the aforementioned American independence movement and all that followed by liberalism places the individual Center Stage.
[08:38] other philosophies follow collectivistic values communism for example sees individuals primarily as part of their classes where we call the republicanism calls for a commonwealth Community.
[08:52] terrorism for traditional community of values and ecological thinking focuses on nature.
[09:01] this means that today we are talking about individualism.
[09:05] ends from the notion of individualism it follows that freedom is a necessary condition because a life in dignity and as the dictate of others would be unthinkable.
[09:22] self-determination over our own lives
[09:25] freedom of speech and property are
[09:27] rights that are guaranteed for all
[09:29] individuals in the liberal order
[09:31] individuals have equal rights
[09:34] where they differ
[09:36] is what they make of their rights this
[09:40] means a free Society can therefore never
[09:42] be homogeneous on the contrary the idea
[09:46] of homogeneity would be an authoritarian
[09:50] one
[09:51] it would take too much time here to to
[09:54] present all attacks and the completely
[09:57] literature against liberalism
[09:59] it's a boundless you can trust me in
[10:02] brief you can say that the left accuses
[10:05] liberalism of being responsible for
[10:07] exploitation poverty and inequality
[10:11] this is why it has an anti-democratic
[10:13] effect by virtue of the economic power
[10:16] it unleashes and natural resources it
[10:20] consumes
[10:21] and the right
[10:23] accuses liberalism of destroying traditions and cohesion as well as cultural and National identities.
[10:30] we should not dismiss these criticism lightly.
[10:35] yes.
[10:36] some are simply absorbed but others describe social developments that are wrongly attributed to the liberal order.
[10:44] although we liberals should widely be reject them then as well.
[10:50] unfortunately liberal has a number of liberalism has a number of real opponents.
[10:57] as well as far friends who want it uh um to morph into an entrenched ideology.
[11:08] but what lies at liberalism's core is its capacity to learn.
[11:14] but we have to learn.
[11:18] it's faith in progress as an incremental process of human civilization is key so.
[11:25] Let us first take a look to the equiticism from the left.
[11:31] Who had been an Italian scientists once ordered the Left Right scheme based on the ideas of egalitarianism and anti-egalatarialism.
[11:48] Is concerned with material inequality.
[11:52] It's a gap between rich and poor is growing.
[11:54] What emerge is an aloof and privileged upper class that no longer has anything to do with the lives of the majority.
[12:03] Indeed in many societies we can see such a proliferation not only in capitalist systems by the way but also among systemic rivals.
[12:16] Certain voices in Liberal literature tend to shrug this off.
[12:18] If you have an in Constitution if you have in Constitution that guarantees the freedom of contract.
[12:25] and property so they say then you have to accept inequality.
[12:31] so liberal order is a process moral aspirations are alien to it.
[12:37] this position was mobilized in particular to put it at a distance from John Walls whose theory of Justice could not be ignored in political philosophy.
[12:49] and certainly not at Princeton where he began his academic career as you know.
[12:55] and all of that is not perceived to be just by those who belong to it cannot be expected to be stable.
[13:04] if political theory is not convincing in practice.
[13:08] people will reject it at the pulse or vote with their feet.
[13:15] from Adam Smith whom you certainly know one of the founding fathers of liberalism ethical sentiment played an important role at the level of the.
[13:27] individual he dedicated his first work.
[13:30] to this.
[13:31] it was only later.
[13:33] in The Wealth of Nations that he presented the work that with the concept of the Invisible Hand of the market laid foundations of economic theory.
[13:45] the inner connection between both books.
[13:48] um remains subjects from the history of philosophy.
[13:51] in any case political practice has provided the empirical evidence.
[13:58] and economics has long since distanced itself from the concept of the ruthless utility maximizer.
[14:07] two aspects of world's theory of Justice are important for my considerations today.
[14:12] first here's emphasis on equality of opportunity.
[14:19] in my words.
[14:20] social positions are assigned according to merits and not origin.
[14:27] And second the principle of difference.
[14:30] Which accepts inequality again in my words when the dynamics of the order produces so much wealth that even the weakest member of society will still benefit from it.
[14:45] In other words nothing is gained if everyone is equal but everyone is desperately poor.
[14:57] But do you think my impression is by these standards liberals still have a lot work to do.
[15:07] Equality of opportunity has not been achieved.
[15:09] In Germany for example.
[15:13] Your family background is an important determined for your path in life.
[15:18] By contrast it would be fair if differences intelligence diligence and willingness to take risks via the factors that determines a
[15:29] person's place in society rather than as walls.
[15:33] said the natural Lottery of birth.
[15:38] I am convinced that access to education is the essential resource in this regard.
[15:44] and we need to invest more in cases where people are particularly disadvantaged from the outset because of their background.
[15:55] because education improves social Mobility.
[15:57] this is where State intervention has to focus and on so that's the differences that arise later as a result of Life Choices are generally perceived as Fair.
[16:11] I would like to take this opportunity to welcome Stefan koleff not least because I think his biography provides us with a useful illustration of what it means not to capitulate to the lottery of life.
[16:23] I've known Stefan for quite a long time.
[16:31] are from the same generation
[16:33] but we grew up in different worlds
[16:37] he was born in Bulgaria under the Communist Regime
[16:42] today he is a professor in Germany
[16:46] he's also the academic director of the Ludwig ad forum for economy and Society in Berlin
[16:52] and last semester he was here at Princeton as a visiting fellow in the department of politics
[16:59] the audience looking at world's second principles the current situation of the weakest members of society
[17:07] it indicates that many liberal orders around the world are failing to live up to this aspiration
[17:17] it's a great German liberal social scientist and politician Ralph davendorf once demanded said no ceiling should be set for individuals
[17:27] but that all should stand on the same floor
[17:32] I'm convinced that such a footing includes for example access to health protection in cases of personal misfortune and the guarantee of a material subsistence level that enables people to participate in society.
[17:50] This requires the state to provide this social balance where the market does not.
[17:58] A liberal State also levies taxes the revenue from which must be paid by the stronger members of society according to their ability to pay.
[18:11] In fact in my opinion it is only fair that the high performers also contribute a higher percentage of their income.
[18:22] Their success is based on stable conditions opportunities for cooperation and a civilization they were born into and not the one that they have.
[18:33] individually created.
[18:35] this limits the material differences resulting from the market process to a socially acceptable level.
[18:47] I have to add something since there are German journalists present who can probably hardly believe their ears when I express this convention I must add for their benefits in Germany the level of social balance is more than adequate.
[19:08] many positions on the left also confuse liberalism with a less Affair anything goes philosophy.
[19:16] the Chicago boys are associated with an image of so-called neoliberalisms that accepts unlimited greed if it's pursed in Conformity with the free market.
[19:28] there's no question that such positions exist but this is a misunderstanding.
[19:34] real liberalism is not a pro-business ideology but a poor Market conviction
[19:44] in 1931 1932 Alexander risto spoke of a new liberalism in contrast to what I will call Stone Age liberalism for short
[19:56] and this new liberalism was in favor of a state that regulates the market through walls
[20:00] more precisely he called for a strong Saint I am quoting him he called for a strong state that stands above the groups above the interested parties
[20:12] a state that breaks free from its entanglement with economic interests
[20:19] I have no doubt that the historic audience at that time witnessed the birth of what we can now refer to the German School of liberalism named Ardo liberalism coming from the
[20:36] word aura
[20:38] only a few months ago the Chicago
[20:41] Economist excuse me quote him here Luigi
[20:45] singers called for return to the spirit
[20:49] of this German liberalism especially to
[20:53] its plea for general rules as a
[20:55] challenge to the quest on the part of
[20:58] some individuals for even more
[21:00] privileged in business and Society
[21:04] we need this form of reflection because
[21:06] freedom is threatened for example by the
[21:08] concentration of economic power they are
[21:11] platform businesses partly determines
[21:14] the success of others in an autocratic
[21:18] Manner and to which the state needs to
[21:20] respond by enforcing Woods
[21:24] it should have
[21:26] the state he should have the role of a
[21:29] referee not a player
[21:31] the state has to side with the newcomers
[21:35] and Outsiders who must be given access
[21:37] to markets and opportunities for
[21:39] Innovative upheaval this requires an
[21:43] Anti-Trust law with a real ability to
[21:46] prevent the accumulation of economic
[21:49] power in the data economy this is a free
[21:52] requisite that I can only highlight here
[21:56] as Finance Minister I also have to look
[21:59] at the capital markets NC Banks without
[22:02] going into details the principle of
[22:05] responsibility is of particular
[22:07] importance here as I am indeed convinced
[22:12] is the case everywhere
[22:14] responsibility means being liable for
[22:17] the free decisions we take
[22:20] if a business decision works well
[22:22] it is not for us to view that success
[22:26] with the envy
[22:27] but if a business decision fails
[22:30] those that made the decision must be
[22:35] held accountable the principle of the
[22:38] greatest possible level of individual
[22:40] liability for decisions is not only an
[22:43] ethical imperative
[22:45] it serves as a natural restraint on risk
[22:49] that would endanger the system as a
[22:53] whole if they were to occur
[22:56] in the capital markets we have far too
[22:59] long accepted a situation where profits
[23:02] were privatized and losses were passed
[23:06] on to the general public in other words
[23:08] to you me to us
[23:12] now let's look at the criticism from the
[23:15] white
[23:16] liberal individualism is blamed for
[23:18] destroying communities and traditional
[23:20] institutions such as the family you you
[23:24] don't have to go back to probe Pius the
[23:29] ninth
[23:30] who condemned liberalism as an operation
[23:33] as early as
[23:36] 1864. you will find plenty of literature
[23:39] voices from our time
[23:41] emancipation to use the Latin root means
[23:46] to free people from the hand of others
[23:49] the village of earlier iwas which formed
[23:53] a tight knit community
[23:56] but also confined people to a social
[24:00] role almost from birth
[24:02] when birth May evoke romantic feelings
[24:06] in some
[24:08] but it was a hard enclosure
[24:11] that sets level limits on
[24:13] self-determination
[24:15] emancipation and
[24:19] Liberal
[24:20] Liberal Society on the other hand
[24:24] have opened a Horizons
[24:26] for many to live out their own needs
[24:30] nevertheless it is not human nature to
[24:34] spend our life's life Robinson cruso
[24:36] it's not about isolation as liberal
[24:39] atoms floating without ties
[24:44] rather we need to create conditions that
[24:47] make self-selected communities possible
[24:50] the basis for this are commonly accepted
[24:54] values of living together especially
[24:56] respect for the life plans of others and
[25:00] new social institutions to allow new and
[25:03] reliable boundaries
[25:05] I cannot elaborate this today so I give
[25:09] you one single example of a new social
[25:12] institution that brought diversity and
[25:16] social coherence together
[25:17] it's a game average
[25:19] you have to find further new boundaries
[25:22] like this since plurality and diversity
[25:25] of our modern societies have been rising
[25:28] so much I'm convinced that only
[25:31] liberalism is capable to keep us
[25:34] together and to Foster societal peace
[25:37] ideas that try to restore the orders of
[25:41] the past would provoke severe social
[25:44] conflicts and cleavages
[25:48] but we need to vigilant
[25:51] some transform the idea of liberal
[25:53] individualism into a form of identity
[25:56] politics
[25:58] and people identify themselves
[26:01] more as part of a group
[26:04] than as an individual they underestimate
[26:07] the unique character of every biography
[26:11] and naturally we must forcefully oppose
[26:14] for example racism and other
[26:16] discrimination
[26:18] but we must not allow restrictions on
[26:21] our fundamental rights to express our
[26:23] opinions and thoughts
[26:25] the Free Speech initiative by the James
[26:28] Madison program here at Princeton is an
[26:31] important instrument to promote freedom
[26:33] of sort and free expression
[26:35] what characterizes democracy and
[26:37] Academia is the fact that one engage
[26:41] with different opinions in order to
[26:44] enter into dialogue with them
[26:46] universities in particular are places
[26:49] are places that protect opinions
[26:53] they do not protect people against
[26:55] opinions
[26:57] let's imagine that we had to turn this
[27:00] above described ambitious liberal agenda
[27:02] a reality in our Societies in this
[27:05] scenario
[27:06] have we developed freely with Fair
[27:09] opportunities in our tolerant prosperous
[27:12] societies
[27:15] would that satisfy the aspirations of
[27:19] liberal
[27:21] by no means
[27:24] because if our ins because if our
[27:26] aspiration really is to place each and
[27:30] every single individual his and her
[27:33] dignity and freedom at the center
[27:36] could we then disregard
[27:40] those who do not live in our political
[27:43] contexts but in other regions of the
[27:46] world
[27:47] are those people who are not yet born
[27:52] their dignity and freedom also
[27:54] constitute an obligation on our own part
[27:56] which means we have to broaden our
[27:59] perspective geographically and
[28:02] temporally towards a universality of
[28:06] liberal values
[28:08] while we here develop thoughts and ideas
[28:11] in Peace and Freedom in Ukraine people
[28:15] in Mortal danger are fighting for
[28:17] exactly that for Peace and Freedom
[28:20] the last time I was in Kiev was before
[28:23] the corona pandemic at many
[28:25] conversations there
[28:27] the main impression I had was as follows
[28:31] the ukrainians are people
[28:34] who decided against a future as a
[28:37] satellite of Putin's Russia and in favor
[28:40] of the community of liberal democracies
[28:43] of the West
[28:45] the ukraines are people who decided
[28:48] against Putin's oligarch capitalism and
[28:51] in favor for our liberal Market order
[28:55] the ukrainians are people who decided
[28:58] against Putin's Auto authoritarian form
[29:02] of society the censorship and oppression
[29:05] and anti-puralism and in favor
[29:08] of democratic diversity and tolerance
[29:11] of course
[29:13] there was then and still I met the
[29:16] Ukraine prime minister and Finance
[29:18] Minister today and there's still a need
[29:21] for reforms
[29:22] no one knows this better than the
[29:24] ukrainians themselves nevertheless
[29:28] I'm convinced
[29:30] that Putin's unprovoked attack on
[29:35] Ukraine last year
[29:38] precisely happened because of the
[29:42] decisions ukrainians had made
[29:45] and this is why we as liberal
[29:48] democracies are committed to solidarity
[29:51] with the Ukrainian people
[29:53] this is the standard by which we must be
[29:56] measured in political terms on a daily
[29:59] basis
[30:01] we live in a reality in which many
[30:03] societies do not share our ideas of
[30:07] Human Rights and Freedoms in our eyes it
[30:11] looks like they
[30:13] even trample them underfoot
[30:16] the concept of the universality of
[30:19] liberal values could therefore suggest
[30:21] the need for interventionalism
[30:24] that constitutes a continual commitment
[30:28] on our part to engage on ethical grounds
[30:32] perhaps even by the means of military
[30:34] force and with the aim of regime change
[30:39] there's no scope here to go over the
[30:41] controversial theoretical debates of the
[30:45] last decades about a possible liberal
[30:47] interventionalism
[30:49] in reality
[30:51] we for example experienced in
[30:53] Afghanistan that's the attempt of weak
[30:55] regime change too often fails
[30:58] practical reason advise us to be
[31:01] reluctant with regard to
[31:03] interventionalism
[31:05] allow me to illustrate an alternative
[31:08] approach using an analogy between the
[31:10] global order and the internal order of
[31:12] liberal societies
[31:14] just as we operate on the basis of the
[31:18] individual's right to self-determination
[31:20] in our societies we in the International
[31:23] Community must assume that each of its
[31:27] parties has the right to
[31:28] self-determination as well
[31:31] but that it doesn't justify silence or
[31:34] inaction on the contrary
[31:37] the idea of international law a liberal
[31:40] World Order common institutions mutual
[31:43] agreements and connections
[31:46] grows out of the principle of
[31:48] self-determination of people
[31:50] regardless of any one people's power and
[31:53] size
[31:55] all have the same rights and dignity
[31:58] in this context I we call a joke made by
[32:02] a former prime minister of Luxembourg
[32:06] who met the head of state of China and
[32:11] he said
[32:12] both of us we are powerful politicians
[32:15] together we govern over one billion
[32:17] people
[32:20] of course of course it were just 640 000
[32:25] inhabitants of Luxembourg in this one
[32:27] billion but you got the point
[32:30] no rules over any other
[32:32] new rules over any of the others
[32:35] institutions such as the international
[32:37] monetary fund whose swing meeting in
[32:39] Washington I just attended must exhibit
[32:42] this same commitment to all their
[32:45] members and to balancing diverging
[32:48] interests
[32:51] of course in practice power politics are
[32:54] still present within these organizations
[32:58] the conflicts are contained within the
[33:01] framework of rules and Collective
[33:03] decision-making procedures
[33:06] therefore in the sense maintaining
[33:08] strengthening and where possible
[33:10] reforming the United Nations the World
[33:14] Health Organization the World Trade
[33:16] Organization International you did
[33:19] Charity and other bodies are priorities
[33:22] of liberal policy making
[33:24] and in situations where such
[33:26] international law is being violated
[33:29] as is happening in such a horrific
[33:33] manner in Ukraine no member of the
[33:35] International Community can look the
[33:38] other way for ethical considerations
[33:41] and in their own interest
[33:44] because they could be the next ones to
[33:47] be affected
[33:49] if you will give all members of our
[33:51] society's Fair opportunities to develop
[33:53] their freedom this should be also our
[33:56] agenda at the international level
[33:59] in terms of the universality of liberal
[34:02] values however we cannot stop here we
[34:05] have to be a desirable role model for
[34:08] other societies changes in Civilization
[34:11] can be supported through dialogue and
[34:15] cooperation with in the long term which
[34:18] in the long term leads to more dignity
[34:20] and freedom for individuals
[34:23] on the world stage there are major
[34:25] differences in terms of Economic
[34:27] Development
[34:28] wealth is extremely unequally
[34:32] distributed
[34:34] we should all be concerned about that
[34:37] the global South has also been
[34:39] particularly hard hit by the current
[34:43] economic eruptions for example The
[34:46] increased prices of food on the world
[34:50] markets or the problems of overall
[34:54] in-depthness in times of higher interest
[34:56] rates
[34:58] on the other hand this currently
[35:01] requires our support as in the case of
[35:05] restructuring restructuring of higher
[35:08] National debts
[35:10] um on the one hand this requires our
[35:12] support as in the case of restructuring
[35:14] of two high national debt on the other
[35:17] hand now
[35:18] to achieve better long-term Prospect
[35:22] it is not support and solidarity
[35:26] that are needed but cooperation
[35:28] globalization is often identified by the
[35:31] political left in particular as the
[35:33] cause of poverty
[35:35] The Narrative is that others are being
[35:37] exploited to ensure our prosperity in
[35:41] fact
[35:42] the global division of labor has already
[35:45] improved the living conditions of
[35:47] hundreds of millions of people around
[35:50] the world in recent decades
[35:52] so our choice is not to reject
[35:55] globalization but to work towards a more
[35:59] mature kind of globalization
[36:01] I'm convinced that reciprocode
[36:05] globalization model opens up sustainable
[36:08] opportunities for development
[36:11] this model utilizes the division of
[36:14] labor in that we can not only in a way
[36:17] that we can not only support our goods
[36:20] and services to others
[36:23] but in a way that we also open our
[36:26] markets to the products and services
[36:29] from other markets in return
[36:32] and by creating the framework conditions
[36:36] that allow our companies can invest and
[36:38] create jobs in these other markets
[36:42] de-globalization and a reduction in the
[36:44] worldwide division of labor in terms of
[36:47] fragmentation would not create any new
[36:50] opportunities in life for individuals of
[36:53] course this is also a challenge for our
[36:55] economy
[36:57] because certain sectors would come under
[36:59] competitive pressure and evolve if sea
[37:04] markets were liberalized fairly I'm
[37:07] thinking for example of the Agricultural
[37:09] sector which often makes a strong case
[37:12] for its interests
[37:15] nevertheless major difference in values
[37:17] will remain
[37:18] some of which embarrass us as member of
[37:21] liberal societies I only have to think
[37:24] of gender equality or social diversity
[37:28] if practical reason also leads us to
[37:31] reject interventionalism from outside
[37:33] that seeks regime change that does not
[37:37] mean that we have to remain silent
[37:40] the method of choice is to engage in
[37:43] dialogue absolute precisely these values
[37:45] is a challenging interlocutors
[37:49] and to do so at every opportunity
[37:51] liberal voices Within These societies
[37:55] need our attention and support to bring
[37:58] about change in Civilization from within
[38:01] that requires staying power
[38:04] but we have to prove we have it despite
[38:07] having free Tate we must not have we
[38:11] must not allow free values to be
[38:13] disregard
[38:14] in order to avoid being misunderstood I
[38:18] must add that the acceptance of
[38:19] different social systems in the world
[38:21] Community Finds Its limits their
[38:24] genocide for example is systematically
[38:26] carried out in a state as was once the
[38:29] case in Rwanda this is where the entire
[38:32] Global community's responsibility to
[38:34] protect comes into play and justifies
[38:36] the need form intervention on the basis
[38:39] on of the international law
[38:42] is not only in terms of geography that
[38:46] the responsibility of the liberal
[38:48] extends Beyond his our own own sphere
[38:52] the responsibility also extends in terms
[38:55] of time
[38:56] because our descendants should have the
[39:00] same dignity and freedom as we do we
[39:03] need to think about their rights today
[39:05] so liberalism has um has an
[39:08] inter-temporal responsibility
[39:12] in the German forestry industry the idea
[39:15] of sustainability was developed
[39:17] centuries ago
[39:19] in line versus principle a forest owner
[39:22] only felt the same number of trees
[39:26] that they could plant and grow in their
[39:29] lifetime
[39:30] this is done so that the owner's
[39:33] descendants can also live from the yield
[39:35] of the wood
[39:38] by the time of the Industrial Revolution
[39:41] at latest
[39:42] Humanity has stopped adhering to this
[39:47] philosophy
[39:49] we do not just fail more wood than can
[39:52] grow back
[39:53] as coal and gas and oil
[39:57] we even burn the underground forests
[40:00] that grew millions of years ago
[40:04] in doing so we are not only consuming
[40:08] Humanities absolutely finished with
[40:11] sources
[40:12] we are also provoking global warming
[40:15] that is potentially deadly for future
[40:18] Generations
[40:21] foreign speculates that promoters
[40:26] who according to the Greek mythology
[40:29] brought fire to humankind and was thus
[40:33] the founder of civilization must now
[40:36] fear remorse
[40:39] the use of finite resources is probably
[40:42] invitable as part of the process of
[40:45] civilization because knowledge about
[40:48] Alternatives first has to be developed
[40:51] however
[40:53] their use is only sustainable if in the
[40:56] course of progress technological
[41:00] innovations are being produced at the
[41:02] same time and which later make others
[41:05] and equivalent forms of living and
[41:09] economic activity possible
[41:12] this applies not only across time but
[41:14] also within the world Community the
[41:17] developed economy economy developed
[41:21] economic Nations
[41:23] with historical and still high emissions
[41:26] thus have a kind of obligation to
[41:30] innovate in respect to other regions of
[41:33] the world
[41:35] combating global warming is a question
[41:37] of survival of humanity
[41:40] it will require far-reaching changes in
[41:44] our way of life
[41:46] I'm convinced that technological
[41:49] progress in the field of decarbonization
[41:52] will allow us to do so without
[41:55] sacrifying freedom and prosperity
[41:58] in Germany for example we have set
[42:01] ourselves the task of switching our
[42:04] energy Supply largely to renewable
[42:07] energies such as solar or winds which
[42:10] are therefore called Freedom energies
[42:12] Freedom energies in two senses because
[42:15] they make us independent from gas
[42:17] imports from Russia and protect the
[42:21] interests of further Generations future
[42:23] Generations
[42:24] the transformation of the economy and
[42:27] Society provokes conflicts jobs could be
[42:31] lost in certain sectors companies still
[42:33] want to continue to make profits this
[42:35] fossil Technologies and the purchase of
[42:38] new technologies new cars or heating
[42:40] systems account debate in Germany puts a
[42:44] burden on private households
[42:46] with Noble motifs climate activists
[42:49] nevertheless Advocate massive
[42:52] restrictions on freedom and the needs
[42:55] for restraint
[42:57] this approach not only endangers support
[43:00] for measures that are necessary to
[43:02] protect the climate
[43:04] this approach also carries with its risk
[43:09] of a change of our liberal Society
[43:13] the German social scientist Ulrich Beck
[43:16] stated a few years ago that
[43:19] his friends from the environmental and
[43:22] climate movement
[43:25] possess a fatal proximity to our
[43:30] tawitarian Chinese State capitalism a
[43:34] sympathy for control from above and
[43:39] I think he is recognized more or less a
[43:42] left-wing social scientist
[43:44] more recently
[43:46] we heard calls for democratically
[43:48] elected parliaments to be supplemented
[43:52] or even replaced by councils determined
[43:56] by the drawing of lots
[43:59] to make decisions after consultation
[44:02] and facilitate it by experts
[44:08] what sounds like friendly deliberation
[44:12] is in fact the replacement of democratic
[44:14] representation based on the
[44:17] participation of each individual through
[44:20] the subtle extertion of influence and
[44:24] the possible Distortion of majority
[44:26] voting
[44:28] liberals must offer Alternatives
[44:30] combating climate change and protecting
[44:33] the environment are liberal concerns but
[44:36] at the same time the path must be
[44:39] compatible with liberal values two
[44:42] things
[44:43] follow from this
[44:45] if we weren't ambitious about climber
[44:48] protection today
[44:49] as the German constitutional Court
[44:51] argued some time ago
[44:53] the pressure to adapt would be
[44:57] unbearable for our descendants
[45:00] global warning and the consequences of
[45:03] global warming mean that in order to
[45:05] ensure survival even greater
[45:08] restrictions on freedom would become
[45:10] inevitable later on
[45:13] however contrary to what is sometimes
[45:16] said in the political debate in Germany
[45:18] it does not follow that we have to
[45:21] accept massive restrictions on freedom
[45:23] and talk in the present rather it is
[45:27] about an inter-temporary Fair
[45:30] distribution of change
[45:33] I'm convinced that technological change
[45:35] which is already demonstrating
[45:38] exponential progress will facilitate a
[45:42] balance because we are laying the
[45:45] foundation for Innovation today we
[45:47] present people with the prospect of
[45:51] affordable alternatives for their free
[45:54] life choices
[45:55] in doing so we simultaneously secure the
[46:00] Democratic majorities support for
[46:02] climate protection measures
[46:05] what is needed then is to put the
[46:08] adaption in a long-term perspective
[46:11] to achieve the adaptation and this is a
[46:14] second liberal position we must mobilize
[46:17] knowledge this would be the place to
[46:20] quote Hayek
[46:21] the competition of idea sets exist in
[46:24] the market economy is the most effective
[46:26] instrument for producing Superior and
[46:29] efficient Solutions as you know if the
[46:32] emission of CO2 becomes a scarce
[46:35] commodity
[46:36] through issuing certificates its price
[46:39] will be increasing there is thus a
[46:42] direct incentive to make economic
[46:44] decisions and find technological
[46:46] solutions to be used CSI emissions and
[46:50] ultimately avoid them altogether this
[46:54] means policy makers do not need to get
[46:57] involved in the choice of Technology
[47:00] but can restrict themselves to defining
[47:03] targets
[47:04] the European Union has embarked on this
[47:06] past we see trading of such emission
[47:09] rights now all it would not to do is
[47:14] trust
[47:15] the instrument already chosen which is
[47:19] still only partially the case
[47:23] ladies and gentlemen I have attempted to
[47:26] describe the Contours of liberalism in
[47:30] keeping with the times
[47:32] it is a frame of thinking that has a
[47:35] future if it takes the arguments of its
[47:39] opponents seriously
[47:41] but without giving in to them at the
[47:43] same time
[47:45] in the end however the core remains
[47:47] namely the commitment to the dignity and
[47:50] freedom of the individual
[47:52] I hope I have at least succeeded in
[47:55] making it clear that this starting point
[47:58] of individualist liberalism is
[48:01] nevertheless not I
[48:04] but you
[48:07] the ethical quality lies in the fact
[48:10] that we Grant others the same rights
[48:14] that we Grant ourselves
[48:16] when asked
[48:18] when asked what is at issue the liberal
[48:22] will answer you
[48:24] you're right to be happy in the here and
[48:28] now your opportunity to take your life
[48:32] into your own hands this is the way
[48:35] thank you very much
[48:38] [Applause]
[48:47] thank you
[48:49] very much
[48:51] thank you very much
[48:51] [Applause]
[49:00] here
[49:04] and I would like to cover the microphone
[49:08] oh I can come to you
[49:10] yeah
[49:18] and of course as I know here are some
[49:20] senior scientists and economists of
[49:24] course you may ask questions about
[49:26] International financial institutions and
[49:28] policies
[49:44] okay
[49:46] yeah
[49:50] okay okay
[49:56] I don't know if it's on
[50:03] use this all right so my question is
[50:06] given the high inflation and cost
[50:09] associated with supporting Ukraine and
[50:13] investing in weapons for them defeating
[50:15] Russia in the end should the urgency of
[50:18] investments into renewable energy in the
[50:20] European Union change should we give
[50:23] more investments into combating
[50:26] inflation and costs associated with
[50:28] supporting Ukraine or should the
[50:31] Investments and the goals that the EU
[50:34] has in terms of renewable energy stayed
[50:36] the same thank you
[50:46] because this is even better so thank you
[50:49] very much for for your questions the
[50:51] ambition to mitigate climate change
[50:54] within the European Union must not be
[50:57] reduced for me a climate neutral economy
[51:01] could be
[51:03] an an economic advantage
[51:06] if we develop
[51:08] the Innovative Technologies
[51:11] for climate neutrality
[51:15] it's
[51:16] does not only reduce the level of
[51:20] emission within the European Union
[51:22] would be interesting for other regions
[51:25] of the world as well so we have to
[51:28] organize growth through green and
[51:31] digital transition
[51:35] second remark
[51:37] at the moment the priority is fighting
[51:42] inflation we need price stability
[51:45] there is a connection as you know
[51:47] between price stability and financial
[51:49] stability so this is is a key for policy
[51:53] makers
[51:54] um we we mustn't
[51:57] intervene monetary policies of the
[52:00] central banks by by spending public
[52:04] sector money by making further debt on
[52:09] an already high level
[52:12] so
[52:13] we have to cut costs and we have to
[52:17] return to a path of deficit reduction
[52:22] and reduction of debt to GDP ratio
[52:28] what is not too easy
[52:31] I can tell you finance ministers are the
[52:34] the loneliest members of the cabinets
[52:37] and
[52:40] um I once made a joke that if Finance
[52:44] ministers come together it's a partly
[52:47] therapy and
[52:50] um
[52:50] because our colleagues in cabinet well
[52:54] they haven't experienced yet
[52:57] um an era of reducing a public sector
[53:01] expenditures
[53:04] um most of them came into office
[53:07] just before the pandemic in a economic
[53:11] situation of historical low interest
[53:15] rates
[53:18] um for example my predecessor spent 4
[53:22] billion euros on servicing past that
[53:27] I have now to service that of the past
[53:30] with 40 billion euros a year and
[53:36] this changed over only two years
[53:41] so they have never experienced something
[53:43] like this and during the pandemic okay
[53:46] so anything goes no problem
[53:50] and third remark we have to to stay
[53:55] shorter to shoulder to to occur in in
[53:57] this crucial moment
[53:59] um I'm convinced as I said they do not
[54:03] only defend themselves they defend the
[54:07] international rule-based order the idea
[54:09] of Liberty
[54:12] us as well and so we we mustn't allow
[54:18] Putin to to win this war
[54:22] um we managed to bring the funds
[54:25] international monetary fund and other
[54:27] International financial institutions
[54:31] um to help Ukraine with a certain
[54:34] financial instruments and this is why
[54:38] I'm convinced that uku in
[54:41] um will be doable and they will be
[54:45] capable of winning this horrible War
[54:50] okay
[54:52] um
[54:53] I make just Choice okay now you
[54:57] yeah okay we have to be diverse one with
[55:00] time and one without time
[55:03] male female
[55:06] um
[55:09] thank you very much Minister I wish I
[55:11] were a student but thanks for giving me
[55:13] the mic my name is Federico fabrini I'm
[55:16] a visiting Professor here at Princeton
[55:17] and a professor of view law in Dublin so
[55:20] I wanted to ask you a question you've
[55:22] covered lots of ground in your
[55:23] presentation but you've spoken about
[55:25] Urdu liberalism and that connects
[55:27] obviously very much with the
[55:29] architecture of economic governance of
[55:31] Europe and the Euro and so the question
[55:34] I wanted to ask you is of course
[55:36] economic and monitor Union in Europe has
[55:39] changed profoundly in the last two three
[55:41] years in response to the pandemic with
[55:43] the creation of Next Generation EU which
[55:45] have arguably changed the paradigm would
[55:48] you be in favor of returning to a street
[55:50] or to Liberal idea of emu or you think
[55:54] the changes are positive and in this
[55:55] regard what do you think of the proposal
[55:58] by President Wonder Lion of European
[56:00] sovereignty fund what do you make of it
[56:03] in light also what you just spoke about
[56:05] the green transition and so on thank you
[56:08] well um I have to briefly explain Next
[56:12] Generation EU is a pan-european program
[56:15] to invest in
[56:20] um green sector Technologies and to
[56:23] Foster the transition it's about 800
[56:27] billion euros in this decade so you see
[56:32] compared to the inflation reduction act
[56:34] Europe
[56:36] has not forgotten how to spend money and
[56:43] to to organize subsidies for for our our
[56:49] companies
[56:50] [Music]
[56:51] this next Generation EU program
[56:55] um is in in my eyes once in a lifetime
[57:01] instrument it's the exception from the
[57:05] rule
[57:07] um during the pandemic now the money is
[57:11] no longer used
[57:13] in connection to the recovery after the
[57:17] pandemic it's used completely
[57:20] differently but this was the origin of
[57:23] this idea and it's financed with EU
[57:27] bonds
[57:29] and there had been a strong interest
[57:31] to issue common European bonds
[57:35] because they were cheaper than seven
[57:38] bonds of member states of the European
[57:40] Union this situation is completely
[57:42] different
[57:43] it's completely different now the EU
[57:45] bonds are
[57:47] much more expensive for many member
[57:50] states than their own server and that's
[57:53] their own bonds
[57:55] and I have to be be very careful as
[58:00] Finance ministers
[58:02] so that I I quote media voices in Media
[58:07] which are concerned if it will be
[58:12] possible to issue all necessary bonds to
[58:16] finance Next Generation EU so this is
[58:20] not an idea we should follow in the
[58:22] foreseeable future as as I said before
[58:26] accountability and responsibility are
[58:30] necessary for stability
[58:33] um if everyone thinks
[58:36] he or she can live on behalf of others
[58:40] this won't be a stable situation and so
[58:44] every member state of the European Union
[58:46] should stay responsible for their public
[58:51] budget
[58:52] and furthermore I'm convinced every
[58:55] member state of the European Union
[58:58] should be responsible for its Economic
[59:02] Development and
[59:04] situation of the private financial
[59:08] sector
[59:10] this stabilizes stability by
[59:13] accountability
[59:20] ah so yeah it's the same Southern front
[59:22] is is the same its next Innovation EU
[59:26] 2.0
[59:30] um we don't need it
[59:31] is by the way very funny
[59:35] um often I'm confronted by colleagues
[59:38] well a question we need a European 70
[59:41] fund and we need this fund on a newer
[59:45] Zone budget and and then I asked okay
[59:48] okay
[59:50] um for what
[59:52] for what for what do you need these new
[59:54] instruments
[59:56] and then
[59:59] what do you mean for what for what do
[01:00:01] you need it or what do you need further
[01:00:05] European money
[01:00:07] and you know what
[01:00:09] no answer
[01:00:11] very often no answer
[01:00:14] the Next Generation EU funds are not yet
[01:00:18] completely dispersed
[01:00:20] and some of the member states are not
[01:00:23] able to use the money because the
[01:00:26] absorbs your capacity of their economies
[01:00:29] does not allow to
[01:00:31] this because of Lex and labor markets or
[01:00:35] um too long
[01:00:37] um permitting procedures and so on so
[01:00:40] the absorption capacity is lower than
[01:00:44] the accessible European money and then
[01:00:50] for other instruments why for me it
[01:00:53] appears to it appears as if as if there
[01:00:56] is a solution
[01:01:00] looking for a problem
[01:01:02] and I would prefer to do it the other
[01:01:05] way around Define the problem
[01:01:08] and then ask for the solution which
[01:01:12] um by the way could could include a
[01:01:16] private sector funding
[01:01:19] okay
[01:01:21] um next question
[01:01:25] yes we are diverse sir
[01:01:29] thank you very much for your
[01:01:30] introduction uh are you in favor of the
[01:01:33] way in which Emmanuel macron describes
[01:01:37] the European strategic autonomy
[01:01:44] um I'm I'm
[01:01:48] very much in favor of the John Franco
[01:01:52] partnership
[01:01:54] we developed
[01:01:56] a lot of common initiatives for example
[01:02:02] for
[01:02:04] further efforts to towards a capital
[01:02:08] markets Union for example
[01:02:11] but the idea of strategic autonomy of
[01:02:17] the European Union
[01:02:19] foreign
[01:02:22] I feel it's naive
[01:02:25] um
[01:02:27] look at the the current situation on on
[01:02:31] European soil
[01:02:33] we have
[01:02:34] um a deadly War
[01:02:37] you have a deadly war with Russia
[01:02:40] and Russia is a nuclear superpower
[01:02:44] and
[01:02:45] um
[01:02:46] security
[01:02:48] on European soil
[01:02:50] without the
[01:02:52] Strategic nuclear potential of the
[01:02:55] United States at least
[01:02:57] is Unthinkable for me it's not a
[01:03:02] realistic perspective we need to be
[01:03:04] stronger
[01:03:06] we need to be less dependent on certain
[01:03:12] Supply chains we
[01:03:16] have to be self-confident
[01:03:20] um towards the U.S Administration and
[01:03:23] the Congress
[01:03:24] but I've no doubt it's a very very very
[01:03:28] close corporation to the United States
[01:03:31] for me
[01:03:33] United States
[01:03:34] and European Union are Partners in
[01:03:38] values
[01:03:39] and should be as well Partners in trade
[01:03:45] and the idea of strategic
[01:03:48] um astronomy or sovereignty
[01:03:52] It is Well a quote of of Charles de
[01:03:57] Gaulle in my eyes but even Charles de
[01:04:01] goal those days denied to secure a whole
[01:04:05] Europe we see a nuclear potential of
[01:04:09] France so don't misunderstand me it's
[01:04:13] only the ultimate ratio to have
[01:04:16] strategic nuclear Arsenal but it is the
[01:04:20] the last Reserve in the case of an
[01:04:24] ongoing Global crisis and so I think we
[01:04:26] should stay together with United NATO
[01:04:28] and other International institutions
[01:04:31] okay
[01:04:34] thank you
[01:04:36] so I'm looking for further
[01:04:40] I'm not not completely
[01:04:43] equally Yeah well yeah
[01:04:47] yes I see some males okay
[01:04:55] I come back to you
[01:05:07] thank you
[01:05:09] um my question is more General and I
[01:05:11] don't know that it is even possible to
[01:05:13] answer it
[01:05:14] but you mentioned how it's important to
[01:05:17] have dialogue when one seriously listens
[01:05:20] to the other side without giving up
[01:05:22] one's own values
[01:05:24] and so I get that and you also mentioned
[01:05:29] to the first person with this question
[01:05:31] oh having um
[01:05:33] climate neutrality is actually an
[01:05:36] economic advantage
[01:05:38] so it seems like especially intelligent
[01:05:40] democracies
[01:05:42] would also see that and aim for that and
[01:05:46] Race For That
[01:05:48] what is it about this General situation
[01:05:50] that drives entire groups of intelligent
[01:05:54] politicians to go exactly the opposite
[01:05:57] direction
[01:05:59] in other words I want to understand
[01:06:00] those other side
[01:06:05] I mean to hold on and maybe even drive
[01:06:08] up
[01:06:10] um
[01:06:11] Farm usage or be against what you called
[01:06:15] um Freedom Energies
[01:06:17] that it's almost like sticking the head
[01:06:19] in the sand but that's not a flattering
[01:06:21] way of looking at it I'm sure there's
[01:06:23] some other driving forces behind it
[01:06:26] and I'm just picking a brain on it
[01:06:31] thank you for for this
[01:06:35] really difficult question what are the
[01:06:39] easy motives I think Motif is the motif
[01:06:42] is the motivation is clear
[01:06:45] um
[01:06:46] those
[01:06:48] politicians want to be re-elected
[01:06:54] by using
[01:06:56] short-term arguments
[01:06:59] and
[01:07:01] um
[01:07:03] I fear
[01:07:04] there are even politicians
[01:07:08] who know what you see twos
[01:07:11] but telling their municipalities and the
[01:07:15] public the exact opposite
[01:07:19] to get elected or re-elected we have a
[01:07:23] word for this it's populism
[01:07:27] um and what is the what is the the
[01:07:31] um
[01:07:32] reaction to this
[01:07:34] um I think debate and discussion
[01:07:39] first measure debate discussion
[01:07:43] a second reaction is we have to take
[01:07:48] seriously
[01:07:49] the the fierce aspirations
[01:07:53] [Music]
[01:07:55] the
[01:07:57] Health lack of respect
[01:07:59] of certain of certain
[01:08:03] electorates
[01:08:08] um
[01:08:12] I'm not sure if I'm allowed to to say
[01:08:14] this here as as a guest in the United
[01:08:18] States but
[01:08:19] um
[01:08:20] it appears for me as an observer from
[01:08:24] the outside
[01:08:25] that the U.S politics for some time
[01:08:30] um was focused on on the the very
[01:08:34] liberal values
[01:08:36] um of Wall Street and see very very
[01:08:38] liberal values of Hollywood
[01:08:41] and the land between
[01:08:44] Hollywood and Wall Street they are
[01:08:48] living and voting people
[01:08:50] and to forget them
[01:08:54] could be
[01:08:55] a terrible political mistake and they
[01:08:59] have their their desires their needs
[01:09:02] their interests they have to be
[01:09:05] um
[01:09:07] one over for certain policies and so you
[01:09:10] have to confront them with this fact and
[01:09:12] you have to to offer Alternatives you
[01:09:15] you must tell people you will lose your
[01:09:18] job
[01:09:19] um due to Green transition
[01:09:22] you have to offer a new job and a way of
[01:09:26] life these people can afford and want to
[01:09:31] win so my my observersion
[01:09:36] so I think
[01:09:37] um
[01:09:38] we have to get
[01:09:40] yeah
[01:09:41] slowly
[01:09:44] to the Finishing Line
[01:09:49] thank you or maybe this would be a good
[01:09:51] question to get us closer to the finish
[01:09:53] line
[01:09:54] uh as a big group of students that are
[01:09:57] here you spoke about the U.S European
[01:10:00] and the U.S German relationship and that
[01:10:02] set of shared values and so I'm curious
[01:10:05] if you gave us one piece of advice as
[01:10:09] students who may go into the policy
[01:10:10] world may go into the business world
[01:10:12] what would it be to make sure that we
[01:10:15] maintain our relationship as citizens of
[01:10:19] the US with Europe and with Germany
[01:10:22] specifically
[01:10:28] yeah
[01:10:31] so um we need well-educated people with
[01:10:37] a Global Perspective in politics
[01:10:41] um but
[01:10:42] um
[01:10:43] my advice is not to start a career in
[01:10:48] politics
[01:10:50] hmm it is to start a career in science
[01:10:55] or in the business world and with that
[01:10:58] experience you are much more personally
[01:11:01] independent to to get for example uh in
[01:11:05] into politics and you can enrich
[01:11:07] political debates with
[01:11:10] additional perspectives
[01:11:13] which are not only focused on on gaining
[01:11:16] a voter success but changing policies
[01:11:23] so thank you all very much
[01:11:27] good evening
[01:11:34] have a very good evening thank you