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President of the European Commission

“The road to Europe’s future”

Federal Presidium of the DGB (German Confederation of Trade Unions)

%UXVVHOVWK1RYHPEHU Ladies and gentlemen, It gives me great pleasure to address you on this special occasion – the ILUVW PHHWLQJof your )HGHUDO3UHVLGLXP to be held LQ%UXVVHOV. The future of the European Union depends very much on forging VWURQJHU OLQNV between the (XURSHDQLQVWLWXWLRQV and (XURSHDQFLYLOVRFLHW\. That is why I welcome this opportunity for VWUHQJWKHQLQJ WKH WLHV between the European Commission and the DGB, which represents PLOOLRQV RI *HUPDQ FLWL]HQV in their working environment. We in the European Union are determined to create : − a SHDFHIXOO\XQLWHG(XURSH embracing all its diverse peoples; − DGHPRFUDWLF(XURSH where the people decide their own destiny; − DWROHUDQW(XURSHwhere freedom flourishes; − D VDIH DQG MXVW (XURSH where human rights are respected and citizens are protected. But it must also be DIDLUDQGFDULQJ(XURSH – an inclusive Europe where every individual matters and has a place in our society. And I want it to be D VWURQJ SURVSHURXV (XURSH playing a leading role on the world stage. These are noble ambitions. To achieve them we need to do two essential things: − successfully enlarge the European Union, and − thoroughly modernise Europe’s economy and society. I want to speak to you about both of these important tasks, and especially about Europe’s HFRQRPLFDQGVRFLDODJHQGD for the years ahead. But let me start with the subject of HQODUJHPHQW It is essential to have SXEOLFVXSSRUW for this historic project. And public support depends on SXEOLFXQGHUVWDQGLQJof what is at stake. Our citizens need to understand not just the KLVWRULFVLJQLILFDQFH of enlargement but its SUDFWLFDOEHQHILWV too. Some eight million of those citizens are PHPEHUVRI\RXUWUDGHVXQLRQV.

)LUVWHQODUJHPHQWLVJRRGIRUMREV The candidate countries are making tremendous progress in modernising their economies in readiness for EU membership. As a result, &HQWUDO DQG (DVWHUQ successfully HQODUJHWKH(XURSHDQ8QLRQ and thoroughly PRGHUQLVH (XURSH¶V HFRQRP\ DQG VRFLHW\ (XURSH FRXOG VRRQ EH H[SHULHQFLQJVRPHRIWKHVWURQJHVWHFRQRPLFJURZWKDQ\ZKHUHLQWKHZRUOG

2 This means a booming market for European goods and services – and that means PRUHMREVIRUHYHU\RQH One implication of this new dynamism is that PLJUDWLRQ from the new to the older Member States ZLOOEHUDWKHUOLPLWHG. Our FLWL]HQV should be UHDVVXUHG about this. Moreover, the Commission will use the accession negotiations to ensure that any PLJUDWRU\ULVNVDUHFRQWDLQHG.

6HFRQGHQODUJHPHQWZLOOEHJRRGIRUKHDOWKDQGWKHHQYLURQPHQW As the candidate countries modernise their industries they are gradually creating a cleaner, healthier environment for us all. It will take time, of course. The new Member States will need WUDQVLWLRQDOSHULRGV to catch up with environmental standards in the rest of the EU. But WKH\DUHJHWWLQJ WKHUH

7KLUGHQODUJHPHQWZLOOPHDQJUHDWHUFXOWXUDOGLYHUVLW\LQWKH(8 This worries some people – but it shouldn’t. 'LYHUVLW\LVWKHYHU\HVVHQFHRI(XURSH It makes us what we are. And IURPLWVSULQJVPXFKRIRXUFUHDWLYHJHQLXV Time after time throughout Europe’s history, culturally diverse people working together have produced EULOOLDQWQHZLGHDV And in today’s fiercely competitive world, ZHQHHGWKDWLQQRYDWLRQDQGFUHDWLYLW\ PRUHWKDQHYHU Our diversity is therefore DSUHFLRXVDVVHW a KHULWDJHWREHSUHVHUYHG. It means JUHDWHUFUHDWLYHSRWHQWLDO– and that means LQQRYDWLRQDQGQHZMREV

)RXUWKHQODUJHPHQWPHDQVVWDELOLW\DQGVHFXULW\LQ(XURSH My Commission is conducting the accession negotiations ULJRURXVO\ DQG REMHFWLYHO\. All candidate countries must meet the same HFRQRPLFDQGSROLWLFDO FULWHULD. Each country will move towards the EU at its own speed and join ZKHQLW LVFRPSOHWHO\UHDG\ Before they join, all candidate countries will have constitutions and institutions that guarantee : − democracy and the rule of law, − respect for human rights and the protection of minorities. Enlargement will thus create a VWHDGLO\ H[SDQGLQJ DUHD RI SURVSHULW\ VWDELOLW\ DQGVHFXULW\ in Europe. But this prosperity, stability and security must be VSUHDGEH\RQGRXUQHZERUGHUV. The recent history of WKH%DONDQV shows how essential this is.

3 We therefore need to develop a FRKHUHQW SROLF\ RI FRRSHUDWLRQ ZLWK RXU QHZ QHLJKERXUV - Russia, Ukraine, the Balkan and Caucasus countries and North Africa. We must VKDUH with them the HFRQRPLF EHQHILWV of our enlargement. They will have, on their doorstep, the HQODUJHG 6LQJOH 0DUNHW with its  PLOOLRQ FRQVXPHUV. By giving our neighbours SULYLOHJHG DFFHVV WR WKLV PDUNHW we shall be offering them DEULJKWHUHFRQRPLFIXWXUHand that is in everyone’s interests.

)LIWKDQGILQDOO\HQODUJHPHQWZLOOFUHDWHDVWURQJHU(XURSH An enlarged EU working closely with our new neighbours will be a SRZHUIXOSOD\HU RQWKHZRUOGVWDJH As a global leader, Europe will be DJOREDOIRUFHIRUJRRG − harnessing the forces of globalisation, − shaping tomorrow’s world in line with the values we cherish. These five reasons alone show the enormous EHQHILWVRIHQODUJHPHQW That is why I want it to JRDKHDGDVVZLIWO\DVSRVVLEOH, but ZLWKRXWFXWWLQJDQ\FRUQHUV. Negotiations with the best-prepared candidate countries could be concluded soon, and I personally would be delighted to welcome them into the Union ZLWKLQ WKH OLIHWLPHRIP\&RPPLVVLRQ. But first we have to UHIRUPWKH8QLRQ¶VLQVWLWXWLRQV Designed in the 1950s for a Community of six members, they are struggling today to manage a Union of fifteen. Enlargement to nearly 30 Member States will make the EU unworkable unless we first − simplify our decision-making procedures − and make our institutions more efficient. I am already pushing through internal reforms to make the Commission more HIILFLHQW, more RSHQ and more DFFRXQWDEOH. %XWWKHUHDUHTXHVWLRQVRIQXPEHUVDQGVL]HWRR − The &ROOHJHRI&RPPLVVLRQHUV must be able to continue functioning effectively while remaining representative of all the Member States. − 7KH&RXQFLO must be able to adopt any decision that is supported by a majority of Member States representing a majority of the Union’s population. − Last but not least, the number of Council decisions requiring XQDQLPLW\ has to be NHSWWRDPLQLPXP. To retain widespread use of WKH YHWR will mean, quite simply, SDUDO\VLV LQ SROLF\PDNLQJ. This means that TXDOLILHGPDMRULW\YRWLQJ will have to become WKHUXOHUDWKHUWKDQ WKHH[FHSWLRQ. And it will have to apply to social policy decisions such as KHDOWKDQGSHQVLRQV as well as to internal market matters.

4 Having said that, I want to reassure you immediately that the Commission has QR LQWHQWLRQRIKDUPRQLVLQJKHDOWKV\VWHPVRUSHQVLRQVFKHPHV. They do QRWQHHGKDUPRQLVLQJ: but they GRQHHGPRGHUQLVLQJ, and I shall say more about that later. These reforms are the task of the Inter-Governmental Conference (IGC), which is due to complete its work very soon – ideally at 1LFH in December. At Nice I hope we will be able to adopt D QHZ 7UHDW\ incorporating DOO WKH QHFHVVDU\FKDQJHV. And if the Treaty can be UDWLILHG E\ WKH HQG RI  we shall be ready for HQODUJHPHQWIURP-DQXDU\ Nice is therefore a major milestone on WKHURDGWR(XURSH¶VIXWXUH But an equally important turning point on that road was reached in March this year at WKH/LVERQ6XPPLW. At Lisbon, the European Council faced up to our second crucial task: 0RGHUQLVLQJ(XURSH¶VHFRQRP\DQGVRFLHW\ To compete in the global marketplace Europe needs UHDO G\QDPLVP DQG VXVWDLQHGJURZWK This means wholeheartedly embracing QHZ WHFKQRORJLHV and maintaining our world leadership in fields such as PRELOHFRPPXQLFDWLRQV. It means making life easier for business and industry – FXWWLQJ UHG WDSH, making YHQWXUHFDSLWDO more easily available, making the ODERXUPDUNHW more flexible. 0RGHUQLVLQJWKHHFRQRP\WRGD\PHDQVPRUHMREVWRPRUURZ But action to create a dynamic economy is only one side of the equation. It must be balanced by equally determined action to SURPRWHVRFLDOLQFOXVLRQDQGVROLGDULW\ That is why, at Lisbon, the European Council committed the Union to a KLJKO\ DPELWLRXVVRFLDODQGHFRQRPLFDJHQGD for the next ten years. It adopted a detailed strategy for making Europe the PRVW G\QDPLF NQRZOHGJH EDVHGVRFLHW\LQWKHZRUOG It involves : − investing much more in UHVHDUFK and FRPPXQLFDWLRQV, − getting all our schools and universities RQOLQH, − HGXFDWLQJ our young people for the digital age, − WUDLQLQJ and UHWUDLQLQJ our workforce, − giving people QHZVNLOOV for the QHZHFRQRP\, − and restoring the right conditions for IXOOHPSOR\PHQW. It also involves VHULRXVO\PRGHUQLVLQJour KHDOWKFDUHDQGSHQVLRQV\VWHPV. Let me explain all this in greater detail. Clearly, there can be no knowledge-based economy without QHZNQRZOHGJH. That is why we need to invest in WRSTXDOLW\UHVHDUFK.

5 We also need efficient means of GLVVHPLQDWLQJNQRZOHGJHUDSLGO\. That is why we are working to develop cheaper, faster ,QWHUQHWDFFHVV and leading- edge PRELOHFRPPXQLFDWLRQV. And we need GLJLWDOO\OLWHUDWHZRUNHUVWUDLQHGLQ,7VNLOOV But we also want Europe to be DIDLUFDULQJDQGLQFOXVLYHVRFLHW\. We will not allow knowledge to divide us into “haves” and “have-nots”. The QHZWHFKQRORJLHVPXVWQRWZLGHQWKHJDS between rich and poor, skilled and unskilled. That would aggravate VRFLDO H[FOXVLRQ – and social exclusion is, quite simply, XQDFFHSWDEOH. It already exacts a terrible toll in human distress and crime, poor housing and poor health, lack of skills and broken homes. What Europe needs to do is to promote VRFLDOLQFOXVLRQ 7KDWPHDQVXVLQJSXEOLFUHVRXUFHVSURDFWLYHO\ - to prevent ills rather than having to cure them later. It means HTXLSSLQJSHRSOHIRUZRUN and building VROLGFLWL]HQVKLS. And it means taking care of those OHVV VNLOOHG DQG ROGHU ZRUNHUV whose jobs become obsolete as the digital revolution advances. They will have to be re-skilled so they can use their full potential in the new environment. This is a matter of simple justice: ZH FDQQRW VFUDS SHRSOH DV LI WKH\ ZHUH RXWGDWHGWRROV. But it is also a matter of plain common sense: RXUVRFLHWLHVQHHGWKHFRQWULEXWLRQ DQGH[SHULHQFHRISHRSOHRIDOODJHV. So the key to combating unemployment and social exclusion is WRLQYHVWKHDYLO\LQ HGXFDWLRQDQGWUDLQLQJ. And our schools and colleges will have to adopt a new role: the provision of OLIHORQJ OHDUQLQJ. Life-long learning is essential if we are to FRQVWDQWO\XSGDWHSHRSOH¶VVNLOOVand enable them to adapt to our rapidly changing world. That is why ERWK VLGHV RI LQGXVWU\ must work hand in hand with schools and colleges WRPDNHTXDOLW\HGXFDWLRQDQGWUDLQLQJDYDLODEOHWRDOO. Not as an act of charity, but as an investment in their own future. At the same time, WKH :HOIDUH 6WDWH, of which we are justly proud, PXVW EH PRGHUQLVHGDQGPDGHVXVWDLQDEOH. The problem is, of course, that (XURSH¶VZRUNIRUFHLVVKULQNLQJ as the population ages. By 2025, an extra 37 million people aged over 60 will be living in the present EU. 1HDUO\RQHWKLUGRI(XURSH VSRSXODWLRQZLOOEHSHQVLRQHUV. That is why the Lisbon agenda includes looking at ways of PRGHUQLVLQJ VRFLDO SURWHFWLRQ and making SHQVLRQ V\VWHPV VXVWDLQDEOH so that our children and grandchildren can enjoy the kind of social security we have come to expect in a fair and caring society. A part of the solution is WRUHIRUPWKH:HOIDUH6WDWH so that the working population no longer has to bear the full burden of paying for the welfare of those who have retired.

6 We must, for example, create a SURSHUO\UHJXODWHGSDQ(XURSHDQSHQVLRQIXQG PDUNHW, giving pensioners better value for money. This project forms part of the )LQDQFLDO6HUYLFHV$FWLRQ3ODQ that the Commission submitted to the Lisbon Summit. The European Council agreed should be LPSOHPHQWHGZLWKLQILYH\HDUV. But action on pensions is only a part of the solution. We must also take DFWLRQWR UHMXYHQDWHWKHZRUNLQJSRSXODWLRQDQGERRVWLWVVL]H. That means − getting more ZRPHQ into work, or back into work; − keeping ROGHUSHRSOH involved, at least part time, in economic activity; − and bringing \RXQJ VNLOOHG ZRUNHUV into the EU thanks to a properly agreed LPPLJUDWLRQSROLF\. We also have to improve ZRUNHU PRELOLW\ ZLWKLQ WKH (8, so that skills can be deployed rapidly wherever they are needed. 0LJUDWLRQ of workers and jobs is going to happen anyway, so let’s SODQ LW QRZ, setting realistic targets and perhaps agreeing quotas. So there is a great deal of work to be done in implementing the Lisbon agenda. The Commission is already doing its part. In June this year we presented our 6RFLDO 3ROLF\ $JHQGD to 2005, outlining the approach we believe should be followed to achieve a WKULYLQJ HFRQRP\ and an LQFOXVLYHVRFLHW\. The VRFLDO SDUWQHUV have a NH\ UROH LQ LPSOHPHQWLQJ WKDW DJHQGD - translating the Lisbon commitments into real action. And that calls for KDUPRQLRXVUHODWLRQV between the social partners: − (PSOR\PHQWUHODWLRQV need to be modernised and improved. − Many of the present ODERXUODZV and FROOHFWLYHDJUHHPHQWV are now outdated. They need to be WKRURXJKO\RYHUKDXOHG and adapted to modern reality. − And we need YROXQWDU\PHFKDQLVPV for resolving GLVSXWHV. The Commission has asked both sides of industry at EU level for their YLHZV on the way ahead, and ZH ORRN IRUZDUG WR KHDULQJ VRPH QRYHO DQG FRQVWUXFWLYH VXJJHVWLRQV. In September, the Commission published its (XURSHDQHPSOR\PHQWJXLGHOLQHVIRU along with UHFRPPHQGDWLRQV on how the Member States can work towards the target set at Lisbon: − full employment by the end of 2010. In the guidelines we call on the social partners to work together on implementing the employment strategy. We invite them, in particular, to QHJRWLDWHDQGUHSRUWEDFN RQNH\DVSHFWVRIZRUNPRGHUQLVDWLRQ, including lifelong learning. So the Commission is delivering on its Lisbon commitments.

7 But I want to stress this: it up to all of us – not only European institutions and national governments but WKH VRFLDO SDUWQHUV too – to implement the Lisbon agenda. Let me turn, now, to a matter which, I know, is of great concern to the DGB: the proposed European GLUHFWLYHV on worker LQIRUPDWLRQDQGFRQVXOWDWLRQ. Under the proposed directives, companies with at least 50 employees would be obliged to OHWWKHPNQRZLQDGYDQFH about any proposed mergers or redundancy plans. The Commission considers these proposals entirely reasonable. After all, an inclusive society should be one in which workers are SURSHUO\ LQIRUPHG DQG FRQVXOWHG about decisions affecting their future. The labour market needs to be flexible, certainly: but SHRSOH QHHG WR EH DEOH WR SODQ WKHLU OLYHV, and should not be the victims of shock redundancy announcements. I know that some Member States have linked this proposed Directive to another very important dossier - the (XURSHDQ &RPSDQ\ VWDWXWH, which has been under discussion for some thirty years! The Commission’s view is that we must successfully conclude both these dossiers if we are to achieve our goals of increased competitiveness, full employment and a better quality of life for all. I am counting on your support in Germany to achieve this ambitious but realistic objective. Ladies and gentlemen, the EU is facing two huge challenges: − the biggest HQODUJHPHQW in our history, − and the need IRUUDGLFDOUHIRUP – of our economies but also of our societies. To meet those challenges we have set ourselves FOHDUUHDOLVWLFJRDOV The FXUUHQW HFRQRPLF RXWORRN offers us HYHU\ SURVSHFW RI DFKLHYLQJ WKHP – provided we have the SROLWLFDOFRXUDJH to take difficult decisions. For the first time in more than a decade, Europe has lined up a winning combination of ORZLQWHUHVWUDWHV, ORZLQIODWLRQ, GZLQGOLQJSXEOLFGHEW and a genuine prospect of VXVWDLQHGDQGVXVWDLQDEOHJURZWK. And VXVWDLQHG JURZWK in an H[SDQGLQJ PDUNHW will give us the PDUJLQ RI PDQRHXYUHZHQHHGLet us not waste this unique opportunity! The time has come for governments, European institutions and both sides of industry to implement the Lisbon agenda WRJHWKHU. 7RJHWKHU, let us carry through the VWUXFWXUDO UHIRUPV that will yield competitiveness, growth and millions of new jobs in Europe. 7RJHWKHU, let us turn Europe into a truly NQRZOHGJHEDVHGVRFLHW\, with a skilled, mobile and productive workforce.

8 7RJHWKHU, let us PRYHIRUZDUGDORQJWKHURDGWR(XURSH¶VIXWXUH. The new Europe must be a MXVWKXPDQHLQFOXVLYH Europe. An H[FLWLQJHQHUJHWLFEurope. A SHDFHIXOSRZHUIXODQGSURVSHURXV Europe. A (XURSHIRUHYHU\RQH. Thank you.

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