state of the union adress barosso

8/13/2019 state of the union adress barosso

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SPEECH/11/607

José Manuel Durão Barroso

President of the European Commission

European renewal – State of the n!on"##ress $011

European Parliament



Stras%our&' $( Septe)%er $011

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Mr President,

Honourable Members,

Minister,

We must be honest and clear in our analysis of the state of the Union.

We are facing the biggest challenge in the history of our Union.

This crisis is financial, economic and social. ut it is also a crisis of confidence. !crisis of confidence in our leaders, in Europe itself, and in our capacity to findsolutions.

The roots of the crisis are "ell#$no"n. Europe has not met the challenges ofcompetiti%eness. &ome of our Member &tates ha%e li%ed beyond their means.&ome beha%iours in the financial mar$ets ha%e been irresponsible andinadmissible. We ha%e allo"ed imbalances bet"een our Member &tates to gro",particularly in the euro area.

Tectonic shifts in the "orld order and the pressures of globalisation, ha%e madematters e%en "orse.

The result is clear' concern in our societies. (ear among our citi)ens for the future. ! gro"ing danger of a retreat into national, not to say nationalist, feeling.

Populist responses are calling into *uestion the ma+or successes of theEuropean Union' the euro, the single mar$et, e%en the free mo%ement of persons.

Today "e can say that the so%ereign debt crisis today is, abo%e all, a crisis ofpolitical confidence. !nd our citi)ens, but also people in the outside "orld, areobser%ing us and "ondering are "e really a Union- o "e really ha%e the "ill tosustain the single currency-

!re the most %ulnerable Member &tates really determined to carry out essentialreforms-

!re the most prosperous Member &tates really ready to sho" solidarity-/s Europe really capable of achie%ing gro"th and creating +obs-

/ assert here today'

0es, the situation is serious. ut there are solutions to the crisis.

Europe has a future, if "e restore confidence.

!nd to restore confidence "e need stability and gro"th. ut also political "ill,political leadership.

Together "e must propose to our citi)ens a European rene"al.

We must translate into deeds "hat "as stated in the erlin eclaration, signed by

the Commission, by Parliament and by the European Council on the occasion ofthe 1th anni%ersary of the signature of the 3ome Treaties. /t "as said then' 4Wirleben heute miteinander, "ie es nie )u%or m5glich "ar. Wir 6rgerinnen und6rger der Europ7ischen Union sind )u unserem 8l6c$ %ereint.9 # 4Today "e li%etogether as "as ne%er possible before. We, the citi)ens of the European Union,ha%e united for the better.9 /t is a declaration. !nd "ords count. This e:pression of"ill must be translated into e%eryday courage.

Wor$ing "ith our institutions, and not "or$ing against them, "e can succeed.

(or some, the main consideration is the need for stability. (or others, it is gro"th.

/ say "e need both.

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&ome preach discipline. <thers, solidarity.

We need both.

The time for piecemeal solutions is o%er. We need to set our minds on globalsolutions. ! greater ambition for Europe.

Today "e are at a turning point in our history. ! moments "hen, if "e do notintegrate further, "e ris$ fragmentation.

/t is therefore a *uestion of political "ill, a test for our "hole generation.

!nd / say to you, yes, it is possible to emerge from this crisis. /t is not only possible,but it is necessary. !nd political leadership is about ma$ing possible that "hich isnecessary.

Honourable members,

=et me start "ith 8reece. 8reece is, and "ill remain, a member of the euro area.8reece must implement its commitments in full and on time. /n turn, the other euroarea members ha%e pledged to support 8reece and each other. !s stated at theeuro area &ummit on 2> ?uly' @We are determined to continue to pro%ide support tocountries under programmes until they ha%e regained mar$et access, pro%ided

they successfully implement those programmes.@

That is "hy / created the Tas$ (orce for 8reece.

We ha%e +ust launched an action plan based on t"o ma+or pillars'

# !round > %iable and high#*uality pro+ects, in%esting in all 8ree$ regions, toma$e the best use of 8reeceAs remaining allocation of the structural funds.

# !nd a ma+or dri%e to reduce bureaucratic procedures for European co#fundedpro+ects.

B >1 billion remain to be spent in 8reece from the structural funds. This "ill supportthe 8ree$ economy "ith an urgent programme of technical assistance to the 8ree$

administration. ! programme of B 1 million Euros to guarantee European /n%estment an$ loansto 8ree$ &MEs is already under "ay. The Commission is also considering a "iderguarantee mechanism to help ban$s lend again to the real economy.

!ll of this represents a huge support to 8reeceAs fight bac$ and 8reece "ill ha%e todeli%er concrete results. /t must brea$ "ith counter producti%e practices and resist%ested interests.

ut "e ha%e to be clear about this. This is not a sprint, but a marathon.

The tas$ of building a Union of stability and responsibility is not only about 8reece.

The economic outloo$ that "e face is %ery difficult. We are confronted "ith the

negati%e effects of an ongoing global re#assessment of ris$s. /t is therefore ourresponsibility to rebuild confidence and trust in the euro and our Union as a "hole.

!nd "e can do this by sho"ing that "e are able to ta$e all the decisions needed torun a common currency and an integrated economy in a competiti%e, inclusi%e andresource#efficient "ay. (or this "e need to act in the short, in the medium and thelong term.

The first step is to *uic$ly fi: the "ay "e respond to the so%ereign debt crisis.

This "ill re*uire stronger mechanisms for crisis resolution. We need crediblefirepo"er and effecti%e fire"alls for the euro.

We ha%e to build on the E(&( and the upcoming European &tability Mechanism.



The E(&( must immediately be made both stronger and more fle:ible. This is "hatthe Commission proposed already in ?anuary. This is "hat Heads of &tate and8o%ernment of the euro area agreed upon on 2> ?uly. <nly then, "hen you ratifythis, "ill the E(&( be able to'

# deploy precautionary inter%entionD

# inter%ene to support the recapitalisation of ban$s,

# inter%ene in the secondary mar$ets to help a%oid contagion

<nce the E(&( is ratified, "e should ma$e the most efficient use of its financialen%elope. The Commission is "or$ing on options to this end.

Moreo%er "e should do e%erything possible to accelerate the entry into force of theE&M.

!nd naturally "e trust that the European Central an$ in full respect of the Treaty "ill do "hate%er is necessary to ensure the integrity of the euro area and toensure its financial stability.

ut "e cannot stop there. We must deepen economic coordination and integration,particularly in the euro area.

This is at least as big a political tas$ as an economic one.

Today, you "ill %ote on the so#called @si:#pac$@ proposals that "e put in front ofyou and the Council one year ago. This @si:#pac$@ reforms the &tability and 8ro"thPact and "idens sur%eillance to macro#economic imbalances. We are no" bac$%ery close to "hat the Commission originally put on the table. 0ou ha%e played adecisi%e role in $eeping the le%el of ambition of these proposals, and / really "antto than$ you and congratulate you for that.

This legislation "ill gi%e us much stronger enforcement mechanisms. We can no"discuss Member &tatesA budgetary plans before national decisions are ta$en. Thismi: of discipline and integration holds the $ey to the future of the euro area. <nly

"ith more integration and discipline "e can ha%e a really credible euro area.Honourable members,

These are indeed important steps for"ard, but "e must go further. We need tocomplete our monetary union "ith an economic union. We need to achie%e thetas$s of Maastricht.

/t "as an illusion to thin$ that "e could ha%e a common currency and a singlemar$et "ith national approaches to economic and budgetary policy. =etAs a%oidanother illusion that "e can ha%e a common currency and a single mar$et "ith anintergo%ernmental approach.

(or the euro area to be credible and this not only the message of the federalists,

this is the message of the mar$ets "e need a truly Community approach. Weneed to really integrate the euro area, "e need to complete the monetary union"ith real economic union. !nd this truly Community approach can be built ho"- /nthe coming "ee$s, the Commission "ill build on the si:#pac$ and present aproposal for a single, coherent frame"or$ to deepen economic coordination andintegration, particularly in the euro area. This "ill be done in a "ay that ensures thecompatibility bet"een the euro area and the Union as a "hole. We do not "ant theeuro area to brea$ of course the great acquis of the single mar$et and all our fourfreedoms.

!t the same time, "e can pool decision ma$ing to enhance our competiti%eness.This could be done by integrating the Euro Plus Pact into this frame"or$, in fullrespect of the national implementation competences.

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(or all of this to "or$, "e need more than e%er the independent authority of theCommission, to propose and assess the actions that the Member &tates shouldta$e. 8o%ernments, letAs be fran$, cannot do this by themsel%es. or can this bedone by negotiations bet"een go%ernments.

/ndeed, "ithin the Community competences, the Commission is the economicgo%ernment of the Union, "e certainly do not need more institutions for this.

(or a reason the Treaties ha%e created supra#national institutions. (or a reason theEuropean Commission, the European Central an$, the European Court of ?ustice"ere created. The Commission is the guarantor of fairness. Moreo%er, theCommission, "hich naturally "or$s in partnership "ith the Member &tates, is %otedby and accountable to this House. The directly elected Parliament both of the euroarea and of the European Union as a "hole.

Honourable members,

/t is also time to ha%e unified e:ternal representation of the euro area. /naccordance "ith the Treaty the Commission "ill ma$e proposals for this purpose.

! Union of stability and responsibility built on this basis and "ith common approach"ill also allo" the Member &tates to sei)e fully the ad%antages of a bigger mar$et

for the issuance of so%ereign debt.

<nce the euro area is fully e*uipped "ith the instruments necessary to ensure bothintegration and discipline, the issuance of +oint debt "ill be seen as a natural andad%antageous step for all. <n condition that such Eurobonds "ill be @&tabilityonds@' bonds that are designed in a "ay that re"ards those "ho play by therules, and deters those "ho donAt. !s / already announced to this house, theCommission "ill present options for such @&tability onds@ in the coming "ee$s.

&ome of these options can be implemented "ithin the current Treaty, "hereas fullyfledged AEurobondsA "ould re*uire Treaty change. !nd this is important because,Honourable Members, "e can do a lot "ithin the e:isting Treaty of =isbon. !ndthere is no e:cuse for not doing it, and for not doing it no".

ut it may be necessary to consider further changes to the Treaty.

/ am also thin$ing particularly of the constraint of unanimity. The pace of our +ointendea%our cannot be dictated by the slo"est. !nd today "e ha%e a Union "here itis the slo"est member that dictates the speed of all the other Member &tates. Thisis not credible also from the mar$etsA point of %ie", this is "hy "e need to sol%e thisproblem of decision ma$ing. ! Member &tate has of course the right not to acceptdecisions. That is a *uestion, as they say, of national so%ereignty. ut a Member&tate does not ha%e the right to bloc$ the mo%es of others, the others also ha%etheir national so%ereignty and if they "ant to go further, they should go further.

<ur "illingness to en%isage Treaty change should not be a "ay or an e:cuse to

delay the reforms that are necessary today but / belie%e that this longer termperspecti%e "ill reinforce the credibility of our decisions no".

! Union of stability and responsibility means s"iftly completing the "or$ on a ne"system of regulation for the financial sector. We need "ell#capitalised, responsibleban$s lending to the real economy.

Much has been said about the alleged %ulnerability of some of our ban$s.European ban$s ha%e substantially strengthened their capital positions o%er thepast year. They are no" raising capital to fill the remaining gaps identified by thestress tests in summer. This is necessary to limit the damage to financial mar$etturbulence on the real economy and on +obs.

<%er the last three years, "e ha%e designed a ne" system of financial regulation.

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=etAs remember, "e ha%e already tabled 2G pieces of legislation. 0ou ha%e alreadyadopted se%eral of them, including the creation of independent super%isingauthorities, "hich are already "or$ing. o" it is important to appro%e our proposalsfor ne" rules on'

# deri%ati%esD

# na$ed short selling and credit default s"apsD

# fair remuneration for ban$ers.

These propositions are there, they should be adopted by the Council and by theParliament. The Commission "ill deli%er the remaining proposals by the end of thisyear, namely rules on'

# credit rating agenciesD

# ban$ resolutionD

# personal responsibility of financial operati%es.

&o "e "ill be the first constituency in the 82 to ha%e deli%ered on our commitmentto global efforts for financial regulation.

Honourable members,

/n the last three years, Member &tates # / should say ta:payers # ha%e granted aidand pro%ided guarantees of B .F trillion to the financial sector. /t is time for thefinancial sector to ma$e a contribution bac$ to society. That is "hy / am %ery proudto say that today, the Commission adopted a proposal for the (inancial TransactionTa:. Today / am putting before you a %ery important te:t that if implemented maygenerate a re%enue of about B 11 billion per year. &ome people "ill as$ @[email protected] /t is a *uestion of fairness. /f our farmers, if our "or$ers, if all the sectors ofthe economy from industry to agriculture to ser%ices, if they all pay a contribution tothe society also the ban$ing sector should ma$e a contribution to the society.

!nd if "e need because "e need fiscal consolidation, if "e need more

re%enues the *uestion is "here these re%enues are coming from. !re "e going tota: labour more- !re "e going to ta: consumption more- / thin$ it is fair to ta:financial acti%ities that in some of our Member &tates do not pay the proportionatecontribution to the society.

/t is not only financial institutions "ho should pay a fair share. We cannot afford toturn a blind eye to ta: e%asion. &o it is time to adopt our proposals on sa%ings ta:"ithin the European Union. !nd / call on the Member &tates to finally gi%e theCommission the mandate "e ha%e as$ed for to negotiate ta: agreements for the"hole European Union "ith third countries.

Honourable members,

&tability and responsibility are not enough on their o"n. We need stability but "ealso need gro"th. We need responsibility but "e also need solidarity.

The economy can only remain strong if it deli%ers gro"th and +obs. ThatAs "hy "emust unleash the energy of our economy, especially the real economy.

The forecasts today point to a strong slo"do"n.

ut significant gro"th in Europe is not an impossible dream. /t "ill not comemagically tomorro". ut "e can create the conditions for gro"th to resume. Weha%e done it before. We must and "e can do it again.

/t is true that "e do not ha%e much room for a ne" fiscal stimulus.

ut that does not mean that "e cannot do more to promote gro"th.



(irst, those "ho ha%e fiscal space a%ailable must e:plore it but in a sustainable"ay.

&econd, all member states need to promote structural reforms so that "e canincrease our competiti%eness in the "orld and promote gro"th.

Together, "e can and must tap the potential of the &ingle Mar$et, e:ploit all thebenefits of trade and mobilise in%estment at the Union le%el.

=et me start "ith the &ingle Mar$et.

(ull implementation of the &er%ices irecti%e alone could, according to ourestimates, deli%er up to B > billion in economic gains.

ut today, t"o years after the deadline for implementation, se%eral Member &tatesha%e still not adopted the necessary la"s.

&o "e are not benefiting from all the possible gains from ha%ing a true ser%icesliberalisation in Europe.

ut "e can also do more.

We must adopt "hat is on the table. We ha%e adopted the &ingle Mar$et !ct in the

European Commission. ! number of $ey initiati%es are ready.We are close to ha%ing a European patent "hich "ould cut the cost of protection to2I of current costs. / e:pect this is to be concluded by the end of this year.

Moreo%er, for the &ingle Mar$et !ct, "e should consider a fast trac$ legislati%eprocedure. y the "ay, in many areas "e should ta$e a fast trac$ legislati%eprocedure because "e are li%ing in real emergency times. This "ill allo" us torespond to these e:traordinary circumstances.

!nd gro"th in the future "ill depend more and more on harnessing informationtechnology. We need a digital single mar$et, "hich "ill benefit each and e%eryEuropean by around B>1 per year by using the possibilities of e#commerce toending, for instance, mobile roaming charges.

!n e:tra > I in broadband penetration "ould bring us bet"een > and >.1 I ofe:tra annual gro"th.

/n a competiti%e "orld "e must be also "ell#educated "ith s$ills to face these ne"challenges. We must inno%ate. !nd "e must act in a sustainable "ay.

We ha%e already presented detailed proposals on inno%ation, resource#efficiencyand ho" "e can strengthen our industrial base.

Modern industrial policy is about in%esting in research and inno%ation.

We need to accelerate the adoption of our efforts to boost the use of %enturecapital to fund young, inno%ati%e companies across Europe.

&ustainable +obs "ill come if "e focus on inno%ation and ne" technologies,including green technologies. We must see that @green@ and gro"th go together.

(or e:ample, the rene"ables sector has already created ;, +obs in past 1years in the European Union. The global green technology mar$et "ill triple o%erthe ne:t decade.

We must focus our action on "here it ma$es a real impact. 8ro"th of the futuremeans "e must acti%ely pursue also our smart regulation agenda, "hich "ill gi%e asa%ing of B ;J billion for European companies, particularly for &MEs. ut Member&tates must also do their part in reducing the administrati%e burden.

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ut "e also need in%estment. These reforms are important but "e also need some$ind of in%estment at European le%el.

! Union of gro"th and solidarity needs modern, interconnected infrastructures.

We ha%e proposed for the ne:t Multi#!nnual (inancial (rame"or$ KM((L to createa facility to connect Europe in energy, in transport, in digital.

This inno%ati%e part of our M(( proposal has to be seen together "ith another %ery

important inno%ati%e idea' the pro+ect bond.

/n the coming "ee$s the Commission "ill publish its proposals for EU pro+ectbonds. We are also proposing pilot pro+ects, so that "e can fund that gro"th. Wecan do it e%en before the M(( is adopted. /n this "ay "e can frontload some of thema+or infrastructure in%estments Europe needs.

The Union and its Member &tates should urgently consider ho" to allo" our o"npolicy#dri%en ban$, the European /n%estment an$ to do more and possibly muchmore to finance long#term in%estment.

To do so, "e need to e:plore "ays to reinforce the E/As resources and capitalbase so that it can lend to the real economy.

/n the year 2, there "as B 22 billion of %enture capital in Europe. /n 2> there"as only B ; billion. /f "e "ant to promote entrepreneurship "e must re%erse thisdecline and "e need that support namely for &MEs.

We can also get more gro"th out of the &tructural (unds, by increasing absorptioncapacity, using the &tructural (unds to support macroeconomic performance. Theyare essential for inno%ation, for training and employment, and for &MEs.

/ "ould also li$e to urge this House to adopt by the end of the year the proposals"e made in !ugust to increase cofinancing rates to those countries "ith assistanceprogrammes. This "ill in+ect essential funding into these economies, "hile reducingpressure on national budgets.

Honourable members,3eforms to our labour mar$ets, public finances and pension systems re*uire ama+or effort from all parts of society.

We all $no" these changes are necessary, so that "e can reform our social mar$eteconomy and $eep our social model. ut it is imperati%e that "e hold on to our%alues %alues of fairness, of inclusi%eness and of solidarity.

3ight no" "e need to gi%e concrete hope to the > in 1 of our young people "hocannot find "or$. /n some countries, the situation of our young people is simplydramatic. / "ant to call on companies to ma$e a special effort to pro%ide internshipsand apprenticeships for young people. These can be supported by the European&ocial (und.

y getting businesses, the social partners, national authorities and the Union le%el"or$ing in a @0oung <pportunities /nitiati%e@, "e can ma$e a difference. This /belie%e is the most urgent social matter to respond to the an:iety of our youngpeople that cannot find a +ob and it is much better to ha%e an apprenticeship, atraineeship, than to be "ith that an:iety in the streets e:pressing that lac$ ofconfidence in the Union as a "hole.

We must accelerate the most urgent parts of our 8ro"th and ?obs Plan, Europe22. The Commission "ill focus on the situation of young people in each ande%ery Member &tate in its Country#specific recommendations for ne:t year.

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/ belie%e "e must gi%e our future a real chance.

3ight no" "e also need to act to help the J million Europeans at ris$ of po%erty.This means that the Council must finally appro%e our proposal to safeguard theprogramme for the supply of food for the most depri%ed persons. / "ould li$e tothan$ this Parliament for the political support it has gi%en to our proposed solution.

Honourable Members,

(ifty years ago, >2 countries in Europe came together to sign the &ocial Charter. /t"as e:actly in <ctober 1 years ago. Today, that Charter has signatories,including all our Member &tates.

To guarantee these fundamental %alues in Europe, / belie%e "e need to boost the*uality of social dialogue at European le%el. The rene"al of Europe can onlysucceed "ith the input and the o"nership of all the social partners of tradeunions, of "or$ers, of businesses, ci%il society in general.

We should remember that our Europe is a Europe of citi)ens. !s citi)ens, "e allgain through Europe. We gain a European identity and citi)enship apart from ournational citi)enship. European citi)enship adds a set of rights and opportunities.The opportunity to freely cross borders, to study and "or$ abroad. Here again, "e

must all stand up and preser%e and de%elop these rights and opportunities. ?ust asthe Commission is doing no" "ith our proposals on &chengen. We "ill not toleratea rolling bac$ of our citi)ensA rights. We "ill defend the freedom of circulation andall the freedoms in our Union.

Honourable Members,

The Commission9s acti%ities, as you "ell $no", co%er many other fields. / cannotdiscuss them all here, but they are mentioned in the letter "hich / sent to theParliament9s President and "hich you ha%e all recei%ed.

efore / conclude, ho"e%er, let me spea$ about the European Union9s e:ternalresponsibilities. / "ant to see an open Europe, a Europe engaging "ith the "orld.

European action in the "orld is not only the best guarantee for our citi)ens and forthe defence of our interests and our %alues' it is also indispensable to the "orld.Today it is fashionable to tal$ of a 82. / belie%e the "orld does not "ant a 82. /t isnot in the interests of the T"o themsel%es. We $no" the tension that bipolaritycreated during the Cold War. /f "e "ant to ha%e a +ust "orld and an open "orld, /belie%e that Europe is more necessary than e%er.

The rapidly#changing "orld needs a Europe that assumes its responsibilities. !ninfluential Europe, a Europe of 2 # "ith the accession of Croatia soon to be 2J. !Europe that continues to sho" the "ay, "hether in matters of trade or of climatechange. !t a time "hen ma+or e%ents a"ait us, from urban to 3io 2, Europemust retain its position of leadership on these *uestions.

=et us also turn our attention to our southern neighbours. The !rab &pring is aprofound transformation "hich "ill ha%e lasting conse*uences not only for thosepeoples but also for Europe. Europe should be proud. We "ere the first to standalongside those Tunisians, Egyptians and =ibyans "ho "anted democracy andfreedom. Europe is supporting these legitimate aspirations, namely through ourPartnership for emocracy and &hared Prosperity.

The !rab &pring should gi%e hope for peace throughout the region.l Europe "ishesto see a Palestinian &tate li%ing in peace alongside the &tate of /srael.

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=et us also turn our attention to our eastern neighbours. <n (riday / shall ta$e partin the Eastern Partnership &ummit in Warsa". / shall go there "ith the ambition toforge a closer political relationship and tighter economic integration bet"een usand our partners in the region. The EU has e:traordinary transformational po"er. /tis an inspiration for many people in the "orld, and if those countries embar$ on athorough process of reform "e can help them. We can further political andeconomic ties.

(inally, let us not forget the most depri%ed of all and let us li%e up to ourcommitments in attaining the Millennium e%elopment 8oals.

We must also be realistic and recognise that, if Europe is to e:ert its influence fully,if Europe really "ants to be a po"er, "e must strengthen the Common (oreign and&ecurity Policy. /t must be credible. /t must be based on a common security anddefence dimension if "e are really to count in the "orld.

=ong gone is the time "hen people could oppose the idea of European defence forfear that it might harm the Transatlantic relationship. !s you ha%e noticed, today itis the !mericans themsel%es "ho are as$ing us to do more as Europeans. The"orld has changed, the "orld is still changing fundamentally. o "e really "ant tocount in the "orld-

Hence, at a time "hen defence budgets are under pressure, "e must do moretogether "ith the means at our disposal.

The Commission is assuming playing its part' "e are "or$ing to"ards a singledefence mar$et. We are using our under the Treaty "ith a %ie" to de%eloping aEuropean defence industrial base.

Honourable Members,

=et us not be nai%e' the "orld is changing and if Europe is to count in the "orldand defend its citi)ens9 interests "e need the political dimension and the defencedimension to gi%e us "eight and a say in the "orld9s future.

Honourable Members,/ conclude.

!t the end of our mandate, in 2>, it "ill be e:actly a century since the 8reat Warbro$e out on our continent. ! dar$ period "hich "as follo"ed by the &econd WorldWar, one of the most dramatic pages in the history of Europe and the "orld. Todaysuch horrors are unimaginable in Europe, largely because "e ha%e the EuropeanUnion. Than$s to the European %ision, "e ha%e built a guarantee of peace in ourcontinent through economic and political integration. That is "hy "e cannot allo"this great "or$ to be placed in +eopardy. /t "as a gift from pre%ious generations. /t"ill not be our generation that calls it into *uestion. !nd let us be clear' if "e startto brea$ up Europe, if "e start to bac$trac$ on Europe9s ma+or achie%ements, "e

"ill doubtless ha%e to face the ris$ of fragmentation. !s / said, the root of the crisis "e are no" facing is a political problem. /t is a test ofour "illingness to li%e together. That is "hy "e ha%e built common institutions. Thatis "hy "e must safeguard the European interest.

The reality today is that intergo%ernmental cooperation is not enough to pullEurope out of this crisis, to gi%e Europe a future. <n the contrary, certain forms ofintergo%ernmentalism could lead to renationalisation and fragmentation. Certainforms of intergo%ernmentalism could be the death of the united Europe "e "ishfor.

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=et us not forget that the decisions "e ta$e no", or fail to ta$e, are going to shapeour future. / feel hurt "hen / hear people in other parts of the "orld, "ith a certaincondescension, telling us Europeans "hat "e should do. / thin$, fran$ly, "e ha%eproblems, %ery serious problems, but / also thin$ "e do not ha%e to apologise forour democracies. We do not ha%e to apologise for our social mar$et economy. Weshould as$ our institutions, but also our Member &tates, Paris, erlin, !thens,=isbon and ublin, to sho" a burst of pride in being European, a burst of dignity,

and say to our partners' 4Than$s for the ad%ice, but "e can o%ercome this crisistogether9. / feel that pride in being European.

!nd pride in being European is not +ust about our great culture, our greatci%ilisation, e%erything to "hich "e ha%e gi%en birth. /t is not pride only in the past, itis pride in our future. That is the confidence that "e ha%e to re#create amongoursel%es. /t is possible.

&ome say it is %ery difficult, it is impossible. / "ould remind them of the "ords of agreat man, a great !frican, elson Mandela' 4/t al"ays seems impossible until it isdoneA. =etAs do it. We can do it "ith confidence. We can do it, "e can rene" ourEurope.

Than$ you for your attention.

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state of the union adress barosso

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