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ement is not just a bureaucratic process from brussels it is about getting to terms with the events since 1989 in opening itself to new members the union has maybe not done the zusammenwachsen but it has done something as essential sealing the fact that we europeans gehören zusammen that we are one union this chapter of the union s history is not complete yet in the first ten months of my mandate i have visited seven countries of the western balkans in order to confirm their european perspective their desire to join our club follows a time of barbarism and violence which all of us had thought to be impossible in europe after 1945 this should encourage us even further to welcome them why because almost all who are now part of europe have experienced great upheavals within living memory it is true for germany france and the other founders after the destruction of the second world war it is true for greece spain and portugal after the end of their dictatorships it is true for the former communist countries which joined us after the wall came down in every enlargement the union has absorbed the shocks as an anchor of stability as a haven of prosperity and freedom as a guarantee of peace the entry of the western balkans into the union will seal an end to the last civil war in long history of europe no more no less so to those who say that war is so far away in our past that peace cannot be a key issue in europe anymore that it does not appeal to the younger generations i answer just go out there and ask the people there and ask the young ones too achieving this goal will require political courage on both sides the idea of accession is not popular in all the current member states of course candidate members have to fulfil all the conditions and have to break completely with their past of civil wars pro european governments and parties should not lose enthusiasm citizens who strive for peace and reconciliation should not lose hope the countries of the region deserve our help to fulfil their european destiny why do these accession movements also lift the curtain from europe as a whole just consider the two different meanings of europe on the one hand our beautiful continent our rich culture on the other hand the political object called eu the geographical and cultural europe versus the political e u rope and now see what happens over time when back in the 1950s only six countries grouped together and called themselves europe this was maybe a bit pretentious or rather an allusion to the future however this original promise is now coming true thanks to the successive enlargements the european union grows into the political expression of our continent after 1989 we start to resemble ourselves our clothes finally fit us when we speak about europe as the continent of values then today it is true not for just a small part of europe not for the half of europe no today it is true for the continent as a whole it gives us credibility all our countries have to deal with a new diversity the time of the homogenous nation state is over each european country has to be open for different cultures however we only have one civilization of democracy of individual rights of the rule of law alongside diversity and diversity is certainly a strength of our societies we still need in each of our societies a sense of unity of belonging together this sense of unity can lie in shared values or in a language a shared history a will to live together as ernest renan said and this will springs above all from the stories which we tell each other think of the ancient greeks the stories of homer created bonds throughout the centuries they have us spell bound tonight it can be stories of war and peace of olympic exploits or saint like sacrifice of a prison stormed or a wall which came down such stories do what a treatise on values cannot achieve they embody virtues in an understandable way virtues shown by men and women in real situations courage respect responsibility tolerance a sense of the common good to keep such european virtues alive to transmit their age old qualities to our children and grandchildren that will be one of the great challenges for the future we have to be a union of values but also a union of civic virtues eine wertegemeinschaft genauso wie eine union der zivilcourage iii i should like to come to the second theme of our european story as it started when that curtain went up i am talking about the euro the great bringer of unity and stability just imagine the big recession of 2008 2009 with the old currencies it would have resulted in a currency turmoil and the end of the single market a currency war always ends in protectionism this spring at the height of the public debt crisis you said frau bundeskanzlerin scheitert der euro dann scheitert europa if the euro fails then europe will fail these words marked people s minds you thus highlighted the wisdom behind the creation of single currency this insight was when we make a currency we are building europe after the wall came down in a moment of potential conflict between the new germany and her partners the statesmen of 1989 helmut kohl françois mitterrand jacques delors and the others they seized the anchor of europe and accelerated the plans for a single currency it was the great achievement of the maastricht treaty ever since the fate of europe and the euro have been intertwined the euro is the most visible and the most palpable sign of our common destiny it is also our most powerful tool sharing a currency means that the decisions of one affect all we have seen how this spring the crisis of a country of 10 million people became the crisis of 350 million people early may it even turned into a global threat what happens with pensions or debt in one country affects the banks and taxpayers in another country in good times and in bad times what hurts athens damages amsterdam and if barcelona flourishes berlin prospers the national and the european interest can no longer be separated they coincide until one year ago all this was just knowledge theoretical in the spring crisis it became an experience unforgettable today we have to act upon the fact responsibly that s why two weeks ago the european council took important decisions we sealed a solid pact to strengthen the euro our decisions and i am thinking in particular about the recommendations of my task force on economic governance make sure that every member state feels and understands that its decisions affect all the others and the union as a whole one cannot maintain a monetary unity without an economic union i am very satisfied that the european council of 29 october endorsed the end result of the task force it is a huge leap forward let me mention the three crucial points first of all we will better observe the economies of our countries their competitiveness the risks of housing bubbles and other vulnerabilities we will act and correct if necessary it is a real innovation if we had had this instrument in the euro s first decade a crisis in the eurozone could well have been prevented second point we will strengthen the stability and growth pact to substantially increase fiscal responsibility and penalise irresponsibility sanctions will kick in earlier on more grounds and be decided more easily some people are disappointed there is not more automaticity in the decisionmaking well thanks to the new so called reversed majority more automaticity is exactly what we propose it is a break through third point we will establish a permanent crisis mechanism to safeguard the financial stability of the euro area as a whole as president of the european council i will undertake consultations with the heads of state and government and the commission president on the limited treaty change required to achieve this goal we all want a robust and credible system to be in place in 2013 it is our duty taken together these proposals are the biggest reform of the economic and monetary union since the euro was created they will make our economies more crisis proof we will thus complete the edifice started in 1989 not by moving into an imaginary new castle but by strengthening our foundations in the true spirit of the lisbon treaty all institutions and member states have worked together to achieve this it was an excellent example of what the chancellor last week in bruges baptised the unionsmethode cooperation is the leitmotif it has always been my political way of life for instance from the first day of my mandate i established informal and structural contacts with the commission the european parliament and the rotating council presidency without cooperation between the institutions and between the member states and the institutions the lisbon treaty cannot function so the euro brings us stability but we also need progress if we only stay stable in a moving world we decline we also need more structural economic growth in most european countries which are not growing demographically on the contrary especially in germany economic growth is basically the result either of working more or of increasing productivity the quality of the work making better cars more competitive machines developing smarter services otherwise we will become a large museum but not one that you and i would like as much as this one reforms which touch social security or pension systems are basically the work of the member states the european union can set orientations especially in the eurozone but the implementation is decentralized it is the principle of subsidiarity in normal situations the union can observe the situation give recommendations on fiscal balances and debts to member states but it cannot impose concrete measures but when the policies of one country create risks for the eurozone as a whole sanctions can be imposed even at an early stage within the european council economic growth is a leitmotif since the first meeting i chaired in february 2010 over the next months i intend to take up in the european council the twin theme of innovation and energy these meetings are elements in a long term economic strategy in march we will evaluate for the first time as part of the so called european semester the efforts made by all member states to implement the eu2020 strategy aimed at growth and jobs let s insist on that growth and jobs that is our goal people sometimes complain about a lack of political courage these days presuming that one or two generations ago this was a quality in abundance i for one have really been impressed over the last year by the political courage of our governments all are taking deeply unpopular measures to reform the economy and their budgets moreover at a time of rising populism some heads of government do this while being confronted with opposition in parliament with protest in the streets with strikes on the workplace or all of this together and fully knowing they run a big risk of electoral defeat and yet they push ahead if this is not political courage what is we will overcome the divergences inside the eurozone which were at the root of the eurocrisis the current differences in economic growth rates are due to the strong economic measures taken by the countries with problems but all this will be temporary a few years from now we will show more convergence not just in policy but in figures and to reassure the german audience this is about catching up not slowing down the euro is now stronger than a few months ago precisely because we acted with political determination i pay tribute here in berlin to the exceptional role the german chancellor and her government have played since the beginning of the euro crisis the franco german friendship is for the eurozone a necessary condition for success but not a sufficient one the concerns of all should be taken on board it is my role to make sure that this happens and it does in my view the limited treaty amendment all heads of state and government agreed upon ten days ago is essential but it should not reopen the entire internal debate on the nature the goal and the architecture of the union we have more pressing matters at hand for the same reason i do not think that redesigning the way the eu get its revenue is a top priority the current system reflects as a rule the member states capacity to pay contributions are based on the gross national income and thus seen as fair some have suggested to replace this with a direct eu tax for instance on financial transactions or on carbon it is argued that such real own resources would make the brussels institutions more responsible i am personally open to new ideas but since most alternative sources of income would risk to hit member states unequally this would weaken the fairness of the current system its built in solidarity so let s be prudent but let s discuss it the more important question is how we spend european money we must focus on areas where european expenditure by avoiding duplication or by economies of scale adds value for the taxpayers iv this finally brings me to the third theme of our story as it started in this city 21 years ago as i said since that day of joy the curtain went up over europe as a whole we have been bringing into our club the rest of our continent thanks to the enlargements we have been increasing our internal strength thanks above all to the euro and thirdly now we have improved the reach of our voice on the world stage here again 1989 has been a turning point the changes in the world forced us to assume a growing responsibility for our own security after the cold war we came out of our winterschlaf not just advocating common principles but also defining and defending our common interests to those who speak with complacency or masochism of a decline of europe on the world stage i just ask where was europe on this stage before 1989 and it is not just we who have changed since that moment look at the world today it is no longer divided in west and east with the third world in a corner and us in the wings no those old categories have disappeared the impressive economic and political shifts which we call globalisation have not only lifted hundreds of millions of people out of poverty in so doing they have also drawn a new map thus the third world has almost shrunk to a large part of africa whereas the largest part of asia with china and india shows new self confidence and so does south america this is the global stage on which europe has to act in this new world which may offer us many surprises we have to get and occupy our place the heads of state and government have a seminal role to play together defining the union s strategic interests deciding priorities setting our common direction let me briefly sketch some developments first development power and influence in the world are more and more a matter of economy and less of weapons recent regional conflicts like in iraq and afghanistan have clearly demonstrated the limits of mil...