Check against
delivery
Speech by the State Minister for European Affairs
and Regional Relations at the Bavarian State Chancellery, Dr. Beate Merk, MdL, at the conference
"DLD New York" on 6/7 May 2015 in New York City
I.
BAVARIA - MOTOR OF THE DIGITAL
ECONOMY
– Salutation –
"Why the hell isn’t she wearing one of those Bavarian dresses?" Some of you have were surely yourselves asking that question just now. I’m afraid I
have to disappoint you: those dresses are not part
of the service uniform worn by a Bavarian minister.
And there's another cliché to be swept aside: Bavaria is more than just fairytale castles, beer and
the Oktoberfest. Indeed, it is so much more than
that - which I think the film illustrated very clearly -
Bavaria is home to 12.6 million people - which is
approximately the population of Illinois, yet we only
have half the area [Bavaria: 70,550 km2, Illinois: 12.8 residents
over 149,998 km2; sources: Bavarian State Statistics Bureau, U.S. Census
Bureau].
Bavaria is the economic powerhouse of
Germany. We are actively involved in shaping the
policies of Germany's federal government, and
-2contribute to legislation on the EU level via our
Representation in Brussels.
And there's another thing that makes us stand out:
Although we do keep strong traditions, we are
stuck neither in the past, nor in the present. In Bavaria, we face the future and the topics that will
shape it head-on.
The next act we have on the global stage began
some time ago. The digital revolution means we
are re-structuring everything - day-to-day life, business models and the foundations of our social
prosperity.
Who could have imagined only a few short years
ago the extent to which keywords like data protection, cyber security, big data and industry 4.0
would determine our daily discourse today? From
parliamentary debates and corporate board meetings to conversations among friends over dinner.
I recently visited four Internet companies in Silicon
Valley. There, I experienced first hand how leading
US companies are following the discussions on
digitalization taking place in Europe, especially as
regards the EU Data Protection Directive and the
-3subject of safe harbor. I've also learned that
there are various American interest groups attempting to influence the European decisionmaking process to go in different directions.
In any case, society and politics have the ability
to define the guidelines and boundaries. That is
encouraging news for us all.
Here, tonight, let us learn from each other to
that end - it will translate to more success for all
of us. I look forward to hearing your ideas. And,
to be sure, you can look forward to hearing exciting things about Bavaria and Bavarian ideas.
Bavaria has positioned itself very well for the
radical changes on the horizon and is facing
these digital challenges directly. Today, Bavaria is the driver of digital progress in Germany.
One prime example here is Industry 4.0.
1. Industry 4.0
Bavaria's global players are pioneers in Industry
4.0: Engine manufacturer MTU is producing turbine parts using 3D printing. KUKA is implementing its robots all over the globe to automate factories. Our world-class universities in Munich and
-4Nuremberg [TUM and FAU] are trendsetters in production research. With the "Platform for Digitalized
Production in Bavaria," we are networking business and academia.
2. Automated Driving
The engineers at Bavarian automakers BMW and
Audi are masters of innovation. In January, an
Audi A7 drove itself from Silicon Valley to the CES
in Las Vegas.
3. Munich - Top Location for Information and
Communication Technology
Today, our state capital, Munich, has already become Germany's number one site for ICT startups. We promote new enterprise with centers for
Internet and digital media ["WERK1.Bayern" in Munich, with a
further start-up center in Nuremberg].
According to an EU Commission study [European ICT
Hubs, April 2014],
Munich is Europe's number one hot
spot when it comes to ICT - even placing ahead of
London and Paris. With the "Global Venture Summit" hosted in Munich, we're networking our digital
eco-system with the whole world.
-5And political discourse isd also addressing the
topic of digitalization. Just this week, my party,
the CSU, launched a thematic week on the topic
of "digitalization." With the BAYERN DIGITAL
Strategy, the Bavarian Government will turn our
state into the leading region for the digital society
of the 21st Century:
 We are increasing funding for digital infrastructure four-fold, now reaching 2.0 billion euros.
 We are building a Center for Digitalized Production [Nuremberg, with satellite sites] as well as a Bavaria Digitalization Center for research and
start-up promotion [Garching, near Munich].
 The Bavaria Cyber Alliance Center [in Munich] is
turning the topic of security into a part of Bavaria's brand essence on the Internet as well.
II.
THE DIGITAL REVOLUTION - AN
INTERNATIONAL CHALLENGE
– Acknowledgment –
The digital revolution is not a challenge purely
on a regional or national level. There is an in-
-6ternational dimension to topics like data protection and data security.
As Minister for International Relations for the State
of Bavaria, I have made "digitalization" one of the
focal points of my work. That is why I have travelled to see you at the DLD today, to inform myself
on-site and first-hand about the discourse taking
place in the USA, the "motherland" of the digital
revolution.
I know there are also many representatives from
companies and institutions out of Israel in attendance today. That’s pleasant news for me, as I’ll be
travelling to Tel Aviv in a month to have a look at
the start-up scene there.
III. EUROPE - STRUCTURING THE DIGITAL
REVOLUTION
The EU also understands there is no getting
around the topic of "digitalization." We are going to
create a mutual solution in Europe - for networked
mobility, Industry 4.0, smart grids and telemedicine.
-7Europe's Digital Single Market is creating the
finest opportunities for our 500 million consumers
and companies in the EU. We are deregulating
and strengthening the digital market - for a Europe
at eye-level with our partners in the USA and Asia.
But let me stress one thing here: I’m not talking
about restricting our markets for non-EU companies. On the contrary: for a US company looking to
become active in the EU, this means no longer
having to familiarize oneself with 28 different legal
and business systems and employ a legion of attorneys. There will be a single European system
in the future.
The EU-Commissioner for Digital Economy and
Society, my friend Günther Oettinger, presented a
package of measures for the Digital Single
Market only yesterday:
 The new copyright rules promote creativity and
innovation.
 In the Telecom Single Market [TSM], we want to
see the same speed for all data - for us, this is
part of having a democratic Internet. Special
-8services will only be available via separate capacities.
 When it comes to audiovisual media services
[AVMD Directive], we
are liberalizing advertising rules
and leveling the playing field for broadcasting
companies and Internet services.
 With the EU Data Protection Reform, we are
protecting our citizens and companies. These
issues affect everyone - from social network users to car drivers. That is why we'll be structuring access to data to the benefit of the people.
This creates trust and is in the interest of our
industry.
Our goal is to be the "gold standard in global data protection" [Quote from Bernd Welz, Director of Cloud Services
at SAP, 20 March 2012].
Here, we are looking to set
standards in Europe.
Fair play in commerce means equal treatment of
companies. That has to apply in equal measure to
data transfer between European and American
companies. This is another reason why the Safe
Harbor Agreement is being examined so closely.
-9We need a sustainable solution that will benefit
everyone.
We welcome the "Consumer Privacy Bill of Rights“
and the Security Initiative [cyber security] as important
signals coming out of the USA.
– Salutation –
The digital transformation is not a process that
we have to sit back and watch happen. Rather,
it's a process that we can actively shape, a
process where we ourselves are the masters.
It is vital to leverage this perspective to include
everyone in the digital breakthrough, indeed to
raise enthusiasm for it.
What impressed me most about my visit to Silicon
Valley was seeing the bite, the ambition and the
will for success there. Not being content with what
has been attained, but tackling the task at hand,
the pioneering spirit; the ability to fail and fall down
at times, and to get up over and over again. We in
Bavaria, Germany and Europe can learn a great
deal from the USA to that end.
Yet one thing is clear for us Germans and Europeans: not all technical possibilities line up with our
- 10 values and norms. We need clear rules of engagement. That also applies for the clandestine
agencies on both sides of the Atlantic, which are
currently back under the media's fire.
III. EUROPE AND USA - STRATEGIC
PARTNERS OF THE DIGITAL FUTURE
As strategic partners, Europeans and Americans need to coordinate closely. That applies
just as much to TTIP: If we analyze cultural and
legal differences in a sober manner, then we'll also
find bridges to one another.
We share the same values. Individual freedom and
security constitute the foundation of our prosperity.
Freedom and security alone guarantee our high
social, ecological and business standards. The
special European-American relationship of mutual trust is just as important as ever.
Three weeks ago in Washington, I had a rigorous
discussion with the Deputy US Trade Representative, Michael Punke [15 April]. Last week, I spoke with
representatives of the US government at the German-American Data Protection Day in Munich
about transatlantic data security. As you can see:
- 11 We in Bavaria maintain close exchange with
our American friends. That will continue to be the
case in the future!
And that is also the case with Israel. This year, we
will celebrate the 50th anniversary of diplomatic relations between Israel and Germany. Israel is an
important partner for us today, especially in the
field of digitalization. I am very keen on meeting
young Israeli professionals next month in Tel Aviv.
– Salutation –
Let us not simply shape digital life in Europe, the
USA and Israel [Digital Life Design]. Let us shape it together - to the benefit of our companies and to the
benefit of our citizens.
And should one or two of you still be surprised by
my outfit, then let it be said here: it is indeed true
we love showing our respect for tradition in Bavaria!
- Photo! -
Thank you!