MINISTER DION STATES THAT THE GERMAN PRINCIPLE OF FEDERAL LOYALTY IS VALID FOR CANADA

FELDAFING, FEDERAL REPUBLIC OF GERMANY, October 28, 2001 – Speaking in Feldafing, Federal Republic of Germany, to members of the Atlantik-Brücke, an association of academics, businesspeople and media representatives, the Honourable Stéphane Dion, President of the Privy Council and Minister of Intergovernmental Affairs, stated today that Canadians’ success in the future will depend in large part on their capacity to put into practice the principle of federal loyalty in a context of globalization.

The Minister believes that this principle of federal loyalty has been eloquently expressed by the German Federal Constitutional Court, which has stated that "all members of the constitutional ‘alliance’ are required to cooperate with one another in a manner compatible with the nature of that alliance and to contribute to its consolidation and to the protection of its interests and the well-considered interests of its members." [Translation]

For Mr. Dion, this principle of federal loyalty is not only German, it is universal and is valid for all the federations of the world.

The German principle of federal loyalty applies to Canada, even though the two countries have two different models of federalism, he noted, pointing out that German federalism is much more integrated: "Our provinces have much larger exclusive jurisdictions than those of the Länder; the latter, however, have a much stronger influence over the federal parliament, and thus over the actions of the federal government. The German federal model is that of the fusion of powers: the Länder are strong within federal institutions; our model is that of a distribution of powers: our provinces are strong in relation to the federal government."

"Our two models of federalism are reflected in our respective political cultures," the Minister continued, pointing out the example of Germany’s centralized union system: "It would be inconceivable in Canada for the status and working conditions of our provincial and municipal employees to have to comply with rules set by federal framework laws."

Just as the German model of federalism is more integrated than the Canadian model, the immediate international context in which Germany operates is as well, Mr. Dion noted. "Whereas NAFTA is a trade agreement without a parliament, without a cabinet, without a central bank or common currency, the European Commission’s regulatory power applicable to European Union countries is in some ways more extensive than that of Canada’s federal government applicable to the provinces."

"North America is not Europe and will not become so, despite what some people in our country may think. The context is too different," he added, explaining that the main difference lies in the clout of the United States. "It makes up 68% of the North American population, and 86% of its economy. In comparison, Germany, the largest member country of the European Union, makes up 22% of its population and 25% of its economy. As you well know, the European Union could not function with the institutions it has if one of its members was itself bigger than all the others combined."

The Minister stressed that these differences in context, although very real, in no way change the fact that the governments of the Canadian federation must work together just as those of the German federation must. He emphasized that the pressures of globalization make this cooperation even more essential, notably in the area of international policy.

Mr. Dion pointed out two main characteristics of globalization from the perspective of federal governance : "First, external trade is taking on increasing importance in relation to interprovincial trade in Canada and inter-Länder trade in Germany. Second, our countries sign international agreements that increasingly touch on the jurisdictions of our constituent entities, in the areas of the economy, agriculture, the environment, health, culture, and so on."

In Canada, some people had predicted that the growing importance of external trade and international rules would exert a centrifugal pressure and that the cohesion of our federation would be increasingly difficult to maintain. But that is not happening, the Minister pointed out. "On the contrary, the omnipresence of international issues is reminding Canadians of the importance of their national cohesion." Solidarity among Canadians is alive and well, he demonstrated. The Government of Canada and those of the provinces see clearly that, above and beyond perfectly normal differences of opinion, they have an interest in cooperating more and more, while respecting each other’s jurisdictions, Mr. Dion pointed out, showing how the Government of Canada helps the provincial governments in many ways to raise their profile abroad in their jurisdictions and in such a way that contributes to the strengthening of the federation.

"It is perfectly desirable that all governments of the Canadian federation, over and above the inevitable tensions, pursue the same objective in international policy, that of cohesion of the whole based on the full potential of a diversified country able to speak with a credible and convincing voice abroad," the Minister concluded, hoping for Canadians that "all the governments of our federation fully adhere to the principle of federal loyalty."

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For information: 
André Lamarre
Special Advisor
Tel: (613) 943-1838
Fax: (613) 943-5553