SPEECH-13-684_EN

8/13/2019 SPEECH-13-684_EN

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EUROPEAN COMMISSION

José Manuel Durão BarrosoPresident of the European Commission

State of the Union address 2!"

European Parliament plenary session/Strasbourg!! Se#te$%er 2!"

SPEEC&'!"'()*

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Mr. President,

Presidency of the Council,

Honourable Members,

Ladies and gentlemen,

In months! time, "oters across Europe #ill $udge #hat #e ha"e achie"ed together inthe last % years.

In these % years, Europe has been more present in the li"es of citi&ens than e"er before.

Europe has been discussed in the coffee houses and popular tal' sho#s all o"er ourcontinent.

(oday, I #ant to loo' at #hat #e ha"e done together. )t #hat #e ha"e yet to do. )nd I#ant to present #hat I belie"e are the main ideas for a truly European political debate

ahead of ne*t year!s elections.

Honourable Members,

)s #e spea', e*actly % years ago, the +nited States go"ernment too' o"er annie Maeand reddie Mac, bailed out )I-, and Lehman rothers filed for ban'ruptcy protection.

(hese e"ents triggered the global financial crisis. It e"ol"ed into an unprecedentedeconomic crisis. )nd it became a social crisis #ith dramatic conseuences for many of

our citi&ens. (hese e"ents ha"e aggra"ated the debt problem that still distresses ourgo"ernments. (hey ha"e led to an alarming increase in unemployment, especiallyamongst young people. )nd they are still holding bac' our households and ourcompanies.

ut Europe has fought bac'. In those % years, #e ha"e gi"en a determined response.0e suffered the crisis together. 0e realised #e had to fight it together. )nd #e did, and#e are doing it.

If #e loo' bac' and thin' about #hat #e ha"e done together to unite Europe throughout

the crisis, I thin' it is fair to say that #e #ould ne"er ha"e thought all of this possible %years ago.

0e are fundamentally reforming the financial sector so that people!s sa"ings are safe.

0e ha"e impro"ed the #ay go"ernments #or' together, ho# they return to sound publicfinances and modernise their economies.

0e ha"e mobilised o"er 122 billion euro to pull crisis3struc' countries bac' from the

brin', the biggest effort e"er in stabilisation bet#een countries.

I still "i"idly remember my meeting last year #ith chief economists of many of ourleading ban's. Most of them #ere e*pecting -reece to lea"e the euro. )ll of them fearedthe disintegration of the euro area. 4o#, #e can gi"e a clear reply to those fears5 no one

has left or has been forced to lea"e the euro. (his year, the European +nion enlargedfrom 61 to 6 member states. 4e*t year the euro area #ill gro# from 71 to 7.

0hat matters no# is #hat #e ma'e of this progress. Do we talk it up, or talk it down?

Do we draw confidence from it to pursue what we have started, or do we belittle theresults of our efforts?

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Honourable members,

I $ust came bac' from the -62 in Saint Petersburg. I can tell you5 this year, contrary torecent years, #e Europeans did not recei"e any lessons from other parts of the #orld on

ho# to address the crisis. 0e recei"ed appreciation and encouragement.

4ot because the crisis is o"er, because it is not o"er. (he resilience of our +nion #illcontinue to be tested. ut #hat #e are doing creates the confidence that #e areo"ercoming the crisis 8 pro"ided #e are not complacent.

0e are tac'ling our challenges together.

0e ha"e to tac'le them together.

In our #orld of geo3economic and geopolitical tectonic changes, I belie"e that onlytogether, as the European +nion, #e can gi"e our citi&ens #hat they aspire5 that our"alues, our interests, our prosperity are protected and promoted in the age ofglobalisation.

So no# is the time to rise abo"e purely national issues and parochial interests and toha"e real progress for Europe. (o bring a truly European perspecti"e to the debate #ithnational constituencies.

4o# is the time for all those #ho care about Europe, #hate"er their political or

ideological position, #here"er they come from, to spea' up for Europe.

If #e oursel"es don!t do it, #e cannot e*pect others to do it either.

Honourable Members,

0e ha"e come a long #ay since the start of the crisis.

In last year!s State of the +nion speech, I stated that 'despite all [our] efforts, ourresponses have not yet convinced citizens, markets or our international partners' .

9ne year on, the facts tell us that our efforts ha"e started to con"ince. 9"erall spreadsare coming do#n. (he most "ulnerable countries are paying less to borro#. Industrialoutput is increasing. Mar'et trust is returning. Stoc' mar'ets are performing #ell. (hebusiness outloo' is steadily impro"ing. Consumer confidence is sharply rising.

0e see that the countries #ho are most "ulnerable to the crisis and are no# doing mostto reform their economies, are starting to note positi"e results.

In Spain, as a signal of the "ery important reforms and increased competiti"eness,e*ports of goods and ser"ices no# ma'e up ::; of -<P, more than e"er since the

introduction of the euro. Ireland has been able to dra# money from capital mar'etssince the summer of 6276, the economy is e*pected to gro# for a third consecuti"e year

in 627: and Irish manufacturing companies are re3hiring staff.

In Portugal, the e*ternal current account, #hich #as structurally negati"e, is no#

e*pected to be broadly balanced, and gro#th is pic'ing up after many uarters in thered. -reece has completed, $ust in : years, a truly remar'able fiscal ad$ustment, is

regaining competiti"eness and is nearing for the first time in decades a primary

surplus. )nd Cyprus, that has started the programme later, is also implementing it asscheduled, #hich is the pre3condition for a return to gro#th.

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or Europe, reco"ery is #ithin sight.

9f course, #e need to be "igilant. 'One swallow does not make a summer, nor one fineday'. Let us be realistic in the analysis. Let us not o"erestimate, but let!s also notunderestimate #hat has been done. E"en one fine uarter doesn!t mean #e are out ofthe economic hea"y #eather. ut it does pro"e #e are on the right trac'. 9n the basis ofthe figures and e"olutions as #e no# see them, #e ha"e good reason to be confident.

(his should push us to 'eep up our efforts. 0e o#e it to those for #hom the reco"ery isnot yet #ithin reach, to those #ho do not yet profit from positi"e de"elopments. 0e o#eit to our 6= million unemployed. Especially to the young people #ho are loo'ing to us togi"e them hope. Hope and confidence are also part of the economic euation.

Honourable members,

If #e are #here #e are today, it is because #e ha"e sho#n the resol"e to adapt both ourpolitics and our policies to the lessons dra#n from the crisis.

)nd #hen I say !#e!, I really mean5 !#e!5 it has really been a $oint effort.

)t each and e"ery step, you, the European Parliament, you ha"e played a decisi"e rolethrough one of the most impressi"e records of legislati"e #or' e"er. I personally belie"e

this is not sufficiently 'no#n by the citi&ens of Europe, and you deser"e more credit andrecognition for this.

So let us continue to #or' together to reform our economies, for gro#th and $obs, and

to adapt our institutional architecture. 9nly if #e do so, #e #ill lea"e this phase of thecrisis behind us as #ell.

(here is a lot #e can still deli"er together, in this Parliament!s and this Commission!smandate.

0hat #e can and must do, first and foremost, let!s be concrete is deli"ering the ban'ingunion. It is the first and most urgent phase on the #ay to deepen our economic andmonetary union, as mapped out in the Commission!s lueprint presented last autumn.

(he legislati"e process on the Single Super"isory Mechanism is almost completed. (hene*t step is the ECs independent "aluation of ban's assets, before it ta'es up its

super"isory role.

9ur attention no# must urgently turn to the Single >esolution Mechanism. (heCommission!s proposal is on the table since ?uly and, together, #e must do thenecessary to ha"e it adopted still during this term.

It is the #ay to ensure that ta*payers are no longer the ones in the front line for payingthe price of ban' failure. It is the #ay to ma'e progress in decoupling ban' fromso"ereign ris'.

It is the #ay to remedy one of the most alarming and unacceptable results of the crisis5increased fragmentation of Europe!s financial sector and credit mar'ets 3 e"en animplicit re3nationalisation.

)nd it is also the #ay to help restoring normal lending to the economy, notably to SMEs.ecause in spite of the accommodating monetary policy, credit is not yet sufficiently

flo#ing to the economy across the euro area. (his needs to be addressed resolutely.

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+ltimately, this is about one thing5 gro#th, #hich is necessary to remedy todayAs most

pressing problem5 unemployment. (he current le"el of unemployment is economicallyunsustainable, politically untenable, socially unacceptable. So all of us here in theCommission 8 and I!m happy to ha"e all my Commissioners today here #ith me 3 all of

us #ant to #or' intensi"ely #ith you, and #ith the member states, to deli"er as much ofour gro#th agenda as #e possibly can, #e are mobili&ing all instruments, but of course

#e ha"e to be honest, not all are at European le"el, some are at national le"el. I #ant tofocus on implementation of the decisions on youth employment and financing of the realeconomy. 0e need to a"oid a $obless reco"ery.

Europe therefore must speed up the pace of structural reforms. 9ur Country Specific

>ecommendations set out #hat the member states must do in this respect.

)t E+ le"el 3 because there is #hat can be done at national le"el and #hat can be done

at European le"el 3, the focus should be on #hat matters most for the real economy5e*ploiting the full potential of the single mar'et comes first.

0e ha"e a #ell3functioning single mar'et for goods, and #e see the economic benefits ofthat. 0e need to e*tend the same formula to other areas5 mobility, communications,energy, finance and e3commerce, to name but a fe#. 0e ha"e to remo"e the obstaclesthat hold bac' dynamic companies and people. 0e ha"e to complete connecting Europe.

I!d li'e to announce that, today, #e #ill formally adopt a proposal that gi"es a pushto#ards a single mar'et for telecoms. Citi&ens 'no# that Europe has dramaticallybrought do#n their costs for roaming. 9ur proposal #ill strengthen guarantees and lo#erprices for consumers, and present ne# opportunities for companies. 0e 'no# that in thefuture, trade #ill be more and more digital. Isn!t it a parado* that #e ha"e an internalmar'et for goods but #hen it comes to digital mar'et #e ha"e 6 national mar'etsB Ho#

can #e grab all the opportunities of the future that are opened by the digital economy if#e don!t conclude this internal mar'etB

(he same logic applies to the broader digital agenda5 it sol"es real problems andimpro"es daily life for citi&ens. (he strength of Europe!s future industrial base dependson ho# #ell people and businesses are interconnected. )nd by properly combining thedigital agenda #ith data protection and the defence of pri"acy, our European model

strengthens the trust of the citi&ens. oth #ith respect to internal and e*ternalde"elopments, adopting the proposed legislation on data protection is of utmost

importance to the European Commission.

(he single mar'et is a 'ey le"er for competiti"eness and employment. )dopting allremaining proposals under the Single Mar'et )ct I and II, and implementing the

Connecting Europe acility in the ne*t fe# months, #e lay the foundations for prosperityin the years to come.

0e are also adapting to a dynamic transformation on a global scale, so #e mustencourage this inno"ati"e dynamism at a European scale. (hat is #hy #e must alsoin"est more in inno"ation, in technology and the role of science. I ha"e great faith inscience, in the capacity of the human mind and a creati"e society to sol"e its problems.(he #orld is changing dramatically. )nd I belie"e many of the solutions are going to

come, in Europe and outside Europe, from ne# science studies, from ne# technologies.)nd I #ould li'e Europe to be leading that effort globally. (his is #hy #e 3 Parliament

and Commission 3 ha"e made such a priority of Hori&on 6262 in the discussions on theE+ budget.

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(hat is #hy #e use the E+ budget to in"est in s'ills, education and "ocational training,

dynamising and supporting talent. (hat is #hy #e ha"e pushed for Erasmus Plus.)nd that is #hy, later this autumn, #e #ill ma'e further proposals for an industrial policyfit for the 67st century. 0hy #e mobili&e support for SMEs because #e belie"e a strongdynamic industrial base is indispensable for a strong European economy.

)nd #hilst fighting climate change, our 62362362 goals ha"e set our economy on the

path to green gro#th and resource efficiency, reducing costs and creating $obs.

y the end of this year, #e #ill come out #ith concrete proposals for our energy andclimate frame#or' up to 62:2. )nd #e #ill continue to shape the international agendaby fleshing out a comprehensi"e, legally binding global climate agreement by 627%, #ith

our partners. Europe alone cannot do all the fight for climate change. ran'ly, #e needthe others also on board. )t the same time, #e #ill pursue our #or' on the impact of

energy prices on competiti"eness and on social cohesion.

)ll these dri"ers for gro#th are part of our !Europe 6262! agenda, and fully and s#iftly

implementing it is more urgent than e"er. In certain cases, #e need to go beyond the6262 agenda.

(his means #e must also pursue our acti"e and asserti"e trade agenda. It is aboutlin'ing us closer to gro#ing third mar'ets and guaranteeing our place in the globalsupply chain. Contrary to perception, #here most of our citi&ens thin' #e are losing inglobal trade, #e ha"e a significant and increasing trade surplus of more than :22 billion

euro a year, goods, ser"ices, and agriculture. 0e need to build on that. (his too #illdemand our full attention in the months to come, notably #ith the ransatlantic radeand !nvestment "artnership #ith the +S and the negotiations #ith Canada and ?apan.

)nd last but not least, #e need to step up our game in implementing the Multiannualinancial rame#or', the European budget. (he E+ budget is the most concrete le"er #eha"e at hand to boost in"estments. In some of our regions, the European +nion budget

is the only #ay to get public in"estment because they don!t ha"e the sources at nationalle"el.

oth the European Parliament and the Commission #anted more resources. 0e ha"ebeen in that fight together. ut e"en so, one single year!s E+ budget represents moremoney 3 in today!s prices 3 than the #hole Marshall plan in its time Let us no# ma'esure that the programmes can start on the 7st of ?anuary 627@. (hat the results are

being felt on the ground. )nd that #e use the possibilities of inno"ati"e financing, frominstruments that ha"e already started, to EI money, to pro$ect bonds.

0e ha"e to ma'e good on the commitment #e ha"e made in ?uly. rom theCommission!s side, #e #ill deli"er. 0e #ill, for e*ample, present the second amending

budget for 627: still this month. (here is no time to #aste, so I #arn against holding itup. In particular, I urge member states not to delay.

I cannot emphasise this enough5 citi&ens #ill not be con"inced #ith rhetoric andpromises only, but only #ith a concrete set of common achie"ements. 0e ha"e to sho#the many areas #here Europe has sol"ed problems for citi&ens. Europe is not the causeof problems, Europe is part of the solution.

I address #hat #e ha"e to do still more e*tensi"ely in today!s letter to the President ofthe European Parliament, #hich you #ill also ha"e recei"ed. I #ill not go no# in detailregarding the programme for ne*t year.

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My point today is clear5 together, there is a lot still to achie"e before the elections. It is

not the time to thro#n in the to#el, it is time to roll up our slee"es.

Honourable Members,

4one of this is easy. (hese are challenging times, a real stress test for the E+. (he path

of permanent and profound reform is as demanding as it is una"oidable. Let!s ma'e nomista'e5 there is no #ay bac' to business as usual. Some people belie"e that after this

e"erything #ill come bac' as it #as before. (hey are #rong, (his crisis is different. (hisis not a cyclical crisis, but a structural one. 0e #ill not come bac' to the old normal. 0eha"e to shape a ne# normal. 0e are in a transformati"e period of history. 0e ha"e to

understand that, and not $ust say it. ut #e ha"e to dra# all the conseuences fromthat, including in our state of mind, and ho# #e react to the problems.

0e see from the first results that it is possible.

)nd #e all 'no# from e*perience that it is necessary.

)t this point in time, #ith a fragile reco"ery, the biggest do#nside ris' I see is political5lac' of stability and lac' of determination. 9"er the last years #e ha"e seen thatanything that casts doubt on go"ernments! commitment to reform is instantly punished.9n the positi"e side, strong and con"incing decisions ha"e an important and immediateimpact.

In this phase of the crisis, go"ernments! $ob is to pro"ide the certainty and predictabilitythat mar'ets still lac'.

Surely, you all 'no# ?ustus Lipsius. ?ustus Lipsius is the name of the Council building inrussels. ?ustus Lipsius #as a "ery influential 7=th century humanist scholar, #ho #rote

a "ery important boo' called De #onstantia.

$e wrote, '#onstancy is a ri%ht and immovable stren%th of the mind, neither lifted upnor pressed down with e&ternal or casual accidents.' 9nly a 'stren%th of the mind', heargued, based on 'ud%ment and sound reason', can help you through confusing and

alarming times.

I hope that in these times, these difficult times, all of us, including the go"ernments!representati"es that meet at the ?ustus Lipsius building, sho# that determination, thatperse"erance, #hen it comes to the implementation of the decisions ta'en. ecause one

of the issues that #e ha"e is to be coherent, not $ust ta'e decisions, but after#ards beable to implement them on the ground.

Honourable members,

It is only natural that, o"er the last fe# years, our efforts to o"ercome the economiccrisis ha"e o"ershado#ed e"erything else.

ut our idea of Europe needs to go far beyond the economy. 0e are much more than a

mar'et. (he European ideal touches the "ery foundations of European society. It isabout "alues, and I underline this #ord5 "alues. It is based on a firm belief in political,

social and economic standards, grounded in our social mar'et economy.

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In today!s #orld, the E+ le"el is indispensable to protect these "alues and standards and

promote citi&ens! rights5 from consumer protection to labour rights, from #omen!s rightsto respect for minorities, from en"ironmental standards to data protection and pri"acy.

0hether defending our interests in international trade, securing our energy pro"ision, orrestoring people!s sense of fairness by fighting ta* fraud and ta* e"asion5 only by actingas a +nion do #e pull our #eight at the #orld stage.

0hether see'ing impact for the de"elopment and humanitarian aid #e gi"e tode"eloping countries, managing our common e*ternal borders or see'ing to de"elop inEurope a strong security and defense policy5 only by integrating more can #e reallyreach our ob$ecti"es.

(here is no doubt about it. 9ur internal coherence and international rele"ance areine*tricably lin'ed. 9ur economic attraction and political traction are fundamentallyent#ined.

<oes anyone seriously belie"e that, if the euro had collapsed, #e or our Member States#ould still ha"e any credibility left internationallyB

<oes e"eryone still realise ho# enlargement has been a success in terms of healinghistory!s deep scars, establishing democracies #here no one had thought it possibleB

Ho# neighbourhood policy #as and still is the best #ay to pro"ide security andprosperity in regions of "ital importance for EuropeB 0here #ould #e be #ithout all ofthisB

(oday, countries li'e +'raine are more than e"er see'ing closer ties to the European

+nion, attracted by our economic and social model. 0e cannot turn our bac' on them.0e cannot accept any attempts to limit these countries o#n so"ereign choices. ree #ill

and free consent need to be respected. (hese are also the principles that lie at the basisof our Eastern Partnership, #hich #e #ant to ta'e for#ard at our summit in Dilnius.

)nd does e"eryone still remember $ust ho# much Europe has suffered from its #arsduring the last century, and ho# European integration #as the "alid ans#erB

4e*t year, it #ill be one century after the start of the irst 0orld 0ar. ) #ar that toreEurope apart, from Sara$e"o to the Somme. 0e must ne"er ta'e peace for granted. 0eneed to recall that it is because of Europe that former enemies no# sit around the sametable and #or' together. It is only because they #ere offered a European perspecti"e

that no# e"en Serbia and oso"o come to an agreement, under mediation of the E+.

Last year!s 4obel Peace Pri&e reminded us of that historic achie"ement5 that Europe is apro$ect of peace.

0e should be more a#are of it oursel"es. Sometimes I thin' #e should not be ashamed

to be proud. 4ot arrogant. ut more proud. 0e should loo' to#ards the future, but #itha #isdom #e gained from the past.

Let me say this to all those #ho re$oice in Europe!s difficulties and #ho #ant to roll bac'our integration and go bac' to isolation5 the pre3integrated Europe of the di"isions, the

#ar, the trenches, is not #hat people desire and deser"e. (he European continent hasne"er in its history 'no#n such a long period of peace as since the creation of theEuropean Community. It is our duty to preser"e it and deepen it.

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Honourable members,

It is precisely #ith our "alues that #e address the unbearable situation in Syria, #hichhas tested, o"er the last months, the #orld!s conscience so se"erely. (he European

+nion has led the international aid response by mobilising close to 7.% billion euros, of#hich F%2 million comes directly from the E+ budget. (he Commission #ill do its

utmost to help the Syrian people and refugees in neighbouring countries.

0e ha"e recently #itnessed e"ents #e thought had long been eradicated. (he use ofchemical #eapons is a horrendous act that deser"es a clear condemnation and a strongans#er. (he international community, #ith the +4 at its centre, carries a collecti"e

responsibility to sanction these acts and to put an end to this conflict. (he proposal toput Syria!s chemical #eapons beyond use is potentially a positi"e de"elopment. (he

Syrian regime must no# demonstrate that it #ill implement this #ithout any delay. InEurope, #e belie"e that, ultimately, only a political solution stands a chance of deli"eringthe lasting peace that the Syrian people deser"e.

Honourable members,

(here are those #ho claim that a #ea'er Europe #ould ma'e their country stronger,that Europe is a burdenG that they #ould be better off #ithout it.

My reply is clear5 #e all need a Europe that is united, strong and open.

In the debate that is ongoing all across Europe, the bottom3line uestion is5 Do we wantto improve (urope, or %ive it up?

My ans#er is clear5 let!s engage

If you don!t li'e Europe as it is5 impro"e it

ind #ays to ma'e it stronger, internally and internationally, and you #ill ha"e in me the

firmest of supporters. ind #ays that allo# for di"ersity #ithout creating discriminations,and I #ill be #ith you all the #ay.

ut don!t turn a#ay from it.

I recogni&e5 as any human endea"or, the E+ is not perfect.

or e*ample, contro"ersies about the di"ision of labour bet#een the national andEuropean le"els #ill ne"er be conclusi"ely ended.

I "alue subsidiarity highly. or me, subsidiarity is not a technical concept. It is afundamental democratic principle. )n e"er closer union among the citi&ens of Europedemands that decisions are ta'en as openly as possible and as closely to the people aspossible.

4ot e"erything needs a solution at European le"el. Europe must focus on #here it canadd most "alue. 0here this is not the case, it should not meddle. (he E+ needs to bebi% on bi% thin%s and smaller on smaller thin%s 3 something #e may occasionally ha"eneglected in the past. (he E+ needs to sho# it has the capacity to set both positi"e andnegati"e priorities. )s all go"ernments, #e need to ta'e e*tra care of the uality anduantity of our regulation 'no#ing that, as Montesuieu said, !les lois inutiles

affaiblissent les lois n)cessaires'. ['*seless laws weaken the necessary ones'.]

ut there are, honourable members, areas of ma$or importance #here Europe mustha"e more integration, more unity. 0here only a strong Europe can deli"er results.

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I belie"e a political union needs to be our political hori&on, as I stressed in last year!s

State of the +nion. (his is not $ust the demand of a passionate European. (his is theindispensable #ay for#ard to consolidate our progress and ensure the future.

+ltimately, the solidity of our policies, namely of the economic and monetary union,depend on the credibility of the political and institutional construct that supports it.

So #e ha"e mapped out, in the Commission +lueprint for a deep and %enuine (conomicand onetary *nion, not only the economic and monetary features, but also thenecessities, possibilities and limits of deepening our institutional set3up in the mediumand long term. (he Commission #ill continue to #or' for the implementation of itslueprint, step by step, one phase after the other.

)nd I confirm, as announced last year, the intention to present, before the Europeanelections, further ideas on the future of our +nion and ho# best to consolidate and

deepen the community method and community approach in the longer term. (hat #ay,they can be sub$ect to a real European debate. (hey #ill set out the principles andorientations that are necessary for a true political union.

Honourable Members,

0e can only meet the challenges of our time if #e strengthen the consensus onfundamental ob$ecti"es.

Politically, #e must not be di"ided by differences bet#een the euro area and thoseoutside it, bet#een the centre and the periphery, bet#een the 4orth and the South,

bet#een East and 0est. (he European +nion must remain a pro$ect for all members, acommunity of euals.

Economically, Europe has al#ays been a #ay to close gaps bet#een countries, regionsand people. )nd that must remain so. 0e cannot do member states! #or' for them. (heresponsibility remains theirs. ut #e can and must complement it #ith Europeanresponsibility and European solidarity.

or that reason, strengthening the social dimension is a priority for the months to come,together #ith our social partners. (he Commission #ill come #ith its communication on

the social dimension of the economic and monetary union on the 6nd of 9ctober.Solidarity is a 'ey element of #hat being part of Europe is all about, and something tota'e pride in.

Safeguarding its "alues, such as the rule of la#, is #hat the European +nion #as made

to do, from its inception to the latest chapters in enlargement.

In last year!s State of the +nion speech, at a moment of challenges to the rule of la# inour o#n member states, I addressed the need to ma'e a bridge bet#een politicalpersuasion and targeted infringement procedures on the one hand, and #hat I call the

nuclear option of )rticle 1 of the (reaty, namely suspension of a member states! rights.

E*perience has confirmed the usefulness of the Commission role as an independent andob$ecti"e referee. 0e should consolidate this e*perience through a more generalframe#or'. It should be based on the principle of euality bet#een member states,acti"ated only in situations #here there is a serious, systemic ris' to the rule of la#, andtriggered by pre3defined benchmar's.

(he Commission #ill come for#ard #ith a communication on this. I belie"e it is a debatethat is 'ey to our idea of Europe.

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(his does not mean that national so"ereignty or democracy are constrained. ut #e do

need a robust European mechanism to influence the euation #hen basic commonprinciples are at sta'e.

(here are certain non3negotiable "alues that the E+ and its member states must andshall al#ays defend.

Honourable Members,

(he polarisation that resulted from the crisis poses a ris' to us all, to the pro$ect, to theEuropean pro$ect.

0e, legitimate political representati"es of the European +nion, can turn the tide. ou,the democratic representati"es of Europe, directly elected, #ill be at the forefront of thepolitical debate. (he uestion I #ant to pose is5 #hich picture of Europe #ill "oters bepresented #ithB (he candid "ersion, or the cartoon "ersionB (he myths or the factsB (hehonest, reasonable "ersion, or the e*tremist, populist "ersionB It!s an importantdifference.

I 'no# some people out there #ill say Europe is to blame for the crisis and the hardship.

ut #e can remind people that Europe #as not at the origin of this crisis. It resulted

from mismanagement of public finances by national go"ernments and irresponsiblebeha"iour in financial mar'ets.

0e can e*plain ho# Europe has #or'ed to fi* the crisis. 0hat #e #ould ha"e lost if #e

hadn!t succeeded in upholding the single mar'et, because it #as under threat, and thecommon currency, because some people predicted the end of the euro. If #e hadn!tcoordinated reco"ery efforts and employment initiati"es.

Some people #ill say that Europe is forcing go"ernments to cut spending.

ut #e can remind "oters that go"ernment debt got #ay out of hand e"en before thecrisis, not because of but despite Europe. 0e can add that the most "ulnerable in oursocieties, and our children, #ould end up paying the price if #e don!t perse"ere no#.)nd the truth is that countries inside the euro or outside the euro, in Europe or outsideEurope, they are ma'ing efforts to curb their "ery burdened public finances.

Some #ill campaign saying that #e ha"e gi"en too much money to "ulnerable countries.9thers #ill say #e ha"e gi"en too little money to "ulnerable countries.

ut e"ery one of us can e*plain #hat #e did and #hy5 there is a direct lin' bet#een onecountry!s loans and another country!s ban's, bet#een one country!s in"estments and

another country!s businesses, bet#een one country!s #or'ers and another country!scompanies. (his 'ind of interdependence means only European solutions #or'.

0hat I tell people is5 #hen you are in the same boat, one cannot say - 'your end of theboat is sinkin%.' 0e #ere in the same boat #hen things #ent #ell, and #e are in it

together #hen things are difficult.

Some people might campaign saying5 Europe has grabbed too much po#er. 9thers #illclaim Europe al#ays does too little, too late. (he interesting things is that sometimes #eha"e the same people saying that Europe is not doing enough and at the same timethat!s not gi"ing more means to Europe to do #hat Europe has to do.

ut #e can e*plain that member states ha"e entrusted Europe #ith tas's andcompetences. (he European +nion is not a foreign po#er. It is the result of democraticdecisions by the European institutions and by member states.

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)t the same time #e must ac'no#ledge that, in some areas, Europe still lac's the po#er

to do #hat is as'ed of it. ) fact that is all too easily forgotten by those, and there aremany out there, #ho al#ays li'e to nationalise success and Europeanise failure.+ltimately, #hat #e ha"e, and #hat #e don!t ha"e, is the result of democratic decision3

ma'ing. )nd I thin' #e should remind people of that.

Ladies and gentlemen,

Mr President,

Honourable members,

I hope the European Parliament #ill ta'e up this challenge #ith all the idealism it holds,#ith as much realism and determination as the times demand of us.

(he arguments are there.

(he facts are there.

(he agenda has been set out.

In months! time, "oters #ill decide.

4o#, it!s up to us to ma'e the case for Europe.

0e can do so by using the ne*t months to conclude as much as #e can. 0e ha"e a lotto do still.

)dopt and implement the European budget, the M. (his is critical for in"estment in our

regions all o"er Europe. (his is indispensable for the first priority #e ha"e5 to fightagainst unemployment, notably youth unemployment.

)d"ance and implement the ban'ing union. (his is critical to address the problem offinancing for businesses and SMEs.

(hese are our clear priorities5 employment and gro#th.

9ur $ob is not finished. It is in its decisi"e phase.

ecause, Honourable Members, the elections #ill not only be about the European

Parliament, nor #ill they be about the European Commission or about the Council orabout this or that personality.

(hey #ill be about Europe.

0e #ill be $udged together.

So let us #or' together 3 for Europe.

0ith passion and #ith determination.

Let us not forget5 one hundred years ago 8Europe #as sleep#al'ing into the catastrophyof the #ar of 77@.

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4e*t year, in 627@, I hope Europe #ill be #al'ing out of the crisis to#ards a Europe that

is more united, stronger and open.

(han' you for your attention.

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