There is no euro crisis: German Ambassador to Ghana says
The German Ambassador to Ghana, His Excellency Eberhard Schanze says there is no euro crisis, in apparent reaction to a global debate over the financial and economic crisis in the eurozone.
Speaking at a reception at his residence in Accra, Wednesday October 5, 2011, to mark the 21st anniversary of German Reunification, Mr. Schanze argued that over the years, together with its partners, Germany has achieved a great deal in Europe.
“Today 500 million Europeans from 27 countries live in the European Union in peace and freedom. The European Union is a unique, successful project, representing a common market with an annual GDP with a size of almost 10 trillion euros,” he said.
Mr. Schanze admitted however that there is a debt crisis in some European countries.
“But there is a debt crisis in some European countries as well as in other important countries in the world. Many states world-wide have lived above their means for more than one generation. Markets have become nervous about this,” he said.
He indicated that in a fast changing world new challenges have come up. Climate change, energy supply, demographic development and economic imbalances are only a few of the major issues we must address, he said.
“I am sure we will overcome the current financial turmoil,” he said, adding, “To make one thing clear: There is no Euro crisis. The Euro is one of world’s leading currencies. More than 25 % of the world’s monetary reserves are held in Euros. The exchange rate of the Euro towards other major currencies is above its purchase value,” he said.
In his view, the only reasonable consequence is to bring public deficit down.
“The illusion that wealth can be bought by financing current expenditure through borrowed money is over. Germany has reacted to this challenge by imposing a constitutional restriction to state borrowing aiming at properly balancing state revenue and expenditure. We are convinced that this is the way to get out of financial uncertainty and to pave the way for confidence in the economic development and thus promoting employment and wealth,” he said.
Touching on the unification, he said, “German unification taught us that the seemingly impossible can happen after all if you have the courage and the willingness to take the right decisions and to pursue them.”
He said Ghana is one of the countries that Germany considers a really good and old friend in Africa.
“The relations between Germans and Ghanaians are of course quite older than the now 54 years of formalized diplomatic relations and fruitful economic cooperation,” he said.
Mr. Schanze said as Ghana has started to be an oil producing nation and achieved the status of middle-income country it is important to make sure that the modes of cooperation between the two countries are up to this historic change.
“We commend the Ghanaian government for its resolve to enter the oil age in the spirit of transparency and good governance,” he said.
By Emmanuel K. Dogbevi