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Oskar Lafontaine
Radical reforms: a personality to watch
by John R. Schroeder
In recent months a face has risen to new prominence on the European political scene-Germany's new federal minister of finance, Oskar Lafontaine. Only a few months ago the average man in Europe had probably never heard of him. Now his face is well known on the continent and in Britain.
The British press has had a veritable field day, lambasting his radical tax pronouncements. But the coverage has apparently backfired. As Roger Boyes, The Times correspondent in Germany, reported: "Britain's demonisation of Oscar Lafontaine has done him no harm. It has boosted his standing in France, extracted a declaration of support from Gerhard Schröder, the [German] Chancellor, drawn attention to the British sense of Euro-exclusion and distracted the gaze from some of the minister's stranger economic announcements" (December 7, 1998).
Herr Lafontaine's ideas on tax harmonization have frightened the British the most, simply because overall the average citizen in the United Kingdom has one of the lowest tax bills in Europe. Harmonization means one thing to most Britons: a big increase in their annual taxes. But Lafontaine is interested in far more than just radical tax reform.
Roger Boyes summed up some of his recent activities in another Times report: "Within days of taking over power the finance minister declared war on the Bundesbank, shot across the bow of the European Central Bank, turned economic orthodoxies on their head, irritated [the German] cabinet...and boxed Gerhard Schröder into a corner.
"Within weeks he turned his fixed gaze on Europe. Plans for tax harmonisation, extended majority voting [in the EU], tighter political integration...and more, [are] to be in place by the end of Germany's [EU] presidency next summer" (December 3, 1998).
The British media has clearly taken Oskar Lafontaine very seriously. Tony Paterson filed a report to The European directly from Berlin: "The only clear message is that Lafontaine's rise appears unstoppable. In the few weeks since he was appointed, he has managed to eclipse [Chancellor] Schröder by accumulating more power than any other German minister since the second world war. His finance ministry has taken over Germany's Europe policy.... It is now the dominant political force behind the nation's, if not Europe's economy.
"With Germany taking over the European Union Presidency on 1 January, Lafontaine is poised to have an influence on Europe that two years ago would have been beyond his wildest dreams. He is said to harbour aspirations of becoming the next President of the European Commission" (December 14-20, 1998).
The sudden emergence of Oskar Lafontaine must be understood in the light of its concurrence with three important factors on the German and European scene:
A single currency among most nations in the European Union commencing on the 1st of January, 1999 (Britain being one notable exception). One long-time observer described this momentous event as a new era for Europe. He further stated: "On that date, 11 nations of the 15-member European Union will enter into a currency union that will, by mid-2002 at the latest, consign their national currencies to history."
The German assumption on the 1st of January of the rotating six month European Presidency of the E.U.
The movement of the German capital city from Bonn to Berlin. The presidency of the federal republic has already moved office, and many more roles and functions are slated to follow in 1999.
These three factors may figure heavily in Lafontaine's future plans. He is said to be "the only man [politician] in Europe to believe in anything." He and his wife Christa have articulated their basic beliefs in a book titled Don't Be Afraid of Globalization, "which sets out the [socialist] programme that is now steadily being put into place" (The Times, December 3, 1998).
Oskar Lafontaine certainly appears to be one man to watch in 1999. However, it is still early days yet and this should cause us to be somewhat cautious in our judgments as one never knows how personal political fortunes will develop in the long run. WNP
OSKAR LAFONTAINE IN BRIEF
1943 Born on September 16 in Saarlouis
1962-1969 Studied physics at Bonn and Saarbrücken, gaining a diploma
1966 Joined the Social Democratic Party of Germany (SPD)
1974-1976 Deputy Mayor of Saarbrücken
Since 1979 Member of the Federal Executive of the SPD
1987-1995 Deputy Federal Chairman of the SPD
Since 1995 Federal Chairman of the SPD
Since Oct. 1998 Federal Minister of Finance
Source: Embassy of the Federal Republic of Germany (in London).