Set fair oil price, says Schroeder

Oil-producing countries must aim for a fair medium-term oil price to protect the world economy.

"Current oil prices are very high. This poses a danger to the world economy. It is in our interest to see a fair price for oil on the international market," said German Chancellor Gerhard Schroeder.

He spoke to reporters after addressing the Kuwait-German Economic Forum at the Kuwait Chamber of Commerce and Industry (KCCI)

A number of contracts have been signed between German and Kuwaiti companies, along with a Memorandum of Understanding (MoU) to set up a joint Kuwaiti-German Economic Commission, Schroeder said.

The idea is to expand economic cooperation characterised by fair partnerships, he said.

"We are particularly interested in the energy and transportation fields," Schroeder said.

On Monday, Kuwait and Germany signed a number of agreements, including a convention between the Kuwaiti and German ministries of trade and industry.

An MoU was also signed by the Kuwait Investment Authority and DaimlerChrysler for the creation of a training academy.

Siemens already has several large contracts in Kuwait and just opened a $517 million (Dh1.89 billion) power plant.

Germany wants to provide expertise to create a GCC energy network as well as logistics for Kuwait's planned railroad, new port projects and the expansion of air transport, Schroeder said.

"We should not neglect the fact direct investment in both countries ensures fair trade in the long term", Schroeder said.

Germany favours a settlement of the Palestinian issue because the right political environment is necessary for economic prosperity, he said.

Forum attendees included Abdullah Al Taweel, Kuwait's Minister of Trade and Industry.

Kuwait should be a financial services centre as it was 35 years ago. said Al Taweel.

"Our oil surplus is being directed to the building of infrastructure.

"We have opened up the banking, insurance, communication, education and health sectors to foreign investment," he said.