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Theodor Waigel (born 22 April 1939) is a German politician of the Christian Social Union in Bavaria (CSU). He represented Neu-Ulm in the Bundestag from 1976 to 2002.
Waigel is a lawyer, and earned a doctorate in 1967. He was a member of the Bundestag from 1972 to 2002. He served as Federal Minister of Finance of Germany in the Cabinet of Chancellor Helmut Kohl from 1989 to 1998, and as Chairman of the Christian Social Union in Bavaria from 1988 to 1999. He is known as the father of the Euro, the European currency.Stone, Randall W. and Gent, Stephen E. (1 February 2006) Formalizing Informal Cooperation: Norm-Based Cooperation and the European Stability and Growth Pact He played a vital role in its introduction as German Minister of Finance. He also managed to impose an austerity program on West Germans and overcome the massive deficits of German unification to meet the strict fiscal benchmarks mandated by Europe's single currency.John Schmid (27 May 1998), German Opposition Advertises a Cabinet International Herald Tribune. In 2009, he was appointed Honorary Chairman of the CSU.
In March 1990, Waigel publicly announced that the government was considering a proposal by its central bank, the Bundesbank, for conversion at a rate of one Deutsche mark to every two East marks, with an exception for a small portion of personal savings. In response, hundreds of thousands of East Germans protested against the plan, including about 10,000 in East Berlin, who took to the Palace of the Republic, where the newly elected Parliament was holding its inaugural meeting.Ferdinand Protzman (6 April 1990), Bonn Works on Money Plan Amid Protests in East New York Times. Chancellor Helmut Kohl said that was not the policy after all.David Rosenbaum (5 April 1990), Group of 7 Meeting Is Expected to Be Quiet New York Times.
On 19 May 1990, Waigel and his East German counterpart Walter Romberg signed a state treaty to merge their economies and make the West German mark the sole legal currency in both nations by 2 July 1990.
In July 1990, Waigel joined Kohl and Foreign Minister Hans-Dietrich Genscher on a trip to Moscow to meet President Mikhail S. Gorbachev, where they worked to convince the Soviet leader to drop his remaining objections to German unification within NATO.Craig R. Whitney (14 July 1990), Evolution in Europe; Kohl Will Meet Gorbachev Today in Moscow on Unity New York Times.
On 9 August 1990, Waigel announced that West Germany's 1990 budget would be its last and that he was withdrawing the Cabinet draft for the 1991 budget to make way for an all-German budget consonant with unification.David Binder (10 August 1990), German Leaders Agree On Elections on Dec. 2 New York Times. Later that year, he said that borrowing by government, state and local authorities would total up to $95 billion the following year, nearly five times the equivalent figure for West Germany in 1989.Ferdinand Protzman (16 November 1990), Evolution in Europe: Kohl Pledges Help in Soviet Food Crisis New York Times. Between 1989 and 1991 alone, the central government's budget deficit soared from 0.5 percent of national income to 5 percent. Germany’s great survivor European Voice, 25 October 1995.
Following a proposal developed by Waigel, the Kohl government agreed in February 1991 to an unexpectedly large package of tax increases – including a 7.5 percent surcharge on personal income and corporate tax payments – to help pay for reunification, as well as the government's contribution to the allied forces during the Gulf War and aid to Eastern Europe's fledgling democracies.Ferdinand Protzman (27 February 1991), Bonn Sets Big Tax Rise For Unity and Gulf Aid New York Times. In March 1992, Germany paid its final installment of $1.68 billion in Gulf War aid to the United States, fulfilling its overall pledge of $5.5 billion. Bonn Makes Its Final Gulf War Payment Los Angeles Times, 29 March 1991.
In the national debate on whether the federal government should remain in Bonn or move to Berlin, Waigel argued that Germany had assumed enough major financial obligations over the preceding years and could not afford to build a new capital.Stephen Kinzer (17 June 1991), Berlin and Bonn Partisans Square Off as Vote for Germany's Capital Nears New York Times.
In early 1996, Waigel and his French counterpart Jean Arthuis launched a French-German economic stimulus package aimed at encouraging spending, increasing growth, cutting taxes on business and reducing unemployment.Alan Friedman (24 January 1996), France to Miss '95 Deficit Target 'by Just a Little Bit' International Herald Tribune. In the subsequent years, however, both CDU and CSU favored increasing taxes, fearing the consequences of further budgetary cuts; by 1997, the government was already in danger of breaking a Constitutional Court ruling that spending on public investment must exceed the budget deficit. At the time, Germany had a record 2.2 trillion marks in public debt, much of it amassed during Waigel's tenure because of the costs of reunification.Matt Marshall Staff (26 May 1997), Germany's Waigel Reverses Course on Gold Revaluation Wall Street Journal.
During the period of Reunification in the 1990s, Waigel, as Minister of Finance, refused to return eight buildings in East Germany belonging to six Austrian Jewish citizens."Allgemeine Jüdische Wochenzeitung, 10 September 1992; "Expropriation through the Back door" (Enteignung durch die Hintertür)
In 1991, Waigel became the first chairman of the board of the newly established European Bank for Reconstruction and Development (EBRD).Richard W. Stevenson, (21 April 1993), Bank for East Europe Lives Well in London New York Times.
After Germany and France failed to get the 18th G7 summit to agree on ways to assure the safety of deteriorating nuclear power plants in Eastern Europe and the former Soviet Union, Waigel pledged that public funds from the West would nonetheless be mobilized not simply to repair dangerous plants but "to change the whole energy policy in these states so they can conserve energy, develop alternative energy sources and thereby create more leeway for shutting down plants that are unsafe."Stephen Kinzer (8 July 1992), Summit In Munich; 7 Leaders Divided On A-Plant Safety New York Times.
At the height of speculative attacks on the European Exchange Rate Mechanism (ERM) in 1992–93, acting closely with his then counterpart Michel Sapin of France, Waigel repulsed speculators trying to break the French franc's parity with the Deutsche Mark by selling marks en masse until the bank traders gave up.Daniel Flynn (14 May 2012), "Head chopper" tipped for French finance minister Reuters.Robert Chote Andrew Marshall and Peter Torday (23 September 1992), Last-ditch defence of ERM: France pours out foreign currency reserves to defend the sliding franc The Independent.
Throughout the 1990s, Waigel was seeking to assure a skeptical German public as well as small companies and banks that the new currency would be as stable as the Deutsche Mark, which had become a symbol of Germany's economic hegemony in Europe at the time.Tom Buerkle (19 September 1995), Paris-Bonn Currency Dispute Deepens International Herald Tribune. In September 1995, Waigel first proposed that countries adopting a single currency agree to reinforce rules on budget deficits and impose financial sanctions against deficit violators that go beyond the penalties included in the Maastricht Treaty.Tom Buerkle (19 September 1995), Paris-Bonn Currency Dispute Deepens International Herald Tribune. Also in September 1995, Waigel first floated Euro as the name of the new single currency. He later overruled the French government with his proposal; France had favored want the name ECU, the European Currency Unit which was used in many accounts and the issuance of some debt at the time.Nathaniel C. Nash (28 November 1995), With a European Currency, The Currency Is Conflict New York Times. The name "Euro" was later chosen for the new currency at the European Council in Madrid.
In a move to reduce government spending, Waigel led the call for a reduction in Germany's contributions to the budget of the European Union in 1996. He wrote to Kohl pointing out that contributions from Germany made up about 60 percent of the EU's regional and structural funds and urging him to push for a cut in Germany's burden.Thomas Klau (6 November 1996), to cut Germany’s EU burden European Voice. In 1998, he joined fellow finance ministers Gerrit Zalm of the Netherlands, Rudolf Edlinger of Austria and Erik Åsbrink of Sweden urging President of the European Commission Jacques Santer to cap the proportion of a country's income which goes to the EU as part of his Agenda 2000 spending review.Tim Jones (27 May 1998), Santer moves to pacify EU’s biggest paymasters European Voice.
After his failed attempt to pressure Bundesbank president Hans Tietmeyer into a quick revaluation of the country's in order to bring Germany's budget deficit into line with the criteria for the single currency, Waigel had to confront a parliamentary motion against him on 4 June 1997. He won the vote by just 328 votes to 311.Alan Cowell (18 June 1997), A Champion of the Euro Finds That All Economics Is Local New York Times. Germany’s battered bulldozer The Economist, 28 August 1997.
In November 1997, Waigel imposed the strictest budget freeze in the country's history, in a last-ditch effort to fulfill the Euro convergence criteria. The freeze, which lasted until the end of that year, was imposed to save the government a further one billion marks ($578.2 million).Matt Marshall (31 October 1997), Waigel Imposes Budget Freeze To Fulfill EMU Entry Criteria Wall Street Journal.
On 30 June 1998, Waigel attended the inauguration ceremony of the European Central Bank in Frankfurt, Germany, alongside Kohl,Denis Staunton (2 July 1998), Bonn disillusioned with Brussels as disputes increase Irish Times. ECB President Wim Duisenberg, President of the European Commission Jacques Santer, President of the European Parliament José María Gil-Robles, British Prime Minister Tony Blair, and Chancellor of Austria Viktor Klima.Kevin Courtney (30 June 1998), `Riverdance' does Eurodance at launch of Frankfurt bank Irish Times.
In 2011, a commentator seeing Germany forced perhaps to choose between monetary stability, on the one hand, and the EMU, recalled by way of contrast Waigel's statement at the founding, "We are bringing the D-Mark into Europe."Marsh, David, "Germany forced to make a choice: Us or them? Commentary: Berlin’s moment of truth: Stable money or one Europe?", MarketWatch , 22 August 2011, Retrieved 22 August 2011.
Following the 1998 elections, Waigel was succeeded by Oskar Lafontaine. At the time, he was Germany's longest-serving postwar Finance Minister.Alan Cowell (18 June 1997), A Champion of the Euro Finds That All Economics Is Local New York Times.
By the end of the 1990s, Waigel and Minister-President Stoiber of Bavaria were locked in a bitter rivalry for control of the state and its ruling party, the CSU.Matt Marshall (21 January 1997), Germany's Waigel Supports Value-Added-Tax Increase Wall Street Journal. Stoiber had been a vociferous critic of the creation of a single European currency and he has also infuriated both Kohl and Waigel by proposing that wealthy states like Bavaria be freed from having to underwrite social security costs for poorer states.Edmund L. Andrews (14 September 1998), Conservatives Win Decisive Victory in Bavarian Election New York Times. In late 1998, Stoiber succeeded Waigel as chairman of the CSU.
After serving as Of counsel with the Munich office of law firm GSK Stockmann + Kollegen for many years, Theo Waigel Scholarship GSK Stockmann + Kollegen. Waigel – alongside Alexander Radwan, among others – joined Waigel Rechtsanwälte in 2016.Christin Nünemann (15 January 2016), Familiensache: Münchner GSK-Team macht sich selbstständig Juve.
In 2008, following revelations about violations of the Foreign Corrupt Practices Act, the German industrial conglomerate Siemens agreed to install Waigel as an outside corporate monitor for four years.Mica Rosenberg (23 March 2016), U.S. moves to block release of Siemens anti-bribery monitor reports Reuters. Waigel was the first compliance monitor who is not a U.S. national. Dr. Theo Waigel appointed as compliance monitor Siemens, press release of 15 December 2008. He served in this position between January 2009 and October 2012. Waigel beendet Job als Korruptionsbekämpfer Handelsblatt, 31 October 2010.
In 2011, Waigel served as a member of the Board of Trustees of the Munich bid for the 2018 Winter Olympics.
In 2012, Waigel joined a newly established external advisory panel under the leadership of Jürgen Hambrecht at Deutsche Bank, which was to review compensation and governance at the company.Edward Taylor (25 October 2012), Waigel on Deutsche Bank panel to scrutinise bonuses Reuters.
Even after the end of his political career, Waigel was a CSU delegate to the Federal Convention for the purpose of electing the President of Germany in 2009, 2010, Wer ist die Bundesversammlung? Der Tagesspiegel, 26 June 2010. 2017 Mitglieder bzw. Ersatzmitglieder der 16. Bundesversammlung Landtag of Bavaria, press release of 22 November 2016. and 2022. 17th Federal Convention, 13 February 2022, List of Members Bundestag.
In 2013, Waigel was offered the role of president of TSV 1860 Munich but decided against it. Waigel sollte Löwen-Präsident werden tz. Amid the 2015 FIFA corruption case, he declined offers to join an advisory board to the FIFA.Michael Ashelm (9 September 2015), Skurrile Züge der neuen Reformgruppen Frankfurter Allgemeine Zeitung.
From 2016 to 2022, following an appointment by Chancellor Angela Merkel, Waigel served on a three-member panel (alongside Michael Gerhardt and Krista Sager) to oversee the implementation of a new law designed to avoid potential conflicts of interest, requiring senior German officials from the chancellor to deputy ministers to observe a cooling-off period if they want to quit the government for a job in business. Theo Waigel berät Regierung bei Minister-Wechseln in Wirtschaft Frankfurter Allgemeine Zeitung, 22 July 2016.Christoph Schult (1 April 2022), Voßkuhle, Lammert, Sager: Neue Besetzung bei Karenzzeitwächtern Der Spiegel.
Alongside David Gold, Baron Gold and Noëlle Lenoir, Waigel was appointed by Airbus to an Independent Compliance Review Panel (ICRP) in 2017, amid investigations by the Serious Fraud Office (SFO) and the Parquet national financier (PNF) into allegations of fraud, bribery and corruption in the company's civil aviation business. Airbus establishes new Independent Compliance Review Panel Airbus, press release of 22 May 2017.Tim Hepher (22 May 2017), Airbus hires outside monitors amid fraud investigations Reuters. In 2021, he was appointed to co-chair – alongside Brigitte Zypries – an independent expert commission established by audit firm Ernst & Young to assess its involvement in the Wirecard scandal.Olaf Storbeck (25 February 2021), EY overhauls German partnership in effort to repair Wirecard damage Financial Times.
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