"We must lead Europe towards new strength," she declared, looking forward to the European Council meeting and the Euro Summit at the end of October.

In her government statement, Chancellor Angela Merkel firstly underlined the importance of the ASEM (Asia-Europe Meeting) summit, which she will be attending. This is a forum which can demonstrate the existing partnership between industrialised, emerging and developing nations on matters of common interest, she said.

The ASEM process offers a "great and important forum" at the level of heads of state and government, at which "issues that are of common interest to both Europe and Asia" can be discussed at regular intervals, said Angela Merkel in the German Bundestag.

Strengthening partnership – underpinning international law

The major global challenges can "only be mastered together" said the Chancellor. A "Responsible Partnership for Sustainable Growth and Security" (the motto of the Milan summit) could make valuable contributions here. Angela Merkel cited examples taken from the current global political arena.

Free and safe shipping channels are "really not only regional concerns". The interests of Germany as a trading nation are "directly affected". That is why Germany is working with its partners, said the Chancellor, "to have international arbitration mechanisms used and confidence building measures taken in cases of territorial disputes".

Tackling the Ukraine crisis resolutely

The crisis in Ukraine is a drastic reminder to us in Europe of what happens when international law is violated and thus the international legal order and peace damaged, noted the Chancellor. The consequences are disastrous, not only for the affected country itself, but well beyond the borders of that state. "The international community must act resolutely," urged Angela Merkel.

She announced that she would be meeting the Ukrainian President Petro Poroshenko and the Russian President Vladimir Putin on the sidelines of the ASEM summit. The situation in Ukraine remains extremely difficult in spite of the ceasefire, she added. Every day reports are received of fighting and victims; more than 300 lives have been lost since the ceasefire came into effect.

Russia called on to make a substantial contribution

It is Russia that must make the crucial contribution to de-escalating the situation. "One point of paramount importance is the complete implementation of September’s Minsk Protocol," said the Chancellor. There must also be a withdrawal of Russian weapons and effective border controls under the aegis of the OSCE, and municipal elections must be held in eastern Ukraine "under Ukrainian law". "It is precisely these points that we will be raising".

She will "continue to ensure that there can be no doubt" that the violation of the territorial integrity of Ukraine and the breach of international law in an immediate neighbour of Germany, "must have consequences," stressed Angela Merkel. Sanctions are thus not an end in themselves, but "an important part of our approach to resolving the conflict in Ukraine".

"We continue to seek dialogue with Russia." Sanctions, she said, do not preclude dialogue, "to ensure that the law prevails."

Taking joint action to fight IS terrorism

The terrorist organisation IS poses "an entirely new scale of threat" to the Middle East, noted the Chancellor "Indeed, it is a threat to the entire free world." It must then be seen as a worldwide common challenge, "which we must face".

The Chancellor proposed cooperation between Europe and Asia to prevent potential Jihadists travelling. Dialogue is also needed on ways of effectively countering radicalisation within societies, she added.

More effectively stemming the Ebola epidemic

This "dreadful scourge" of the countries of West Africa "can only be stemmed in our globalised world today with significantly closer international cooperation and significantly more effective structures" than those currently available. The Chancellor warned that "Ebola and comparable epidemics do not stop at national borders. They concern us all."

Expectations of Europe

These examples, Angela Merkel continued, demonstrate "just how important a responsible partnership in the world is". In contacts with partner countries, she sees how high expectations of Europe are, "expectations that we will speak out, make ourselves heard and support others".

"This makes it all the more important that we in Europe constantly remind ourselves that only a unified strong Europe can successfully defend its own interests and values in the world," stressed the Chancellor. One major precondition is still "that Europe emerges stronger from the sovereign debt crisis than it was before".

Overcoming the crisis sustainably

With a view to the new leaders in Brussels, Angela Merkel expressed her expectation, that the European level does not feel itself to be responsible for everything. It should focus on the important issues. A good basis is provided by the strategic agenda for the next five years adopted by the heads of state and government in June.

At the European Council meeting on 23 and 24 October 2014 the spotlight will be on "ways of further strengthening competitiveness, growth and employment in Europe, specifically and sustainably".

Respecting the provisions of the Stability and Growth Pact

Angela Merkel declared herself delighted to see initial successes. "In the countries worst hit by the crisis, productivity is rising, balances of payments have improved, and budget deficits are falling". Ireland, Portugal and Spain have managed to successfully complete their development programmes. Nevertheless, she said, resolute efforts must continue to foster sustainable growth and sound public financial management, and to create jobs.

"I will continue to work for closer and binding coordination of economic policy in Europe," said the Chancellor. "We will need this if we aim to grow consistently and sustainably and to generate jobs inside a common currency area".

At the European Council meeting in June all European heads of state and government reaffirmed their commitment to the provisions of the new stronger Stability and Growth Pact. This is the only way to ensure that the Pact can "play its central part as an anchor of stability and confidence in the euro zone".

Fighting youth unemployment

Youth unemployment "continues to be a major concern". Now it is important to use the available national and European funding as swiftly and effectively as possible so as to fight youth unemployment in Europe. It is also important though to foster labour mobility within the EU. The Chancellor pointed out that growth regions in Europe must be identified, so that training can be provided specifically in these areas.

Taking stock

The Chancellor announced that she would be using the Euro Summit and the European Council meeting next week to take stock. What results have the measures adopted two years ago with respect to the Stability and Growth Pact produced? What decisions must be made for the future?

"We in Germany have demonstrated that growth and investment can be strengthened while remaining on course for consolidation." It is the private sector and businesses that create jobs and generate innovation. "If we want to see growth in Europe we must focus on ways of mobilising private-sector capital, and too little is currently being done here."

Signal for the climate

Other important issues on the agenda of the European Council meeting include climate- and energy-related matters. With a view to the UN Climate Change Conference in 2015 in Paris, we must concentrate on "long-term, secure, affordable and environmentally sound energy supplies, and on ambitious climate targets". The European Council will be looking at concrete targets and parameters for the period up to 2030.

The climate and energy framework of the EU for the period up to 2030 provides for a 40 per cent reduction in emissions of greenhouse gases as compared to the 1990 levels, as well as increasing the percentage of energy generated from renewables by 27 per cent and reducing primary energy consumption by a minimum of 30 per cent. "We want Europe to send a strong signal for the climate."

Reforming European emissions trading

Emissions trading, a central instrument of climate change mitigation in Europe, must contribute to the framework for climate and energy. Redundant certificates should be eliminated, and emissions trading brought back on course. This will make it possible to provide incentives for investment in efficient systems.

The Chancellor expects difficult negotiations within the EU. All member states must do their bit. Germany is willing to help but cannot bear an undue burden, she declared.