Speech by EU Commission President Barroso - Deutscher Bundestag

Speech by José Manuel BARROSO, President of the European Commission, Deutscher Bundestag, Berlin

Sehr geehrter Herr Präsident Lammert,
sehr geehrter Herr Vorsitzender Wissmann,
sehr geehrte Damen und Herren Fraktionsvorsitzende,
sehr geehrte Damen und Herren Abgeordnete,

Es ist mir eine grosse Ehre und eine grosse Freude, heute zu Ihnen im Deutschen Bundestag sprechen zu dürfen. Wie Sie wissen, komme ich oft und gerne nach Berlin, und in den nächsten Monaten sogar besonders oft. Aber zu Ihnen ins deutsche Parlament komme ich heute das erste Mal. Sie werden mir hoffentlich nicht übel nehmen, dass ich jetzt ins Englische wechsele. Am Ende der deutschen Ratspräsidentschaft werde ich sicherlich länger auf Deutsch sprechen als heute.

It is no secret any more that we are approaching an important moment for Germany and the European Union. The countdown for the German Presidency is running. In one month's time, our citizens will - as every year - celebrate New Year's Eve by sending their fireworks off into the sky. The German Presidency, however, will remain firmly on earth. And so will the European Commission. We will do our very best to assist the German Presidency to deliver results which benefit our citizens, which prove to them that Europe serves their interests. Europe is not a "Raumschiff Enterprise" ("Starship Enterprise") roaming aimlessly through space - Europe has a purpose, and an orientation.

The months ahead will be fascinating, but also challenging. We shall commemorate the fiftieth anniversary of our unique European project. And we are expected to make progress on the constitutional settlement, on our jobs and growth agenda, on energy, climate change, better regulation and internal and external security. In this speech, I want to be very concrete. This is not, as you say in German, a "Sonntagsrede". Let's discuss the issues you and I work on every day.

The Presidency will right away start with two very important events on 1 January:

Slovenia/Euro

First, Slovenia will introduce the Euro. This expansion of the Euro zone to include the first of the new member states is, of course, an important step for Slovenia, but it is also a key event for the Union's monetary integration. It highlights the trend, albeit a long term one - of convergence between old and new Member States. It also shows that the Euro-Zone is not a closed shop for those who play by the rules. The stability pact is working. And on top of this, it reflects the strong commitment of the new Member States to European integration. Others will follow Slovenia's step into the Euro-Zone and are preparing very seriously. This is the best proof that enlargement is working, and that accession doesn't slow the reform momentum, but represents a further encouragement.

Enlargement

The second important event will be of course the accession of Bulgaria and Romania. I fully appreciate the seriousness with which the German Bundestag and also the Bundesrat have carried out the ratification process. In endorsing these two countries' accession to the EU by a convincing cross-party majority, this House displayed a strong sense of responsibility for the whole of Europe. I know that in your constituencies you are confronted with critical questions by our citizens, and that doubts still remain.

My position is that choosing the 1st of January 2007 is justified. This supports the democratic reform-oriented forces which have made decisive progress and would otherwise have lost momentum if we had postponed the accession by another year.

At the same time, as announced in our report of 26 of September 2006, the Commission will continue to help both countries to further pursue and complete reforms. We shall establish a strong mechanism that allows us to verify the real progress on the ground, beyond the date of accession.

Bulgaria and Romania have worked hard, and are still doing so, to improve their judicial system. In our view, in light of the current state-of-play, there is no need to apply the safeguards at this stage.

However, if we are not convinced that either country adequately addresses the benchmarks as defined in the September report, the Commission will not hesitate to take the safeguard measures. In any event we will issue our report on how the benchmarks have been addressed by 31 March 2007. Also, should it become apparent that there are problems related to the automatic recognition of judgements, the safeguard measures can be invoked at any time, on the Commission's own initiative, or at the request of a Member State.

Constitution

The accession of Romania and Bulgaria completes the enlargement of May 2004, seventeen years after the fall of the Berlin Wall and the Iron Curtain. It is now time for consolidation.

I have said it before, but I shall say it once again: the EU must make its decision-making more effective and more democratic before it can take in additional Member States.

But, provided that we manage to solve the constitutional problem, we can also not exclude further accessions in the future, for two main reasons. First, the membership aspirations of those countries which share a European perspective serve to anchor them firmly in democratic pluralism, respect for freedom and the rule of law and an approach to development that is consistent with European values. Second, enlargement gives us real stature and weight in the globalised world.

This is also true for Croatia which could be the next country to join the European Union if it continues its efforts, especially its economic and judicial reforms and the fight against corruption.

As regards Turkey, we are now unfortunately in the difficult situation that we would have liked to avoid. The Commission's baseline position was always the same: we must all - in the EU and Turkey - respect our commitments. Already in our reports of early November, we had expressed deep concerns about the slowing-down of a number of reforms in Turkey and its failure to comply with the Ankara Protocol.

This Protocol states that the EU expects Turkey to ensure full and non-discriminatory implementation of the Association Agreement to all Member States, and the removal of all trade obstacles including restrictions on means of transport. In fact, the opening of negotiations on relevant chapters depends on Turkey's implementation of these obligations. The Member States and the Commission unanimously stated last year that failure to meet these obligations would affect the overall process of negotiations.

The Finnish Presidency over weeks and months held intensive consultation with Turkey in order to find a suitable solution. However, this Monday the Presidency came to the conclusion that an agreement could not be reached at this stage. The Commission therefore at its meeting yesterday drew the necessary political and operational consequences, timely enough to be submitted for approval to the General Affairs Council on 11 of December next.

What are we recommending to the Member States? Our proposal is not to open negotiations on eight chapters covering areas relevant to Turkey's restrictions - namely on the free movement of goods; freedom of establishment; financial services; Agriculture; Fisheries; Transport; Customs Union; and External Relations - and that no further chapters in other areas be closed until the problem is solved. At the same time, we believe that the technical work should proceed and that it could lead to the opening of other chapters.

Honourable Members,

This is a legally sound position and we consider this a credible, fair and balanced reply. The Finnish Presidency and the Commission have shown all their good will and efforts to avoid this outcome. I am pleased by the support of the German Government in general and of Chancellor Merkel in particular for our approach. I understand that there are some people who think that our proposal is going too far, and others who think it doesn't go far enough.

But our initiative must be properly understood: for us this is not a welcome pretext to chase Turkey away from the table and to close the door completely. What we want is that both sides play by the rules. It is thus now up to the Turkish side to show its willingness to comply with its obligations.

Energy

Ladies and Gentlemen, still very early in the year, 10 January will be a red-letter day. The European Commission will be presenting the first ever Strategic Energy Review. This ambitious strategy will provide the German Presidency with a basis for the preparation of the Energy Action Plan, which will be presented to the Spring Council at the beginning of March.

Fifty years on from the creation of the European Community for Coal and Steel and the Euratom Treaty, energy is once again proving to be one of the new drivers for European integration. Already the founding fathers of the European Communities saw a common approach to energy as a core element of the European project. Indeed: Who can doubt that energy is a genuinely European challenge? The electricity black-out earlier this month was an illuminating incident. Although millions of European citizens were sitting in the dark, everyone could very well see the need for greater integration.

If we wish to achieve our three objectives - security, competitiveness and sustainability - we must have a single market in energy. It is essential if we are to encourage new patterns of market operators' behaviour and develop new energy sources to face future challenges.

First we have to complete the internal market for electricity and gas. We still have twenty-five mini-markets. There is no real competition at European level. There are structural problems. The Commission has not yet decided on further regulatory measures. Already under existing European law European energy companies are required to respect the principle of separation between their operations in production, distribution and supply. But reality shows that these provisions are not yet strong enough. For the sake of consumers and of businesses, and especially of SMEs, we need to change this. In a globalised world, Europe cannot afford anti-competitive rigidities that impede the markets to deliver. This is why we are working on ideas to be presented in January 2007 and to be discussed at the Spring European Council in March 2007.

There is also a lot of excitement about a European energy regulator. My first concern is not about bidding for competences. It is about having national regulators which are independent, capable to act and to proactively work with each other. At present, there is a potpourri of regulatory situations in the Member States that makes the system incoherent. How can you address cross-border problems in the internal market in such a regulatory mess? The answer will not be to create an EU body with the same configuration as for example the "Bundesnetzagentur". But we must urgently think about how to deal with cross-border issues in a stringent and consistent manner. The status quo is not an option. You know this because you are also considering measures on the national level. So I am confident of the support of the German Presidency on this issue.

We must also speed up our transition to a low-carbon economy. This objective requires new targets for the aftermath of Kyoto 2012 as regards emissions of greenhouse gases. It requires more ambitious targets for the development of sustainable energy, in particular renewable energies, without imposing a "standard" energy mix, since this is a choice that lies with the Member States.

Finally, we need to put in more effort on energy efficiency. It was with this in mind that the European Commission proposed a few days ago an increase of 20% in our energy efficiency by 2020.

Looking outwards, the EU must also unite to deal with a crucial common problem: the EU meets 50% of its energy needs through imports, and unless something is done this figure will rise to 70% by 2030. It is therefore logical that the Union should speak with one voice in its negotiations with the major supplier countries.

We thus need a triple diversification: a diversification of energy sources, a diversification of supply countries or regions, and a diversification of supply channels.

In January the Commission will table an ambitious initiative which will size up the challenges facing Europe. It will be up to the European Council next March to approve its proposals for a new European energy policy.

Climate Change

In parallel, the German Presidency has announced its intention of supporting the action begun by the European Commission to speed up the measures needed to combat climate change. Europe is in the forefront in this area and has every intention of continuing to play a leading role. It has proved its commitment through its emissions trading scheme, which covers over 11 000 installations throughout Europe. The Commission will table a Green Paper on additional measures on climate change after 2012. However, it would be illusory to think that it will be able to meet the challenge of climate change on its own. We must involve our international partners in meeting this challenge and provide assistance to the developing countries so they can join our efforts. I think that the stakes are such that we should explore these questions together with imagination and a strong political will.

Better Regulation

Apart from energy, the German Presidency attaches great importance to what is normally described as 'Better Regulation'. I can reassure you - the Commission and I are dealing with Better Regulation as a top priority not only in the months to come, but during our entire mandate. I don't see this as an administrative issue. This is about respect for the principles of subsidiarity, proportionality, and transparency. In short, it is about democracy which is the basis of our common project.

Together with Vice-President Verheugen, I am personally following this task on behalf of the Commission. On 14 November last, we have adopted a package of measures which the Heads of State and Government will hopefully endorse at their Spring Summit in early March.

We are proposing a target to reduce administrative costs for business, resulting from European and national laws, by 25% within the next five years. According to estimates, this would leave to savings amounting to some 150 Billion Euros. This is money which companies don't have to pay to their employees for filling in forms, for providing statistics, for sending monthly, quarterly, half-annual and annual reports. This is money which companies can instead invest into research and innovation, in creating new jobs.

At European level, we are looking at all sectors. We have already adopted proposals for example in the areas of customs, waste legislation, and business statistics. In January we will come forward with a more comprehensive action plan, defining a series of further priority areas.

We want to make sure that our citizens and businesses, and in particular SMEs, feel the difference.

And then there is one fundamental truth about this target in particular, but also about the whole Better Regulation policy in general: And this truth is "dass wir das nur gemeinsam schaffen." It requires a joint effort. At European, national, regional and local level. I am pleased to note that the German government is attaching the same importance to it. Because it is a shared responsibility. The moment we start to play "Schwarzer Peter", we have failed. The reality is that there is as much or sometimes more bureaucracy coming from the national level, the Länder, or the local authorities than from "Brussels". And almost all bureaucracy is the fruit of some form of lobbying. We have to empower each other, not blame each other, if we want to improve things.

Another contribution to Better Regulation of my Commission was the withdrawal of 78 pending proposals which my Commission inherited from its predecessor and which we decided not to pursue any longer. In our Better Regulation package of 14 November, we recommend to any future Commissions to follow our example, and to carry out a similar screening, i.e. to decide at the beginning of their mandate and in the light of its own political priorities, on the files which it wants to pursue and which ones it wants to sweep off the table. Thus a new Commission takes the opportunity in a pro-active way to determine its political priorities and to re-commit itself to those pending files which it wants to keep.

Let me be clear: de-bureaucratisation is not a negative agenda, it is not about doing less. It is about releasing energy to concentrate on the essentials. So that we all do the things we really need to do better.

Lisbon

I say: Better Regulation is not an end in itself. Its purpose is to free up business from bureaucratic constraints, to let them concentrate on their core activities, and allow them to generate jobs and growth. Better Regulation is thus yet another pillar that serves our strategy for growth and employment, the Lisbon strategy.

And we will clearly push this Strategy further ahead with our work in progress, which is now on a very sound footing.

But allow me now to look back for just a minute. When we relaunched our strategy in 2005, Europe had lost its relative position in terms of growth, productivity and employment, at a time of increasing globalisation and in the face of an ageing population. We had to reverse this trend, adapting our economies and employment markets to enable us to preserve our welfare systems and protect our environment.

The new governance of the strategy revolves around two pillars: the Community and the national reform programmes. The former creates the framework (for example for the single market), while the latter implements core reforms at local level.

I must once again make this clear to you all: the Commission's role is above all that of a partner who is there to help the Member States achieve their objectives. The Commission is not a schoolmaster who hands out gold stars or detentions!

You will not be surprised that the second progress report that the Commission will present at the end of December makes for very encouraging reading. This is also true for Germany where all the main parameters show a positive trend: The strongest economic growth since 2000, a considerable growth in the number of new jobs although structural unemployment remaining high, Germany finally meeting the 3% deficit criteria under the stability pact, and sound progress on R&D and innovation policies.

Yet more remains to be done, and please allow me a somewhat simplistic analogy: Mr Klinsmann has left. But the "Klinsmann effect" is fortunately alive and kicking. His message beyond football was the twofold message of confidence in the team's own strengths, and openness and interest for the others. "Zu Gast bei Freunden." If it not were a breach of copyright, you should use the same motto for your Presidency. Bring in all your own qualities and your specific weight, and by doing so take the European project ahead.

Berlin Declaration

Let me come back to the chronology of events. The first main dish served up by the German Presidency will, of course, be the Berlin Declaration on 25 March, the day of the 50th anniversary of the Treaty of Rome. As I have said, I expect much from it. Firstly, as a symbolic act: Berlin is the symbol of our reunited Europe. But above all as a political statement: the enlarged European Union of 27 Member States will renew and take forward into the future its commitment to our shared principles and values. This is particularly important for those Member States which joined in 2004 and 2007. For the first time they will not simply take on board the decisions of the past: They will be actively contributing to this renewed commitment.

How far do the Member States want to go? That is the question. Personally, I am confident. I believe that the Member States will see this Declaration as a unique opportunity to state clearly how they see their future together. It is important that the Declaration is forward looking and tells the citizens why Europe is the answer to many questions in the 21st century, be it to cope with globalisation, climate change, or terrorist threats. This Berlin Declaration is therefore a key piece in the jigsaw puzzle that will gradually be assembled to settle the institutional question. The European Commission, and I personally, fully support the principles, the values and the substance of the Constitutional Treaty. I recall that I have said many times that Nice is not enough. We are ready to support Member States' efforts to find a way to solve the challenge at the heart of the institutional question: to ensure that the EU becomes more efficient, more transparent, and more democratic.

Prospective

A few words on other important issues.

In terms of justice, freedom and security, 2007 will see the dawn of a new phase following yesterday's presentation of the Commission's communication on a comprehensive strategy for dealing with all aspects of immigration - lawful and illegal - and its presentation to the European Council in a few days' time.

But our work will not end there. We are also going to embark upon more long-term tasks, such as the audit of the European social reality, the Internal Market Review and the Budgetary Review announced by the Commission. We are going to take measures to increase the role of Europe as a global partner, by strengthening Europe's neighbourhood policy, focusing on negotiations with our major strategic partners - Russia, China and Ukraine.

G8

Then, at the beginning of June, there will be the G8 summit, which will also be chaired by Germany. Germany has decided to devote the summit to subjects closely linked to the Community agenda, namely innovation in a knowledge society, sustainable development and, in particular, climate change. I am especially pleased that Germany has also decided to make Africa one of its key priorities for its G8 programme.

June European Council

And then the June European Summit will be upon us. What results can we realistically expect to achieve? Before the German Presidency hands over on 1 July the baton to another country, Portugal, we will have covered a lot of ground together. But, above all, we should have made progress on constitutional matters. Will we have a common road map that will allow us to mark out the course for gradually resolving the question of our institutions? I hope so, because we need the fundamental aspects of the Treaty.

Some European leaders and other major players have recently tabled proposals. The European Commission will make its own contribution to the debate in close coordination with the Presidency. I believe that the German Presidency will demonstrate two crucial qualities that will enable us to accomplish this difficult task: ambition and pragmatism. I am sure that Germany will provide the spur for a dynamic process that will come to fruition by the end of 2008. At the same time, I repeat that it would not be fair to put all the weight of the EU's challenges on the shoulders of the German Presidency. This is about a team effort reaching beyond a mere six months, and I therefore salute the Tri-Presidency approach on which Germany has already now embarked with Portugal and Slovenia.

Honourable Members,

Yes, Europe is looking with high hopes to the German Presidency. I know that these expectations may be slightly intimidating! But above all I see in them a sign of confidence. Germany is one of the driving forces in the Union and it will bring its weight to bear to pave the way for a compromise solution that will satisfy all the Member States. This solution will enable us to take the challenges of the 21st century by the scruff of the neck. This inevitable necessity brings to mind the famous words of Konrad Adenauer: "Die Einheit Europas war ein Traum weniger. Sie wurde eine Hoffnung für viele. Sie ist heute eine Notwendigkeit für alle." (The unity of Europe was the dream of a few. It became the hope of many. Today it has become a necessity for all).

Germany has done a lot for Europe.

I thank you - the elected representatives of the German people - for that.

It is because Germany's commitment to Europe is beyond doubt that we are confident in a constructive, ambitious and fruitful German Presidency of the Council of the European Union.

Thank you for listening, and thank you for having invited me into the Deutscher Bundestag!

And now I don't say "good bye".

I say "Auf Wiedersehen".

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