"Once we join hands, we shall be able together to help the entire Europe achieve lasting stability, promote a united European economic environment, and work for higher living standards. Reform and partnership achievements have given us a historic chance, and we must use it.
"The European Union is even now Russia's principal foreign trade partner, and accounts for more than 60 per cent of direct investments in the Russian economy.
"Germany, too, is interested in spreading partnership with Russia to ever more fields.
"Raw material exports have to this day made a vast part of the Russian economy. Russia outran Saudi Arabia last year to make the world's biggest petroleum exporter.
"However, a strong raw material sector does not necessarily benefit a national economy. As the Russian President and I were holding conference, we both said our two countries were to step up partnership not in the raw material markets alone.
"The market situation, with its ups and downs, strongly affects raw material markets to bring dire fruit-so our partnership is to diversify," stressed Herr Schroeder.
On the one hand, his country is determined to bolster up its energy alliance with Russia through raw material export/import. "That is why we are discussing strategic joint ventures. We came to an essential understanding in that field today. As I met with President Putin, we both greeted related contracts between Russian and German entrepreneurs.
"On the other hand, we want to be partners in many fields-for instance, the aerospace effort, automotive and pharmaceutical industries, bio- and other high technologies, and financial services.
"Strategic partnership is the best way to make Russian industry more competitive for each of the two countries to gain."
Upcoming Russian membership of the World Trade Organisation will be a decisive prerequisite of Russian economic progress, emphasised the Chancellor.
"Once it joins that international organisation, Russia will become an equal partner in the world economy. WTO membership will improve the Russian economy, enhance private property protection, make competition transparent, and bring forth effective legal protection.
"Once it enters the WTO, Russia will have a unique chance, and offer a similar chance to its partners.
"European Union negotiations with Russia on that matter finished, May last. Germany was dynamically promoting the negotiators' decision in EU structures.
"Now, Russia needs to get to a bilateral negotiation table with its other partners on the WTO, and the sooner the better," stressed Gerhard Schroeder.
Russia and the European Union agreed to work for the establishment of four united environments-domestic and international security, economic, cultural and educational.
"There is no way to delineate those environments. They are closely intertwined. It is hard to tell home security from international as the terrorist danger is looming, countries are falling apart, and transnational crime is rampant. It is just as impossible to make a partition between education and the economy in this globalisation era." Russia and the European Union need clear-cut strategies for each of the four united environments, the Chancellor emphatically added.
He highlighted tangible fruit of Russia's economic reforms: "Vladimir Putin's resolute reform policies have been major success. It is clearly discernible from the outside.
"Even though Russia went through a tremendous financial crisis in 1998, it has developed into a financially independent country-thanks not only to high petroleum prices but to far-reaching reforms in the many economic fields, fiscal and banking being no exception. The reforms helpedRussia to build up finance, and enhanced overseas investors' confidence. Economic success encourages public trust in the market ways."
Gerhard Schroeder called the audience's attention to President Putin's words: "We must do what is necessary but never forger the pain reforms are causing the public."
"Modernisation is a formidable objective. We cannot meet it unless the market economy is socially oriented," stressed the Chancellor. Reforms are to the people's benefit, and that point must be brought home to each and every. Reform achievements are not visible at once, and we have to patiently bear the reform burden for the sake of final success, he said. "We are not to squander all available resources in a carefree way but preserve them for the generations to come."
Herr Schroeder left the Finance Academy, holding flowers. He had received three bunches while there. A first came before his address. The visitor immediately gave the flowers to Alla Gryaznova, Academy Rector, who greeted him in the entranceway. She gave him the bouquet back as he finished his speech. "This is a gentleman's bouquet-it was arranged that way," said the Rector.
The Chancellor quickly got rid of the gift in a gallant way-he gave it a girl student who greeted him with a German song. The gathering laughed.
"I'll never let you out of this room without flowers," exclaimed Alla Gryaznova as she gave him another bunch. That time, the audience broke into applause.
The visitor's close schedule made the Rector cut an undergraduate concert in the Chancellor's honour to three minutes. Several poems were recited, and two songs sung-the famous "Die Lorelei" and a merry yodel.
