In his opening speech, Kai Schellhorn, Board of Directors of the BMW Foundation Herbert Quandt, made it clear that the consequences of an unchecked flow of migration and Pan-European uniform social standards for the European economy are still insufficiently engrained in the public consciousness. Especially in view of the present success story of the European unification process, the Chairman of the Foundation called for a critical discussion regarding its social and economic implications.

In his introductory speech, Hans-Werner Sinn, President of the Ifo Institute and CESifo, found clear words of criticism concerning the idea of a European Social Union: "If Europe establishes a social union of the German kind with harmonised replacement incomes throughout the continent, there will betwenty regions like East Germany in Europe. No one can afford that". In order to put a stop to the impending erosion of the welfare states in Europe, Sinn proposed applying "selectively delayed socialintegration" with a transition period before income support or housing subsidies could be claimed. As a fundamental supporter of the migration of the gainfully employed, who will in turn create additional growth in Europe, Sinn proposed that the country of origin be responsible for the social security of the non-employed. According to the president of the Munich research institute, Europe cannot simultaneously pursue the objectives stipulated in the EU Constitution of free migration, social inclusion and maintaining the welfare state.

In his economic keynote speech, the Bavarian State Minister for Economic Affairs, Infrastructure, Transport and Technology, Otto Wiesheu, initially emphasised the opportunities of the East Expansion of the Union, the "salutary pressure for comprehensive reforms" in the old member countries. In doing so, he did not conceal the difficulties that would arise from a socio-political motivated immigration, and found the "country of origin principle" outlined by Professor Sinn to be a practical alternative. At the same time, however, the Bavarian State Minister for Economic Affairs was in doubt whether such a "paradigm shift" could be implemented at European level.

The Minister for Social Affairs and Employment for the Netherlands, Aart Jan de Geus, spoke out vehemently against fears of a too-high migration pressure on the old EU states. Actually, only 0.2 percent of the EU population migrates to another member state, and this is because it is not easy to find work anywhere. This is why the Dutch Christian Democrat spoke out in favour of reforming the EU labour markets as opposed to erecting barriers.

This was also endorsed by the Former Prime Minister of the Republic of Latvia and Member of the European Parliament, Guntars Krasts, as well as the Slovakian Deputy Prime Minister and Minister of Finance, Ivan Mikloš. Both spoke out against a restriction of the freedom of movementfor workers or against the harmonisation of the tax system: from their point of view, the East Expansion is the right time for substantial reforms, not only in the new member states, but also in the EU of the Fifteen. According to the appeal of both top-ranking politicians from East Europe, the EU single market must allow the variety of countries and the competition of individual reforms freedom to develop.

Jürgen Strube, Chairman of the Supervisory Board of the BASF AG, classed the progressive loss of skilled workers in the EU as a much greater problem than the influx of cheaper labour from theEast: in Germany alone, a million positions cannot be filled currently — in spiteof high unemployment and inten years time this number will triple — on accountof the downward demographic development. Strube concluded that without controlled migration also from non-member countries and more flexible labour markets, it would not be possible to overcome the "structural growth brake" determined by a lack of top personnel.

André Leysen, Honorary Chairman of the Board of Directors of Agfa-Gaevert, expressed a similar opinion: as he sees it, migration from the East would only be problematic for the old EU countries — if at all — in a first transition phase, yet in the future there would be an opportunity to compensate for the lack of workers in the West European labour markets.

The majority of the panel participants considered the EU-wide introduction of minimum standards, whether salaries, taxes or social security contributions, to be an unsuitable means of confronting the migration problem. Minister-President of theFree State of Saxony, Georg Milbradt, convincingly referred to the negative experiencesof German unification and concluded by stressing his objection to "outdatedstructures" on the new EU countries.

Extensive coverage by the major international press and news stations illustrated the high level of interest raised by the question as to whether social union should follow economic and political union. This year, the Munich Economic Summit was able to further cement its leading position as an international specialist forum for discussing central issues regarding the economic present and future, thus smoothly picking up the thread of the success of past years.