We also create income there that would spur demand for German products. And we integrate central and eastern Europe much more strongly in German economic developments than any other European country can and does.

For mid-sized suppliers in particular, the setting up of an own production outlet in the vicinity of the final product manufacturer became a question of survival: They had to follow their big customers abroad.

Central and eastern Europe -- I'll underline it again -- is a curse and blessing at the same time.

Our estimates show that a German mid-sized business achieves, on an average, 17 percent of its turnover abroad. Against that, the 15 EU nations (before eastward expansion) are estimated to have had an export average of just 12 percent in 2002.

It's true that redistributing income to the needy is politically easier in a growing economy than in a stagnant one.

Tax laws favor capital over labor, giving capital gains a lower rate than ordinary income. The rich get humongous mortgage interest deductions while renters get no deduction at all.