Michael Bahr:

Thank you for giving me the opportunity to speak to you today. I see in front of me future Palestinian diplomats and leaders. Let me congratulate you that you were chosen for this seminar. It will bring you closer to an understanding of the difficult problems and solutions awaiting you.

You may have asked yourselves: why do I need to know about the European Union? You will learn about different institutions: the European Commission, the Council of Ministers, the Court of Auditors, the various treaties. You will learn about power sharing. The union is between states, economies and people. Such power sharing makes matters more difficult. You will learn why it is so important to have a union. You will also come to understand the frustration of governments. You will know more than the average Palestinian about this important international actor.

What is the interest of Palestine in Europe? Firstly, you are our neighbours. Geographically and historically, we have a close relationship. This has to be put on a new basis, a basis of independence and cooperation. I think that the conferences, such as Amman and Casablanca, are very important steps. Europe is the biggest trading bloc in the world with 370 million consumers in Europe. It is a big potential market for the Palestinians.

As you know, history in Europe demonstrates trends towards unification: Charlemagne, Charles V, Napoleon, and Hitler. After World War II, some, for example Churchill and Chandler, foresaw a planned unification of Europe. After two bloody wars, Europeans wanted to stop fighting each other, to try to understand each other and each others' culture.

My father, a captain in World War II, told me not to trust the French. When I was 16 on a trip to France with him, we stood in front of the memorial in Veldar. I was curious and was asking questions. Next to us, a French boy the same age as me talked to us in German. He started translating things to his father, who had also fought in the war. It was his father's first trip back. Both men had wanted to come back to the place of war. Neither wanted war to happen again.

Where did we start? In 1951-2, the European Coal and Steel Community was formed. After this, the European Economic Community and the Atomic Commission (Euratom) were formed. Businessmen and politicians started the cultural exchange. They began to learn to understand the "other's" cultural and language. They began to ask: "Why is he the other? What is he thinking?" This is crucial for peace. We found that if you have business, you don't want war. A larger community becomes formed and freedom of cultural and cultural expression appears. A union doesn't mean we are the same - that we think the same and act the same and want the same things. A union represents a variety of interests and expressions. This is one of the bases of the European Community.

What did we create? In Europe, we created an ability to transfer funds and knowledge, an open market, freedom of movement of goods, people, and information. Could this not be a model for your region? Skiing in Lebanon, shopping in Tel Aviv, holidays in Aqaba - this should be the future for your children.

Business is the first step. The political process is much slower and painful. Believing in a goal of living together in peace. The main message of the EU is peace.

Discussion

Participant: You explained why Palestine should be interested in Europe, but why is the European Union interested in this region?

Answer: The world has become one big unit, a vast community. As a consequence, the interest in your neighbour increases. The whole region is important for you because of historic events. In Europe at the same time, people tend to have the impression that Islamic culture is very strange. There might be tensions if the area was to switch over to some fundamentalist regime. The Middle East is the key to the petrol business and is a market of 150 million people. This could be a very powerful region if you would get along with each other. We also have a historic interest, connected with religion, colonialism, the World War II, the Holocaust and so on.

Participant: Can you compare the Middle East Peace Conference in 1991 with Camp David?

EU: Camp David was the first step, it was an unhappy in between stage. However, recent events would have been more favorable for the Palestinians if you had joined Camp David.

Participant: Do you think your interest in the Middle East and Palestine stems from a need to make compensation for what your Europe did to us during colonialism?

EU: I don't think so. History is not any part of culture anymore .

Participant: Do you think that politics and states have any conscience?

EU: I don't think that this plays any role fifty years after the fact. On a daily basis, it plays no role. The focus now is more on business, action, commerce. Dr. Abdul Hadi: I always compare country to country, the Palestinians to the Irish - revolutionary ideas, their relationship with the British, 1961 and the same revolutions. The Germans have never been occupiers in the region. Now you are coming to the region. Are we affecting you? EU: Germans are serious, objectifying.

Participant: Does the large number of German tourists coming to this country every year have anything to do with this?

EU: Many Germans have visited Israel over the last twenty years because of recent history. Many come to change their minds, many have a passion for Israel because of recent history, not only the holocaust, but also events such as the Munich Olympics in 1972. The issue of Palestinian rights was not important in Germany until recently. Now Germans are beginning to see the necessity of Palestinian rights and are changing their attitudes.

Participant: Tell us more about Union relations with other economic powers? How do you see future operation and other economic powers in our region?

EU: There is competition between the major economic powers in the region. Interest in the United States is very strong. I don't know if United States can still call themselves honest brokers. Europe is more dependent on international trade. Nearly 25% of the GDP of Germany comes from external trade. The United States is important competition, but Europe has good products to offer. Trade and commerce are mainly through other international trade councils. However, open trade is one of the most important things to improve. America has a pure capitalist economy and Europe tries to incorporate some social elements into normal economic enterprises. The welfare of people is of interest for development of state. Pure capitalism will direct you in the wrong direction.

Participant: For how long will the EU remain the biggest donor of aid to the Palestinians?

EU: The EU has allocated ECU 52 million in aid to help the Palestinians establish a self sustainable state. When this will end depends on developments in Palestine. The EU wants the Palestinians to establish a normal tax and financial system, and coherent development plans. We are developing a project to help the Palestinians run a state with financial independence. There will be no absolute date for cutting off aid. Palestine currently enjoys the highest per capita amount of aid from the EU. Compare the per capita rate with India, for example.

Participant: According to statistics, of the 52 million ECUs allocated, more is actually spent in Europe and only 30% is spent here.

EU: Of the total budget of ECU 52 million, 50% goes on running costs, such as universities and the police force and teacher salaries. Equipment has to be bought either in Europe or in Palestine, but you do not want us to buy the products in Palestine if they are more expensive or Israeli-made. We have to make a tender and we take the cheapest option.

Participant: Why do you think that Palestinians' salaries have not been paid in the last three months?

EU: Why should Palestinian be paid salaries on US levels? You must fulfil your responsibilities. The payment rate by the EU is 60% up till now. We have a special special rule to fight corruption. EU experts are coming to Palestine, but first you must establish ministries. Be assured, we are the fastest payer of all agencies. We just have bad public relations.