Mastering crises in line with the European spirit

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Government statement Mastering crises in line with the European spirit

Before leaving Germany for the European Council meeting, the Chancellor praised the achievements of European budgetary policy. Structural reforms have been successful, said Angela Merkel in the German Bundestag.

7 min reading time

Chancellor Angela Merkel speaks in the German Bundestag.

Bringing together the people of Europe in friendship and peace

Photo: Bundesregierung/Bergmann

One year after the Russian annexation of Crimea, Europe is still speaking with one voice on foreign policy.

In the German Bundestag Chancellor Angela Merkel pointed to the economic achievements of the last few years. In Spain and Ireland, unemployment has dropped by two percentage points over the last year. "The successes chalked up by Ireland and Spain are only two examples of what can be achieved if individual countries take resolute action with the solidarity and support of Europe," said Angela Merkel.

We must continue on this successful course, with pro-growth consolidation, structural reforms and investment to support growth and employment, she said. The European Fund for Strategic Investments will make an important contribution in this context, she added. "I would like to see the negotiations finalised swiftly so that the fund can begin work by the middle of this year as planned."

As G7 President, Germany will also be making clear to international non-European partners the importance of sustainable budgetary policy, comprehensive structural reforms and targeted investments, in order to strengthen global growth.

On 19 and 20 March the EU heads of state and government are in Brussels for a European Council meeting. The Energy Union and economic matters are on the agenda, along with the conflict in Ukraine, the coming Eastern Partnership summit and the situation in Libya. On the sidelines of the meeting, the heads of the European institutions, the Chancellor and the French President will be discussing the ongoing financial crisis in Greece with the country’s Prime Minister.

Pushing ahead determinedly with TTIP

We must push ahead determinedly with TTIP, the planned free trade agreement between the European Union and the USA, said the Chancellor. It offers great opportunities and is vital for growth in Europe and to underpin the innovation capacities and competitiveness of businesses. As the Chancellor said, "Without customs duties and unnecessary red tape it will be much easier for our businesses to tap the enormous potential offered by the American market."

Germany’s economic relations with the United States of America are strong and are becoming increasingly important to ensure continued prosperity. Last year alone Germany’s exports to the USA increased by a good seven per cent.

Last December the EU heads of state and government agreed to finalise TTIP this year. "We should do all we can to achieve this goal," declared Angela Merkel.

Secure energy supplies for Europe

Another matter to be discussed by the European Council is the creation of a European Energy Union. In this context the Chancellor stressed the fact that, "The need to ensure a secure, affordable, environmentally sound, competitive energy supply is at the heart of the idea of an Energy Union." The focus must be on strengthening the single internal energy market and realising the climate and energy targets set for 2030.

One central aspect of the Energy Union will be ensuring secure and reliable supplies. This is an aspect we have become more aware of as a result of developments in Ukraine. Energy supplies must be put on a secure footing for the long term in all member states over the next few years – this will entail new efforts, announced Angela Merkel. Key elements include the further development of renewables, the need to enhance energy efficiency, the diversification of energy sources, and a smoothly functioning single internal energy market.

New impetus for climate change mitigation

"It is also important to put in place a credible and reliable framework to ensure that we can in fact achieve the climate and energy targets we have set ourselves for 2030." To this end the European Commission must present a concrete proposal for a reliable governance structure, i.e. clear regulations for realising the targets and sanctions mechanisms to be imposed for non-compliance. This is vitally important in particular because a new worldwide climate agreement is to be concluded at the UN Climate Change Conference in Paris in December, the Chancellor explained.

Angela Merkel announced that Germany would support the French government to the best of its ability to make the Paris Climate Change Conference a success – by providing a strong impetus at the G7 summit and through the Petersberg Climate Dialogue. The EU’s planned emissions reductions are in themselves a strong signal to the international community. "By 2030 we aim to reduce greenhouse gas emissions by a minimum of 40 per cent of the 1990 levels." This is also an incentive to other major economies to present their own ambitious climate targets.

Europe speaks with one voice

The European Council will also be looking at Ukraine, almost one year after the "unconstitutional referendum in Crimea," reported Angela Merkel. She condemned the annexation of Crimea as "an action that violates international law and contravenes the agreements under which Russia undertook to respect the sovereignty and integrity of Ukraine". By annexing Crimea, Russia called into question the very foundations of our European peace order, she said. "And I am delighted that Europe has responded clearly from the outset and continues to do so," stressed Angela Merkel. The EU, she added, has not let itself be divided and has spoken with one European voice, along with its transatlantic partners.

Commenting on the Minsk agreements, Angela Merkel said that even if the ceasefire is still fragile, and the withdrawal of weapons is not yet being adequately monitored, at least "a start has been made". All parties to the conflict must continue along this path until the last step laid out in the Minsk package of measures has been achieved. "And this will be when Ukraine once again takes back control over its own borders from Russia," demanded the Chancellor.

With reference to the sanctions imposed on Russia, the Chancellor announced that she would be working at the European Council meeting to ensure "that the duration of the sanctions are geared to the Minsk package of measures and to compliance with this." There can be no question of lifting the sanctions already in place, "if only the first demands of the Minsk agreements have been met".

Eastern Partnership for a better future

The Eastern Partnership is not directed against Russia, stressed the Chancellor. The Association Agreements with Ukraine, Georgia and Moldova aim to provide European support in the establishment of a properly functioning state based on the rule of law and a successful market economy, so as to give the people in these countries a better future. "The goal is not accession to the European Union or NATO." It is not a question of "either or", it is a question of good relations with both Russia and the EU, which can only benefit all parties.

North Africa – another hot spot

Angela Merkel condemned the terrorist attack in Tunis and called on the Bundestag to remember the victims. Germany, she said, will do all it can to support the country.

She also pointed to the crisis in Libya. The country is teetering on the brink on civil war. The critical situation is impacting massively on the entire region and on Europe. Libya, which is also one of the most important transit countries for refugees from Africa and the Middle East, needs support. Only a government of national unity can lead the country forward to a positive future. Germany is supporting these efforts, said the Chancellor.

The euro is more than just a currency

The Chancellor pointed out that the European Union is a community of peace, stability and liberty. With a view to the situation in Greece, she said, the entire world is currently looking to Europe, "to see how we in the euro zone deal with problems and crisis in individual member states. The world will measure us against this yardstick, and it will respect Europe more if we can demonstrate that we act together and that we can resolve problems together."

In the face of the current sovereign debt crisis in Greece the Chancellor recalled that the solidarity of the EU and the reform efforts that must be made by Greece are two sides of the one coin. "Today it is every bit as clear as it was in 2010, when Greece’s European partners launched the first European bailout programmes which was a huge political and financial tour de force, that only a massive effort of this sort can be successful, only the combination of solidarity and Greece’s own efforts, only when we provide assistance, and this assistance is understood as a commitment."

Nobody, however, should expect a solution to Greece’s problems this evening or on Monday following the Greek Prime Minister’s visit to Berlin, she said.

She also however, stated very plainly, "If the euro fails, Europe fails." The euro is far more than just a currency. Alongside the European institutions, it is "the strongest expression of our will to bring the people of Europe together in friendship and in peace".