mr. tietmeyer discusses prospects and challenges for european integration in the run - up to emu speech by the president of the deutsche bundesbank, prof. hans tietmeyer, on the occasion of the awarding of the special prize 1997 of the german - british forum in london on 15 / 12 / 97 ( slightly abridged ).... as christmas is very close, i would like to quote david marsh. he once described all the wishes and hopes germans are pinning on europe, including the hope that the future european currency will be as stable as the d - mark. and his comment on the multitude of german hopes regarding europe was : “ that is just as if santa claus came every day! ” well, it seems to me - at least as far as the stability of the euro is concerned - that we should not foist the responsibility onto santa claus. though i do think very highly of him. after all, he is somebody who is independent of political influence, and stands for long - termism and consistency. i have read that in this country there is the custom of the christmas pudding. before it is cooked, a coin is hidden in the mixture. finding it in one ’ s helping of the pudding is regarded as a token of good fortune and of being singled out. personally, i cherish the hope that some day the lucky one will bite on a euro - but on a hard euro! anyhow, problems with the teeth are easier to solve than the problems which a soft euro would pose. ii ladies and gentlemen! as you know, i am an economist. anybody who has studied economics properly has absorbed a good deal of anglo - saxon thinking. first, there are the great ideas and perceptions of the scottish and english economists : - the role of the market, - the indispensable function of competition, - the advantages of free trade between nations, - and in particular : the key position of the individual, and his responsibility for his own economic success. a distinct difference is often noted between anglo - saxon economics and german economics. anglo - saxon economics is said to be more technically orientated, sometimes in a manner reminiscent of engineering science. german economics - at least that since the second world war - is often associated with that neo - liberal school of thought which we call “ ordnungspolitik ”. that is a word which is the despair of any translator from german into another language. this is because ( perhaps contrary

would agree that no monetary policy strategy should be set in stone. instead, it should adapt to changing circumstances, and circumstances have certainly changed over the past 18 years. in this sense, our current review should translate this strategy to the challenges of our time. 3 personal relationship otmar, with your firm commitment to monetary stability and central bank independence, based on your strong academic reasoning, you should serve as a role model for every central banker. and you have personally given me guidance and advice on numerous occasions as well. 1 / 2 bis central bankers'speeches even in my days as a student, i became well acquainted with your perspective by studying your textbooks. i preferred your books to others because they offered better explanations of the intricate interrelations of monetary policy and also introduced the reader to the challenges and issues of practical monetary policymaking. many years later, i had the privilege of working together with you personally. in the aftermath of the global financial crisis, you chaired the working group neue finanzmarktarchitektur. this working group was convened by chancellor angela merkel and was better known as the issingkommission. its task was to prepare the german agenda for dealing with the financial crisis for a packed series of g20 summits over the subsequent years. it was a very intensive and productive time that i remember vividly. today, i enjoy being able to exchange ideas about monetary policy and central banking with you – sometimes as a sparring partner. when we converse over the phone, i feel that we see many things from a very similar perspective, but what makes these exchanges so valuable and engaging is the sharpness of your intellect. and for this i offer my sincerest thanks. 4 conclusion although you already celebrated your 85th birthday a few weeks ago, i would nevertheless like to take this opportunity to wish you many happy returns as well as continued good health and vitality. your word carries weight beyond our country ’ s borders, even to this day. i hope that we will continue to hear your clear, credible, and authoritative voice in policy debate for many years to come. thank you and all the best! 2 / 2 bis central bankers'speeches