SPIEGEL Interview with Linde CEO: 'I Don't Believe the Euro Should be Rescued at All Costs'

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Reitzle: No, but I believe that the German economy would have weathered such a shock within a few years, and would even become more competitive in the long run. To put it clearly: I don't think this scenario is desirable, but it also shouldn't be declared a taboo. And from a personal standpoint, I don't agree with a large share of my taxes ending up in countries that don't manage their economies responsibly.

SPIEGEL: At the moment, the German economy is actually benefiting from the crisis. The weak currency and low interest rates act like an economic stimulus program.

Reitzle: And we need this prosperity, because it's inevitable that we will be presented with the bill for the euro in the end. But this imbalance in the euro system must be corrected in the long term. The debt-ridden countries don't just have to reduce their debts. They also have to revamp their economies…

SPIEGEL: …which is difficult, if not impossible, because they lack their own currency to devalue.

Reitzle: And that's why the lack of competitiveness in the euro zone has become practically set in stone. If Italy still had the lira, it would have been devalued long ago to make the country competitive again, because wages there, as in Spain and France, have risen far too quickly -- in sharp contrast to Germany, by the way.

SPIEGEL: But all of this shows that the euro brought together things that don't belong together: highly developed, industrialized nations and agricultural countries…

Reitzle: …as well as different mentalities. And, most of all, countries that are dissimilar in terms of efficiency. It is evident that the euro was introduced far too soon. In retrospect, anyone can come up with the perfect explanation for why all of this couldn't possibly work. But that doesn't do us any good. Now we have to see where we stand and what steps to take so that everything doesn't fall apart. There's more to it than just muddling through. Germany is being given the leading role here, whether we like it or not. Not everyone ticks the way the Germans do, but sloppy economic management will no longer be tolerated. There will still be substantial differences, just as there are in the United States of America.

SPIEGEL: Do you see the United States of Europe as a goal?

Reitzle: Yes, in the long term. In 2050, the United States will still be a global power and China will probably be the dominant economic power. Europe will only be able to keep up if it manages to achieve a political unification process in addition to the monetary union, and if it includes Russia. However, if we even mess up the monetary union, Germany will be an attractive island, just as Switzerland is. But will we be relevant in the world anymore? Probably not. That's why it's worth doing everything we can.

SPIEGEL: Whichever scenario materializes, how are you preparing your company for this uncertain future?

Reitzle: We will have to react even more quickly and flexibly to changes, and keep our fixed costs as low as possible. We have experienced a decade in which, mainly as a result of cheap money, things went reliably upward without any significant fluctuations. But the crisis in the financial markets marked a turning point. Since then, we have seen a trend toward less growth, coupled with greater fluctuations.

SPIEGEL: Do you have a plan B on hand in case the euro collapses?

Reitzle: No, but even if all of Europe were stuck in a recession for years, it would affect only 30 percent of our revenues. If we lost those revenues completely, which is totally unrealistic, we would have revenues of €9 billion instead of €13 billion, and we would be a company that operates primarily in Asia. Linde would survive in any event.

SPIEGEL: The banks no longer trust each other and are parking their money with the ECB and restricting their lending activities. Is Linde having problems getting money?

Reitzle: Not at all. Our credit rating is better than that of most countries, except Germany. We just launched a €750-million bond, at 3.1-percent interest for seven years. The bond issue was oversubscribed by a factor of six within a few hours.

SPIEGEL: Ever since banks worldwide have had to be bailed out with taxpayer money, the public's confidence in the market economy has waned. Can you understand this?

Reitzle: Of course. I don't accept many of the things that were done. The loss of confidence that arose as a result is harmful to our society, if not dangerous. Companies should take responsibility for what they do. If we make a bad decision, we can't just shove the consequences into a bad bank, otherwise Daimler could simply have handed over Chrysler to the German taxpayer.

SPIEGEL: Under the motto "We are the 99 percent," the Occupy movement sharply criticizes growing inequality. Do you have sympathy for this, too?

Reitzle: Yes, in principle, but I fear that it will lead to the wrong conclusions. In the coming years, the West's problems will be high debt, low growth and an aging population. There will be a push to distribute existing wealth and bring about more equality, even as assets are being accumulated in Asia.

SPIEGEL: So far, however, the redistribution has tended to move in the other direction. A small number of people have profited from the excesses of the financial markets, and now the majority must pay the bill. Isn't it logical to expect the beneficiaries of the crisis to finance some of the costs?

Reitzle: I can understand this logic if profits are made at the expense of the population and the risks are socialized. I only fear that money will also be taken away from people who have earned it honestly and paid their share of taxes. This reduces the motivation for people to perform and accomplish things -- an important engine of the economy.

SPIEGEL: With an annual salary of about €7 million, you are one of the top earners among the CEOs of DAX companies, which makes you part of the 1 percent that the Occupy movement is directed against. Would you be willing to make a contribution through higher taxes?

Reitzle: I am willing to pay 50 percent. But 50.1 percent is already too much. If I had to pay more than half of what I earn in taxes, I would have a very hard time perceiving that as fair. In this respect, I'm on the same page as the Occupy movement.

SPIEGEL: Mr. Reitzle, thank you for this interview.

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• Part 1: 'I Don't Believe the Euro Should be Rescued at All Costs'
• Part 2: 'The Imbalance in the Euro System Must Be Corrected in the Long Term'