Political Liberalism in Europe, over the last 100 years, has always lived with the danger of splits within Liberal parties. ln Germany before and after World War I, we had two Liberal parties with the result that Liberalism virtually had no political influence at all. In recent years, the Free Democratic Party, the liberal political party has survived two splits since 1949. In both cases those who left and formed a new party finally ended up in political obscurity but that has to do with the special German aspect of our electoral law that the party which does not collect 5% of the general vote gets no seat in Parliament. lf you have 4.9% you have zero seats. lf you have 5% in a general election in Germany you have 25 to 27 seats in Parliament.

This rule was introduced in the Federal Republic after our bad experience between 1918 and 1933 when we had 136 parties running for Parliament and almost as many in the German Parliament with the consequence that we always found what we call a negative coalition able to topple a government but not a positive coalition based on agreement on certain fundamental political ideas. This tendency to split and to disagree certainly has much to do with the strong individualism of liberals.

Liberals stand not only for political freedom but for personal freedom as well. That makes it difficult for all of us, and I don't think one can exclude any liberal party from that consequence or insight. It makes it difficult for all of them to accept majority decisions. But we have to see that if we want to exercise influence and if we want to play a political role then we must follow the democratic rule of discussion and decision by majority. Otherwise liberals cannot play a role in politics. Without that kind of discipline which we have to learn and certainly some of our liberal friends in my own country and in other countries have to learn, we cannot do what I feel is our duty as liberals, namely, to create a platform not just for theoretical discussions but to try to bring liberal ideas and fundamental liberal aspects into day- to-day politics and participate in political decision-making.

A question which is very often asked is, does political Liberalism have a function in 20th century Europe, the United States and in Canada? I would like to state one major and, I think historic success which liberals have fought for and gained, namely constitutional rights in our political society. Without liberalism in the 19th century what we have now reached and believe in, would not have been accomplished. That is certainly to the credit of the political liberalism of our grandfathers and great grandfathers. At the same time it is responsible for the present weakness of political liberalism because none, neither conservatives nor socialists doubt that constitutional rights have to be secure and cannot be denied.

That leads to the question - what do the liberals want to do these days? Are liberals necessary? My answer is we know that we do have many liberal-minded people in conservative and socialist parties who are in agreement with us whether in matters of education, human rights or constitutional rights. This has, in fact, been a point of discussion in my country that these liberal- minded people in other parties would not have any liberal-minded influence in their parties if there had not been a Liberal political organisation. Liberal this time with a capital 'L'.

This is equally true in my own field of economic policy. Basically liberals all over the world favour a free market economy with slight disagreements but no basic disagreement. Curiously enough, this position is described in British and US papers as conservative economic policy. Everyone who stands for a free economy, for non-intervention, for non-protectionism is called a conservative in the economic sense. The truth is that conservatives and conservative parties did not have any substantial economic theory or economic policy of their own. They had to adopt the liberal policy. And the free market economy is basically a liberal idea, developed by liberals introduced by liberals and defended by liberals.

We in Germany describe the free market economy as the social market economy because we do not deny the social responsibility of a free market economy system, because we do not advocate laissez faire of the second half of the 19 th century. I feel that this is basically a liberal idea, a basic liberal truth. Perhaps I should add that the basic idea of a free economy in the liberal view is of course efficiency, full employment, the well-being of people and the attempt to overcome poverty. But there is, in my view, more behind it. In the long run, only in a free economy can you live as free men. In my view, without a free economy, you will, in the long run, not live in a free society.