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"Germany has weathered the crisis and is now stronger than before," said the Chancellor. In 2010 unemployment was lower than it was before the international economic crisis hit. The number of people in gainful employment, at almost 41 million, is at an all time high.

 

The Chancellor expects average unemployment figures for this year of under three million. It is particularly heartening to note that youth unemployment has more than halved since 2005, dropping from 700,000 to 250,000. Nevertheless we still have a lot to do, she said. “Every individual without a job is one too many," she stressed.

 

Consolidating and strengthening positive trends

 

Wage trends too are encouraging. Real net wages have risen by 2.4 percent over the last year. The last time a development like this was seen was twenty years ago, reported the Chancellor happily. Now the aim must be to "consolidate and strengthen" the positive trends in Germany.

 

This is why the German government has initiated extensive structural reforms since last summer that are introducing sustainable changes. These include the reform of the Federal Armed Forces, and the government’s Energy Strategy. One thing is clear, declared the Chancellor. "Our country can only enjoy sustainable success if we continually strengthen the foundations on which that success is built."

 

Investing in the future

 

To achieve this sort of continuity action is needed in many areas – budget consolidation, investment in education and research and social cohesion. Thanks to budget consolidation the ceiling on new debt will be complied with this year. In fact new borrowing might even remain below this level. "This will give us scope for reasonable tax cuts as of 1 January 2013," said the Chancellor. 

 

No German government has done as much for education and research as this one, Angela Merkel stated. The coalition established the National Pact for Training. It has sent important signals by raising the maximum student loans available and introducing a new scholarship scheme.

 

Entering the age of renewables without risks

 

When asked about the CO2 reduction targets, the Chancellor reasserted that Germany will meet all climate protection targets in spite of its decision to end to use of nuclear power. By 2020 Germany will slash its CO2 emissions by 40 percent, and by 2050 will cut these further to 80 percent of the 1990 levels. Analyses have shown that ending the use of nuclear power does mean that Germany has less of a buffer, but will not jeopardise its ability to meet the targets. Work is still needed, said Angela Merkel, if Germany is to achieve the longer-term goal of cutting emissions by a minimum of 80 percent by 2050, taking the 1990 levels as a benchmark.

 

The Chancellor does not see Germany becoming dependent on imports of Russian gas. Norway and the United Kingdom too will be supplying Germany with gas. Anyway no major dependence on imports is to be expected because the government’s energy policy aims to shift the country’s energy mix massively to renewables and to boost energy efficiency.

 

Germany accepts international responsibility

 

A special challenge facing governments is that they must never lose sight of the big picture, underscored the Chancellor. In this context, Germany accepts responsibility both at international level and at EU level.

 

"I want to see Europe emerging stronger from the crisis," she stressed. The new rescue package for Greece represents another successful step, also in terms of stabilising the euro.

 

There cannot, however, be any spectacular solution. The buzzwords that we have been reading in this context like Eurobonds or transfer union do more harm than good. Those who bear political responsibility know what is really called for – a controlled process of coordinated steps that build on one another.

 

"A process that aims above all to tackle the heart of the problem," as Angela Merkel put it. In terms of the euro, the key issues are the levels of national debt and the competitiveness of the euro-zone states. The special summit meeting one day earlier produced sound and significant results, she reported.

 

The Chancellor recalled our historic duty to protect the euro. "Everything that we sacrifice now for Europe and the euro will be repaid many times over." The euro is part of Germany’s economic success, she added and well worth the effort.