Day Two:

We had a briefing this morning from various government officials in Germany. It was fascinating. As you may have heard by now, Cerberus, which is a venture capital firm, is close to signing a deal with Chrysler. We are meeting today with the Chairman of Chrysler, Dr. Dieter Zetsche. Our meeting is on the heels of this big announcement. The entire delegation will tour the plant in Stuttgart, Germany.

Transportation is key for Germany. The Frankfort airport is the number one airport for freight delivery for all of Europe. It's the number two passenger airport. They have a high-speed train system as well. Germany is really a transportation hub within all of Europe. It has transformed the country's economy.

Germany has a leading stock exchange and every two years hosts the largest auto show.

They have adapted their economy. They were really heavy in the manufacturing sector but not anymore. Indiana can learn a lot as we also need to adapt to a change in the environment and learn how to become a more globalized market.

Individual states don't levy taxes, they are instead levied on a federal basis.

Germany is the leading exporter of manufacturing goods of anyone in the world, with the US being second. The German economy is less sensitive to energy crisis'. They are on a strong economic footing now.

There are two major political parties in Germany. They are very pro-American. The US and EU just entered into the first Air-Transic agreement between the US and EU. Before there were numerous agreements with some countries but now we have agreements with all countries so it opens up more flights. The Transatlantic Economic Counsel is engaging in discussions about standards between countries, such as selling cars, registering drugs etc.

The top tax burden is about 48 percent. Germans have to pay into a social system with respect to retirement systems, health insurance and unemployment. The cost of gas is $5.50 for regular gallon and $6.50 for super. When German companies invest in the United States they tend to be interested in tort laws and product liability. They are also very concerned about the educational system. It is a very capitalistic society and a number of important trade events take place in Germany.

Everyone is insured and employers and employees contribute equally with respect to insurance policies.

On Sept. 1, Germany will implement a smoking ban due to the European Union.

Soccer and racing are major entertainment events and important pastimes for Germans. Speed is viewed as a real commodity. They drive extremely fast on the road!

There is very little urban sprawl. If you take down a tree, you must plant a tree. Housing is incredibly expensive. The German population is very dense, about 83 million people, and it's a country the size of Montana. German companies are willing to invest in US companies.

The birthrate is very low (1.3 vs. 1.8). Very few women work outside of the home because there is not an infrastructure to support childcare.

The universities are free in Germany. Unlike Asian countries where we saw a number of students come to the states for an education, we don’t see that with Germany.