omAt the start of the general debate, the Chancellor welcomed the ruling of the German Federal Constitutional Court on the European Stability Mechanism (ESM). She said that it was a good day for Germany and a good day for Europe. Germany has given Europe and the rest of the world a very clear sign and has indicated that it takes its responsibility extremely seriously.

With a view to the current crisis in the euro zone, the Chancellor declared that Germany is the guarantor of stability, and the locomotive of growth. She concluded, "Germany has it good". Sound finances, solidarity with the weak and greater competitiveness are the fundamental principles of our policy, underscored Angela Merkel. It is thanks to the people in Germany that we are still doing so well – but it is also thanks to the work of this government, she added.

Progress on coping with the crisis

Germany will only do well in the long term though, if the rest of Europe is also doing well. Initial progress has been made on coping with the crisis, said Angela Merkel.  By way of example she pointed to the EFSF and the European Stability Mechanism (ESM) and to improvements in competitiveness. "We must still become more competitive, more innovative and more creative, and we are working on these." At the same time, Angela Merkel rejected the idea of joint liability within Europe. "The problems we are facing at the moment arose within the euro zone, and must be resolved in the individual member states."

Commenting on the purchase of government bonds by the European Central Bank, the Chancellor said that during this crisis every institution has its responsibilities – and this also applies to the European Central Bank. There are important ties attached to the measures now announced – the ECB has made this quite clear. "I see the action of the ECB as support for the course we have taken," said Angela Merkel.

Regaining confidence, honouring pledges

All in all we must regain the confidence that has been lost. This will be a difficult process. The economic and currency union will have to be developed further. Our aim must be to deal at EU level only with what must be dealt with at that level. Pledges at European level must be honoured, the Chancellor said,  because "national policies must become more binding." Increasingly it is also a matter of ensuring the democratic legitimation of political progress. Only then will the people of Europe accept the moves.

Angela Merkel once again gave her assurance that Germany will continue to push for a financial transaction tax. "We want to see a financial transaction tax," she declared. We must, however, recognise the fact that the idea has been greeted less than euphorically in other countries. The Chancellor said that the German government would be issuing an official comment on the proposals of the European Commission for a joint European bank watchdog authority. It is the quality rather than the quantity that is paramount in this regard, she said.

Looking to the national budget for 2013, Angela Merkel underlined the fact that Germany aims to comply with the provisions of the 'debt brake' as of 2013, three years earlier than necessary.

The issues of the future – education and demography

On education, the Chancellor said, "Our overarching goal is to give every child the chance of an excellent education". She pointed to the progress made on getting migrants better integrated into the education system. The level of school leaving certificates obtained is also up. "Other countries envy us our dual vocational training system," she pointed out.

One key issue for the years and decades to come will be the changing demographic trends, continued the Chancellor. That is why the German government has elaborated a demography strategy.

No double standards on the shift to more sustainable energy sources

With respect to the shift to put Germany’s energy sources on a more sustainable footing, Angela Merkel stressed that she is fully convinced that the efforts will succeed. Turning to the opposition, the Chancellor said that you cannot complain on the one hand that subsidies for solar power are being reduced and on the other criticise the increase in power surcharges that are to be used to promote solar power. "You can’t have everything if we are serious about sustainable energy," she said. She also called for an end to the opposition’s blockade in the second chamber of the German parliament, the Bundesrat, with respect to tax breaks for rehabilitating buildings to make them more energy efficient and to fiscal drag.

"I have no fears for Germany’s future," declared Angela Merkel at the end of her speech.