Bermuda has a big stake in a good trading partnership between Europe and America, Hamilton Rotary Club was told this week.

The message was driven home by Dr. Erhard Holtermann, Germany's Consul General in New York.

He told Rotarians the Island would profit from "flourishing'' economies on both sides of the Atlantic.

And this was particularly true since Bermuda benefited from German visitors.

"The Germans are world champions of tourism,'' he said.

Dr. Holtermann said Germany's political ideal was a European Union (EU) including as many countries as possible.

Such countries had to accept a certain transfer of "national sovereignty to community institutions as is necessary to cope with the joint challenges of the outgoing century. This EU needs a strong transatlantic partnership with the US''.

Dr. Holtermann's speech concentrated on the role of Germany and the rapidly changing Europe.

He spoke of the evolution of East Germany -- and believed it would become one of the most prosperous parts of Europe.

"The contemporary Europe is a continent in transition, in search of a new face.

"No other part of the world has recently undergone more fundamental changes of historic dimensions than our restless continent, no other continent has troubled the world more in the past, but no other continent has more to offer for the future.

"In the very heart of this vivacious region lies Germany, for 45 years the focal point of the Cold War, now peacefully united again since October 1990, with nine friendly neighbours surrounding it and a population of 80 million.'' Dr. Holtermann said Germany, following unification, was now facing the huge task of harmonising the hearts and minds of its people, of which 17 million were kept separated for 45 years under communist rule.

"The Federal Republic of Germany inherited a completely bankrupt communist state, with a centrally operated economy, not viable for worldwide competition.

"It urgently needed complete reconstruction and a modern infrastructure. This enormous task, to overcome a disastrous legacy without precedence, is well under way.

"Contrary to other former communist countries, the East Germans are in the fortunate position of having their prosperous brothers and sisters in the west to help them in this endeavour.

"About US $90 billion -- five percent of West Germany's gross domestic product -- are transferred annually to East Germany.

"It will probably take about 10 more years to raise East Germany to the economic and social level of the west and a whole generation before we Germans really become one people again.

"We believe that East Germany will become one of the most prosperous parts of Europe.'' Dr. Holtermann said East Germany's economic growth rate already exceeded that of all other European regions.

He warned, however, that the end of the Cold War had made Germany more vulnerable to "outside instabilities''.

"With open borders to the east and southeast we are now much more exposed to political unrest and misery in other countries.

"Germany has become the preferred target for refugees and migrants of all motives and origins.

"We have been literally flooded by a large wave of uncontrolled people from all over the world.'' But regulations had been brought in to stem the tide.

Dr. Holtermann said Germany as a central European power had to redefine its national interests in a world which expected it to shoulder more international responsibilities.

"We have never looked upon German unity as an aim in itself. Against the background of our history, German unity and Europe's integration are for us two sides of the same coin.

"We see no alternative to coping with the new challenges and to banishing forever the evil spirits of the past.

"Only an expanding united Europe where all members irreversibly adhere to the same principles of freedom, democracy and the rule of law, will be able to confront the new threats of destructive nationalism and ethnic tensions in the east and southeast, and to ensure Europe's future stability and well being.'' Dr. Holtermann said Germany's goal was a strong, united Europe able to act jointly, but maintain its diversity.

"We continue to be Germans, Italians and French etc., but at the same time we want to be Europeans.'' Dr. Holtermann highlighted the challenges facing Europe.

"The European Union's primary task it to increase its scope for action in foreign and security policy, as well as in the fields of justice and home affairs.

"Merely to harmonise 15 foreign policies is no longer sufficient. If the EU seeks to make a real contribution towards stabilising its neighbouring regions, and safeguarding its global interests, it requires better procedures to act more quickly and flexibly.'' Dr. Holtermann stressed the states of the former Soviet empire must not be shut out.

"That means the EU must be open towards the east and ready to welcome new members.

"Economic prosperity is the basis of political stability. That again means NATO must also be expanded eastwards.'' Dr. Holtermann said Germany had already done its utmost to boost these eastern regions through money, goods and services.

Dr. Erhard Holtermann