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President, Honourable Members, It is a great privilege to deliver the first State of the Union address before this House. From now on the State of the Union address will be the occasion when we will chart our work for the next 12 months. Many of the decisions we will take this year will have long-term implications. They will define the kind of Europe we want. They will define a Europe of opportunity where those that aspire are elevated and those in need are not neglected. A Europe that is open to the world and open to its people. A Europe that delivers economic, social and territorial cohesion. Over the last year, the economic and financial crisis has put our Union before one of its greatest challenge ever. Our interdependence was highlighted and our solidarity was tested like never before. As I look back at how we have reacted, I believe that we have withstood the test. We have provided many of the answers needed – on financial assistance to Member States facing exceptional circumstances, on economic governance, on financial regulation, on growth and jobs. And we have been able to build a base camp from which to modernise our economies. Europe has shown it will stand up and be counted. Those who predicted the demise of the European Union were proved wrong. The European institutions and the Member States have demonstrated leadership. My message to each and every European is that you can trust the European Union to do what it takes to secure your future. The economic outlook in the European Union today is better than one year ago, not least as a result of our determined action. The recovery is gathering pace, albeit unevenly within the Union. Growth this year will be higher than initially forecast. The unemployment rate, whilst still much too high, has stopped increasing. Clearly, uncertainties and risks remain, not least outside the European Union. We should be under no illusions. Our work is far from finished. There is no room for complacency. Budgetary expansion played its role to counter the decline in economic activity. But it is now time to exit. Without structural reforms, we will not create sustainable growth. We must use the next 12 months to accelerate our reform agenda. Now is the time to modernise our social market economy so that it can compete globally and respond to the challenge of demography. Now is the time to make the right investments for our future. This is Europe's moment of truth. Europe must show it is more than 27 different national solutions. We either swim together, or sink separately. We will only succeed if, whether acting nationally, regionally or locally we think European. Today, I will set out what I see as the priorities for our work together over the coming year. I cannot now cover every issue of European policy or initiative we will take. I am sending you through President Buzek a more complete programme document. Essentially, I see five major challenges for the Union over the next year: dealing with the economic crisis and governance; restoring growth for jobs by accelerating the Europe 2020 reform agenda; building an area of freedom, justice and security; launching negotiations for a modern EU budget, and pulling our weight on the global stage. Let me start with the economic crisis and governance. Earlier this year, we acted decisively when euro area members and the euro itself needed our help. We have learned hard lessons. Now we are making important progress on economic governance. The Commission has put its ideas on the table in May and in June. They have been well received, in this Parliament, and in the Task Force chaired by President of the European Council. They are the basis around which a consensus is being developed. We will present the most urgent legislative proposals on 29 September, so as not to lose the momentum. Unsustainable budgets make us vulnerable. Debt and deficit lead to boom and bust. And they unravel the social safety net. Money that's spent on servicing debt is money that cannot be spent on the social good. Nor to prepare ourselves for the costs of an ageing population. A debt generation makes an unsustainable nation. Our proposals will strengthen the Stability and Growth Pact through increased surveillance and enforcement. And we need to tackle severe macro-economic imbalances, especially in the Euro area. That is why we have made proposals early on to detect asset bubbles, lack of competitiveness and other sources of imbalances. I now see a willingness of governments to accept stronger monitoring, backed up by incentives for compliance and earlier sanctions. The Commission will strengthen its role as independent referee and enforcer of the new rules. We will match monetary union with true economic union. If implemented as we propose, these reforms will also guarantee the long-term stability of the euro. It is key to our economic success. For the economy to grow, we also need a strong and sound financial sector. A sector that serves the real economy. A sector that prides itself on proper regulation and proper supervision. We took action to increase bank transparency. Today we are better than one year ago. With the publication of the stress test results, banks should now be able to lend to each other, so that credit can flow to Europe's citizens and companies. We have proposed to protect people's savings up to €100,000. We will propose to ban abusive naked short selling. We will tackle credit default swaps. The days of betting on someone else's house burning down are over. We continue to insist that banks, not taxpayers, must pay up front to cover the costs of their own risks of failure. We are legislating to outlaw bonuses for quick-wins today that become big losses tomorrow. As part of this approach, I am also defending taxes on financial activities and we will come with proposals this autumn. The political deal on the financial supervision package just concluded is very good news. The Commission proposals based on the de Larosière report will give us an effective European supervision system. I want to thank the Parliament for the constructive role it has played and I hope it will give its final agreement this month. We will also go further on regulation. Initiatives on derivatives, further measures on credit rating agencies and a framework for bank resolution and crisis management will soon be before you. Our goal is to have a reformed financial sector in place by the end of 2011. Sound government finances and responsible financial markets give us the confidence and economic strength for sustainable growth. We need to move beyond the debate between fiscal consolidation and growth. We can have both. Honourable Members, Sound public finances are a means to an end: growth for jobs. Our goal is growth, sustainable growth, inclusive growth. This is our overarching priority. This is where we need to invest. Europe 2020 starts now. We must frontload and accelerate the most growth-promoting reforms of our agenda. This could raise growth levels by over a third by 2020. This means concentrating on three priorities: getting more people in jobs, boosting our companies' competitiveness and deepening the single market. Let me start with people and jobs. Over 6.3 million people have lost their jobs since 2008. Each one of them should have the chance to get back into employment. Europe's employment rates are at 69% on average for those aged between 20 and 64. We have agreed these should rise to 75% by 2020, bringing in particular more women and older workers into the work force. Most of the competences for employment policy remain with Member States. But we won't stand on the sidelines. I want a European Union that helps its people to seize new opportunities; and I want a Union that is social and inclusive. This is the Europe we will build if Member States, the European institutions and the social partners move ahead on our common reform agenda. It should be centred on skills and jobs and investment in life-long learning. And it should focus on unlocking the growth potential of the single market, to build a stronger single market for jobs. The opportunities exist. We have very high levels of unemployment but Europe has now 4 million job vacancies. The Commission will propose later this year a "European Vacancy Monitor". It will show people where the jobs are in Europe and which skills are needed. We will also come forward with plans for a European skills passport. We must also tackle problems of poverty and exclusion. We must make sure that the most vulnerable are not left behind. This is the focus of our "Platform Against Poverty". It will bring together European action for vulnerable groups such as children and old people. As more and more people travel, study or work abroad, we will also strengthen citizens' rights as they move across borders. The Commission will address persisting obstacles as early as this autumn. Honourable Members, Growth must be based on our companies' competitiveness. We should continue to make life easier for our Small and Medium-Sized Enterprises. They provide two out of every three private sector jobs. Among their main concerns are innovation and red tape. We are working on both. Just before the summer, the Commission has announced the biggest ever package from the Seventh Research Framework Programme, worth €6.4 billion. This money will go to SMEs as well as to scientists. Investing in innovation also means promoting world class universities in Europe. I want to see them attracting the brightest and the best, from Europe and the rest of the world. We will take an initiative on the modernisation of European universities. I want to see a Europe that is strong in science, education and culture. We need to improve Europe's innovation performance not only in universities. Along the whole chain, from research to retail, notably through innovation partnerships. We need an Innovation Union. Next month, the Commission will set out how to achieve this. Another key test will be whether Member States are ready to make a breakthrough on a patent valid across the whole European Union. Our innovators are often paying ten times the price faced by their competitors in the United States or in Japan. Our proposal is on the table. It would reduce the cost fundamentally and double the coverage. After decades of discussion, it is time to decide. We will also act further on red tape. SMEs are being strangled in regulatory knots. 71% of CEOs say that the biggest barrier to their success is bureaucracy. The Commission has put proposals on the table to generate annual savings of €38 billion for European companies. Stimulating innovation, cutting red tape and developing a highly-skilled workforce: these are ways to ensure that European manufacturing continues to be world class. A thriving industrial base in Europe is of paramount importance for our future. Next month, the Commission will present a new industrial policy for the globalisation era. We have the people, we have the companies. What they both need is an open and modern single market. The internal market is Europe's greatest asset, and we are not using it enough. We need to deepen it urgently. Only 8% of Europe's 20 million SMEs engage in cross-border trade, still fewer in cross-border investment. And even with the internet, over a third of consumers lack the confidence to make cross-border purchases. At my request, Mario Monti presented an expert report and has identified 150 missing links and bottlenecks in the internal market. Next month we will set out how to deepen the Single Market in a comprehensive and ambitious Single Market Act. Energy is a key driver for growth and a central priority for action: we need to complete the internal market of energy, build and interconnect energy grids, and ensure energy security and solidarity. We need to do for energy what we have done for mobile phones: real choice for consumers in one European marketplace. This will give us a real energy community in Europe. We need to make frontiers irrelevant for pipelines or power cables. To have the infrastructure for solar and wind energy. To ensure that across the whole of Europe, we have a common standard so that charging electric car batteries becomes as natural as filling up the tank. Over the next year, we will bring forward an energy action plan, an infrastructure package and an energy efficiency action plan to put this vision in place. I myself will travel to the Caspian region later this year to promote the Southern Corridor as a means of enhancing our security of supply. To build a resource-efficient Europe, we need to look beyond energy. In the 20th century the world enjoyed phenomenal resource-intensive growth. We saw in the 20th century globally a four-fold growth in population accompanied by a 40-fold growth in economic output. But in the same period we also increased our use of fossil fuels 16 times, our fishing catches 35 times, our water use 9 times. And our carbon emissions increased 17 times. That means we have to deliver on our climate and energy package, as a core driver for change. This means integrating the different strands of policy on climate change, energy, transport and environment into a coherent approach on resource efficiency and a low carbon future. A forward-looking agricultural sector will play a major role in European measures to address some of the biggest challenges ahead, such as global food security, biodiversity loss and the sustainable management of natural resources. So will our maritime policy. All of this will not only strengthen our economy tomorrow: it will provide new openings today. Jobs in the eco-industry have been increasing by 7% a year since 2000. I want to see 3 million "green jobs" by 2020, 3 million green collar workers that complement our blue and white collar workers. We need sustainable growth, and we need smart growth. Half of European productivity growth over the last 15 years was driven by information and communication technologies. This trend is set to intensify. Our European Digital Agenda will deliver a single digital market worth 4% of EU GDP by 2020. Honourable Members, Everything we do is for the citizens of Europe. A fundamental dimension of our European project is precisely building an area of freedom, security and justice. We are working hard to implement the Stockholm action plan. We will make a real push on asylum and migration. Legal migrants will find in Europe a place where human values are respected and enforced. At the same time, we will crack down on the exploitation of illegal immigrants within Europe and at our borders. The Commission will make new proposals on policing our external borders. And we will bring forward an internal security strategy to tackle threats of organised crime and terrorism. Europeans will find that their fundamental rights and obligations exist wherever they go. Everyone in Europe must respect the law, and the governments must respect human rights, including those of minorities. Racism and xenophobia have no place in Europe. On such sensitive issues, when a problem arises, we must all act with responsibility. I make a strong appeal not to re-awaken the ghosts of Europe's past. An area of freedom, liberty and security, will create a place where Europeans can prosper. Honourable Members, Another challenge is sorting out the future budget of the European Union. Next month, we will come forward with the Commission's first ideas for the budget review. It shall launch an open debate without taboos to prepare our legislative proposals that will be presented in the second quarter of next year. We need to spend our money where we get most value for it. And we should invest it where it leverages growth and delivers on our European agenda. The quality of spending should be the yardstick for us all. So it is not only important to discuss the quantity, but also the quality of spending and investment. I believe Europe offers real added value. That is why I will be pushing for an ambitious post-2013 budget for Europe. I believe we should pool our means to back our policy priorities. The issue is not about spending more or less, but spending more intelligently, by looking at European and national budgets together. The EU budget is not for Brussels – it is for the people that you represent: for the unemployed workers being retrained by the Social Fund; for the students that participate in the Erasmus programme; for the regions that benefit from the Cohesion Fund. Energy interconnections, research, and development aid are obvious examples where a Euro spent at European level gets you more than a Euro spent at national level. Some Member States are seeing this logic even in areas of core national competence, like defence. They recognize that huge savings could be made if they pool some of their means and activities. Pooling money at the European level allows Member States to cut their costs, avoid overlaps and get a better return on their investment. That's why we should also explore new sources of financing for major European infrastructure projects. For instance, I will propose the establishment of EU project bonds, together with the European Investment Bank. We will also further develop Public Private Partnerships. As this Parliament has made clear, we must also address the issue of own resources. The present system is stretched to its limits – propped up by a byzantine set of corrections. Our citizens deserve a fairer and more efficient and transparent system. Some will not agree with all the ideas we will raise; I find it extraordinary that some are already rejecting them, even before knowing what they will be. I know that one issue of interest to this Parliament is the duration of the next budget. Various options exist. I would like to look at a 10-year framework, with a mid-term review of the financial dimension after five years – a "five plus five" option. This will give us longer term planning and a clearer link with the mandates of both our institutions. Of course, part of a credible European budget is the rigorous pursuit of savings. I am looking at the administrative costs within the Commission and other Community bodies like Agencies. We need to eliminate all pockets of inefficiency. We will build on recommendations from the Court of Auditors to improve financial management. Honourable Members, The final challenge I want to address today is how we pull our weight on the global stage. When we deal with our every day problems, we sometimes lose perspective and forget our achievements. A peaceful and successful transition to a European Union that has doubled in size and is negotiating further accessions. A sound currency, the euro, that is a major currency of the world. A strong partnership with our neighbourhood that strengthens us all. If we act decisively, then we have nothing to fear from the 21st century. As the strategic partnerships of the 21st century emerge, Europe should seize the chance to define its future. I am impatient to see the Union play the role in global affairs that matches its economic weight. Our partners are watching and are expecting us to engage as Europe, not just as 27 individual countries. If we don't act together, Europe will not be a force in the world, and they will move on without us: without the European Union but also without its Member States. This is why, in my political guidelines, I called for Europe to be a global player, a global leader – a key task and test for our generation. Together with High Representative and Vice-President Ashton, I will present our vision of how we can maximise Europe's role in the world. With the European External Action Service, we have the means to match our aspirations. In our globalized world, the relationships we build with strategic partners determine our prosperity. To be effective on the international stage, we need the weight of the European Union. Size matters, now more than ever. A good example is the fight against climate change. Copenhagen showed that, while others did not match our ambition, we did not help ourselves by not speaking with one voice. Negotiations may have stalled but climate change has not. I want us to intensify our engagement with international partners to turn their press releases into credible commitments to cut emissions and push forward with fast-start funding. The next two months will see crucial Summits with strategic partners. The more we are able to establish a common agenda with a clearly defined European interest, the more we will achieve. For example, I see huge potential in developing a transatlantic agenda for growth and jobs. Where we are already punching our weight is the G20, the forum where the key economic global players address common challenges. When President Van Rompuy and I go to Seoul in November and represent the European Union, we want to see concrete results: Further progress in global economic coordination. More stable and responsible financial markets and agreement on reform of international financial institutions. More effective global financial safety nets. More progress on a G20 development agenda. We will continue to show leadership in this forum and work closely with the French G8/G20 Presidency next year. We also want to see support for the Doha Round. Trade boosts growth and prosperity. We will also pursue bilateral and regional Free Trade Agreements. In October, the Commission will present a renewed trade policy to drive new benefits for Europe. Being open to the world also means standing side by side with developing countries, especially with Africa. When I go to the Millennium Development Goals High-Level Event in New York in 2 weeks' time, I intend to commit, with your support and on behalf of the European Union, an extra €1 billion to the Millennium Development Goals. Being a global player also means standing up for our values. Human rights are not negotiable. I am shocked about how the rights of women are being infringed in many countries. I am appalled when I hear that Sakineh Mohammadi Ashtiani is sentenced to death by stoning. This is barbaric beyond words. In Europe we condemn such acts which have no justification under any moral or religious code. Our values also mean that we must come to the aid of those facing a crisis situation, anywhere around the world. Our humanitarian aid to Pakistan is the latest example of Europe's solidarity in action. It is a striking example of the need to present the different contributions of the Commission and the Member States as a truly European aid package. The Member States have the helicopters; they have the civil protection teams. We now need to pool them to create a real European crisis response capacity. This is what the Commission will propose in October. And I urge the Member States to show they are serious about the Union punching its weight in this area. We are making progress on a common foreign policy. But let's be under no illusions: we will not have the weight we need in the world without a common defence policy. I believe now is the moment to address this challenge. Honourable Members, We are still bedding down the new institutional set-up of Europe created by the Lisbon Treaty. What really matters is what the institutions deliver to the people. What matters is the difference Europe makes in their daily lives. The secret of Europe's success is its unique Community model. More than ever, the Commission must drive the political agenda with its vision and proposals. I have called for a special relationship between the Commission and Parliament, the two Community institutions par excellence. I am intensifying my political cooperation with you. Europe is not only Brussels or Strasbourg. It is our regions. It is the cities, towns and villages you come from. When you walk round your constituencies, you can point to the European projects that are so important for their prosperity. At the end of the day, we are all in the same boat, the European institutions, the Member states, the regions. The Union will not achieve its objectives in Europe without the Member States. And the Member States will not achieve their objectives in the world without the European Union. Honourable Members, The citizens of Europe expect us to take the action needed to get out of this crisis. We must show them that the common efforts we are making today will lead to new jobs, new investments, and a Europe fit for the future. I am confident that Europe has what it takes. We will get the results we are reaching for. One thing is certain, it is not with pessimism that we will win this battle. It is with confidence, with a strong common will. Today, I have outlined how I see the European Union doing that. I have committed to deliver the proposals to build our economic union. I have made the case to fast-track our reform agenda. I have set out how to modernise our social market economy to deliver growth and jobs in a smart, sustainable and inclusive economy through our Europe 2020 flagship initiatives. I have set out how to achieve a common energy policy in Europe. I have defended the need for an area of freedom, security and justice, where Europeans will find that their fundamental rights and obligations exist wherever they go. I have made clear that the Commission will strive for an ambitious budget. I have proposed to develop EU project bonds to finance major European projects. I have announced our reinforced commitment to the Millennium Development Goals. I have made the case clear of why we need a common crisis response capacity and a also a common foreign and a common defence policy. And I have urged European leaders to act together if they want Europe to be a global player and defend the European interest. It is indeed a transformational, an ambitious and challenging agenda. For Europe to succeed, the Commission needs your support for a stronger, a fairer Europe for the benefits of our citizens. Thank you.

EU

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. But it is also a crisis of confidence. A crisis of confidence in our leaders, in Europe itself, and in our capacity to find solutions. The roots of the crisis are well-known. Europe has not met the challenges of competitiveness. Some of our Member States have lived beyond their means. Some behaviours in the financial markets have been irresponsible and inadmissible. We have allowed imbalances between our Member States to grow, particularly in the euro area. Tectonic shifts in the world order and the pressures of globalisation, have made matters even worse. The result is clear: concern in our societies. Fear among our citizens for the future. A growing danger of a retreat into national, not to say nationalist, feeling. Populist responses are calling into question the major successes of the European Union: the euro, the single market, even the free movement of persons. Today we can say that the sovereign debt crisis today is, above all, a crisis of political confidence. And our citizens, but also people in the outside world, are observing us and wondering – are we really a Union? Do we really have the will to sustain the single currency? Are the most vulnerable Member States really determined to carry out essential reforms? Are the most prosperous Member States really ready to show solidarity? Is Europe really capable of achieving growth and creating jobs? I assert here today: Yes, the situation is serious. But there are solutions to the crisis. Europe has a future, if we restore confidence. And to restore confidence we need stability and growth. But also political will, political leadership. Together we must propose to our citizens a European renewal. We must translate into deeds what was stated in the Berlin Declaration, signed by the Commission, by Parliament and by the European Council on the occasion of the 50th anniversary of the signature of the Rome Treaties. It was said then: ‘Wir leben heute miteinander, wie es nie zuvor möglich war. Wir Bürgerinnen und Bürger der Europäischen Union sind zu unserem Glück vereint.' - ‘Today we live together as was never possible before. We, the citizens of the European Union, have united for the better.' It is a declaration. And words count. This expression of will must be translated into everyday courage. Working with our institutions, and not working against them, we can succeed. For some, the main consideration is the need for stability. For others, it is growth. I say we need both. Some preach discipline. Others, solidarity. We need both. The time for piecemeal solutions is over. We need to set our minds on global solutions. A greater ambition for Europe. Today we are at a turning point in our history. A moments when, if we do not integrate further, we risk fragmentation. It is therefore a question of political will, a test for our whole generation. And I say to you, yes, it is possible to emerge from this crisis. It is not only possible, but it is necessary. And political leadership is about making possible that which is necessary. Honourable members, Let me start with Greece. Greece is, and will remain, a member of the euro area. Greece must implement its commitments in full and on time. In turn, the other euro area members have pledged to support Greece and each other. As stated at the euro area Summit on 21 July: "We are determined to continue to provide support to countries under programmes until they have regained market access, provided they successfully implement those programmes." That is why I created the Task Force for Greece. We have just launched an action plan based on two major pillars: Around 100 viable and high-quality projects, investing in all Greek regions, to make the best use of Greece's remaining allocation of the structural funds. And a major drive to reduce bureaucratic procedures for European co-funded projects. € 15 billion remain to be spent in Greece from the structural funds. This will support the Greek economy with an urgent programme of technical assistance to the Greek administration. A programme of € 500 million Euros to guarantee European Investment Bank loans to Greek SMEs is already under way. The Commission is also considering a wider guarantee mechanism to help banks lend again to the real economy. All of this represents a huge support to Greece's fight back and Greece will have to deliver concrete results. It must break with counter productive practices and resist vested interests. But we have to be clear about this. This is not a sprint, but a marathon. The task of building a Union of stability and responsibility is not only about Greece. The economic outlook that we face is very difficult. We are confronted with the negative effects of an ongoing global re-assessment of risks. It is therefore our responsibility to rebuild confidence and trust in the euro and our Union as a whole. And we can do this by showing that we are able to take all the decisions needed to run a common currency and an integrated economy in a competitive, inclusive and resource-efficient way. For this we need to act in the short, in the medium and the long term. The first step is to quickly fix the way we respond to the sovereign debt crisis. This will require stronger mechanisms for crisis resolution. We need credible firepower and effective firewalls for the euro. We have to build on the EFSF and the upcoming European Stability Mechanism. The EFSF must immediately be made both stronger and more flexible. This is what the Commission proposed already in January. This is what Heads of State and Government of the euro area agreed upon on 21 July. Only then, when you ratify this, will the EFSF be able to: deploy precautionary intervention; intervene to support the recapitalisation of banks, intervene in the secondary markets to help avoid contagion Once the EFSF is ratified, we should make the most efficient use of its financial envelope. The Commission is working on options to this end. Moreover we should do everything possible to accelerate the entry into force of the ESM. And naturally we trust that the European Central Bank – in full respect of the Treaty – will do whatever is necessary to ensure the integrity of the euro area and to ensure its financial stability. But we cannot stop there. We must deepen economic coordination and integration, particularly in the euro area. This is at least as big a political task as an economic one. Today, you will vote on the so-called "six-pack" proposals that we put in front of you and the Council one year ago. This "six-pack" reforms the Stability and Growth Pact and widens surveillance to macro-economic imbalances. We are now back very close to what the Commission originally put on the table. You have played a decisive role in keeping the level of ambition of these proposals, and I really want to thank you and congratulate you for that. This legislation will give us much stronger enforcement mechanisms. We can now discuss Member States' budgetary plans before national decisions are taken. This mix of discipline and integration holds the key to the future of the euro area. Only with more integration and discipline we can have a really credible euro area. Honourable members, These are indeed important steps forward, but we must go further. We need to complete our monetary union with an economic union. We need to achieve the tasks of Maastricht. It was an illusion to think that we could have a common currency and a single market with national approaches to economic and budgetary policy. Let's avoid another illusion that we can have a common currency and a single market with an intergovernmental approach. For the euro area to be credible – and this not only the message of the federalists, this is the message of the markets – we need a truly Community approach. We need to really integrate the euro area, we need to complete the monetary union with real economic union. And this truly Community approach can be built how? In the coming weeks, the Commission will build on the six-pack and present a proposal for a single, coherent framework to deepen economic coordination and integration, particularly in the euro area. This will be done in a way that ensures the compatibility between the euro area and the Union as a whole. We do not want the euro area to break of course the great acquis of the single market and all our four freedoms. At the same time, we can pool decision making to enhance our competitiveness. This could be done by integrating the Euro Plus Pact into this framework, in full respect of the national implementation competences. For all of this to work, we need more than ever the independent authority of the Commission, to propose and assess the actions that the Member States should take. Governments, let's be frank, cannot do this by themselves. Nor can this be done by negotiations between governments. Indeed, within the Community competences, the Commission is the economic government of the Union, we certainly do not need more institutions for this. For a reason the Treaties have created supra-national institutions. For a reason the European Commission, the European Central Bank, the European Court of Justice were created. The Commission is the guarantor of fairness. Moreover, the Commission, which naturally works in partnership with the Member States, is voted by and accountable to this House. The directly elected Parliament both of the euro area and of the European Union as a whole. Honourable members, It is also time to have unified external representation of the euro area. In accordance with the Treaty the Commission will make proposals for this purpose. A Union of stability and responsibility built on this basis and with common approach will also allow the Member States to seize fully the advantages of a bigger market for the issuance of sovereign debt. Once the euro area is fully equipped with the instruments necessary to ensure both integration and discipline, the issuance of joint debt will be seen as a natural and advantageous step for all. On condition that such Eurobonds will be "Stability Bonds": bonds that are designed in a way that rewards those who play by the rules, and deters those who don't. As I already announced to this house, the Commission will present options for such "Stability Bonds" in the coming weeks. Some of these options can be implemented within the current Treaty, whereas fully fledged 'Eurobonds' would require Treaty change. And this is important because, Honourable Members, we can do a lot within the existing Treaty of Lisbon. And there is no excuse for not doing it, and for not doing it now. But it may be necessary to consider further changes to the Treaty. I am also thinking particularly of the constraint of unanimity. The pace of our joint endeavour cannot be dictated by the slowest. And today we have a Union where it is the slowest member that dictates the speed of all the other Member States. This is not credible also from the markets' point of view, this is why we need to solve this problem of decision making. A Member State has of course the right not to accept decisions. That is a question, as they say, of national sovereignty. But a Member State does not have the right to block the moves of others, the others also have their national sovereignty and if they want to go further, they should go further. Our willingness to envisage Treaty change should not be a way or an excuse to delay the reforms that are necessary today but I believe that this longer term perspective will reinforce the credibility of our decisions now. A Union of stability and responsibility means swiftly completing the work on a new system of regulation for the financial sector. We need well-capitalised, responsible banks lending to the real economy. Much has been said about the alleged vulnerability of some of our banks. European banks have substantially strengthened their capital positions over the past year. They are now raising capital to fill the remaining gaps identified by the stress tests in summer. This is necessary to limit the damage to financial market turbulence on the real economy and on jobs. Over the last three years, we have designed a new system of financial regulation. Let's remember, we have already tabled 29 pieces of legislation. You have already adopted several of them, including the creation of independent supervising authorities, which are already working. Now it is important to approve our proposals for new rules on: derivatives; naked short selling and credit default swaps; fair remuneration for bankers. These propositions are there, they should be adopted by the Council and by the Parliament. The Commission will deliver the remaining proposals by the end of this year, namely rules on: credit rating agencies; bank resolution; personal responsibility of financial operatives. So we will be the first constituency in the G20 to have delivered on our commitment to global efforts for financial regulation. Honourable members, In the last three years, Member States - I should say taxpayers - have granted aid and provided guarantees of € 4.6 trillion to the financial sector. It is time for the financial sector to make a contribution back to society. That is why I am very proud to say that today, the Commission adopted a proposal for the Financial Transaction Tax. Today I am putting before you a very important text that if implemented may generate a revenue of about € 55 billion per year. Some people will ask "Why?". Why? It is a question of fairness. If our farmers, if our workers, if all the sectors of the economy from industry to agriculture to services, if they all pay a contribution to the society also the banking sector should make a contribution to the society. And if we need – because we need – fiscal consolidation, if we need more revenues the question is where these revenues are coming from. Are we going to tax labour more? Are we going to tax consumption more? I think it is fair to tax financial activities that in some of our Member States do not pay the proportionate contribution to the society. It is not only financial institutions who should pay a fair share. We cannot afford to turn a blind eye to tax evasion. So it is time to adopt our proposals on savings tax within the European Union. And I call on the Member States to finally give the Commission the mandate we have asked for to negotiate tax agreements for the whole European Union with third countries. Honourable members, Stability and responsibility are not enough on their own. We need stability but we also need growth. We need responsibility but we also need solidarity. The economy can only remain strong if it delivers growth and jobs. That's why we must unleash the energy of our economy, especially the real economy. The forecasts today point to a strong slowdown. But significant growth in Europe is not an impossible dream. It will not come magically tomorrow. But we can create the conditions for growth to resume. We have done it before. We must and we can do it again. It is true that we do not have much room for a new fiscal stimulus. But that does not mean that we cannot do more to promote growth. First, those who have fiscal space available must explore it – but in a sustainable way. Second, all member states need to promote structural reforms so that we can increase our competitiveness in the world and promote growth. Together, we can and must tap the potential of the Single Market, exploit all the benefits of trade and mobilise investment at the Union level. Let me start with the Single Market. Full implementation of the Services Directive alone could, according to our estimates, deliver up to € 140 billion in economic gains. But today, two years after the deadline for implementation, several Member States have still not adopted the necessary laws. So we are not benefiting from all the possible gains from having a true services liberalisation in Europe. But we can also do more. We must adopt what is on the table. We have adopted the Single Market Act in the European Commission. A number of key initiatives are ready. We are close to having a European patent which would cut the cost of protection to 20% of current costs. I expect this is to be concluded by the end of this year. Moreover, for the Single Market Act, we should consider a fast track legislative procedure. By the way, in many areas we should take a fast track legislative procedure because we are living in real emergency times. This will allow us to respond to these extraordinary circumstances. And growth in the future will depend more and more on harnessing information technology. We need a digital single market, which will benefit each and every European by around €1500 per year – by using the possibilities of e-commerce to ending, for instance, mobile roaming charges. An extra 10 % in broadband penetration would bring us between 1 and 1.5 % of extra annual growth. In a competitive world we must be also well-educated with skills to face these new challenges. We must innovate. And we must act in a sustainable way. We have already presented detailed proposals on innovation, resource-efficiency and how we can strengthen our industrial base. Modern industrial policy is about investing in research and innovation. We need to accelerate the adoption of our efforts to boost the use of venture capital to fund young, innovative companies across Europe. Sustainable jobs will come if we focus on innovation and new technologies, including green technologies. We must see that "green" and growth go together. For example, the renewables sector has already created 300,000 jobs in past 5 years in the European Union. The global green technology market will triple over the next decade. We must focus our action on where it makes a real impact. Growth of the future means we must actively pursue also our smart regulation agenda, which will give a saving of € 38 billion for European companies, particularly for SMEs. But Member States must also do their part in reducing the administrative burden. But we also need investment. These reforms are important but we also need some kind of investment at European level. A Union of growth and solidarity needs modern, interconnected infrastructures. We have proposed for the next Multi-Annual Financial Framework (MFF) to create a facility to connect Europe – in energy, in transport, in digital. This innovative part of our MFF proposal has to be seen together with another very important innovative idea: the project bond. In the coming weeks the Commission will publish its proposals for EU project bonds. We are also proposing pilot projects, so that we can fund that growth. We can do it even before the MFF is adopted. In this way we can frontload some of the major infrastructure investments Europe needs. The Union and its Member States should urgently consider how to allow our own policy-driven bank, the European Investment Bank to do more – and possibly much more – to finance long-term investment. To do so, we need to explore ways to reinforce the EIB's resources and capital base so that it can lend to the real economy. In the year 2000, there was € 22 billion of venture capital in Europe. In 2010 there was only € 3 billion. If we want to promote entrepreneurship we must reverse this decline and we need that support namely for SMEs. We can also get more growth out of the Structural Funds, by increasing absorption capacity, using the Structural Funds to support macroeconomic performance. They are essential for innovation, for training and employment, and for SMEs. I would also like to urge this House to adopt by the end of the year the proposals we made in August to increase cofinancing rates to those countries with assistance programmes. This will inject essential funding into these economies, while reducing pressure on national budgets. Honourable members, Reforms to our labour markets, public finances and pension systems require a major effort from all parts of society. We all know these changes are necessary, so that we can reform our social market economy and keep our social model. But it is imperative that we hold on to our values – values of fairness, of inclusiveness and of solidarity. Right now we need to give concrete hope to the 1 in 5 of our young people who cannot find work. In some countries, the situation of our young people is simply dramatic. I want to call on companies to make a special effort to provide internships and apprenticeships for young people. These can be supported by the European Social Fund. By getting businesses, the social partners, national authorities and the Union level working in a "Young Opportunities Initiative", we can make a difference. This I believe is the most urgent social matter to respond to the anxiety of our young people that cannot find a job and it is much better to have an apprenticeship, a traineeship, than to be with that anxiety in the streets expressing that lack of confidence in the Union as a whole. We must accelerate the most urgent parts of our Growth and Jobs Plan, Europe 2020. The Commission will focus on the situation of young people in each and every Member State in its Country-specific recommendations for next year. I believe we must give our future a real chance. Right now we also need to act to help the 80 million Europeans at risk of poverty. This means that the Council must finally approve our proposal to safeguard the programme for the supply of food for the most deprived persons. I would like to thank this Parliament for the political support it has given to our proposed solution. Honourable Members, Fifty years ago, 12 countries in Europe came together to sign the Social Charter. It was exactly in October 50 years ago. Today, that Charter has 47 signatories, including all our Member States. To guarantee these fundamental values in Europe, I believe we need to boost the quality of social dialogue at European level. The renewal of Europe can only succeed with the input and the ownership of all the social partners – of trade unions, of workers, of businesses, civil society in general. We should remember that our Europe is a Europe of citizens. As citizens, we all gain through Europe. We gain a European identity and citizenship apart from our national citizenship. European citizenship adds a set of rights and opportunities. The opportunity to freely cross borders, to study and work abroad. Here again, we must all stand up and preserve and develop these rights and opportunities. Just as the Commission is doing now with our proposals on Schengen. We will not tolerate a rolling back of our citizens' rights. We will defend the freedom of circulation and all the freedoms in our Union. Honourable Members, The Commission's activities, as you well know, cover many other fields. I cannot discuss them all here, but they are mentioned in the letter which I sent to the Parliament's President and which you have all received. Before I conclude, however, let me speak about the European Union's external responsibilities. I want to see an open Europe, a Europe engaging with the world. European action in the world is not only the best guarantee for our citizens and for the defence of our interests and our values: it is also indispensable to the world. Today it is fashionable to talk of a G2. I believe the world does not want a G2. It is not in the interests of the Two themselves. We know the tension that bipolarity created during the Cold War. If we want to have a just world and an open world, I believe that Europe is more necessary than ever. The rapidly-changing world needs a Europe that assumes its responsibilities. An influential Europe, a Europe of 27 - with the accession of Croatia soon to be 28. A Europe that continues to show the way, whether in matters of trade or of climate change. At a time when major events await us, from Durban to Rio +20, Europe must retain its position of leadership on these questions. Let us also turn our attention to our southern neighbours. The Arab Spring is a profound transformation which will have lasting consequences not only for those peoples but also for Europe. Europe should be proud. We were the first to stand alongside those Tunisians, Egyptians and Libyans who wanted democracy and freedom. Europe is supporting these legitimate aspirations, namely through our Partnership for Democracy and Shared Prosperity. The Arab Spring should give hope for peace throughout the region.l Europe wishes to see a Palestinian State living in peace alongside the State of Israel. Let us also turn our attention to our eastern neighbours. On Friday I shall take part in the Eastern Partnership Summit in Warsaw. I shall go there with the ambition to forge a closer political relationship and tighter economic integration between us and our partners in the region. The EU has extraordinary transformational power. It is an inspiration for many people in the world, and if those countries embark on a thorough process of reform we can help them. We can further political and economic ties. Finally, let us not forget the most deprived of all and let us live up to our commitments in attaining the Millennium Development Goals. We must also be realistic and recognise that, if Europe is to exert its influence fully, if Europe really wants to be a power, we must strengthen the Common Foreign and Security Policy. It must be credible. It must be based on a common security and defence dimension if we are really to count in the world. Long gone is the time when people could oppose the idea of European defence for fear that it might harm the Transatlantic relationship. As you have noticed, today it is the Americans themselves who are asking us to do more as Europeans. The world has changed, the world is still changing fundamentally. Do we really want to count in the world? Hence, at a time when defence budgets are under pressure, we must do more together with the means at our disposal. The Commission is assuming playing its part: we are working towards a single defence market. We are using our under the Treaty with a view to developing a European defence industrial base. Honourable Members, Let us not be naive: the world is changing and if Europe is to count in the world and defend its citizens' interests we need the political dimension and the defence dimension to give us weight and a say in the world's future. Honourable Members, I conclude. At the end of our mandate, in 2014, it will be exactly a century since the Great War broke out on our continent. A dark period which was followed by the Second World War, one of the most dramatic pages in the history of Europe and the world. Today such horrors are unimaginable in Europe, largely because we have the European Union. Thanks to the European vision, we have built a guarantee of peace in our continent through economic and political integration. That is why we cannot allow this great work to be placed in jeopardy. It was a gift from previous generations. It will not be our generation that calls it into question. And let us be clear: if we start to break up Europe, if we start to backtrack on Europe's major achievements, we will doubtless have to face the risk of fragmentation. As I said, the root of the crisis we are now facing is a political problem. It is a test of our willingness to live together. That is why we have built common institutions. That is why we must safeguard the European interest. The reality today is that intergovernmental cooperation is not enough to pull Europe out of this crisis, to give Europe a future. On the contrary, certain forms of intergovernmentalism could lead to renationalisation and fragmentation. Certain forms of intergovernmentalism could be the death of the united Europe we wish for. Let us not forget that the decisions we take now, or fail to take, are going to shape our future. I feel hurt when I hear people in other parts of the world, with a certain condescension, telling us Europeans what we should do. I think, frankly, we have problems, very serious problems, but I also think we do not have to apologise for our democracies. We do not have to apologise for our social market economy. We should ask our institutions, but also our Member States, Paris, Berlin, Athens, Lisbon and Dublin, to show a burst of pride in being European, a burst of dignity, and say to our partners: ‘Thanks for the advice, but we can overcome this crisis together'. I feel that pride in being European. And pride in being European is not just about our great culture, our great civilisation, everything to which we have given birth. It is not pride only in the past, it is pride in our future. That is the confidence that we have to re-create among ourselves. It is possible. Some say it is very difficult, it is impossible. I would remind them of the words of a great man, a great African, Nelson Mandela: ‘It always seems impossible until it is done'. Let's do it. We can do it with confidence. We can do it, we can renew our Europe. Thank you for your attention.

EU

Mr President, Honourable Members, 1. Analysis of the situation It is an honour to stand before you today to deliver this third State of the Union address. At a time when the European Union continues to be in crisis. A financial and economic crisis. A social crisis. But also a political crisis, a crisis of confidence. At its root, the crisis results from: Irresponsible practices in the financial sector; Unsustainable public debt, and also; A lack of competitiveness in some Member States. On top of that, the Euro faces structural problems of its own. Its architecture has not been up to the job. Imbalances have built up. This is now being corrected. But it is a painful, difficult, effort. Citizens are frustrated. They are anxious. They feel their way of life is at risk. The sense of fairness and equity between Member States is being eroded. And without equity between Member States, how can there be equity between European citizens? Over the last four years, we have made many bold decisions to tackle this systemic crisis. But despite all these efforts, our responses have not yet convinced citizens, markets or our international partners. Why? Because time and again, we have allowed doubts to spread. Doubts over whether some countries are really ready to reform and regain competitiveness. Doubts over whether other countries are really willing to stand by each other so that the Euro and the European project are irreversible. On too many occasions, we have seen a vicious spiral. First, very important decisions for our future are taken at European summits. But then, the next day, we see some of those very same people who took those decisions undermining them. Saying that either they go too far, or that they don't go far enough. And then we get a problem of credibility. A problem of confidence. It is not acceptable to present these European meetings as if they were boxing events, claiming a knockout victory over a rival. We cannot belong to the same Union and behave as if we don't. We cannot put at risk nine good decisions with one action or statement that raises doubts about all we have achieved. This, Honourable Members, reveals the essence of Europe's political crisis of confidence. If Europe's political actors do not abide by the rules and the decisions they have set themselves, how can they possibly convince others that they are determined to solve this crisis together? Mr President, Honourable Members, 2. The challenge – a new thinking for Europe A crisis of confidence is a political crisis. And, the good thing is that, in a democracy, there is no political problem for which we cannot find a political solution. That is why, here today, I want to debate with you the fundamental political questions - where we are now and how we must move forward. I want to focus on the political direction and the vision that shall inspire our policy decisions. I will of course not list all these individual decisions. You are receiving the letter I addressed to the President of the European Parliament, and that sets out the Commission's immediate priorities. We will discuss them with you before adopting the Commission Work Programme later in the autumn. My message to you today is this: Europe needs a new direction. And, that direction can not be based on old ideas. Europe needs a new thinking. When we speak about the crisis, and we all speak about the crisis, have we really drawn all the consequences for our action? When we speak about globalisation, and we all speak a lot about globalisation, have we really considered its impact on the role of each of our Member States? The starting point for a new thinking for Europe is to really draw all the consequences of the challenges that we are facing and that are fundamentally changing our world. The starting point is to stop trying to answer the questions of the future with the tools of the past. Since the start of the crisis, we have seen time and again that interconnected global markets are quicker and therefore more powerful than fragmented national political systems. This undermines the trust of citizens in political decision making. And it is fuelling populism and extremism in Europe and elsewhere. The reality is that in an interconnected world, Europe's Member States on their own are no longer able to effectively steer the course of events. But at the same time, they have not yet equipped their Union - our Union —with the instruments needed to cope with this new reality. We are now in a transition, in a defining moment. This moment requires decisions and leadership. Yes, globalisation demands more European unity. More unity demands more integration. More integration demands more democracy, European democracy. In Europe, this means first and foremost accepting that we are all in the same boat. It means recognising the commonality of our European interests. It means embracing the interdependence of our destinies. And it means demanding a true sense of common responsibility and solidarity. Because when you are on a boat in the middle of the storm, absolute loyalty is the minimum you demand from your fellow crew members. This is the only way we will keep up with the pace of change. It is the only way we will get the scale and efficiency we need to be a global player. It is the only way to safeguard our values, because it is also a matter of values, in a changing world. In the 20th century, a country of just 10 or 15 million people could be a global power. In the 21st-century, even the biggest European countries run the risk of irrelevance in between the global giants like the US or China. History is accelerating. It took 155 years for Britain to double its GDP per capita, 50 years for the US, and just 15 years for China. But if you look at some of our new Member States, the economic transformation going on is no less impressive. Europe has all the assets it takes. In fact much more so than previous generations faced with similar or even greater challenges. But we need to act accordingly and mobilize all these resources together. It is time to match ambitions, decisions, and actions. It is time to put a stop to piecemeal responses and muddling through. It is time to learn the lessons from history and write a better future for our Europe. Mr President, Honourable Members, 3. Response to the situation – the 'decisive deal for Europe' What I demand and what I present to you today is a Decisive Deal for Europe. A decisive deal to project our values, our freedom and our prosperity into the future of a globalized world. A deal that combines the need to keep our social market economies on one hand and the need to reform them on the other. A deal that will stabilise the EMU, boost sustainable growth, and restore competitiveness. A deal that will establish a contract of confidence between our countries, between Member States and the European institutions, between social partners, and between the citizens and the European Union. The Decisive Deal for Europe means that: We must leave no doubt about the integrity of the Union or the irreversibility of the Euro. The more vulnerable countries must leave no doubts about their willingness to reform. About their sense of responsibility. But the stronger countries must leave no doubts about their willingness to stick together. About their sense of solidarity. We must all leave no doubts that we are determined to reform. To REFORM TOGETHER. The idea that we can grow without reform, or that we can prosper alone is simply false. We must recognise that we are in this together and must resolve it together. This decisive deal requires the completion of a deep and genuine economic union, based on a political union. a) Economic union: Let me start with Europe's economy. Firstly, we need growth. Sustainable growth Growth is the lifeblood of our European social market model: it creates jobs and supports our standard of living. But we can only maintain growth if we are more competitive. At the national level it means undertaking structural reforms that have been postponed for decades. Modernising public administration. Reducing wasteful expenditure. Tackling vested interests and privileges. Reforming the labour market to balance security with flexibility. And ensuring the sustainability of social systems. At the European level, we need to be more decisive about breaking down barriers, whether physical, economic or digital. We need to complete the single market. We need to reduce our energy dependence and tap the renewable energy potential. Promoting competitiveness in sectors such as energy, transport or telecoms could open up fresh competition, promote innovation and drive down prices for consumers and businesses. The Commission will shortly present a Single Market Act II. To enable the single market to prosper, the Commission will continue to be firm and intransigent in the defence of its competition and trade rules. Let me tell you frankly, If it was left to the Member States, I can tell you they will not resist pressure from big corporations or large external powers. We need to create a European labour market, and make it as easy for people to work in another country as it is as home. We need to explore green growth and be much more efficient in our use of resources. We have to be much more ambitious about education, research, innovation and science. Europe is a world leader in key sectors such as aeronautics, automotives, pharmaceuticals and engineering, with global market shares above a third. Industrial productivity increased by 35% over the last decade despite the economic slowdown. And today, some 74 million jobs depend on manufacturing. Every year start-up firms in the EU create over 4 million jobs. We need to build on this by investing in our new industrial policy and creating a business environment that encourages entrepreneurship and supports small businesses. This means making the taxation environment simpler for businesses and more attractive for investors. Better tax coordination would benefit all Member States. We also need a pro-active trade policy by opening up new markets. This is the potential of Europe's economy. This is the goldmine that is yet to be fully explored. Fully implementing the Growth Compact agreed at the June European Council can take us a long way. And we could go further, with a realistic but yet ambitious European Union budget dedicated to investment, growth and reform. Let's be clear. The European budget is the instrument for investment in Europe and growth in Europe. The Commission and this Parliament, indeed all pro-European forces, because most member States support our proposal, must now stand together in support of the right multi-annual financial framework that will take us to 2020. It will place little burden on Member States, especially with our proposed new own resources system. But it would give a great boost to their economies, their regions, their researchers, their students, their young people who seek employment, or their SMEs. It is a budget for growth, for economic, social and territorial cohesion between Member States and within Member States. It is a budget that will help complete the single market by bridging gaps in our energy, transport and telecoms infrastructure through the Connecting Europe Facility. It is a budget for a modern, growth-oriented agriculture capable of combining food security with sustainable rural development. It is a budget that will promote a research intensive and innovative Europe through Horizon 2020. Because we need this European scale for research This will be a real test of credibility for many of our some Member States. I want to see if the same member States who are all the time talking about investment and growth will now support a budget for growth at the European level. The budget is also the tool to support investment in our growth agenda, Europe 2020, which we need now more than ever before. Europe 2020 is the way to modernise and preserve the European social market economy. Honourable Members, Our agenda of structural reform requires a major adjustment effort. It will only work if it is fair and equitable. Because inequality is not sustainable. In some parts of Europe we are seeing a real social emergency. Rising poverty and massive levels of unemployment, especially among our young people. That is why we must strengthen social cohesion. It is a feature that distinguishes European society from alternative models. Some say that, because of the crisis, the European Social model is dead. I do not agree. Yes, we need to reform our economies and modernise our social protection systems. But an effective social protection system that helps those in need is not an obstacle to prosperity. It is indeed an indispensable element of it. Indeed, it is precisely those European countries with the most effective social protection systems and with the most developed social partnerships, that are among the most successful and competitive economies in the world. Fairness and equity means giving a chance to our young people. We are already doing a lot. And before the end of the year, the Commission will launch a Youth Package that will establish a youth guarantee scheme and a quality framework to facilitate vocational training. Fairness and equity also means creating better and fairer taxation systems. Stopping tax fraud and tax evasion could put extra billions into the public purse across Europe. This is why the Commission will fight for an agreement on the revised savings tax directive, and on mandates to negotiate stronger savings tax agreements with third countries. Their completion would be a major source of legitimate tax revenues. And the Commission will continue to fight for a fair and ambitious Financial Transactions Tax that would ensure that taxpayers benefit from the financial sector, not just that the financial sector benefits from taxpayers. Now that it is clear that agreement on this can only happen through enhanced cooperation, the Commission will do all it can to move this forward rapidly and effectively with those Member States that are willing. Because this is about fairness. And fairness is an essential condition to make the necessary economic reforms socially and politically acceptable. And above all fairness is a question of justice, social justice. Mr President, Honourable Members, In the face of the crisis, important decisions have been taken. Across the European Union, reform and consolidation measures are being implemented. Joint financial backstops are being put in place, and the European institutions have consistently shown that they stands by the Euro. The Commission is very aware that in the Member States implementing the most intense reforms, there is hardship and there are – sometimes very painful – difficult adjustments. But it is only through these reforms that we can come to a better future. They were long overdue. Going back to the status quo ante is simply impossible. The Commission will continue to do all it can to support these Member States and to help them boost growth and employment, for instance through the re-programming of structural funds. Allow me to say a word on Greece. I truly believe that we have a chance this autumn to come to the turning point. If Greece banishes all doubts about its commitment to reform. But also if all other countries banish all doubts about their determination to keep Greece in the Euro area, we can do it. I believe that if Greece stands by its commitments it should stay in the Euro area, as a member of the European family. Securing the stability of the Euro area is our most urgent challenge. This is the joint responsibility of the Member States and the Community Institutions. The ECB cannot and will not finance governments. But when monetary policy channels are not working properly, the Commission believes that it is within the mandate of the ECB to take the necessary actions, for instance in the secondary markets of sovereign debt. Indeed, the ECB has not only the right but also the duty to restore the integrity of monetary policy. It is of course for the ECB, as an independent institution, to determine what actions to carry out and under what conditions. But all actors, and I really mean all actors, should respect the ECB's independence. Honourable Members, I have spoken about the economic measures that we must implement as a matter of urgency. This is indispensable. But it is not sufficient. We must go further. We must complete the economic and monetary union. We must create a banking union and a fiscal union and the corresponding institutional and political mechanisms. Today, the Commission is presenting legislative proposals for a single European supervisory mechanism. This is the stepping stone to a banking union. The crisis has shown that while banks became transnational, rules and oversight remained national. And when things went wrong, it was the taxpayers who had to pick up the bill. Over the past four years the EU has overhauled the rulebook for banks, leading the world in implementing the G20 commitments. But mere coordination is no longer adequate – we need to move to common supervisory decisions, namely within the Euro area. The single supervisory mechanism proposed today will create a reinforced architecture, with a core role for the European Central Bank, and appropriate articulation with the European Banking Authority, which will restore confidence in the supervision of the banks in the Euro area. It will be a supervision for all Euro area banks. Supervision must be able to look everywhere because systemic risks can be anywhere, not just in so-called systemically relevant banks. Of course, this in a system that fully engages the national supervisors. The package comprises two legal texts, one on the ECB and the other on the EBA, which go together. It is clear that this parliament will have a crucial role to play in the adoption of the new mechanism, and after that in its democratic oversight. This is a crucial first step towards the banking union I proposed before this House in June. Getting the European supervisor in place is the top priority for now, because it is the precondition for the better management of banking crises, from banking resolution to deposit insurance. In parallel the Commission will continue to work on the reform of the banking sector, to make sure it plays its role in the responsible financing of the real economy. That means improving long term financing for SMEs and other companies. It means rules on reference indices, so we do not again see the manipulation of bank interest rates affecting companies and mortgage holders alike. It means legislation to ensure that banks give a fair deal to consumers and another look at the structure of banking activities to eliminate inherent risks. In all of this, the role of this Parliament is essential. The Commission endeavours to work in close partnership with you. But there is a second element of a deeper economic union it is the move towards a fiscal union. The case for it is clear: the economic decisions of one Member State impact the others. So we need stronger economic policy co-ordination. We need a stronger and more binding framework for the national decision making for key economic policies, as the only way to prevent imbalances. While much has been done here, for instance through the six-pack and the Country-Specific Recommendations, further steps are crucial to combine specific conditions with specific incentives and to really make the economic and monetary union sustainable. To deliver lasting results, we need to develop a fully equipped Community economic governance together with a genuine, credible Community fiscal capacity. We do not need to separate institutions or to create new institutions for that. Quite the contrary: for this to be effective and quick, the best way is to work with and through the existing institutions: The European Commission as the independent European authority, and overseen by the European Parliament as the parliamentary representation at the European level. And it is in such a framework that over time, steps for genuine mutualisation of debt redemption and debt issuance can take their place. So economic reform coupled with a genuine economic and monetary union: these are the engines to get our boat moving forward. The Commission will publish a blueprint for deepening the economic and monetary union still this autumn. This blueprint will be presented to this House. Because these questions must be discussed with and by the representatives of the people At the same time, it will inform the debate at the December European Council that will be prepared by the report that the President of the European Council, myself and the Presidents of the European Central Bank and the Eurogroup have been asked to present. Our blueprint will identify the tools and instruments, and present options for legal drafting that would give effect to them, from policy coordination to fiscal capacity to debt redemption. And, where necessary – as in the case of jointly and severally guaranteed public debt – it would identify the treaty changes necessary, because some of these changes require modifications to the Treaty. It will present a blue-print for what we need to accomplish not only in the next few weeks and months, but in the next years. Mr President, Honourable Members, b) Political union: Ultimately, the credibility and sustainability of the Economic and Monetary Union depends on the institutions and the political construct behind it. This is why the Economic and Monetary Union raises the question of a political union and the European democracy that must underpin it. If we want economic and monetary union to succeed, we need to combine ambition and proper sequencing. We need to take concrete steps now, with a political union as a horizon. I would like to see the development of a European public space, where European issues are discussed and debated from a European standpoint. We cannot continue trying to solve European problems just with national solutions. This debate has to take place in our societies and among our citizens. But, today, I would like to make an appeal also to European thinkers. To men and women of culture, to join this debate on the future of Europe. And I make this appeal to you. This is the house of European democracy. We must strengthen the role of the European Parliament at the European level. And we need to promote a genuine complementarity and cooperation between the European and national parliaments. This also cannot be done without strengthening European political parties. Indeed, we have very often a real disconnect between political parties in the capitals and the European political parties here in Strasbourg. This is why we have to recognise the political debate is cast all too often as if it were just between national parties. Even in the European elections we do not see the name of the European political parties on the ballot box, we see a national debate between national political parties. This is why we need a reinforced statute for European political parties. I am proud to announce that the Commission has adopted a proposal for this today. An important means to deepen the pan-European political debate would be the presentation by European political parties of their candidate for the post of Commission President at the European Parliament elections already in 2014. This can be done without Treaty change. This would be a decisive step to make the possibility of a European choice offered by these elections even clearer. I call on the political parties to commit to this step and thus to further Europeanise these European elections. Mr President, Honourable Members, A true political European Union means we must concentrate European action on the real issues that matter and must be dealt with at the European level. Let's be frank about this not everything can be at the same time a priority. Here, some self-criticism can probably be applied Proper integration is about taking a fresh look at where is the most appropriate level of action. Subsidiarity is an essential democratic concept and should be practiced. A political union also means that we must strengthen the foundations on which our Union is built: the respect for our fundamental values, for the rule of law and democracy. In recent months we have seen threats to the legal and democratic fabric in some of our European states. The European Parliament and the Commission were the first to raise the alarm and played the decisive role in seeing these worrying developments brought into check. But these situations also revealed limits of our institutional arrangements. We need a better developed set of instruments– not just the alternative between the "soft power" of political persuasion and the "nuclear option" of article 7 of the Treaty. Our commitment to upholding the rule of law is also behind our intention to establish a European Public Prosecutor's Office, as foreseen by the Treaties. We will come with a proposal soon. Mr President, Honourable Members, A political union also means doing more to fulfil our global role. Sharing sovereignty in Europe means being more sovereign in a global world. In today's world, size matters. And values make the difference. That is why Europe's message must be one of freedom, democracy, of rule of law and of solidarity. In short, our values European values. More than ever our citizens and the new world order need an active and influential Europe. This is not just for us, for the rest of the world it is important that we succeed. A Europe that stands by its values. And a Europe that stands up for its belief that human rights are not a luxury for the developed world, they should be seen as universal values The appalling situation in Syria reminds us that we can not afford to be by-standers. A new and democratic Syria must emerge. We have a joint responsibility to make this happen. And to work with those in the global order who need to give also their co-operation to this goal The world needs an EU that keeps its leadership at the forefront of development and humanitarian assistance. That stands by open economies and fights protectionism. That leads the fight against climate change. The world needs a Europe that is capable of deploying military missions to help stabilize the situation in crisis areas. We need to launch a comprehensive review of European capabilities and begin truly collective defense planning. Yes, we need to reinforce our Common Foreign and Security Policy and a common approach to defense matters because together we have the power, and the scale to shape the world into a fairer, rules based and human rights' abiding place. Mr President, Honourable Members 4. Treaty change, 17/27 dimension and expanding public debate a) Federation of nation states - Treaty change A deep and genuine economic and monetary union, a political union, with a coherent foreign and defence policy, means ultimately that the present European Union must evolve. Let's not be afraid of the words: we will need to move towards a federation of nation states. This is what we need. This is our political horizon. This is what must guide our work in the years to come. Today, I call for a federation of nation states. Not a superstate. A democratic federation of nation states that can tackle our common problems, through the sharing of sovereignty in a way that each country and each citizen are better equipped to control their own destiny. This is about the Union with the Member States, not against the Member States. In the age of globalisation pooled sovereignty means more power, not less. And, I said it on purpose a federation of nation states because in these turbulent times these times of anxiety, we should not leave the defence of the nation just to the nationalists and populists. I believe in a Europe where people are proud of their nations but also proud to be European and proud of our European values. Creating this federation of nation states will ultimately require a new Treaty. I do not say this lightly. We are all aware how difficult treaty change has become. It has to be well prepared. Discussions on treaty change must not distract or delay us from doing what can and must be done already today. A deep and genuine economic and monetary union can be started under the current Treaties, but can only be completed with changes in the treaties So let's start it now but let's have the horizon for the future present in our decisions of today. We must not begin with treaty change. We must identify the policies we need and the instruments to implement them. Only then can we decide on the tools that we lack and the ways to remedy this. And then there must be a broad debate all over Europe. A debate that must take place before a convention and an IGC is called. A debate of a truly European dimension. The times of European integration by implicit consent of citizens are over. Europe can not be technocratic, bureaucratic or even diplomatic. Europe has to be ever more democratic. The role of the European parliament is essential. This is why the European elections of 2014 can be so decisive. Before the next European Parliament elections in 2014, the Commission will present its outline for the shape of the future European Union. And we will put forward explicit ideas for Treaty change in time for a debate. We will set out the objectives to be pursued, the way the institutions that can make the European Union more open and democratic, the powers and instruments to make it more effective, and the model to make it a union for the peoples of Europe. I believe we need a real debate and in a democracy the best way to debate is precisely in elections at the European level on our future and our goals; b) 17/27 dimension Mr President, Honourable Memberss This is not just a debate for the Euro area in its present membership. While deeper integration is indispensable for the Euro area and its members, this project should remain open to all Member States. Let me be very clear: in Europe, we need no more walls dividing us!. Because the European Union is stronger as a whole in keeping the integrity of its single market, its membership and in its institutions. No one will be forced to come along. And no one will be forced to stay outThe speed will not be dictated by the slowest or the most reluctant This is why our proposals will be based on the existing Union and its institutions, On the Community method. Let's be clear – there is only one European Union. One Commission. One European Parliament. More democracy, more transparency, more accountability, is not created by a proliferation of institutions that would render the EU more complicated, more difficult to read less coherent and less capable to act. c) Expanding public debate: This is honourable members the magnitude of the decisions that we will need to make over time. That's why I believe we need a serious discussion between the citizens of Europe about the way forward. About the possible consequences of fragmentation. Because what can happen some times is to have, through unintended consequences, to have fragmentation when we do not want it. About what we could achieve if leaders avoid national provincialism what we can achieve together. We must use the 2014 election to mobilise all pro-European forces. We must not allow the populists and the nationalists to set a negative agenda. I expect all those who call themselves Europeans to stand up and to take the initiative in the debate. Because even more dangerous than the scepticism of the anti-Europeans, is the indifference or the pessimism of the pro-Europeans. Mr President, Honourable Members, 5. Conclusion: is this realistic? To sum up, what we need is a decisive deal to complete the EMU, based on a political commitment to a stronger European Union. The sequence I put before you today is clear. We should start by doing all we can to stabilise the euro area and accelerate growth in the EU as a whole. The Commission will present all the necessary proposals and we have started today with the single supervisor to create a banking union, in line with the current Treaty provisions. Secondly, we will present our blueprint on a deep and genuine economic and monetary union, including the political instruments, and this will be done still this autumn We will present here again all proposals in line with the current Treaty provisions. And thirdly, where we cannot move forward under the existing treaties, we will present explicit proposals for the necessary Treaty changes ahead of the next European Parliamentary election in 2014, including elements for reinforced democracy and accountability This is our project. A project which is step by step but with a big ambition for the future with a Federation as our horizon for Europe. Many will say that this is too ambitious, that it is not realistic. But let me ask you - is it realistic to go on like we have been doing? Is it realistic to see what we are seeing today in many European countries? Is it realistic to see taxpayers paying banks and afterwards being forced to give banks back the houses they have paid for because they can not pay their mortgages? Is it realistic to see more than 50% of our young people without jobs in some of our Member States? Is it realistic to go on trying to muddle through and just to accumulate mistakes with unconvincing responses? Is it realistic to think that we can win the confidence of the markets when we show so little confidence in each other? To me, it is this reality that is not realistic. This reality cannot go on. The realistic way forward is the way that makes us stronger and more united. Realism is to put our ambition at the level of our challenges. We can do it! Let's send our young people a message of hope. If there is a bias, let it be a bias for hope. We should be proud to be Europeans. Proud of our rich and diverse culture. In spite of our current problems, our societies are among the most human and free in the world. We do not have to apologise for our democracy our social market economy and for our values. With high levels of social cohesion. Respect for human rights and human dignity. Equality between men and women and respect for our environment. These European societies, with all its problems, are among the most decent societies in human history and I think we should be proud of that. In our countries two or three girls do not go to prison because they sing and criticise the ruler of their country. In our countries people are free and are proud of that freedom and people understand what it means to have that freedom. In many of our countries, namely the most recent Member States, there is a recent memory of what was dictatorship and totalitarianism. So Previous generations have overcome bigger challenges. Now it is for this generation to show they are up to the task. Now is the moment for all pro-Europeans to leave business as usual behind and to embrace the business of the future. The European Union was built to guarantee peace. Today, this means making our Union fit to meet the challenges of globalization. That is why we need a new thinking for Europe, a decisive deal for Europe. That is why we need to guide ourselves by the values that are at the heart of the European Union. Europe I believe has a soul. This soul can give us the strength and the determination to do what we must do. You can count on the European Commission. I count on you, the European Parliament. Together, as Community institutions we will build a better, stronger and a more united Europe, a citizens' Union for the future of Europe but also the future of the world. Thank you for your attention.

EU

Mr. President, Presidency of the Council, Honourable Members, Ladies and gentlemen, In 8 months' time, voters across Europe will judge what we have achieved together in the last 5 years. In these 5 years, Europe has been more present in the lives of citizens than ever before. Europe has been discussed in the coffee houses and popular talk shows all over our continent. Today, I want to look at what we have done together. At what we have yet to do. And I want to present what I believe are the main ideas for a truly European political debate ahead of next year's elections. Honourable Members, As we speak, exactly 5 years ago, the United States government took over Fannie Mae and Freddie Mac, bailed out AIG, and Lehman Brothers filed for bankruptcy protection. These events triggered the global financial crisis. It evolved into an unprecedented economic crisis. And it became a social crisis with dramatic consequences for many of our citizens. These events have aggravated the debt problem that still distresses our governments. They have led to an alarming increase in unemployment, especially amongst young people. And they are still holding back our households and our companies. But Europe has fought back. In those 5 years, we have given a determined response. We suffered the crisis together. We realised we had to fight it together. And we did, and we are doing it. If we look back and think about what we have done together to unite Europe throughout the crisis, I think it is fair to say that we would never have thought all of this possible 5 years ago. We are fundamentally reforming the financial sector so that people's savings are safe. We have improved the way governments work together, how they return to sound public finances and modernise their economies. We have mobilised over 700 billion euro to pull crisis-struck countries back from the brink, the biggest effort ever in stabilisation between countries. I still vividly remember my meeting last year with chief economists of many of our leading banks. Most of them were expecting Greece to leave the euro. All of them feared the disintegration of the euro area. Now, we can give a clear reply to those fears: no one has left or has been forced to leave the euro. This year, the European Union enlarged from 27 to 28 member states. Next year the euro area will grow from 17 to 18. What matters now is what we make of this progress. Do we talk it up, or talk it down? Do we draw confidence from it to pursue what we have started, or do we belittle the results of our efforts? Honourable members, I just came back from the G20 in Saint Petersburg. I can tell you: this year, contrary to recent years, we Europeans did not receive any lessons from other parts of the world on how to address the crisis. We received appreciation and encouragement. Not because the crisis is over, because it is not over. The resilience of our Union will continue to be tested. But what we are doing creates the confidence that we are overcoming the crisis – provided we are not complacent. We are tackling our challenges together. We have to tackle them together. In our world of geo-economic and geopolitical tectonic changes, I believe that only together, as the European Union, we can give our citizens what they aspire: that our values, our interests, our prosperity are protected and promoted in the age of globalisation. So now is the time to rise above purely national issues and parochial interests and to have real progress for Europe. To bring a truly European perspective to the debate with national constituencies. Now is the time for all those who care about Europe, whatever their political or ideological position, wherever they come from, to speak up for Europe. If we ourselves don't do it, we cannot expect others to do it either. Honourable Members, We have come a long way since the start of the crisis. In last year's State of the Union speech, I stated that 'despite all [our] efforts, our responses have not yet convinced citizens, markets or our international partners'. One year on, the facts tell us that our efforts have started to convince. Overall spreads are coming down. The most vulnerable countries are paying less to borrow. Industrial output is increasing. Market trust is returning. Stock markets are performing well. The business outlook is steadily improving. Consumer confidence is sharply rising. We see that the countries who are most vulnerable to the crisis and are now doing most to reform their economies, are starting to note positive results. In Spain, as a signal of the very important reforms and increased competitiveness, exports of goods and services now make up 33% of GDP, more than ever since the introduction of the euro. Ireland has been able to draw money from capital markets since the summer of 2012, the economy is expected to grow for a third consecutive year in 2013 and Irish manufacturing companies are re-hiring staff. In Portugal, the external current account, which was structurally negative, is now expected to be broadly balanced, and growth is picking up after many quarters in the red. Greece has completed, just in 3 years, a truly remarkable fiscal adjustment, is regaining competitiveness and is nearing for the first time in decades a primary surplus. And Cyprus, that has started the programme later, is also implementing it as scheduled, which is the pre-condition for a return to growth. For Europe, recovery is within sight. Of course, we need to be vigilant. 'One swallow does not make a summer, nor one fine day'. Let us be realistic in the analysis. Let us not overestimate, but let's also not underestimate what has been done. Even one fine quarter doesn't mean we are out of the economic heavy weather. But it does prove we are on the right track. On the basis of the figures and evolutions as we now see them, we have good reason to be confident. This should push us to keep up our efforts. We owe it to those for whom the recovery is not yet within reach, to those who do not yet profit from positive developments. We owe it to our 26 million unemployed. Especially to the young people who are looking to us to give them hope. Hope and confidence are also part of the economic equation. Honourable members, If we are where we are today, it is because we have shown the resolve to adapt both our politics and our policies to the lessons drawn from the crisis. And when I say 'we', I really mean: 'we': it has really been a joint effort. At each and every step, you, the European Parliament, you have played a decisive role through one of the most impressive records of legislative work ever. I personally believe this is not sufficiently known by the citizens of Europe, and you deserve more credit and recognition for this. So let us continue to work together to reform our economies, for growth and jobs, and to adapt our institutional architecture. Only if we do so, we will leave this phase of the crisis behind us as well. There is a lot we can still deliver together, in this Parliament's and this Commission's mandate. What we can and must do, first and foremost, let's be concrete is delivering the banking union. It is the first and most urgent phase on the way to deepen our economic and monetary union, as mapped out in the Commission's Blueprint presented last autumn. The legislative process on the Single Supervisory Mechanism is almost completed. The next step is the ECBs independent valuation of banks assets, before it takes up its supervisory role. Our attention now must urgently turn to the Single Resolution Mechanism. The Commission's proposal is on the table since July and, together, we must do the necessary to have it adopted still during this term. It is the way to ensure that taxpayers are no longer the ones in the front line for paying the price of bank failure. It is the way to make progress in decoupling bank from sovereign risk. It is the way to remedy one of the most alarming and unacceptable results of the crisis: increased fragmentation of Europe's financial sector and credit markets - even an implicit re-nationalisation. And it is also the way to help restoring normal lending to the economy, notably to SMEs. Because in spite of the accommodating monetary policy, credit is not yet sufficiently flowing to the economy across the euro area. This needs to be addressed resolutely. Ultimately, this is about one thing: growth, which is necessary to remedy today's most pressing problem: unemployment. The current level of unemployment is economically unsustainable, politically untenable, socially unacceptable. So all of us here in the Commission – and I'm happy to have all my Commissioners today here with me - all of us want to work intensively with you, and with the member states, to deliver as much of our growth agenda as we possibly can, we are mobilizing all instruments, but of course we have to be honest, not all are at European level, some are at national level. I want to focus on implementation of the decisions on youth employment and financing of the real economy. We need to avoid a jobless recovery. Europe therefore must speed up the pace of structural reforms. Our Country Specific Recommendations set out what the member states must do in this respect. At EU level - because there is what can be done at national level and what can be done at European level -, the focus should be on what matters most for the real economy: exploiting the full potential of the single market comes first. We have a well-functioning single market for goods, and we see the economic benefits of that. We need to extend the same formula to other areas: mobility, communications, energy, finance and e-commerce, to name but a few. We have to remove the obstacles that hold back dynamic companies and people. We have to complete connecting Europe. I'd like to announce that, today, we will formally adopt a proposal that gives a push towards a single market for telecoms. Citizens know that Europe has dramatically brought down their costs for roaming. Our proposal will strengthen guarantees and lower prices for consumers, and present new opportunities for companies. We know that in the future, trade will be more and more digital. Isn't it a paradox that we have an internal market for goods but when it comes to digital market we have 28 national markets? How can we grab all the opportunities of the future that are opened by the digital economy if we don't conclude this internal market? The same logic applies to the broader digital agenda: it solves real problems and improves daily life for citizens. The strength of Europe's future industrial base depends on how well people and businesses are interconnected. And by properly combining the digital agenda with data protection and the defence of privacy, our European model strengthens the trust of the citizens. Both with respect to internal and external developments, adopting the proposed legislation on data protection is of utmost importance to the European Commission. The single market is a key lever for competitiveness and employment. Adopting all remaining proposals under the Single Market Act I and II, and implementing the Connecting Europe Facility in the next few months, we lay the foundations for prosperity in the years to come. We are also adapting to a dynamic transformation on a global scale, so we must encourage this innovative dynamism at a European scale. That is why we must also invest more in innovation, in technology and the role of science. I have great faith in science, in the capacity of the human mind and a creative society to solve its problems. The world is changing dramatically. And I believe many of the solutions are going to come, in Europe and outside Europe, from new science studies, from new technologies. And I would like Europe to be leading that effort globally. This is why we - Parliament and Commission - have made such a priority of Horizon 2020 in the discussions on the EU budget. That is why we use the EU budget to invest in skills, education and vocational training, dynamising and supporting talent. That is why we have pushed for Erasmus Plus. And that is why, later this autumn, we will make further proposals for an industrial policy fit for the 21st century. Why we mobilize support for SMEs because we believe a strong dynamic industrial base is indispensable for a strong European economy. And whilst fighting climate change, our 20-20-20 goals have set our economy on the path to green growth and resource efficiency, reducing costs and creating jobs. By the end of this year, we will come out with concrete proposals for our energy and climate framework up to 2030. And we will continue to shape the international agenda by fleshing out a comprehensive, legally binding global climate agreement by 2015, with our partners. Europe alone cannot do all the fight for climate change. Frankly, we need the others also on board. At the same time, we will pursue our work on the impact of energy prices on competitiveness and on social cohesion. All these drivers for growth are part of our 'Europe 2020' agenda, and fully and swiftly implementing it is more urgent than ever. In certain cases, we need to go beyond the 2020 agenda. This means we must also pursue our active and assertive trade agenda. It is about linking us closer to growing third markets and guaranteeing our place in the global supply chain. Contrary to perception, where most of our citizens think we are losing in global trade, we have a significant and increasing trade surplus of more than 300 billion euro a year, goods, services, and agriculture. We need to build on that. This too will demand our full attention in the months to come, notably with the Transatlantic Trade and Investment Partnership with the US and the negotiations with Canada and Japan. And last but not least, we need to step up our game in implementing the Multiannual Financial Framework, the European budget. The EU budget is the most concrete lever we have at hand to boost investments. In some of our regions, the European Union budget is the only way to get public investment because they don't have the sources at national level. Both the European Parliament and the Commission wanted more resources. We have been in that fight together. But even so, one single year's EU budget represents more money - in today's prices - than the whole Marshall plan in its time! Let us now make sure that the programmes can start on the 1st of January 2014. That the results are being felt on the ground. And that we use the possibilities of innovative financing, from instruments that have already started, to EIB money, to project bonds. We have to make good on the commitment we have made in July. From the Commission's side, we will deliver. We will, for example, present the second amending budget for 2013 still this month. There is no time to waste, so I warn against holding it up. In particular, I urge member states not to delay. I cannot emphasise this enough: citizens will not be convinced with rhetoric and promises only, but only with a concrete set of common achievements. We have to show the many areas where Europe has solved problems for citizens. Europe is not the cause of problems, Europe is part of the solution. I address what we have to do still more extensively in today's letter to the President of the European Parliament, which you will also have received. I will not go now in detail regarding the programme for next year. My point today is clear: together, there is a lot still to achieve before the elections. It is not the time to thrown in the towel, it is time to roll up our sleeves. Honourable Members, None of this is easy. These are challenging times, a real stress test for the EU. The path of permanent and profound reform is as demanding as it is unavoidable. Let's make no mistake: there is no way back to business as usual. Some people believe that after this everything will come back as it was before. They are wrong, This crisis is different. This is not a cyclical crisis, but a structural one. We will not come back to the old normal. We have to shape a new normal. We are in a transformative period of history. We have to understand that, and not just say it. But we have to draw all the consequences from that, including in our state of mind, and how we react to the problems. We see from the first results that it is possible. And we all know from experience that it is necessary. At this point in time, with a fragile recovery, the biggest downside risk I see is political: lack of stability and lack of determination. Over the last years we have seen that anything that casts doubt on governments' commitment to reform is instantly punished. On the positive side, strong and convincing decisions have an important and immediate impact. In this phase of the crisis, governments' job is to provide the certainty and predictability that markets still lack. Surely, you all know Justus Lipsius. Justus Lipsius is the name of the Council building in Brussels. Justus Lipsius was a very influential 16th century humanist scholar, who wrote a very important book called De Constantia. He wrote, 'Constancy is a right and immovable strength of the mind, neither lifted up nor pressed down with external or casual accidents.' Only a 'strength of the mind', he argued, based on 'judgment and sound reason', can help you through confusing and alarming times. I hope that in these times, these difficult times, all of us, including the governments' representatives that meet at the Justus Lipsius building, show that determination, that perseverance, when it comes to the implementation of the decisions taken. Because one of the issues that we have is to be coherent, not just take decisions, but afterwards be able to implement them on the ground. Honourable members, It is only natural that, over the last few years, our efforts to overcome the economic crisis have overshadowed everything else. But our idea of Europe needs to go far beyond the economy. We are much more than a market. The European ideal touches the very foundations of European society. It is about values, and I underline this word: values. It is based on a firm belief in political, social and economic standards, grounded in our social market economy. In today's world, the EU level is indispensable to protect these values and standards and promote citizens' rights: from consumer protection to labour rights, from women's rights to respect for minorities, from environmental standards to data protection and privacy. Whether defending our interests in international trade, securing our energy provision, or restoring people's sense of fairness by fighting tax fraud and tax evasion: only by acting as a Union do we pull our weight at the world stage. Whether seeking impact for the development and humanitarian aid we give to developing countries, managing our common external borders or seeking to develop in Europe a strong security and defense policy: only by integrating more can we really reach our objectives. There is no doubt about it. Our internal coherence and international relevance are inextricably linked. Our economic attraction and political traction are fundamentally entwined. Does anyone seriously believe that, if the euro had collapsed, we or our Member States would still have any credibility left internationally? Does everyone still realise how enlargement has been a success in terms of healing history's deep scars, establishing democracies where no one had thought it possible? How neighbourhood policy was and still is the best way to provide security and prosperity in regions of vital importance for Europe? Where would we be without all of this? Today, countries like Ukraine are more than ever seeking closer ties to the European Union, attracted by our economic and social model. We cannot turn our back on them. We cannot accept any attempts to limit these countries own sovereign choices. Free will and free consent need to be respected. These are also the principles that lie at the basis of our Eastern Partnership, which we want to take forward at our summit in Vilnius. And does everyone still remember just how much Europe has suffered from its wars during the last century, and how European integration was the valid answer? Next year, it will be one century after the start of the First World War. A war that tore Europe apart, from Sarajevo to the Somme. We must never take peace for granted. We need to recall that it is because of Europe that former enemies now sit around the same table and work together. It is only because they were offered a European perspective that now even Serbia and Kosovo come to an agreement, under mediation of the EU. Last year's Nobel Peace Prize reminded us of that historic achievement: that Europe is a project of peace. We should be more aware of it ourselves. Sometimes I think we should not be ashamed to be proud. Not arrogant. But more proud. We should look towards the future, but with a wisdom we gained from the past. Let me say this to all those who rejoice in Europe's difficulties and who want to roll back our integration and go back to isolation: the pre-integrated Europe of the divisions, the war, the trenches, is not what people desire and deserve. The European continent has never in its history known such a long period of peace as since the creation of the European Community. It is our duty to preserve it and deepen it. Honourable members, It is precisely with our values that we address the unbearable situation in Syria, which has tested, over the last months, the world's conscience so severely. The European Union has led the international aid response by mobilising close to 1.5 billion euros, of which €850 million comes directly from the EU budget. The Commission will do its utmost to help the Syrian people and refugees in neighbouring countries. We have recently witnessed events we thought had long been eradicated. The use of chemical weapons is a horrendous act that deserves a clear condemnation and a strong answer. The international community, with the UN at its centre, carries a collective responsibility to sanction these acts and to put an end to this conflict. The proposal to put Syria's chemical weapons beyond use is potentially a positive development. The Syrian regime must now demonstrate that it will implement this without any delay. In Europe, we believe that, ultimately, only a political solution stands a chance of delivering the lasting peace that the Syrian people deserve. Honourable members, There are those who claim that a weaker Europe would make their country stronger, that Europe is a burden; that they would be better off without it. My reply is clear: we all need a Europe that is united, strong and open. In the debate that is ongoing all across Europe, the bottom-line question is: Do we want to improve Europe, or give it up? My answer is clear: let's engage! If you don't like Europe as it is: improve it! Find ways to make it stronger, internally and internationally, and you will have in me the firmest of supporters. Find ways that allow for diversity without creating discriminations, and I will be with you all the way. But don't turn away from it. I recognize: as any human endeavor, the EU is not perfect. For example, controversies about the division of labour between the national and European levels will never be conclusively ended. I value subsidiarity highly. For me, subsidiarity is not a technical concept. It is a fundamental democratic principle. An ever closer union among the citizens of Europe demands that decisions are taken as openly as possible and as closely to the people as possible. Not everything needs a solution at European level. Europe must focus on where it can add most value. Where this is not the case, it should not meddle. The EU needs to be big on big things and smaller on smaller things - something we may occasionally have neglected in the past. The EU needs to show it has the capacity to set both positive and negative priorities. As all governments, we need to take extra care of the quality and quantity of our regulation knowing that, as Montesquieu said, 'les lois inutiles affaiblissent les lois nécessaires'. ['Useless laws weaken the necessary ones'.] But there are, honourable members, areas of major importance where Europe must have more integration, more unity. Where only a strong Europe can deliver results. I believe a political union needs to be our political horizon, as I stressed in last year's State of the Union. This is not just the demand of a passionate European. This is the indispensable way forward to consolidate our progress and ensure the future. Ultimately, the solidity of our policies, namely of the economic and monetary union, depend on the credibility of the political and institutional construct that supports it. So we have mapped out, in the Commission Blueprint for a deep and genuine Economic and Monetary Union, not only the economic and monetary features, but also the necessities, possibilities and limits of deepening our institutional set-up in the medium and long term. The Commission will continue to work for the implementation of its Blueprint, step by step, one phase after the other. And I confirm, as announced last year, the intention to present, before the European elections, further ideas on the future of our Union and how best to consolidate and deepen the community method and community approach in the longer term. That way, they can be subject to a real European debate. They will set out the principles and orientations that are necessary for a true political union. Honourable Members, We can only meet the challenges of our time if we strengthen the consensus on fundamental objectives. Politically, we must not be divided by differences between the euro area and those outside it, between the centre and the periphery, between the North and the South, between East and West. The European Union must remain a project for all members, a community of equals. Economically, Europe has always been a way to close gaps between countries, regions and people. And that must remain so. We cannot do member states' work for them. The responsibility remains theirs. But we can and must complement it with European responsibility and European solidarity. For that reason, strengthening the social dimension is a priority for the months to come, together with our social partners. The Commission will come with its communication on the social dimension of the economic and monetary union on the 2nd of October. Solidarity is a key element of what being part of Europe is all about, and something to take pride in. Safeguarding its values, such as the rule of law, is what the European Union was made to do, from its inception to the latest chapters in enlargement. In last year's State of the Union speech, at a moment of challenges to the rule of law in our own member states, I addressed the need to make a bridge between political persuasion and targeted infringement procedures on the one hand, and what I call the nuclear option of Article 7 of the Treaty, namely suspension of a member states' rights. Experience has confirmed the usefulness of the Commission role as an independent and objective referee. We should consolidate this experience through a more general framework. It should be based on the principle of equality between member states, activated only in situations where there is a serious, systemic risk to the rule of law, and triggered by pre-defined benchmarks. The Commission will come forward with a communication on this. I believe it is a debate that is key to our idea of Europe. This does not mean that national sovereignty or democracy are constrained. But we do need a robust European mechanism to influence the equation when basic common principles are at stake. There are certain non-negotiable values that the EU and its member states must and shall always defend. Honourable Members, The polarisation that resulted from the crisis poses a risk to us all, to the project, to the European project. We, legitimate political representatives of the European Union, can turn the tide. You, the democratic representatives of Europe, directly elected, will be at the forefront of the political debate. The question I want to pose is: which picture of Europe will voters be presented with? The candid version, or the cartoon version? The myths or the facts? The honest, reasonable version, or the extremist, populist version? It's an important difference. I know some people out there will say Europe is to blame for the crisis and the hardship. But we can remind people that Europe was not at the origin of this crisis. It resulted from mismanagement of public finances by national governments and irresponsible behaviour in financial markets. We can explain how Europe has worked to fix the crisis. What we would have lost if we hadn't succeeded in upholding the single market, because it was under threat, and the common currency, because some people predicted the end of the euro. If we hadn't coordinated recovery efforts and employment initiatives. Some people will say that Europe is forcing governments to cut spending. But we can remind voters that government debt got way out of hand even before the crisis, not because of but despite Europe. We can add that the most vulnerable in our societies, and our children, would end up paying the price if we don't persevere now. And the truth is that countries inside the euro or outside the euro, in Europe or outside Europe, they are making efforts to curb their very burdened public finances. Some will campaign saying that we have given too much money to vulnerable countries. Others will say we have given too little money to vulnerable countries. But every one of us can explain what we did and why: there is a direct link between one country's loans and another country's banks, between one country's investments and another country's businesses, between one country's workers and another country's companies. This kind of interdependence means only European solutions work. What I tell people is: when you are in the same boat, one cannot say: 'your end of the boat is sinking.' We were in the same boat when things went well, and we are in it together when things are difficult. Some people might campaign saying: Europe has grabbed too much power. Others will claim Europe always does too little, too late. The interesting things is that sometimes we have the same people saying that Europe is not doing enough and at the same time that's not giving more means to Europe to do what Europe has to do. But we can explain that member states have entrusted Europe with tasks and competences. The European Union is not a foreign power. It is the result of democratic decisions by the European institutions and by member states. At the same time we must acknowledge that, in some areas, Europe still lacks the power to do what is asked of it. A fact that is all too easily forgotten by those, and there are many out there, who always like to nationalise success and Europeanise failure. Ultimately, what we have, and what we don't have, is the result of democratic decision-making. And I think we should remind people of that. Ladies and gentlemen, Mr President, Honourable members, I hope the European Parliament will take up this challenge with all the idealism it holds, with as much realism and determination as the times demand of us. The arguments are there. The facts are there. The agenda has been set out. In 8 months' time, voters will decide. Now, it's up to us to make the case for Europe. We can do so by using the next 8 months to conclude as much as we can. We have a lot to do still. Adopt and implement the European budget, the MFF. This is critical for investment in our regions all over Europe. This is indispensable for the first priority we have: to fight against unemployment, notably youth unemployment. Advance and implement the banking union. This is critical to address the problem of financing for businesses and SMEs. These are our clear priorities: employment and growth. Our job is not finished. It is in its decisive phase. Because, Honourable Members, the elections will not only be about the European Parliament, nor will they be about the European Commission or about the Council or about this or that personality. They will be about Europe. We will be judged together. So let us work together - for Europe. With passion and with determination. Let us not forget: one hundred years ago –Europe was sleepwalking into the catastrophy of the war of 1914. Next year, in 2014, I hope Europe will be walking out of the crisis towards a Europe that is more united, stronger and open. Thank you for your attention.

EU

Mr. President, Presidency of the Council, Honourable Members, Ladies and gentlemen, In 8 months' time, voters across Europe will judge what we have achieved together in the last 5 years. In these 5 years, Europe has been more present in the lives of citizens than ever before. Europe has been discussed in the coffee houses and popular talk shows all over our continent. Today, I want to look at what we have done together. At what we have yet to do. And I want to present what I believe are the main ideas for a truly European political debate ahead of next year's elections. Honourable Members, As we speak, exactly 5 years ago, the United States government took over Fannie Mae and Freddie Mac, bailed out AIG, and Lehman Brothers filed for bankruptcy protection. These events triggered the global financial crisis. It evolved into an unprecedented economic crisis. And it became a social crisis with dramatic consequences for many of our citizens. These events have aggravated the debt problem that still distresses our governments. They have led to an alarming increase in unemployment, especially amongst young people. And they are still holding back our households and our companies. But Europe has fought back. In those 5 years, we have given a determined response. We suffered the crisis together. We realised we had to fight it together. And we did, and we are doing it. If we look back and think about what we have done together to unite Europe throughout the crisis, I think it is fair to say that we would never have thought all of this possible 5 years ago. We are fundamentally reforming the financial sector so that people's savings are safe. We have improved the way governments work together, how they return to sound public finances and modernise their economies. We have mobilised over 700 billion euro to pull crisis-struck countries back from the brink, the biggest effort ever in stabilisation between countries. I still vividly remember my meeting last year with chief economists of many of our leading banks. Most of them were expecting Greece to leave the euro. All of them feared the disintegration of the euro area. Now, we can give a clear reply to those fears: no one has left or has been forced to leave the euro. This year, the European Union enlarged from 27 to 28 member states. Next year the euro area will grow from 17 to 18. What matters now is what we make of this progress. Do we talk it up, or talk it down? Do we draw confidence from it to pursue what we have started, or do we belittle the results of our efforts? Honourable members, I just came back from the G20 in Saint Petersburg. I can tell you: this year, contrary to recent years, we Europeans did not receive any lessons from other parts of the world on how to address the crisis. We received appreciation and encouragement. Not because the crisis is over, because it is not over. The resilience of our Union will continue to be tested. But what we are doing creates the confidence that we are overcoming the crisis – provided we are not complacent. We are tackling our challenges together. We have to tackle them together. In our world of geo-economic and geopolitical tectonic changes, I believe that only together, as the European Union, we can give our citizens what they aspire: that our values, our interests, our prosperity are protected and promoted in the age of globalisation. So now is the time to rise above purely national issues and parochial interests and to have real progress for Europe. To bring a truly European perspective to the debate with national constituencies. Now is the time for all those who care about Europe, whatever their political or ideological position, wherever they come from, to speak up for Europe. If we ourselves don't do it, we cannot expect others to do it either. Honourable Members, We have come a long way since the start of the crisis. In last year's State of the Union speech, I stated that 'despite all [our] efforts, our responses have not yet convinced citizens, markets or our international partners'. One year on, the facts tell us that our efforts have started to convince. Overall spreads are coming down. The most vulnerable countries are paying less to borrow. Industrial output is increasing. Market trust is returning. Stock markets are performing well. The business outlook is steadily improving. Consumer confidence is sharply rising. We see that the countries who are most vulnerable to the crisis and are now doing most to reform their economies, are starting to note positive results. In Spain, as a signal of the very important reforms and increased competitiveness, exports of goods and services now make up 33% of GDP, more than ever since the introduction of the euro. Ireland has been able to draw money from capital markets since the summer of 2012, the economy is expected to grow for a third consecutive year in 2013 and Irish manufacturing companies are re-hiring staff. In Portugal, the external current account, which was structurally negative, is now expected to be broadly balanced, and growth is picking up after many quarters in the red. Greece has completed, just in 3 years, a truly remarkable fiscal adjustment, is regaining competitiveness and is nearing for the first time in decades a primary surplus. And Cyprus, that has started the programme later, is also implementing it as scheduled, which is the pre-condition for a return to growth. For Europe, recovery is within sight. Of course, we need to be vigilant. 'One swallow does not make a summer, nor one fine day'. Let us be realistic in the analysis. Let us not overestimate, but let's also not underestimate what has been done. Even one fine quarter doesn't mean we are out of the economic heavy weather. But it does prove we are on the right track. On the basis of the figures and evolutions as we now see them, we have good reason to be confident. This should push us to keep up our efforts. We owe it to those for whom the recovery is not yet within reach, to those who do not yet profit from positive developments. We owe it to our 26 million unemployed. Especially to the young people who are looking to us to give them hope. Hope and confidence are also part of the economic equation. Honourable members, If we are where we are today, it is because we have shown the resolve to adapt both our politics and our policies to the lessons drawn from the crisis. And when I say 'we', I really mean: 'we': it has really been a joint effort. At each and every step, you, the European Parliament, you have played a decisive role through one of the most impressive records of legislative work ever. I personally believe this is not sufficiently known by the citizens of Europe, and you deserve more credit and recognition for this. So let us continue to work together to reform our economies, for growth and jobs, and to adapt our institutional architecture. Only if we do so, we will leave this phase of the crisis behind us as well. There is a lot we can still deliver together, in this Parliament's and this Commission's mandate. What we can and must do, first and foremost, let's be concrete is delivering the banking union. It is the first and most urgent phase on the way to deepen our economic and monetary union, as mapped out in the Commission's Blueprint presented last autumn. The legislative process on the Single Supervisory Mechanism is almost completed. The next step is the ECBs independent valuation of banks assets, before it takes up its supervisory role. Our attention now must urgently turn to the Single Resolution Mechanism. The Commission's proposal is on the table since July and, together, we must do the necessary to have it adopted still during this term. It is the way to ensure that taxpayers are no longer the ones in the front line for paying the price of bank failure. It is the way to make progress in decoupling bank from sovereign risk. It is the way to remedy one of the most alarming and unacceptable results of the crisis: increased fragmentation of Europe's financial sector and credit markets - even an implicit re-nationalisation. And it is also the way to help restoring normal lending to the economy, notably to SMEs. Because in spite of the accommodating monetary policy, credit is not yet sufficiently flowing to the economy across the euro area. This needs to be addressed resolutely. Ultimately, this is about one thing: growth, which is necessary to remedy today's most pressing problem: unemployment. The current level of unemployment is economically unsustainable, politically untenable, socially unacceptable. So all of us here in the Commission – and I'm happy to have all my Commissioners today here with me - all of us want to work intensively with you, and with the member states, to deliver as much of our growth agenda as we possibly can, we are mobilizing all instruments, but of course we have to be honest, not all are at European level, some are at national level. I want to focus on implementation of the decisions on youth employment and financing of the real economy. We need to avoid a jobless recovery. Europe therefore must speed up the pace of structural reforms. Our Country Specific Recommendations set out what the member states must do in this respect. At EU level - because there is what can be done at national level and what can be done at European level -, the focus should be on what matters most for the real economy: exploiting the full potential of the single market comes first. We have a well-functioning single market for goods, and we see the economic benefits of that. We need to extend the same formula to other areas: mobility, communications, energy, finance and e-commerce, to name but a few. We have to remove the obstacles that hold back dynamic companies and people. We have to complete connecting Europe. I'd like to announce that, today, we will formally adopt a proposal that gives a push towards a single market for telecoms. Citizens know that Europe has dramatically brought down their costs for roaming. Our proposal will strengthen guarantees and lower prices for consumers, and present new opportunities for companies. We know that in the future, trade will be more and more digital. Isn't it a paradox that we have an internal market for goods but when it comes to digital market we have 28 national markets? How can we grab all the opportunities of the future that are opened by the digital economy if we don't conclude this internal market? The same logic applies to the broader digital agenda: it solves real problems and improves daily life for citizens. The strength of Europe's future industrial base depends on how well people and businesses are interconnected. And by properly combining the digital agenda with data protection and the defence of privacy, our European model strengthens the trust of the citizens. Both with respect to internal and external developments, adopting the proposed legislation on data protection is of utmost importance to the European Commission. The single market is a key lever for competitiveness and employment. Adopting all remaining proposals under the Single Market Act I and II, and implementing the Connecting Europe Facility in the next few months, we lay the foundations for prosperity in the years to come. We are also adapting to a dynamic transformation on a global scale, so we must encourage this innovative dynamism at a European scale. That is why we must also invest more in innovation, in technology and the role of science. I have great faith in science, in the capacity of the human mind and a creative society to solve its problems. The world is changing dramatically. And I believe many of the solutions are going to come, in Europe and outside Europe, from new science studies, from new technologies. And I would like Europe to be leading that effort globally. This is why we - Parliament and Commission - have made such a priority of Horizon 2020 in the discussions on the EU budget. That is why we use the EU budget to invest in skills, education and vocational training, dynamising and supporting talent. That is why we have pushed for Erasmus Plus. And that is why, later this autumn, we will make further proposals for an industrial policy fit for the 21st century. Why we mobilize support for SMEs because we believe a strong dynamic industrial base is indispensable for a strong European economy. And whilst fighting climate change, our 20-20-20 goals have set our economy on the path to green growth and resource efficiency, reducing costs and creating jobs. By the end of this year, we will come out with concrete proposals for our energy and climate framework up to 2030. And we will continue to shape the international agenda by fleshing out a comprehensive, legally binding global climate agreement by 2015, with our partners. Europe alone cannot do all the fight for climate change. Frankly, we need the others also on board. At the same time, we will pursue our work on the impact of energy prices on competitiveness and on social cohesion. All these drivers for growth are part of our 'Europe 2020' agenda, and fully and swiftly implementing it is more urgent than ever. In certain cases, we need to go beyond the 2020 agenda. This means we must also pursue our active and assertive trade agenda. It is about linking us closer to growing third markets and guaranteeing our place in the global supply chain. Contrary to perception, where most of our citizens think we are losing in global trade, we have a significant and increasing trade surplus of more than 300 billion euro a year, goods, services, and agriculture. We need to build on that. This too will demand our full attention in the months to come, notably with the Transatlantic Trade and Investment Partnership with the US and the negotiations with Canada and Japan. And last but not least, we need to step up our game in implementing the Multiannual Financial Framework, the European budget. The EU budget is the most concrete lever we have at hand to boost investments. In some of our regions, the European Union budget is the only way to get public investment because they don't have the sources at national level. Both the European Parliament and the Commission wanted more resources. We have been in that fight together. But even so, one single year's EU budget represents more money - in today's prices - than the whole Marshall plan in its time! Let us now make sure that the programmes can start on the 1st of January 2014. That the results are being felt on the ground. And that we use the possibilities of innovative financing, from instruments that have already started, to EIB money, to project bonds. We have to make good on the commitment we have made in July. From the Commission's side, we will deliver. We will, for example, present the second amending budget for 2013 still this month. There is no time to waste, so I warn against holding it up. In particular, I urge member states not to delay. I cannot emphasise this enough: citizens will not be convinced with rhetoric and promises only, but only with a concrete set of common achievements. We have to show the many areas where Europe has solved problems for citizens. Europe is not the cause of problems, Europe is part of the solution. I address what we have to do still more extensively in today's letter to the President of the European Parliament, which you will also have received. I will not go now in detail regarding the programme for next year. My point today is clear: together, there is a lot still to achieve before the elections. It is not the time to thrown in the towel, it is time to roll up our sleeves. Honourable Members, None of this is easy. These are challenging times, a real stress test for the EU. The path of permanent and profound reform is as demanding as it is unavoidable. Let's make no mistake: there is no way back to business as usual. Some people believe that after this everything will come back as it was before. They are wrong, This crisis is different. This is not a cyclical crisis, but a structural one. We will not come back to the old normal. We have to shape a new normal. We are in a transformative period of history. We have to understand that, and not just say it. But we have to draw all the consequences from that, including in our state of mind, and how we react to the problems. We see from the first results that it is possible. And we all know from experience that it is necessary. At this point in time, with a fragile recovery, the biggest downside risk I see is political: lack of stability and lack of determination. Over the last years we have seen that anything that casts doubt on governments' commitment to reform is instantly punished. On the positive side, strong and convincing decisions have an important and immediate impact. In this phase of the crisis, governments' job is to provide the certainty and predictability that markets still lack. Surely, you all know Justus Lipsius. Justus Lipsius is the name of the Council building in Brussels. Justus Lipsius was a very influential 16th century humanist scholar, who wrote a very important book called De Constantia. He wrote, 'Constancy is a right and immovable strength of the mind, neither lifted up nor pressed down with external or casual accidents.' Only a 'strength of the mind', he argued, based on 'judgment and sound reason', can help you through confusing and alarming times. I hope that in these times, these difficult times, all of us, including the governments' representatives that meet at the Justus Lipsius building, show that determination, that perseverance, when it comes to the implementation of the decisions taken. Because one of the issues that we have is to be coherent, not just take decisions, but afterwards be able to implement them on the ground. Honourable members, It is only natural that, over the last few years, our efforts to overcome the economic crisis have overshadowed everything else. But our idea of Europe needs to go far beyond the economy. We are much more than a market. The European ideal touches the very foundations of European society. It is about values, and I underline this word: values. It is based on a firm belief in political, social and economic standards, grounded in our social market economy. In today's world, the EU level is indispensable to protect these values and standards and promote citizens' rights: from consumer protection to labour rights, from women's rights to respect for minorities, from environmental standards to data protection and privacy. Whether defending our interests in international trade, securing our energy provision, or restoring people's sense of fairness by fighting tax fraud and tax evasion: only by acting as a Union do we pull our weight at the world stage. Whether seeking impact for the development and humanitarian aid we give to developing countries, managing our common external borders or seeking to develop in Europe a strong security and defense policy: only by integrating more can we really reach our objectives. There is no doubt about it. Our internal coherence and international relevance are inextricably linked. Our economic attraction and political traction are fundamentally entwined. Does anyone seriously believe that, if the euro had collapsed, we or our Member States would still have any credibility left internationally? Does everyone still realise how enlargement has been a success in terms of healing history's deep scars, establishing democracies where no one had thought it possible? How neighbourhood policy was and still is the best way to provide security and prosperity in regions of vital importance for Europe? Where would we be without all of this? Today, countries like Ukraine are more than ever seeking closer ties to the European Union, attracted by our economic and social model. We cannot turn our back on them. We cannot accept any attempts to limit these countries own sovereign choices. Free will and free consent need to be respected. These are also the principles that lie at the basis of our Eastern Partnership, which we want to take forward at our summit in Vilnius. And does everyone still remember just how much Europe has suffered from its wars during the last century, and how European integration was the valid answer? Next year, it will be one century after the start of the First World War. A war that tore Europe apart, from Sarajevo to the Somme. We must never take peace for granted. We need to recall that it is because of Europe that former enemies now sit around the same table and work together. It is only because they were offered a European perspective that now even Serbia and Kosovo come to an agreement, under mediation of the EU. Last year's Nobel Peace Prize reminded us of that historic achievement: that Europe is a project of peace. We should be more aware of it ourselves. Sometimes I think we should not be ashamed to be proud. Not arrogant. But more proud. We should look towards the future, but with a wisdom we gained from the past. Let me say this to all those who rejoice in Europe's difficulties and who want to roll back our integration and go back to isolation: the pre-integrated Europe of the divisions, the war, the trenches, is not what people desire and deserve. The European continent has never in its history known such a long period of peace as since the creation of the European Community. It is our duty to preserve it and deepen it. Honourable members, It is precisely with our values that we address the unbearable situation in Syria, which has tested, over the last months, the world's conscience so severely. The European Union has led the international aid response by mobilising close to 1.5 billion euros, of which €850 million comes directly from the EU budget. The Commission will do its utmost to help the Syrian people and refugees in neighbouring countries. We have recently witnessed events we thought had long been eradicated. The use of chemical weapons is a horrendous act that deserves a clear condemnation and a strong answer. The international community, with the UN at its centre, carries a collective responsibility to sanction these acts and to put an end to this conflict. The proposal to put Syria's chemical weapons beyond use is potentially a positive development. The Syrian regime must now demonstrate that it will implement this without any delay. In Europe, we believe that, ultimately, only a political solution stands a chance of delivering the lasting peace that the Syrian people deserve. Honourable members, There are those who claim that a weaker Europe would make their country stronger, that Europe is a burden; that they would be better off without it. My reply is clear: we all need a Europe that is united, strong and open. In the debate that is ongoing all across Europe, the bottom-line question is: Do we want to improve Europe, or give it up? My answer is clear: let's engage! If you don't like Europe as it is: improve it! Find ways to make it stronger, internally and internationally, and you will have in me the firmest of supporters. Find ways that allow for diversity without creating discriminations, and I will be with you all the way. But don't turn away from it. I recognize: as any human endeavor, the EU is not perfect. For example, controversies about the division of labour between the national and European levels will never be conclusively ended. I value subsidiarity highly. For me, subsidiarity is not a technical concept. It is a fundamental democratic principle. An ever closer union among the citizens of Europe demands that decisions are taken as openly as possible and as closely to the people as possible. Not everything needs a solution at European level. Europe must focus on where it can add most value. Where this is not the case, it should not meddle. The EU needs to be big on big things and smaller on smaller things - something we may occasionally have neglected in the past. The EU needs to show it has the capacity to set both positive and negative priorities. As all governments, we need to take extra care of the quality and quantity of our regulation knowing that, as Montesquieu said, 'les lois inutiles affaiblissent les lois nécessaires'. ['Useless laws weaken the necessary ones'.] But there are, honourable members, areas of major importance where Europe must have more integration, more unity. Where only a strong Europe can deliver results. I believe a political union needs to be our political horizon, as I stressed in last year's State of the Union. This is not just the demand of a passionate European. This is the indispensable way forward to consolidate our progress and ensure the future. Ultimately, the solidity of our policies, namely of the economic and monetary union, depend on the credibility of the political and institutional construct that supports it. So we have mapped out, in the Commission Blueprint for a deep and genuine Economic and Monetary Union, not only the economic and monetary features, but also the necessities, possibilities and limits of deepening our institutional set-up in the medium and long term. The Commission will continue to work for the implementation of its Blueprint, step by step, one phase after the other. And I confirm, as announced last year, the intention to present, before the European elections, further ideas on the future of our Union and how best to consolidate and deepen the community method and community approach in the longer term. That way, they can be subject to a real European debate. They will set out the principles and orientations that are necessary for a true political union. Honourable Members, We can only meet the challenges of our time if we strengthen the consensus on fundamental objectives. Politically, we must not be divided by differences between the euro area and those outside it, between the centre and the periphery, between the North and the South, between East and West. The European Union must remain a project for all members, a community of equals. Economically, Europe has always been a way to close gaps between countries, regions and people. And that must remain so. We cannot do member states' work for them. The responsibility remains theirs. But we can and must complement it with European responsibility and European solidarity. For that reason, strengthening the social dimension is a priority for the months to come, together with our social partners. The Commission will come with its communication on the social dimension of the economic and monetary union on the 2nd of October. Solidarity is a key element of what being part of Europe is all about, and something to take pride in. Safeguarding its values, such as the rule of law, is what the European Union was made to do, from its inception to the latest chapters in enlargement. In last year's State of the Union speech, at a moment of challenges to the rule of law in our own member states, I addressed the need to make a bridge between political persuasion and targeted infringement procedures on the one hand, and what I call the nuclear option of Article 7 of the Treaty, namely suspension of a member states' rights. Experience has confirmed the usefulness of the Commission role as an independent and objective referee. We should consolidate this experience through a more general framework. It should be based on the principle of equality between member states, activated only in situations where there is a serious, systemic risk to the rule of law, and triggered by pre-defined benchmarks. The Commission will come forward with a communication on this. I believe it is a debate that is key to our idea of Europe. This does not mean that national sovereignty or democracy are constrained. But we do need a robust European mechanism to influence the equation when basic common principles are at stake. There are certain non-negotiable values that the EU and its member states must and shall always defend. Honourable Members, The polarisation that resulted from the crisis poses a risk to us all, to the project, to the European project. We, legitimate political representatives of the European Union, can turn the tide. You, the democratic representatives of Europe, directly elected, will be at the forefront of the political debate. The question I want to pose is: which picture of Europe will voters be presented with? The candid version, or the cartoon version? The myths or the facts? The honest, reasonable version, or the extremist, populist version? It's an important difference. I know some people out there will say Europe is to blame for the crisis and the hardship. But we can remind people that Europe was not at the origin of this crisis. It resulted from mismanagement of public finances by national governments and irresponsible behaviour in financial markets. We can explain how Europe has worked to fix the crisis. What we would have lost if we hadn't succeeded in upholding the single market, because it was under threat, and the common currency, because some people predicted the end of the euro. If we hadn't coordinated recovery efforts and employment initiatives. Some people will say that Europe is forcing governments to cut spending. But we can remind voters that government debt got way out of hand even before the crisis, not because of but despite Europe. We can add that the most vulnerable in our societies, and our children, would end up paying the price if we don't persevere now. And the truth is that countries inside the euro or outside the euro, in Europe or outside Europe, they are making efforts to curb their very burdened public finances. Some will campaign saying that we have given too much money to vulnerable countries. Others will say we have given too little money to vulnerable countries. But every one of us can explain what we did and why: there is a direct link between one country's loans and another country's banks, between one country's investments and another country's businesses, between one country's workers and another country's companies. This kind of interdependence means only European solutions work. What I tell people is: when you are in the same boat, one cannot say: 'your end of the boat is sinking.' We were in the same boat when things went well, and we are in it together when things are difficult. Some people might campaign saying: Europe has grabbed too much power. Others will claim Europe always does too little, too late. The interesting things is that sometimes we have the same people saying that Europe is not doing enough and at the same time that's not giving more means to Europe to do what Europe has to do. But we can explain that member states have entrusted Europe with tasks and competences. The European Union is not a foreign power. It is the result of democratic decisions by the European institutions and by member states. At the same time we must acknowledge that, in some areas, Europe still lacks the power to do what is asked of it. A fact that is all too easily forgotten by those, and there are many out there, who always like to nationalise success and Europeanise failure. Ultimately, what we have, and what we don't have, is the result of democratic decision-making. And I think we should remind people of that. Ladies and gentlemen, Mr President, Honourable members, I hope the European Parliament will take up this challenge with all the idealism it holds, with as much realism and determination as the times demand of us. The arguments are there. The facts are there. The agenda has been set out. In 8 months' time, voters will decide. Now, it's up to us to make the case for Europe. We can do so by using the next 8 months to conclude as much as we can. We have a lot to do still. Adopt and implement the European budget, the MFF. This is critical for investment in our regions all over Europe. This is indispensable for the first priority we have: to fight against unemployment, notably youth unemployment. Advance and implement the banking union. This is critical to address the problem of financing for businesses and SMEs. These are our clear priorities: employment and growth. Our job is not finished. It is in its decisive phase. Because, Honourable Members, the elections will not only be about the European Parliament, nor will they be about the European Commission or about the Council or about this or that personality. They will be about Europe. We will be judged together. So let us work together - for Europe. With passion and with determination. Let us not forget: one hundred years ago –Europe was sleepwalking into the catastrophy of the war of 1914. Next year, in 2014, I hope Europe will be walking out of the crisis towards a Europe that is more united, stronger and open. Thank you for your attention.

EU

Mr President, Honourable Members of the European Parliament, Today is the first time during my mandate as President of the European Commission that I have the honour to address this House on the State of our European Union. I would therefore like to recall the political importance of this very special institutional moment. The State of the Union address is foreseen explicitly by the Framework Agreement that governs the relations between the European Parliament and the European Commission. This Agreement provides that “[e]ach year in the first part-session of September, a State of the Union debate will be held in which the President of the Commission shall deliver an address, taking stock of the current year and looking ahead to priorities for the following years. To that end, the President of the Commission will in parallel set out in writing to Parliament the main elements guiding the preparation of the Commission Work Programme for the following year.” The State of the Union address requires the President of the Commission to take stock of the current situation of our European Union and to set priorities for the work ahead. And it launches the interinstitutional process leading to a new Work Programme of the European Commission for the year ahead. Together with Frans Timmermans, my First Vice-President, this morning I sent a letter to the Presidents of both branches of the European legislator: to President Martin Schulz, and to Luxembourg’s Prime Minister Xavier Bettel, who currently holds the rotating Presidency of the Council. This letter sets out in detail the numerous actions the Commission intends to take by means of legislation and other initiatives, from now until the end of 2016. We are proposing an ambitious, focused, and intense legislative agenda that will require Commission, Parliament and Council to work closely and effectively together. I will not go into the details of our legislative agenda now. We will have a structured dialogue with the Parliament and the Council on this in the weeks to come. But I feel that today is not the moment to speak about all this. I am the first President of the Commission whose nomination and election is the direct result of the outcome of the European Parliament elections in May 2014. Having campaigned as a lead candidate, as Spitzenkandidat, in the run up to the elections, I had the opportunity to be a more political President. This political role is foreseen by the Treaties, by means of which the Member States made the Commission the promoter of the general interest of the Union. But the crisis years have diminished this understanding. This is why I said last September before this House that I wanted to lead a political Commission. A very political Commission. I said this not because I believe we can and should politicise everything. I said it because I believe the immense challenges Europe is currently facing – both internally and externally – leave us no choice but to address them from a very political perspective, in a very political manner and having the political consequences of our decisions very much in mind. Recent events have confirmed the urgent need for such a political approach in the European Union. This is not the time for business as usual. This is not the time for ticking off lists or checking whether this or that sectorial initiative has found its way into the State of the Union speech. This is not the time to count how many times the word social, economic or sustainable appears in the State of the Union speech. Instead, it is time for honesty. It is time to speak frankly about the big issues facing the European Union. Because our European Union is not in a good state. There is not enough Europe in this Union. And there is not enough Union in this Union. We have to change this. And we have to change this now. The Refugee Crisis: The Imperative to Act as a Union Whatever work programmes or legislative agendas say: The first priority today is and must be addressing the refugee crisis. Since the beginning of the year, nearly 500,000 people have made their way to Europe. The vast majority of them are fleeing from war in Syria, the terror of the Islamic State in Libya or dictatorship in Eritrea. The most affected Member States are Greece, with over 213,000 refugees, Hungary, with over 145,000, and Italy, with over 115,000. The numbers are impressive. For some they are frightening. But now is not the time to take fright. It is time for bold, determined and concerted action by the European Union, by its institutions and by all its Member States. This is first of all a matter of humanity and of human dignity. And for Europe it is also a matter of historical fairness. We Europeans should remember well that Europe is a continent where nearly everyone has at one time been a refugee. Our common history is marked by millions of Europeans fleeing from religious or political persecution, from war, dictatorship, or oppression. Huguenots fleeing from France in the 17th century. Jews, Sinti, Roma and many others fleeing from Germany during the Nazi horror of the 1930s and 1940s. Spanish republicans fleeing to refugee camps in southern France at the end of the 1930s after their defeat in the Civil War. Hungarian revolutionaries fleeing to Austria after their uprising against communist rule was oppressed by Soviet tanks in 1956. Czech and Slovak citizens seeking exile in other European countries after the oppression of the Prague Spring in 1968. Hundreds and thousands were forced to flee from their homes after the Yugoslav wars. Have we forgotten that there is a reason there are more McDonalds living in the U.S. than there are in Scotland? That there is a reason the number of O'Neills and Murphys in the U.S. exceeds by far those living in Ireland? Have we forgotten that 20 million people of Polish ancestry live outside Poland, as a result of political and economic emigration after the many border shifts, forced expulsions and resettlements during Poland’s often painful history? Have we really forgotten that after the devastation of the Second World War, 60 million people were refugees in Europe? That as a result of this terrible European experience, a global protection regime – the 1951 Geneva Convention on the status of refugees – was established to grant refuge to those who jumped the walls in Europe to escape from war and totalitarian oppression? We Europeans should know and should never forget why giving refuge and complying with the fundamental right to asylum is so important. I have said in the past that we are too seldom proud of our European heritage and our European project. Yet, in spite of our fragility, our self-perceived weaknesses, today it is Europe that is sought as a place of refuge and exile. It is Europe today that represents a beacon of hope, a haven of stability in the eyes of women and men in the Middle East and in Africa. That is something to be proud of and not something to fear. Europe today, in spite of many differences amongst its Member States, is by far the wealthiest and most stable continent in the world. We have the means to help those fleeing from war, terror and oppression. I know that many now will want to say that this is all very well, but Europe cannot take everybody. It is true that Europe cannot house all the misery of the world. But let us be honest and put things into perspective. There is certainly an important and unprecedented number of refugees coming to Europe at the moment. However, they still represent just 0.11% of the total EU population. In Lebanon, refugees represent 25% of the population. And this in a country where people have only one fifth of the wealth we enjoy in the European Union. Let us also be clear and honest with our often worried citizens: as long as there is war in Syria and terror in Libya, the refugee crisis will not simply go away. We can build walls, we can build fences. But imagine for a second it were you, your child in your arms, the world you knew torn apart around you. There is no price you would not pay, there is no wall you would not climb, no sea you would not sail, no border you would not cross if it is war or the barbarism of the so-called Islamic State that you are fleeing. So it is high time to act to manage the refugee crisis. There is no alternative to this. There has been a lot finger pointing in the past weeks. Member States have accused each other of not doing enough or of doing the wrong thing. And more often than not fingers have been pointed from national capitals towards Brussels. We could all be angry about this blame-game. But I wonder who that would serve. Being angry does not help anyone. And the attempt of blaming others is often just a sign that politicians are overwhelmed by unexpected events. Instead, we should rather recall what has been agreed that can help in the current situation. It is time to look at what is on the table and move swiftly forwards. We are not starting anew. Since the early 2000s, the Commission has persistently tabled legislation after legislation, to build a Common European Asylum System. And the Parliament and the Council have enacted this legislation, piece by piece. The last piece of legislation entered into force just in July 2015. Across Europe we now have common standards for the way we receive asylum seekers, in respect of their dignity, for the way we process their asylum applications, and we have common criteria which our independent justice systems use to determine whether someone is entitled to international protection. But these standards need to be implemented and respected in practice. And this is clearly not yet the case, we can see this every day on television. Before the summer, the Commission had to start a first series of 32 infringement proceedings to remind Member States of what they had previously agreed to do. And a second series will follow in the days to come. European laws must be applied by all Member States – this must be self-evident in a Union based on the rule of law. Common asylum standards are important, but not enough to cope with the current refugee crisis. The Commission, the Parliament and the Council said this in spring. The Commission tabled a comprehensive European Agenda on Migration in May. And it would be dishonest to say that nothing has happened since then. We tripled our presence at sea. Over 122,000 lives have been saved since then. Every life lost is one too many, but many more have been rescued that would have been lost otherwise – an increase of 250%. 29 Member States and Schengen Associated countries are participating in the joint operations coordinated by Frontex in Italy, Greece and Hungary. 102 guest officers from 20 countries; 31 ships; 3 helicopters; 4 fixed wing aircrafts; 8 patrol cars, 6 thermo-vision vehicles and 4 transport vehicles – that is a first measure of European solidarity in action, even though more will have to be done. We have redoubled our efforts to tackle smugglers and dismantle human trafficker groups. Cheap ships are now harder to come by, leading to less people putting their lives in peril in rickety, unseaworthy boats. As a result, the Central Mediterranean route has stabilised at around 115,000 arriving during the month of August, the same as last year. We now need to achieve a similar stabilisation of the Balkans route, which has clearly been neglected by all policy-makers. The European Union is also the number one donor in the global efforts to alleviate the Syrian refugee crisis. Around €4 billion have been mobilised by the European Commission and Member States in humanitarian, development, economic and stabilisation assistance to Syrians in their country and to refugees and their host communities in neighbouring Lebanon, Jordan, Iraq, Turkey and Egypt. Indeed just today we launched two new projects to provide schooling and food security to 240,000 Syrian refugees in Turkey. We have collectively committed to resettling over 22,000 people from outside of Europe over the next year, showing solidarity with our neighbours. Of course, this remains very modest in comparison to the Herculean efforts undertaken by Turkey, Jordan and Lebanon, who are hosting over 4 million Syrian refugees. I am encouraged that some Member States are showing their willingness to significantly step up our European resettlement efforts. This will allow us very soon to come forward with a structured system to pool European resettlement efforts more systematically. Where Europe has clearly under-delivered, is on common solidarity with regard to the refugees who have arrived on our territory. To me, it is clear that the Member States where most refugees first arrive – at the moment, these are Italy, Greece and Hungary – cannot be left alone to cope with this challenge. This is why the Commission already proposed an emergency mechanism in May, to relocate initially 40,000 people seeking international protection from Italy and Greece. And this is why today we are proposing a second emergency mechanism to relocate a further 120,000 from Italy, Greece and Hungary. This requires a strong effort in European solidarity. Before the summer, we did not receive the backing from Member States I had hoped for. But I see that the mood is turning. And I believe it is high time for this. I call on Member States to adopt the Commission proposals on the emergency relocation of altogether 160,000 refugees at the Extraordinary Council of Interior Ministers on 14 September. We now need immediate action. We cannot leave Italy, Greece and Hungary to fare alone. Just as we would not leave any other EU Member State alone. For if it is Syria and Libya people are fleeing from today, it could just as easily be Ukraine tomorrow. Europe has made the mistake in the past of distinguishing between Jews, Christians, Muslims. There is no religion, no belief, no philosophy when it comes to refugees. Do not underestimate the urgency. Do not underestimate our imperative to act. Winter is approaching – think of the families sleeping in parks and railway stations in Budapest, in tents in Traiskirchen, or on shores in Kos. What we will become of them on cold, winter nights? Of course, relocation alone will not solve the issue. It is true that we also need to separate better those who are in clear need of international protection and are therefore very likely to apply for asylum successfully; and those who are leaving their country for other reasons which do not fall under the right of asylum. This is why today the Commission is proposing a common EU list of safe countries of origin. This list will enable Member States to fast track asylum procedures for nationals of countries that are presumed safe to live in. This presumption of safety must in our view certainly apply to all countries which the European Council unanimously decided meet the basic Copenhagen criteria for EU membership – notably as regards democracy, the rule of law, and fundamental rights. It should also apply to the other potential candidate countries on the Western Balkans, in view of their progress made towards candidate status. I am of course aware that the list of safe countries is only a procedural simplification. It cannot take away the fundamental right of asylum for asylum seekers from Albania, Bosnia and Herzegovina, the former Yugoslav Republic of Macedonia, Kosovo, Montenegro, Serbia, and Turkey. But it allows national authorities to focus on those refugees which are much more likely to be granted asylum, notably those from Syria. And this focus is very much needed in the current situation. I also believe that beyond the immediate action needed to address current emergencies, it is time we prepare a more fundamental change in the way we deal with asylum applications – and notably the Dublin system that requires that asylum applications be dealt with by the first country of entry. We need more Europe in our asylum policy. We need more Union in our refugee policy. A true European refugee and asylum policy requires solidarity to be permanently anchored in our policy approach and our rules. This is why, today, the Commission is also proposing a permanent relocation mechanism, which will allow us to deal with crisis situations more swiftly in the future. A common refugee and asylum policy requires further approximation of asylum policies after refugee status is granted. Member States need to take a second look at their support, integration and inclusion policies. The Commission is ready to look into how EU Funds can support these efforts. And I am strongly in favour of allowing asylum seekers to work and earn their own money whilst their applications are being processed. A united refugee and asylum policy also requires stronger joint efforts to secure our external borders. Fortunately, we have given up border controls between the Member States of the Schengen area, to guarantee free movement of people, a unique symbol of European integration. But the other side of the coin to free movement is that we must work together more closely to manage our external borders. This is what our citizens expect. The Commission said it back in May, and I said it during my election campaign: We need to strengthen Frontex significantly and develop it into a fully operational European border and coast guard system. It is certainly feasible. But it will cost money. The Commission believes this is money well invested. This is why we will propose ambitious steps towards a European Border and Coast Guard before the end of the year. A truly united, European migration policy also means that we need to look into opening legal channels for migration. Let us be clear: this will not help in addressing the current refugee crisis. But if there are more, safe and controlled roads opened to Europe, we can manage migration better and make the illegal work of human traffickers less attractive. Let us not forget, we are an ageing continent in demographic decline. We will be needing talent. Over time, migration must change from a problem to be tackled to a well-managed resource. To this end, the Commission will come forward with a well-designed legal migration package in early 2016. A lasting solution will only come if we address the root causes, the reasons why we are currently facing this important refugee crisis. Our European foreign policy must be more assertive. We can no longer afford to be ignorant or disunited with regard to war or instability right in our neighbourhood. In Libya, the EU and our Member States need to do more to engage with regional partners to make sure a Government of National Accord is in place soon. We should be prepared to help, with all EU instruments available, such a government to deliver security and services to the population as soon as it is in place. Our EU development and humanitarian support will have to be immediate and comprehensive. I would also like to point out that we are entering the fifth year of the Syrian crisis with no end in sight. So far, the international community has failed the Syrian people. Europe has failed the Syrian people. Today I call for a European diplomatic offensive to address the crises in Syria and in Libya. We need a stronger Europe when it comes to foreign policy. And I am very glad that Federica Mogherini, our determined High Representative, has prepared the ground for such an initiative with her diplomatic success in the Iran nuclear talks. And that she stands ready to work closely together with our Member States towards peace and stability in Syria and Libya. To facilitate Federica’s work, today the Commission is proposing to establish an emergency Trust Fund, starting with €1.8 billion from our common EU financial means to address the crises in the Sahel and Lake Chad regions, the Horn of Africa, and the North of Africa. We want to help create lasting stability, for instance by creating employment opportunities in local communities, and thereby address the root causes of destabilisation, forced displacement and illegal migration. I expect all EU Member States to pitch in and match our ambitions. I do not want to create any illusions that the refugee crisis will be over any time soon. It will not. But pushing back boats from piers, setting fire to refugee camps, or turning a blind eye to poor and helpless people: that is not Europe. Europe is the baker in Kos who gives away his bread to hungry and weary souls. Europe is the students in Munich and in Passau who bring clothes for the new arrivals at the train station. Europe is the policeman in Austria who welcomes exhausted refugees upon crossing the border. This is the Europe I want to live in. The crisis is stark and the journey is still long. I am counting on you, in this House, and on all Member States to show European courage going forward, in line with our common values and our history. A new start for Greece, for the euro area and for the European economy Mr President, Honourable Members, I said I want to talk about the big issues today. This is why this State of the Union speech needs to address the situation in Greece, as well as the broader lessons from the fifth year of Greek crisis the impact of which continues to be felt in the Eurozone and in the European economy and society as a whole. Since the start of the year, the talks on Greece have tested all our patience. A lot of time and a lot of trust was lost. Bridges were burnt. Words were said that cannot easily be taken back. We saw political posturing, bickering and insults carelessly bandied about. Too often, we saw people thinking they can impose their views without a wayward thought for another's point of view. We saw democracies in the Eurozone being played against each other. The recovery and creation of jobs witnessed last year in Greece vanished during these months. Collectively, we looked into the abyss. And it was once more only when we were at the brink that we were able to see the bigger picture and to live up to our responsibilities. In the end, a deal was reached, commitments were adhered to and implemented. Trust has started to be regained, even though it remains very fragile. I am not proud of every aspect of the results achieved. However, I am proud of the teams in the European Commission who worked day and night until late in August, relentlessly, to bridge the gap between far-flung positions and to bring about solutions in the interest of Europe and of the Greek people. I know that not everybody was happy with what the Commission did. Many Greek politicians were not happy that we insisted on reforms in Greece, notably as regards the unsustainable pension system and the unfair tax regime. Many other European politicians could not understand why the Commission continued to negotiate. Some could not understand why we did not simply leave all the talks to the technicians of the International Monetary Fund. Why we sometimes also spoke about the social side of programme commitments and amended those to take account of the effects on the most vulnerable in society. Or that I personally dared to say again and again that the euro, and membership in the euro, is meant to be irreversible. Mr President, Honourable Members, The Commission’s mandate in negotiations with a programme country such as Greece has a very clear basis: it is the Treaty on European Union which calls on the Commission to promote the common interest of the Union and to uphold the law. The same law includes the Treaty clause, agreed by all Member States, that qualifies membership in the euro as irrevocable. As long as Member States have not amended the Treaties, I believe the Commission and all other EU institutions have a clear mandate and duty to do everything possible to preserve the integrity of the euro area. The Commission has also been explicitly entrusted by the European Stability Mechanism (ESM) Treaty, ratified by all euro area Member States, with conducting programme negotiations with a Member State. We have to do this in liaison with the European Central Bank and, where possible, together with the International Monetary Fund. But we have a clear mandate to do so. Where the Treaties talk about the Commission, I read this as meaning the Commission as an institution that is politically led by the President and the College of Commissioners. This is why I did not leave the talks with Greece to the Commission bureaucracy alone, in spite of their great expertise and the hard work they are doing. But I spoke personally to our experts regularly, often several times per day, to orient them or to adjust their work. I also ensured that every week, the situation of the negotiations in Greece was discussed at length and very politically in the meetings of the College. Because it is not a technical question whether you increase VAT not only on restaurants, but also on processed food. It is a political and social question. It is not a technical question, but a deeply political question, whether you increase VAT on medicines in a country where 30% of the population is no longer covered by the public health system as a result of the crisis. Or whether you cut military expenditure instead – in a country that continues to have one of the highest military expenditures in the EU. It is certainly not a technical question whether you reduce the pensions of the poorest in society or the minimum wage; or if you instead levy a tax on Greek ship owners. Of course, the figures in what is now the third Greek programme had to add up in the end. But we managed to do this with social fairness in mind. I read the Troika report of the European Parliament very thoroughly. I hope you can see that we have drawn the lessons from this, that we have made, for the first time, a social impact assessment of the programme. Even though I admit frankly that the Commission also had to compromise sometimes in these negotiations. What matters to me, is that, in the end, a compromise was found which could be agreed by all 19 euro area Member States, including Greece. After weeks of talks, small progress, repeated setbacks, many crisis moments, and often a good dose of drama, we managed to sign a new Stability Support Programme for Greece on 19 August. Now that the new programme is in place, I want it to be a new start, for Greece and for the euro area as a whole. Let us be very honest: We are only at the beginning of a new, long journey. For Greece, the key now is to implement the deal which was agreed. There has to be broad political ownership for this. I had the leaders of all the mainstream Greek political groups in my office before the final agreement was concluded. They all promised to support this agreement, and they gave first proof of their commitment when they voted for the new programme and for the first three waves of reforms in the Hellenic Parliament. I expect them to stand by their word and deliver on the agreement – whoever governs. Broad support and timely delivery of the reforms is what Greece needs, so that confidence can return both among the Greek people and to the Greek economy. The programme is one thing, but it is not enough to put Greece on a path of sustainable growth. The Commission will stand by Greece to make sure the reforms take shape. And we will assist Greece in developing a growth strategy which is Greek owned and Greek led. From the modernisation of the public administration and the independence of the tax authority, the Commission will provide tailor-made technical assistance, together with the help of European and international partners. This will be the main task of the new Structural Reform Support Service I established in July. On 15 July, the Commission also put forward a proposal to limit national co-financing in Greece and to frontload funding for investment projects short of liquidity: a €35 billion package for growth. This is urgent for recovery after months of financial squeeze. This is money that will reach the Greek real economy, for businesses and authorities to invest and recruit. The Commission worked day-in, day-out to put this on the table. National Parliaments met several times throughout the month of August. I therefore hope that the European Parliament will also play its part, in line with previous commitments. Our programme for growth in Greece has been on the table of this House for two months. If adopted, it will still take several weeks until the first euro will reach the real economy of Greece. I call on you to follow the example of the Council, which will agree on this growth programme by the end of this month. The European Parliament should be at least as fast as the Council on this. I said I wanted the new programme to be a new start not just for Greece but for the euro area as a whole, because there are important lessons we need to draw from the crisis that has haunted us for far too long. The economic and social situation speaks for itself: over 23 million people are still unemployed today in the European Union, with more than half without a job for a year or more. In the euro area alone, more than 17.5 million people are without a job. Our recovery is hampered by global uncertainties. Government debt in the EU has reached more than 88% of GDP on average, and stands at almost 93% in the euro area. The crisis is not over. It has just been put on pause. This is not to say that nothing is happening. Unemployment figures are improving, GDP is rising at its highest rate for years, and the financing conditions of households and companies have recovered significantly. And several Member States once severely affected – like Latvia, Ireland, Spain and Portugal – which received European financial assistance are now steadily growing and consolidating their economies. This is progress but recovery is too slow, too fragile and too dependent on our external partners. More fundamentally, the crisis has left us with very wide differences across the euro area and the EU as a whole. It has damaged our growth potential. It has added to the long-term trend of rising inequalities. All this has fuelled doubts about social progress, the value of change and the merits of belonging together. What we need is to recreate a process of convergence, both between Member States and within societies, with productivity, job creation and social fairness at its core. We need more Union in our Europe. For the European Union, and for my Commission in particular, this means two things: first, investing in Europe's sources of jobs and growth, notably in our Single Market; and secondly, completing our Economic and Monetary Union to creating the conditions for a lasting recovery. We are acting on both fronts. Together with you and the Member States, we brought to life the €315 billion Investment Plan for Europe, with a new European Fund for Strategic Investments (EFSI). Less than a year after I announced this plan, we are now at a point where some of the first projects are just taking off: 40,000 households all over France will get a lower energy bill and 6,000 jobs will be created, thanks to Investment Fund-financed improved energy efficiency in buildings. In health clinics in Barcelona, better treatment will be available to patients through new plasma derived therapies, funded by the Investment Fund. In Limerick and other locations in Ireland, families will have improved access to primary healthcare and social services through fourteen new primary care centres. This is just the beginning, with many more projects like these to follow. At the same time as we deploy our Investment Plan, we are upgrading our Single Market to create more opportunities for people and business in all 28 Member States. Thanks to Commission projects such as the Digital Single Market, Capital Markets Union and the Energy Union, we are reducing obstacles to activities cross-border and using the scale of our continent to stimulate innovation, connecting talents and offering a wider choice of products and services. But we will fail in our efforts to prosper if we do not learn a hard lesson: we have not yet convinced the people of Europe and the world that our Union is not just here to survive, but can also thrive and prosper. Let us not fool ourselves: our collective inability to provide a swift and clear answer to the Greek crisis over the last months weakened us all. It damaged the trust in our single currency and the EU’s reputation in the world. No wind favours he who has no destined port – we need to know where we are headed. This is the essence of the report I presented in June with the other Presidents of the European institutions on the completion of our Economic and Monetary Union. It was self-evident for me to include President Schulz in this important work. After all, the Parliament is the heart of democracy at EU level, just as national Parliaments are the heart of democracy at national level. The European Parliament is and must remain the Parliament of the euro area. And the European Parliament, in its role as co-legislator, will be in charge of deciding on the new initiatives the Commission will propose in the months to come to deepen our Economic and Monetary Union. I am therefore glad that for the first time, we have written not a ‘Four Presidents' Report’, but a ‘Five Presidents’ Report’. Despite months of late-night discussions to find an agreement for Greece, we wrote this report in May and June to set out the course for a stronger future. The Five Presidents of the leading EU institutions have agreed a roadmap that should allow us to stabilise and consolidate the euro area by early 2017; and then, on the basis of a renewed convergence of our economies, to achieve more fundamental reform and move where we can from crisis resilience to new growth perspectives. As we had expected, the Five Presidents’ Report has triggered a lively debate across Europe. Some say we need a government of the euro. Others say we need more discipline and respect of the rules. I agree with both: we need collective responsibility, a greater sense of the common good and full respect and implementation of what is collectively agreed. But I do not agree this should mean the multiplication of institutions or putting the euro on auto pilot, as if new institutions or magic rules could deliver more or better. You cannot run a single currency on the basis of rules and statistics alone. It needs constant political assessment, as the basis of new economic, fiscal and social policy choices. The Five Presidents' Report includes a full agenda of work for the years to come, and I want us to move swiftly on all fronts – economic, financial, fiscal and political Union. Some efforts will have to be focused on the euro area, while others should be open to all 28 Member States, in view of their close interaction with our Single Market. Allow me to highlight five domains where the Commission will present ambitious proposals swiftly and where we will be expecting progress already this autumn. First: the Five Presidents agreed that we need a common system to ensure that citizens' bank savings are always protected up to a limit of €100,000 per person and account. This is the missing part of our Banking Union. Today, such protection schemes exist, but they are all national. What we need is a more European system, disconnected from government purses so that citizens can be absolutely sure that their savings are safe. We all saw what happened in Greece during the summer: Citizens were – understandably – taking out their savings since they had little trust and confidence in the financial capability of the State to support its banking system. This must change. A more common deposit guarantee system is urgently needed, and the Commission will present a legislative proposal on the first steps towards this before the end of the year. I am of course fully aware there is no consensus on this yet. But I also know that many of you are as convinced as I am of the need to move ahead. I say to those who are more sceptical: the Commission is fully aware that there are differences in the starting positions of Member States. Some have developed and well-financed their national systems of deposit insurance. Others are still building up such systems. We need to take these differences into account. This is why the Five Presidents’ Report advocates not full mutualisation, but a new approach by means of a reinsurance system. We will present further details on this in the weeks to come. Second: we need a stronger representation of the euro on the global scene. How is it possible that the euro area, which has the second largest currency in the world, can still not speak with one voice on economic matters in international financial institutions? Imagine yourselves in the daily work of the International Monetary Fund for a moment. We know well how important the IMF is. Still, instead of speaking with one voice as the euro area, Belgium and Luxembourg have to agree their voting position with Armenia and Israel; and Spain sits in a joint constituency with Latin American countries. How can it be that we – Europeans – are jointly major shareholders of global institutions such as the IMF and the World Bank and still end up acting as a minority? How can it be that a strategically important new Infrastructure Investment Bank is created in Asia, and European governments, instead of coordinating their efforts, engage in a race who is first to become a member? We need to grow up and put our common interests ahead of our national ones. For me, the President of the Eurogroup should be the natural spokesperson for the euro area in international financial institutions such as the IMF. Third: we need a more effective and more democratic system of economic and fiscal surveillance. I want this Parliament, national Parliaments, as well as social partners at all levels, to be key actors in the process. I also want the interest of the euro area as a whole to be better reflected upfront in EU and national policies: the interest of the whole is not just the sum of its parts. This will be reflected in our proposals to streamline and strengthen the European Semester of economic policy coordination further. In the future, I no longer want our recommendations for the economic orientation of the euro area as a whole to be empty words. I want them to provide real orientation, notably on the fiscal stance of the euro area. Fourth: we need to enhance fairness in our taxation policies. This requires greater transparency and equity, for citizens and companies. We presented an Action Plan in June, the gist of which is the following: the country where a company generates its profits must also be the country of taxation. One step towards this goal is our work on a Common Consolidated Corporate Tax Base. This simplification will make tax avoidance more difficult. We are also working hard with the Council to conclude an agreement on the automatic exchange of information on tax rulings by the end of the year. At the same time, we expect our investigations into the different national schemes to yield results very soon. And we are fighting hard to get Member States to adopt the modalities of a Financial Transaction Tax by the end of the year. We need more Europe, we need more Union, and we need more fairness in our taxation policy. Fifth: We have to step up the work for a fair and truly pan-European labour market. Fairness in this context means promoting and safeguarding the free movement of citizens as a fundamental right of our Union, while avoiding cases of abuses and risks of social dumping. Labour mobility is welcome and needed to make the euro area and the single market prosper. But labour mobility should be based on clear rules and principles. The key principle should be that we ensure the same pay for the same job at the same place. As part of these efforts, I will want to develop a European pillar of social rights, which takes account of the changing realities of Europe's societies and the world of work. And which can serve as a compass for the renewed convergence within the euro area. This European pillar of social rights should complement what we have already jointly achieved when it comes to the protection of workers in the EU. I will expect social partners to play a central role in this process. I believe we do well to start with this initiative within the euro area, while allowing other EU Member States to join in if they want to do so. As said in the Five Presidents’ Report, we will also need to look ahead at more fundamental steps with regard to the euro area. The Commission will present a White Paper on this in spring 2017. Yes, we will need to set up a Euro Area Treasury over time, which is accountable at European level. And I believe it should be built on the European Stability Mechanism we created during the crisis, which has, with a potential credit volume of €500 billion, a firepower that is as important as the one of the IMF. The ESM should progressively assume a broader macroeconomic stabilisation function to better deal with shocks that cannot be managed at the national level alone. We will prepare the ground for this to happen in the second half of this mandate. The European Union is a dynamic project. A project to serve its people. There are no winners or losers. We all get back more than we put in. It is one, comprehensive project. This is also a message for our partners in the United Kingdom, which I have very much in my mind when thinking about the big political challenges of the months to come. A fair deal for Britain Since I took office, things have become clearer as regards the United Kingdom: before the end of 2017, there will be a referendum on whether Britain remains in the Union or not. This will of course be a decision for voters in the United Kingdom. But it would not be honest nor realistic to say that this decision will not be of strategic importance for the Union as a whole. I have always said that I want the UK to stay in the European Union. And that I want to work together with the British government on a fair deal for Britain. The British are asking fundamental questions to and of the EU. Whether the EU delivers prosperity for its citizens. Whether the action of the EU concentrates on areas where it can deliver results. Whether the EU is open to the rest of the world. These are questions to which the EU has answers, and not just for the sake of the UK. All 28 EU Member States want the EU to be modern and focused for the benefit of all its citizens. We all agree that the EU must adapt and change in view of the major challenges and crisis we are facing at the moment. This is why we are completing the Single Market, slashing red tape, improving the investment climate for small businesses. This is why we are creating a Digital Single Market – to make it such that your location in the EU makes no difference to the price you pay when you book a car online. We are modernising the EU's copyright rules – to increase people's access to cultural content online while ensuring that authors get a fair remuneration. And just two months ago, the EU agreed to abolish roaming charges as of summer 2017, a move many tourists and travellers, notably from Britain, have been calling for, for years. This is why we are negotiating trade agreements with leading nations such as the Transatlantic Trade and Investment Partnership. This is why we are opening markets and breaking down barriers for businesses and workers in all 28 EU Member States. It is my very personal commitment to improve the way in which the Union works with national Parliaments. I have inscribed a duty to interact more closely with national Parliaments in the mission letters of all Members of my Commission. I am convinced that strengthening our relationship with national Parliaments will bring the Union closer to the people that it serves. This is an ambition that I know Prime Minister David Cameron also shares. I am confident that we will be able to find a common answer. Over a year ago, when I campaigned to become President of the Commission, I made a vow that, as President, I would seek a fair deal for Britain. A deal that is fair for Britain. And that is also fair for the 27 other Member States. I want to ensure we preserve the integrity of all four freedoms of the Single Market and at the same time find ways to allow the further integration of the Eurozone to strengthen the Economic and Monetary Union. To be fair to the UK, part of this deal will be to recognise the reality that not all Member States participate in all areas of EU policy. Special Protocols define the position of the UK, for instance in relation to the euro and to Justice and Home Affairs. To be fair to the other Member States, the UK's choices must not prevent them from further integration where they see fit. I will seek a fair deal for Britain. I will do this for one reason and one reason alone: because I believe that the EU is better with Britain in it and that Britain is better within the EU. In key areas, we can achieve much more by acting collectively, than we could each on our own. This is in particular the case for the tremendous foreign policy challenges Europe is currently facing and which I will address in the next part of this speech. United alongside Ukraine Europe is a small part of the world. If we have something to offer, it is our knowledge and leadership. Around a century ago, one in five of the world’s population were in Europe; today that figure is one in nine; in another century it will be one in twenty-five. I believe we can, and should, play our part on the world stage; not for our own vanity, but because we have something to offer. We can show the world the strength that comes from uniting and the strategic interest in acting together. There has never been a more urgent and compelling time to do so. We have more than 40 active conflicts in the world at the moment. While these conflicts rage, whilst families are broken and homes reduced to rubble, I cannot come to you, almost 60 years after the birth of the European Union and pitch you peace. For the world is not at peace. If we want to promote a more peaceful world, we will need more Europe and more Union in our foreign policy. This is most urgent towards Ukraine. The challenge of helping Ukraine to survive, to reform and to prosper is a European one. Ultimately, the Ukrainian dream, the dream of the Maidan is European: to live in a modern country, in a stable economy, in a sound and fair political system. Over the past twelve months, I have got to know President Poroshenko well, at a Summit, over dinner at his home, during many meetings and countless phone calls. He has begun a transformation of his country. He is fighting for peace. He deserves our support. We have already done a lot, lending €3.41 billion in three Macro-Financial Assistance programmes, helping to broker a deal that will secure Ukraine's winter gas supplies and advising on the reform of the judiciary. The EU and all its Member States must contribute if we are to succeed. We will also need to maintain our unity. We need unity when it comes to the security of our Eastern Member States, notably the Baltics. The security and the borders of EU Member States are untouchable. I want this to be understood very clearly in Moscow. We need more unity when it comes to sanctions. The sanctions the EU has imposed on Russia have a cost for each of our economies, and repercussions on important sectors, like farming. But sanctions are a powerful tool in confronting aggression and violation of international law. They are a policy that needs to be kept in place until the Minsk Agreements are complied with in full. We will have to keep our nerve and our unity. But we must also continue to look for solutions. I spoke to President Putin in Brisbane at the G20, in a bilateral meeting that went on into the early hours of the morning. We recalled how long we have known each other, how different times had become. A spirit of cooperation between the EU and Russia has given way to suspicion and distrust. The EU must show Russia the cost of confrontation but it must also make clear it is prepared to engage. I do not want a Europe that stands on the sidelines of history. I want a Europe that leads. When the European Union stands united, we can change the world. United in Leadership in Addressing Climate Change One example of where Europe is already leading is in our action on climate change. In Europe we all know that climate change is a major global challenge – and we have known for a while now. The planet we share – its atmosphere and stable climate – cannot cope with the use mankind is making of it. Some parts of the world have been living beyond their means, creating carbon debt and living on it. As we know from economics and crisis management, living beyond our means is not sustainable behaviour. Nature will foot us the bill soon enough. In some parts of the world, climate change is changing the sources of conflict – the control over a dam or a lake can be more strategic than an oil refinery. Climate change is even one the root causes of a new migration phenomenon. Climate refugees will become a new challenge – if we do not act swiftly. The world will meet in Paris in 90 days to agree on action to meet the target of keeping the global temperature rise below 2 degrees Celsius. The EU is on track and made a clear pledge back in March: a binding, economy-wide emissions reduction target of at least 40% by 2030, compared to 1990 levels. This is the most ambitious contribution presented to date. Others are following, some only reluctantly. Let me be very clear to our international partners: the EU will not sign just any deal. My priority, Europe's priority, is to adopt an ambitious, robust and binding global climate deal. This is why my Commission and I have been spending part of this first year in drumming support for ambition in Paris. Last May I was in Tokyo where I challenged Prime Minister Abe to work with us in ensuring that Paris is a worthy successor of Kyoto. In June at the G7 summit, leaders agreed to develop long-term low-carbon strategies and abandon fossil fuels by the end of the century. Later I met Chinese Premier Li Keqiang to prepare Paris and to launch a partnership to ensure that cities of today are designed to meet the energy and climate needs of tomorrow. And, in coordination with the High Representative, the members of the College have been engaged in climate diplomacy efforts. Today Commissioner Arias Cañete is in Papua New Guinea discussing the plans for Paris with the leaders of the Pacific Islands Forum. If corrective action is not taken to tackle climate change, the tide will rise and those islands will be the proverbial canary in the coalmine. However, if Paris delivers, humanity will, for the first time, have an international regime to efficiently combat climate change. Paris will be the next stop but not the last stop. There is a Road to Paris; but there is also a Road from Paris. My Commission will work to ensure Europe keeps leading in the fight against climate change. We will practice what we preach. We have no silver bullet to tackle climate change. But our laws, such as the EU Emissions Trading Scheme, and our actions have allowed us to decrease carbon emissions whilst keeping the economy growing. Our forward-looking climate policy is also delivering on our much needed Energy Union goals: it is making us a world leader in the renewable energy sector, which today employs over one million people across the EU and generates €130 billion turnover, including €35 billion worth of exports. European companies today hold 40% of all patents for renewable technologies and the pace of technological change increases the potential for new global trade in green technology. This is why a strategic focus on innovation and on interconnecting our markets is being given in the implementation of the Energy Union. This is what I promised you last year and this is what this Commission has delivered and will continue to deliver. The fight against climate change will not be won or lost in diplomatic discussions in Brussels or in Paris. It will be won or lost on the ground and in the cities where most Europeans live, work and use about 80% of all the energy produced in Europe. That is why I have asked President Schulz to host the Covenant of the Mayors meeting in the Parliament next month, bringing together more than 5,000 European mayors. They have all pledged to meet the EU CO2 reduction objective. I hope that all members of this House will lend their support to the action that communities and localities across Europe are taking to making Paris and its follow up a success. Conclusion Mr President, Honourable Members, There were many things I did not and could not mention today. For example, I would have liked to talk to you about Cyprus and my hope, my ambition and my wish to see the island united next year. After I met for a long talk with Presidents Nikos Anastasiades and Mustafa Akinci in the middle of the Green Line in July, I am confident that, with the necessary vision and political will from the two leaders, this is feasible under the current conditions and with continued good coordination between UN and EU efforts. I will offer all my support and assistance to help achieve this objective. Because I believe that walls and fences have no place in an EU Member State. I have not spoken about Europe's farmers who were protesting this week in Brussels. I agree with them that there is something wrong in a market when the price of a litre of milk is less than the price of a litre of water. But I do not believe that we can or should start micromanaging the milk market from Brussels. We should compensate the farmers who are suffering from the effects of sanctions against Russia. And this is why the Commission is putting a €500 million solidarity package for farmers on the table. And European and national competition authorities should take a close look into the structure of the market. Something has turned sour in the milk market. My impression is that we need to break some retail oligopolies. There is much more to be said but in touching upon the main issues, the main challenges confronting us today, for me there is one thing that becomes clear: whether it is the refugee crisis we are talking about, the economy or foreign policy: we can only succeed as a Union. Who is the Union that represents Europe's 507 million citizens? The Union is not just Brussels or Strasbourg. The Union is the European Institutions. The Union is also the Member States. It is national governments and national Parliaments. It is enough if just one of us fails to deliver for all of us to stumble. Europe and our Union have to deliver. While I am a strong defender of the Community method in normal times, I am not a purist in crisis times – I do not mind how we cope with a crisis, be it by intergovernmental solutions or community-led processes. As long as we find a solution and get things done in the interest of Europe's citizens. However, when we see the weaknesses of a method, we have to change our approach. Look at the relocation mechanism for refugees we put on the table for Greece and Italy in May: the Commission proposed a binding, communitarian solidarity scheme. Member States opted instead for a voluntary approach. The result: the 40,000 figure was never reached. Not a single person in need of protection has been relocated yet and Italy and Greece continue to cope alone. This is simply not good enough. Look at intergovernmental solutions like the 2011 Fiscal Compact to strengthen fiscal discipline or the 2014 Agreement setting up a common bank resolution fund. Today, we see that not a single Member State has completely implemented the Fiscal Compact. And only 4 out of 19 Member States have ratified the agreement on the bank resolution fund, which is meant to be launched on 1 January 2016. This is simply not good enough if we want to cope with the present, immense challenges. We have to change our way of working. We have to be faster. We have to be more European in our method. Not because we want power at European level. But because we need urgently better and swifter results. We need more Europe in our Union. We need more Union in our Union. All my life, I have believed in Europe. I have my reasons, many of which I know and am relieved are not relatable to generations today. Upon taking office, I said I want to rebuild bridges that had started to crumble. Where solidarity had started to fray at the seams. Where old daemons sought to resurface. We still have a long way to go. But when, generations from now, people read about this moment in Europe's history books, let it read that we stood together in demonstrating compassion and opened our homes to those in need of our protection. That we joined forces in addressing global challenges, protecting our values and resolving conflicts. That we made sure taxpayers never again have to pay for the greed of financial speculators. That hand in hand we secured growth and prosperity for our economies, for our businesses, and above all for our children. Let it read that we forged a Union stronger than ever before. Let it read that together we made European history. A story our grandchildren will tell with pride.

EU

Mr President, Honourable Members of the European Parliament, When I stood before you this time last year, I had a somewhat easier speech to give. It was plain for all to see that our Union was not in a good state. Europe was battered and bruised by a year that shook our very foundation. We only had two choices. Either come together around a positive European agenda or each retreat into our own corners. Faced with this choice, I argued for unity. I proposed a positive agenda to help create – as I said last year – a Europe that protects, a Europe that empowers, a Europe that defends. Over the past twelve months, the European Parliament has helped bring this agenda to life. We continue to make progress with each passing day. Just last night you worked to find an agreement on trade defence instruments and on doubling our European investment capacity. And you succeeded. Thank you for that. I also want to thank the 27 leaders of our Member States. Days after my speech last year, they welcomed my agenda at their summit in Bratislava. In doing so they chose unity. They chose to rally around our common ground. Together, we showed that Europe can deliver for its citizens when and where it matters. Ever since, we have been slowly but surely gathering momentum. It helped that the economic outlook swung in our favour. We are now in the fifth year of an economic recovery that really reaches every single Member State. Growth in the European Union has outstripped that of the United States over the last two years. It now stands above 2% for the Union as a whole and at 2.2% for the monetary area. Unemployment is at a nine year low. Almost 8 million jobs have been created during this mandate so far. With 235 million people at work, more people are in employment in the European Union than ever before. The European Commission cannot take the credit for this alone. Though I am sure that had 8 million jobs been lost, we would have taken the blame. But Europe's institutions played their part in helping the wind change. We can take credit for our European Investment Plan which has triggered €225 billion worth of investment so far. It has granted loans to 450,000 small firms and more than 270 infrastructure projects. We can take credit for the fact that, thanks to determined action, European banks once again have the capital firepower to lend to companies so that they can grow and create jobs. And we can take credit for having brought public deficits down from 6.6% to 1.6%. This is thanks to an intelligent application of the Stability and Growth Pact. We ask for fiscal discipline but are careful not to kill growth. This is in fact working very well across the Union – despite the criticism. Ten years since crisis struck, Europe's economy is finally bouncing back. And with it, our confidence. Our 27 leaders, the Parliament and the Commission are putting the Europe back in our Union. And together we are putting the Union back in our Union. In the last year, we saw all 27 leaders walk up the Capitoline Hill in Rome, one by one, to renew their vows to each other and to our Union. All of this leads me to believe: the wind is back in Europe's sails. We now have a window of opportunity but it will not stay open forever. Let us make the most of the momentum, catch the wind in our sails. For this we must do two things: First, we should stay the course set out last year. We still have 16 months in which real progress can be made by Parliament, Council and Commission. We must use this time to finish what we started in Bratislava and deliver on our own positive agenda. Secondly, we should chart the direction for the future. As Mark Twain wrote – I am quoting – years from now we will be more disappointed by the things we did not do, than by those we did. Now is the time to build a more united, a stronger, a more democratic Europe for 2025. STAYING COURSE Mr President, Honourable Members, As we look to the future, we cannot let ourselves be blown off course. We set out to complete an Energy Union, a Security Union, a Capital Markets Union, a Banking Union and a Digital Single Market. Together, we have already come a long way. As the Parliament testified, 80% of the proposals promised at the start of the mandate have already been put forward by the Commission. We must now work together to turn proposals into law, and law into practice. As ever, there will be a degree of give and take. The Commission's proposals to reform our Common Asylum System and strengthen rules on the Posting of Workers have caused controversy, I know. Achieving a good result will need all sides to do their part so they can move towards each other. I want to say today: as long as the outcome is the right one for our Union and is fair to all its Member States, the Commission will be open to compromise We are now ready to put the remaining 20% of initiatives on the table by May 2018. This morning, I sent a Letter of Intent to the President of the European Parliament and to the Prime Minister of Estonia – whose strong work for Europe I would like to praise – outlining the priorities for the year ahead. I will not and I cannot list all these proposals here, but let me mention five which are particularly important. Firstly, I want us to strengthen our European trade agenda. Yes, Europe is open for business. But there must be reciprocity. We have to get what we give. Trade is not something abstract. Trade is about jobs, creating new opportunities for Europe's businesses big and small. Every additional €1 billion in exports supports 14,000 extra jobs in Europe. Trade is about exporting our standards, be they social or environmental standards, data protection or food safety requirements. Europe has always been an attractive place to do business. But over the last year, partners across the globe are lining up at our door to conclude trade agreements with us. With the help of this Parliament, we have just secured a trade agreement with Canada that will provisionally apply as of next week. We have a political agreement with Japan on a future economic partnership. And by the end of the year, we have a good chance of doing the same with Mexico and South American countries. Today, we are proposing to open trade negotiations with Australia and New Zealand. I want all of these agreements to be finalised by the end of this mandate. And I want them negotiated in the greatest transparency. Open trade must go hand in hand with open policy making. The European Parliament will have the final say on all trade agreements. So its Members, like members of national and regional parliaments, must be kept fully informed from day one of the negotiations. The Commission will make sure of this. From now on, the Commission will publish in full all draft negotiating mandates we propose to the Council. Citizens have the right to know what the Commission is proposing. Gone are the days of no transparency. Gone are the days of rumours, of incessantly questioning the Commission's motives. I call on the Council to do the same when it adopts the final negotiating mandates. Let me say once and for all: we are not naïve free traders. Europe must always defend its strategic interests. This is why today we are proposing a new EU framework for investment screening. If a foreign, state-owned, company wants to purchase a European harbour, part of our energy infrastructure or a defence technology firm, this should only happen in transparency, with scrutiny and debate. It is a political responsibility to know what is going on in our own backyard so that we can protect our collective security if needed. Secondly, the Commission wants to make our industry stronger and more competitive. This is particularly true for our manufacturing base and the 32 million workers that form its backbone. They make the world-class products that give us our edge, like our cars. I am proud of our car industry. But I am shocked when consumers are knowingly and deliberately misled. I call on the car industry to come clean and make it right. Instead of looking for loopholes, they should be investing in the clean cars of tomorrow Honourable Members, the new Industrial Policy Strategy we are presenting today will help our industries stay, or become, the number one in innovation, digitisation and decarbonisation. Third: I want Europe to be the leader when it comes to the fight against climate change. Last year, we set the global rules of the game with the Paris Agreement ratified here, in this very House. Set against the collapse of ambition in the United States, Europe must ensure we make our planet great again. It is the shared heritage of all of humanity. The Commission will shortly present proposals to reduce the carbon emissions of our transport sector. Fourth priority for the year ahead: I want us to better protect Europeans in the digital age. Over the past years, we have made marked progress in keeping Europeans safe online. New rules, put forward by the Commission, will protect our intellectual property, our cultural diversity and our personal data. We have stepped up the fight against terrorist propaganda and radicalisation online. But Europe is still not well equipped when it comes to cyber-attacks. Cyber-attacks can be more dangerous to the stability of democracies and economies than guns and tanks. Last year alone there were more than 4,000 ransomware attacks per day and 80% of European companies experienced at least one cyber-security incident. Cyber-attacks know no borders and no one is immune. This is why, today, the Commission is proposing new tools, including a European Cybersecurity Agency, to help defend us against such attacks. Fifth: migration must stay on our radar. In spite of the debate and controversy around this topic, we have managed to make solid progress – though admittedly insufficient in many areas. We are now protecting Europe's external borders more effectively. Over 1,700 officers from the new European Border and Coast Guard are now helping Member States' 100,000 national border guards patrol in places like Greece, Italy, Bulgaria and Spain. We have common borders but Member States that by geography are the first in line cannot be left alone to protect them. Common borders and common protection must go hand in hand. We have managed to stem irregular flows of migrants, which were a cause of great anxiety for many. We have reduced irregular arrivals in the Eastern Mediterranean by 97% thanks our agreement with Turkey. And this summer, we managed to get more control over the Central Mediterranean route with arrivals in August down by 81% compared to the same month last year. In doing so, we have drastically reduced the loss of life in the Mediterranean. I cannot talk about migration without paying strong tribute to Italy for their tireless and noble work. Over the summer months, the Commission worked in perfect harmony with the Prime Minister of Italy, my friend Paolo Gentiloni, and his government to improve the situation. We did so - and we will continue to do so - because Italy is saving Europe's honour in the Mediterranean. We must also urgently improve migrants' living conditions in Libya. I am appalled by the inhumane conditions in detention or reception centres. Europe has a responsibility – a collective responsibility – and the Commission will work in concert with the United Nations to put an end to this scandalous situation that cannot be made to last. Even if it saddens me to see that solidarity is not yet equally shared across all our Member States, Europe as a whole has continued to show solidarity. Last year alone, our Member States resettled or granted asylum to over 720,000 refugees – three times as much as the United States, Canada and Australia combined. Europe, contrary to what some say, is not a fortress and must never become one. Europe is and must remain the continent of solidarity where those fleeing persecution can find refuge. I am particularly proud of the young Europeans volunteering to give language courses to Syrian refugees or the thousands more young people who are serving in our new European Solidarity Corps. These young people are bringing life and colour to European solidarity. But we now need to redouble our efforts. At the end of the month, the Commission will present a new set of proposals with an emphasis on returns, solidarity with Africa and opening legal pathways. When it comes to returns, I would like to repeat that people who have no right to stay in Europe must be returned to their countries of origin. When only 36% of irregular migrants are returned, it is clear we need to significantly step up our work. This is the only way Europe will be able to show solidarity with refugees in real need of protection. Solidarity cannot be an exclusively intra-European affair. We must also showsolidarity withAfrica. Africa is a noble continent, a young continent, the cradle of humanity. Our €2.7 billion EU-Africa Trust Fund is creating employment opportunities across the continent. The EU budget fronted the bulk of the money, but all our Member States combined have still only contributed €150 million. The Fund is currently reaching its limits. We know – or we should know – the dangers of a lack of funding – in 2015 many migrants headed towards Europe when the UN's World Food Programme ran out of funds. I call on all Member States to now match their actions with their words and ensure the Africa Trust Fund does not meet the same fate. The risk is high. We will also work on opening up legal pathways. Irregular migration will only stop if there is a real alternative to perilous journeys. We are close to having resettled 22,000 refugees from Turkey, Jordan and Lebanon and I support UN High Commissioner for Refugees' call to resettle a further 40,000 refugees from Libya and the surrounding countries. At the same time, legal migration is an absolute necessity for Europe as an ageing continent. This is why the Commission made proposals to make it easier for skilled migrants to reach Europe with a Blue Card. I would like to thank the Parliament for its support on this. SETTING SAIL Dear Mr President, Ladies and Gentlemen, Honourable Members, I have mentioned just a few of the initiatives we want and must deliver over the next 16 months. But this alone will not be enough to regain the hearts and minds of Europeans. Now is the time to chart the direction for the future. In March, the Commission presented our White Paper on the future of Europe, with five scenarios for what Europe could look like by 2025. These scenarios have been discussed, sometimes superficially, sometimes violently. They have been scrutinised and partly ripped apart. That is good – they were conceived for exactly this purpose. I wanted to launch a process in which Europeans determined their own path and their own future. The future of Europe cannot be decided by decree. It has to be the result of democratic debate and, ultimately, broad consensus. This House contributed actively, through the three ambitious resolutions on Europe's future which I would like to particularly thank the rapporteurs for. And I want to thank all the colleagues that participated in the more than 2,000 public events across Europe that the Commission organised since March. Now is the time to draw first conclusions from this debate. Time to move from reflection to action. From debate to decision. Today I would like to present you my view: my own 'sixth scenario', if you will. This scenario is rooted in decades of first-hand experience. I have lived, fought and worked for the European project my entire life. I have seen and lived through good times and bad. I have sat on many different sides of the table: as a Minister, as Prime Minister, as President of the Eurogroup, and now as President of the Commission. I was there in Maastricht, Amsterdam, Nice and Lisbon as our Union evolved and enlarged. I have always fought for Europe. At times I have suffered because of Europe. And even despaired for Europe. Through thick and thin, I have never lost my love of Europe. But there is, as we know, rarely love without pain. Love for Europe because Europe and the European Union have achieved something unique in this fraying world: peace within and peace outside of Europe. Prosperity for many if not yet for all. This is something we have to remember during the European Year of Cultural Heritage. 2018 must be a celebration of cultural diversity. A UNION OF VALUES Our values are our compass. For me, Europe is more than just a single market. More than money, more than a currency, more than the euro. It was always about values. That is why, in my sixth scenario, there are three fundamentals, three unshakeable principles: freedom, equality and the rule of law. Europe is first of all a Union of freedom. Freedom from the kind of oppression and dictatorship our continent knows all too well – sadly none more than central and Eastern European countries. Freedom to voice your opinion, as a citizen and as a journalist – a freedom we too often take for granted. It was on these freedoms that our Union was built. But freedom does not fall from the sky. It must be fought for. In Europe and throughout the world. Second, Europe must be a Union of equality and a Union of equals. Equality between its Members, big or small, East or West, North or South. Make no mistake, Europe extends from Vigo to Varna. From Spain to Bulgaria. East to West: Europe must breathe with both lungs. Otherwise our continent will struggle for air. In a Union of equals, there can be no second class citizens. It is unacceptable that in 2017 there are still children dying of diseases that should long have been eradicated in Europe. Children in Romania or Italy must have the same access to measles vaccines as children in other European countries. No ifs, no buts. This is why we are working with all Member States to support national vaccination efforts. Avoidable deaths must not occur in Europe. In a Union of equals, there can be no second class workers. Workers should earn the same pay for the same work in the same place. This is why the Commission proposed new rules on posting of workers. We should make sure that all EU rules on labour mobility are enforced in a fair, simple and effective way by a new European inspection and enforcement body. It is absurd to have a Banking Authority to police banking standards, but no common Labour Authority for ensuring fairness in our single market. We will create such an Authority. In a Union of equals, there can be no second class consumers either. I cannot accept that in some parts of Europe, in Central and Eastern Europe,people are sold food of lower quality than in other countries, despite the packaging and branding being identical. Slovaks do not deserve less fish in their fish fingers. Hungarians less meat in their meals. Czechs less cacao in their chocolate. EU law outlaws such practices already. And we must now equip national authorities with stronger powers to cut out these illegal practices wherever they exist. Third, in Europe the strength of the law replaced the law of the strong. The rule of law means that law and justice are upheld by an independent judiciary. Accepting and respecting a final judgement is what it means to be part of a Union based on the rule of law. Our Member States gave final jurisdiction to the European Court of Justice. The judgements of the Court have to be respected by all. To undermine them, or to undermine the independence of national courts, is to strip citizens of their fundamental rights. The rule of law is not optional in the European Union. It is a must. Our Union is not a State but it must be a community of law. A MORE UNITED UNION These three principles – freedom, equality and the rule of law – must remain the foundations on which we build a more united, stronger and more democratic Union. When we talk about the future, experience tells me new Treaties and new institutions are not the answer people are looking for. They are merely a means to an end, nothing more, nothing less. They might mean something to us here in Strasbourg or in Brussels. They do not mean a lot to anyone else. I am only interested in institutional reforms if they lead to more efficiency in our European Union. Instead of hiding behind calls for Treaty change – which is in any case inevitable – we must first change the mind-set that for some to win others must lose. Democracy is about compromise. And the right compromise makes winners out of everyone in the long run. A more united Union should see compromise, not as something negative, but as the art of bridging differences. Democracy cannot function without compromise. Europe cannot function without compromise. A more united Union also needs to become more inclusive. If we want to protect our external borders and rightly so strengthen them even more, then we need to open the Schengen area of free movement to Bulgaria and Romania immediately. We should also allow Croatia to become a full Schengen member once all the criteria are met. If we want the euro to unite rather than divide our continent, then it should be more than the currency of a select group of countries. The euro is meant to be the single currency of the European Union as a whole. All but two of our Member States are required and entitled to join the euro once they fulfil the conditions. Member States that want to join the euro must be able to do so. This is why I am proposing to create a Euro-accession Instrument, offering technical and even financial assistance. If we want banks to operate under the same rules and under the same supervision across our continent, then we should encourage all Member States to join the Banking Union. We need to reduce the remaining risks in the banking systems of some of our Member States. Banking Union can only function if risk-reduction and risk-sharing go hand in hand. As everyone well knows, this can only be achieved if the conditions, as proposed by the Commission in November 2015, are met. There can only be a common deposit insurance scheme once everyone will have done their national homework. And if we want to avoid social fragmentation and social dumping in Europe, then Member States should agree on the European Pillar of Social Rights as soon as possible and at the latest at the Gothenburg summit in November. National social systems will still remain diverse and separate for a long time. But at the very least, we should agree on a European Social Standards Union in which we have a common understanding of what is socially fair in our single market. I remain convinced: Europe cannot work if it shuns workers. Ladies and Gentlemen, if we want more stability in our neighbourhood, then we must also maintain a credible enlargement perspective for the Western Balkans. It is clear that there will be no further enlargement during the mandate of this Commission and this Parliament. No candidate is ready. But thereafter the European Union will be greater than 27 in number. Accession candidates must give the rule of law, justice and fundamental rights utmost priority in the negotiations. This rules out EU membership for Turkey for the foreseeable future. Turkey has been taking giant strides away from the European Union for some time. Journalists belong in newsrooms not in prisons. They belong where freedom of expression reigns. The call I make to those in power in Turkey is this: Let our journalists go. And not only ours. Stop insulting our Member States by comparing their leaders to fascists and Nazis. Europe is a continent of mature democracies. But deliberate insults create roadblocks. Sometimes I get the feeling Turkey is deliberately placing these roadblocks so that it can blame Europe for any breakdown in accession talks. As for us, we will always keep our hands stretched out towards the great Turkish people and all those who are ready to work with us on the basis of our values. A STRONGER UNION Ladies and Gentlemen, I want our Union to be stronger and for this we need a stronger single market. When it comes to important single market questions, I want decisions in the Council to be taken more often and more easily by qualified majority – with the equal involvement of the European Parliament. We do not need to change the Treaties for this. There are so-called “passerelle clauses” in the current Treaties which allow us to move from unanimity to qualified majority voting in certain cases – provided the European Council decides unanimously to do so. I am also strongly in favour of moving to qualified majority voting for decisions on the common consolidated corporate tax base, on VAT, on fair taxes for the digital industry and on the financial transaction tax. Europe has to be able to act quicker and more decisively, and this also applies to theEconomic and Monetary Union. The euro area is more resilient now than in years past. We now have the European Stabilisation Mechanism (ESM). I believe the ESM should now progressively graduate into a European Monetary Fund which, however, must be firmly anchored in the European Union's rules and competences. The Commission will make concrete proposals for this in December. We need a European Minister of Economy and Finance: a European Minister that promotes and supports structural reforms in our Member States. He or she can build on the work the Commission has been doing since 2015 with our Structural Reform Support Service. The new Minister should coordinate all EU financial instruments that can be deployed if a Member State is in a recession or hit by a fundamental crisis. I am not calling for a new position just for the sake of it. I am calling for efficiency. The Commissioner for economic and financial affairs – ideally also a Vice-President – should assume the role of Economy and Finance Minister. He or she should also preside the Eurogroup. The European Economy and Finance Minister must be accountable to the European Parliament. We do not need parallel structures. We do not need a budget for the Euro area but a strong Euro area budget line within the EU budget. I am also not fond of the idea of having a separate euro area parliament. The Parliament of the euro area is this European Parliament. The European Union must also be stronger in fighting terrorism. In the past three years, we have made real progress. But we still lack the means to act quickly in case of cross-border terrorist threats. This is why I call for setting up a European intelligence unit that ensures data concerning terrorists and foreign fighters are automatically shared among intelligence services and with the police. I also see a strong case for tasking the new European Public Prosecutor with prosecuting cross-border terrorist crimes. I want our Union to become a stronger global actor. In order to have more weight in the world, we must be able to take foreign policy decisions quicker. This is why I want Member States to look at which foreign policy decisions could be moved from unanimity to qualified majority voting. The Treaty already provides for this, if all Member States agree to do it. We need qualified majority decisions in foreign policy if we are to work efficiently. And I want us to dedicate further efforts to defence matters. A new European Defence Fund is in the offing. As is a Permanent Structured Cooperation in the area of defence. By 2025 we need a fully-fledged European Defence Union. We need it. And NATO wants it. Last but not least, I want our Union to have a stronger focus on things that matter, building on the work this Commission has already undertaken. We should not meddle in the everyday lives of European citizens by regulating every aspect. We should be big on the big things. We should not march in with a stream of new initiatives or seek ever growing competences. We should give back competences to Member States where it makes sense. This is why this Commission has sought to be big on big issues and small on the small ones and has done so, putting forward less than 25 new initiatives a year where previous Commissions proposed well over 100. To finish the work we started, I am setting up a Subsidiarity and Proportionality Task Force as of this month to take a very critical look at all policy areas to make sure we are only acting where the EU adds value. The First Vice-President, my friend, Frans Timmermans, who has a proven track record on better regulation, will head this Task Force. The Timmermans Task Force should include Members of this Parliament as well as Members of national Parliaments. It should report back in a years' time. A MORE DEMOCRATIC UNION Honourable Members, Mr President, Our Union needs to take a democratic leap forward. I would like to see European political parties start campaigning for the next European elections much earlier than in the past. Too often Europe-wide elections have been reduced to nothing more than the sum of national campaigns. European democracy deserves better. Today, the Commission is proposing new rules on the financing of political parties and foundations. We should not be filling the coffers of anti-European extremists. We should be giving European parties the means to better organise themselves. I also have sympathy for the idea of having transnational lists in European elections – though I am aware this is an idea more than a few of you disagree with. I will seek to convince the President of my parliamentary Group to follow me in this ambition which will bring Europe democracy and clarity. I also believe that, over the months to come, we should involve national Parliaments and civil society at national, regional and local level more in the work on the future of Europe. Over the last three years, as we promised, Members of the Commission have visited national Parliaments more than 650 times. They also debated in more than 300 interactive Citizens' Dialogues in more than 80 cities and towns across 27 Member States. This is why I support President Macron's idea of organising democratic conventions across Europe in 2018. As the debate gathers pace, I will personally pay particular attention to Estonia, to Latvia, to Lithuania and to Romania in 2018. This is the year they will celebrate their 100th anniversary. Those who want to shape the future of our continent should well understand and honour our common history. This includes these four countries – the European Union would not be whole without them. The need to strengthen democracy and transparency also has implications for the European Commission. Today, I am sending the European Parliament a new Code of Conduct for Commissioners. The new Code first of all makes clear that Commissioners can be candidates in European Parliament elections under the same conditions as everyone else. The new Code will of course strengthen the integrity requirements for Commissioners both during and after their mandate. If you want to strengthen European democracy, then you cannot reverse the small democratic progress seen with the creation of lead candidates – 'Spitzenkandidaten'. I would like the experience to be repeated. More democracy means more efficiency. Europe would function better if we were to merge the Presidents of the European Council and the European Commission. This is nothing against my good friend Donald, with whom I have worked intimately and seamlessly together since the beginning of my mandate. This is nothing against Donald or against me. Europe would be easier to understand if one captain was steering the ship. Having a single President would simply better reflect the true nature of our European Union as both a Union of States and a Union of citizens. OUR ROADMAP My dear colleagues, The vision of a more united, stronger and more democratic Europe I am outlining today combines elements from all of the scenarios I set out to you in March. But our future cannot remain a simple scenario, a sketch, an idea amongst others. We have to prepare the Union of tomorrow, today. This morning I sent a Roadmap to President Tajani, President Tusk as well as to the holders of the rotating Presidencies of the Council between now and March 2019, outlining where we should go from here. An important element will be the budgetary plans the Commission will present in May 2018. Here again we have a choice: either we pursue the European Union's ambitions in the strict framework of the existing budget, or we increase the European Union's budgetary capacity so that it might better reach its ambitions. I am for the second option. On 29 March 2019, the United Kingdom will leave the European Union. This will be both a sad and tragic moment. We will always regret it. But we have to respect the will of the British people. We will advance, we must advance because Brexit is not everything. Because Brexit is not the future of Europe. On 30 March 2019, we will be a Union of 27. I suggest that we prepare for this moment well, amongst the 27 and within the EU institutions. European Parliament elections will take place just a few weeks later, in May 2019. Europeans have a date with democracy. They need to go to the polls with a clear understanding of how the European Union will develop over the years to come. This is why I call on President Tusk and Romania, the country holding the Presidency in the first half of 2019, to organise a Special Summit in Romania on 30 March 2019. My wish is that this summit be held in the beautiful city of Sibiu, also known as Hermannstadt. This should be the moment we come together to take the decisions needed for a more united, stronger and democratic Europe. My hope is that on 30 March 2019, Europeans will wake up to a Union where we stand by all our values. Where all Member States respect the rule of law without exception. Where being a full member of the euro area, the Banking Union and the Schengen area has become the norm for all. Where we have shored up the foundations of our Economic and Monetary Union so that we can defend our single currency in good times and bad, without having to call on external help. Where our single market will be fairer towards workers from the East and from the West. I want Europeans to wake up to a Europe where we have managed to agree on a strong pillar of social standards. Where profits will be taxed where they were made. Where terrorists have no loopholes to exploit. Where we have agreed on a proper European Defence Union. Where eventually a single President leads the work of the Commission and the European Council, having been elected after a democratic Europe-wide election campaign. Mr President, if our citizens wake up to this Union on 30 March 2019, then the European Union will be a Union able to meet their legitimate expectations. CONCLUSION Honourable Members, Europe was not made to stand still. It must never do so. Helmut Kohl and Jacques Delors, whom I had the honour to know, taught me that Europe only moves forward when it is bold. The single market, Schengen and the single currency: these were all ideas that were written off as pipe dreams before they happened. And yet these three ambitious projects are now a part of our daily reality. Now that Europe is doing better, people tell me I should not rock the boat. But now is not the time to err on the side of caution. We started to fix the European roof. But today and tomorrow we must patiently, floor by floor, moment by moment, inspiration by inspiration, continue to add new floors to the European House. We must complete the European House now that the sun is shining and whilst it still is. Because when the next clouds appear on the horizon – and they will appear one day – it will be too late. So let's throw off the bowlines. Sail away from the harbour. And catch the trade winds in our sails.

EU

Mr President, Honourable Members of the European Parliament, At times, history moves forward only haltingly but it is always quick to pass us by. Such is the fate of a Commission with just a five year mandate to make a real difference. This Commission is merely a chapter, a brief moment in the long history of the European Union. But the time has not yet come to pass judgement on the Commission I have the honour of presiding over. This is why I will not today present you with an overview of the last four years' achievements. Instead, I say to you that our efforts will continue unabated. We will keep working to render this imperfect Union that little bit more perfect with each passing day. There is much still to be done. And this is what I want to talk to you about this morning. No self-congratulating, no boasting. Modesty and hard work: this is the attitude the Commission will continue to adopt. This is what is on our agenda for the months to come. History can also show up, unannounced, in the life of nations and be slow to leave. Such was the fate of Europe's nations during the Great War starting in 1914. A war which took the sunny, optimistic and peaceful continent of the time by surprise. In 1913, Europeans expected to live a lasting peace. And yet, just a year later, a brutal war broke out amongst brothers, engulfing the continent. I speak of these times not because I believe we are on the brink of another catastrophe. But because Europe is the guardian of peace. We should be thankful we live on a peaceful continent, made possible by the European Union. So let us show the European Union a bit more respect. Let us stop dragging its name through the mud and start defending our communal way of life more. We should embrace the kind of patriotism that is used for good, and never against others. We should reject the kind of exaggerated nationalism that projects hate and destroys all in its path. The kind of nationalism that points the finger at others instead of searching for ways to better live together. Living up to Europe's rallying cry –never again war – is our eternal duty, our perpetual responsibility. We must all remain vigilant. Honourable Members of the European Parliament, What is the State of the Union today, in 2018? Ten years after Lehman Brothers, Europe has largely turned the page on an economic and financial crisis which came from outside but which cut deep at home. Europe's economy has now grown for 21 consecutive quarters. Jobs have returned, with almost 12 million new jobs created since 2014. 12 million – that is more jobs than there are people in Belgium. Never have so many men and women – 239 million people – been in work in Europe. Youth unemployment is at 14.8%. This is still too high a figure but is the lowest it has been since the year 2000. Investment is back, thanks notably to our European Fund for Strategic Investments, which some – less and less – still call the “Juncker Fund”. A Fund that has triggered 335 billion euro worth of public and private investment. We are closing in on 400 billion. And then there is Greece: After what can only be described as some very painful years, marked by unprecedented social hardship – though also by unprecedented solidarity – Greece successfully exited its programme and is now back on its own two feet. I applaud the people of Greece for their Herculean efforts. Efforts which other Europeans continue to underestimate. I have always fought for Greece, its dignity, its role in Europe, and its place inside the euro area. Of this I am proud. Europe has also reaffirmed its position as a trade power. Our global trading position is the living proof of the need to share sovereignty. The European Union now has trade agreements with 70 countries around the world, covering 40% of the world's GDP. These agreements – so often contested but so unjustly – help us export Europe's high standards for food safety, workers' rights, the environment and consumer rights far beyond our borders. When, amidst dangerous global tensions, I went to Beijing, Tokyo and Washington in the space of one week last July, I was able to speak, as President of the European Commission, on behalf of the world’s biggest single market. On behalf of a Union accounting for a fifth of the world’s economy. On behalf of a Union willing to stand up for its values and interests. I showed Europe to be an open continent. But not a naïve one. The strength of a united Europe, both in principle and in practice, gave me the clout I needed to get tangible results for citizens and businesses alike. United, as a Union, Europe is a force to be reckoned with. In Washington, I spoke in Europe's name. For some, the agreement I struck with President Trump came as a surprise. But it should be no surprise that Europe succeeds when it speaks with one voice. When needed, Europe must act as one. We proved this when relentlessly defending the Paris Agreement on climate change. We did this because, as Europeans, we want to leave a healthier planet behind for those that follow. I share our Energy Commissioner's conclusions when it comes to our targets for reducing CO2 emissions by 2030. They are both scientifically accurate and politically indispensable. This summer's droughts are a stark reminder – not only for farmers – of just how important that work is to safeguard the future for generations of Europeans. We cannot turn a blind eye to the challenge in front of our noses. We – Commission and Parliament – must look to the future. Honourable Members of the European Parliament, The world has not stopped turning. It is more volatile than ever. The external challenges facing our continent are multiplying by the day. There can therefore be not a moment's respite in our efforts to build a more united Europe. Europe can export stability, as we have done with the successive enlargements of our Union. For me, these are and will remain success stories – for we were able to reconcile Europe's history and geography. But there is more to be done. We must find unity when it comes to the Western Balkans – once and for all. Should we not, our immediate neighbourhood will be shaped by others. Take a look around. What is happening in Idlib in Syria now must be of deep and direct concern to us all. We cannot remain silent in face of this impending humanitarian disaster – which appears now all but inevitable. The conflict in Syria is a case in point for how the international order that served Europeans so well after the Second World War is being increasingly called into question. In today’s world, Europe can no longer be certain that words given yesterday can still be counted on today. That old alliances may not look the same tomorrow. Ladies and Gentlemen, The world today needs a strong and united Europe. A Europe that works for peace, trade agreements and stable currency relations, even as some become more prone to trade and currency wars. I am not in favour of a selfish unilateralism that defies expectations and dashes hopes. I will always champion multilateralism. If Europe were to unite all the political, economic and military might of its nations, its role in the world could be strengthened. We will always be a global payer but it is time we started being a global player too. This is why – despite great resistance at the time – I reignited the idea of a Europe of Defence as early as 2014. And this is why I will continue to work day and night over the next months to see the European Defence Fund and Permanent Structured Cooperation in Defence become fully operational. Allow me to clarify one important point: we will not militarise the European Union. What we want is to become more autonomous and live up to our global responsibilities. Only a strong and united Europe can protect our citizens against threats internal and external – from terrorism to climate change. Only a strong and united Europe can protect jobs in an open, interconnected world. Only a strong and united Europe can master the challenges of global digitisation. It is because of our single market – the largest in the world – that we can set standards for big data, artificial intelligence, and automation. And that we are able to uphold Europeans' values, rights and identities in doing so. But we can only do so if we stand united. A strong and united Europe is what allows its Member States to reach for the stars. It is our Galileo programme that is today keeping Europe in the space race. No single Member State could have put 26 satellites in orbit, for the benefit of 400 million users worldwide. No single Member State could have done this alone. Galileo is a success in great part, if not entirely, thanks to Europe. No Europe, no Galileo. We should be proud. Mr President, The geopolitical situation makes this Europe's hour: the time for European sovereignty has come. It is time Europe took its destiny into its own hands. It is time Europe developed what I coined “Weltpolitikfähigkeit” – the capacity to play a role, as a Union, in shaping global affairs. Europe has to become a more sovereign actor in international relations. European sovereignty is born of Member States' national sovereignty and does not replace it. Sharing sovereignty – when and where needed – makes each of our nation states stronger. This belief that “united we stand taller” is the very essence of what it means to be part of the European Union. European sovereignty can never be to the detriment of others. Europe is a continent of openness and tolerance. It will remain so. Europe will never be a fortress, turning its back on the world or those suffering within it. Europe is not an island. It must and will champion multilateralism. The world we live in belongs to all and not a select few. This is what is at stake when Europeans take to the polls in May next year. We will use the 250 days before the European elections to prove to citizens that, acting as one, this Union is capable of delivering on expectations and on what we promised to achieve at the start of this mandate. By the elections, we must show that Europe can overcome differences between North and South, East and West, left and right. Europe is too small to let itself be divided in halves or quarters. We must show that together we can plant the seeds of a more sovereign Europe. Honourable Members of the European Parliament, Europeans taking to the polls in May 2019 will not care that the Commission made a proposal to make internet giants pay taxes where they create their profits – they want to see it happening for real. And they are right. Europeans taking to the polls in May 2019 will not care about the Commission's good intention to crack down on single-use plastics to protect our oceans against marine litter – they will want to see a European law in force that bans these plastics, which is what the Commission has proposed. We all say in soap-box speeches that we want to be big on big things and small on small things. But there is no applause when EU law dictates that Europeans have to change the clocks twice a year. The Commission is today proposing to change this. Clock-changing must stop. Member States should themselves decide whether their citizens live in summer or winter time. It is a question of subsidiarity. I expect the Parliament and Council will share this view. We are out of time. This is why I am today calling on all to work closely together over the next months, so that we can jointly deliver on what we have promised – before the European Parliament elections. At the beginning of this mandate, we all collectively promised to deliver a more innovative Digital Single Market, a deeper Economic and Monetary Union, a Banking Union, a Capital Markets Union, a fairer Single Market, an Energy Union with a forward-looking climate policy, a comprehensive Migration Agenda, and a Security Union. And we – or at least most of us – agreed that Europe's social dimension should be given the Cinderella treatment no more, but should instead be geared towards the future. The Commission has put all the proposals and initiatives we announced in 2014 on the table. Half of these have already been agreed by Parliament and Council, 20% are on well on the way and 30% are still under discussion – difficult discussion at that. Ladies and Gentlemen, I cannot accept that the blame for every failure – and there have been a few – is laid solely at the Commission's door. Our proposals are there for all to see. They need to be adopted and implemented. I will continue to resist all attempts to blame the Commission alone. There are scapegoats to be found in all three institutions – with the fewest in Commission and Parliament. Leadership is what is needed now. This is notably the case when it comes to completing our Security Union. Europeans rightly expect their Union to keep them safe. This is why the Commission is today proposing new rules to get terrorist content off the web within one hour – the critical window in which the greatest damage is done. And we are proposing to extend the tasks of the newly established European Public Prosecutor’s Office to include the fight against terrorist offences. We need to be able to prosecute terrorists in a more coordinated way, across our Union. Terrorists know no borders. We cannot allow ourselves to become unwitting accomplices because of our inability to cooperate. In the same vein, we have also today proposed measures to fight money laundering more effectively across our borders. We must protect our free and fair elections. This is why the Commission is today proposing new rules to better protect our democratic processes from manipulation by third countries or private interests. Leadership and a spirit of compromise are of course very much needed when it comes to migration. We have made more progress than is often acknowledged. Five of the seven Commission's proposals to reform our Common European Asylum System have been agreed. Our efforts to manage migration have borne fruit: arrivals have been drastically reduced – down 97% in the Eastern Mediterranean and 80% in the Central Mediterranean. EU operations have helped rescue over 690,000 people at sea since 2015. However, Member States have not yet found the right balance between the responsibility each must assume on its own territory; and the solidarity all must show if we are to get back to a Schengen area without internal borders. I am and will remain strictly opposed to internal borders. Where borders have been reinstated, they must be removed. Failure to do so would amount to an unacceptable step back for the Europe of today and tomorrow. The Commission and several Council presidencies have put numerous compromise solutions on the table. I call on the Council presidency to now make the decisive step to broker a sustainable solution on a balanced migration reform. We cannot continue to squabble to find ad-hoc solutions each time a new ship arrives. Temporary solidarity is not good enough. We need lasting solidarity – today and forever more. We need more solidarity not for solidarity's sake but for the sake of efficiency. This is true in the case of our civil protection mechanism. When fires rage in one European country, all of Europe burns. The most striking images from this summer were not only those of the formidable fires but of the Swedish people greeting Polish firefighters coming to their aid – Europe at its best. Turning back to migration: the Commission is today proposing to further strengthen the European Border and Coast Guard to better protect our external borders with an additional 10,000 European border guards by 2020. We are also proposing to further develop the European Asylum Agency to make sure that Member States get more European support in processing asylum seekers in line with the Geneva Convention. And we are proposing to accelerate the return of irregular migrants. The Commission is committed to supporting Member States in doing so. I would also like to remind Member States again of the need to open legal pathways to the Union. I renew my call. We need skilled migrants. Commission proposals addressing this issue have been on the table for some time and must now be taken up. Mr President, To speak of the future, one must speak of Africa – Europe's twin continent. Africa is the future: By 2050, Africa's population will number 2.5 billion. One in four people on earth will be African. We need to invest more in our relationship with the nations of this great and noble continent. And we have to stop seeing this relationship through the sole prism of development aid. Such an approach is beyond inadequate, humiliatingly so. Africa does not need charity, it needs true and fair partnerships. And Europe needs this partnership just as much. In preparing my speech today, I spoke to my African friends, notably Paul Kagame, the Chairperson of the African Union. We agreed that donor-recipient relations are a thing of the past. We agreed that reciprocal commitments are the way forward. We want to build a new partnership with Africa. Today, we are proposing a new Alliance for Sustainable Investment and Jobs between Europe and Africa. This Alliance – as we envision it – would help create up to 10 million jobs in Africa in the next 5 years alone. We want to create a framework that brings more private investment to Africa. We are not starting from scratch: our External Investment Plan, launched two years ago, will mobilise over €44 billion in both the public and private investment. Alone the projects already in the pipeline will unlock €24 billion. We want to focus our investment where it matters the most. By 2020, the EU will have supported 35,000 African students and researchers with our Erasmus programme. By 2027, this figure should reach 105,000. Trade between Africa and Europe is not insignificant. 36% of Africa's trade is with the European Union. This compares to 16% for China and 6% for the United States. But this is not enough. I believe we should develop the numerous European-African trade agreements into a continent-to-continent free trade agreement, as an economic partnership between equals. Mr President, Ladies and Gentlemen, Another issue where I see a strong need for the Union for leadership is Brexit. I will not enter into the details of the negotiations, which are being masterfully handled by my friend Michel Barnier. He works on the basis of a unanimous position confirmed time and again by the 27 Member States. However, allow me to recall three principles which should guide our work on Brexit in the months to come. First of all, we respect the British decision to leave our Union, even though we continue to regret it deeply. But we also ask the British government to understand that someone who leaves the Union cannot be in the same privileged position as a Member State. If you leave the Union, you are of course no longer part of our single market, and certainly not only in the parts of it you choose. Secondly, the European Commission, this Parliament and all other 26 Member States will always show loyalty and solidarity with Ireland when it comes to the Irish border. This is why we want to find a creative solution that prevents a hard border in Northern Ireland. But we will equally be very outspoken should the British government walk away from its responsibilities under the Good Friday Agreement. It is not the European Union, it is Brexit that risks making the border more visible in Northern Ireland. Thirdly, after 29 March 2019, the United Kingdom will never be an ordinary third country for us. The United Kingdom will always be a very close neighbour and partner, in political, economic and security terms. In the past months, whenever we needed unity in the Union, Britain was at our side, driven by the same values and principles as all other Europeans. This is why I welcome Prime Minister May's proposal to develop an ambitious new partnership for the future, after Brexit. We agree with the statement made in Chequers that the starting point for such a partnership should be a free trade area between the United Kingdom and the European Union. On the basis of these three principles, the Commission’s negotiators stand ready to work day and night to reach a deal. We owe it to our citizens and our businesses to ensure the United Kingdom's withdrawal is orderly and that there is stability afterwards. It will not be the Commission that will stand in the way of this, I can assure you of that. Honourable Members of the European Parliament, There is much work to be done before the European elections and before Europe's Leaders meet in Sibiu, Romania on 9 May 2019. Sibiu is the moment we must offer all Europeans a strong perspective for the future. Europeans deserve better than uncertainty and confused objectives. They deserve clarity of intent, not approximations or half-measures. This is what is at stake on the road to Sibiu – a summit that will take place just six weeks after Brexit and two weeks before the European elections. By then we must have ratified the EU-Japan partnership agreement – for reasons as much economic as geopolitical. By then, we should also have brokered an agreement in principle on the EU budget after 2020. If we want to give young Europeans the opportunity to make the most of our Erasmus programme – which we must – then we must decide on this aspect, amongst others, of the budget. If we want to give our researchers and start-ups more opportunities, and prevent funding gaps costing jobs, we have to decide before the elections. If we want to – without militarising the European Union – to increase defence spending by a factor of 20, we will need to decide quickly. If we want to increase our investment in Africa by 23%, we must decide quickly. By next year, we should also address the international role of the euro. The euro is 20 years young and has already come a long way – despite its critics. It is now the second most used currency in the world with 60 countries linking their currencies to the euro in one way or another. But we must do more to allow our single currency to play its full role on the international scene. Recent events have brought into sharp focus the need to deepen our Economic and Monetary Union and build deep and liquid capital markets. The Commission has made a series of proposals to do just that – most of which now await adoption by Parliament and Council. But we can and must go further. It is absurd that Europe pays for 80% of its energy import bill – worth 300 billion euro a year – in US dollar when only roughly 2% of our energy imports come from the United States. It is absurd that European companies buy European planes in dollars instead of euro. This is why, before the end of the year, the Commission will present initiatives to strengthen the international role of the euro. The euro must become the face and the instrument of a new, more sovereign Europe. For this, we must first put our own house in order by strengthening our Economic and Monetary Union, as we have already started to do. Without this, we will lack the means to strengthen the international of role of the euro. We must complete our Economic and Monetary Union to make Europe and the euro stronger. Last but not least, by Sibiu I want to make visible progress in strengthening our foreign policy. We must improve our ability to speak with one voice when it comes to our foreign policy. It is not right that our Union silenced itself at the United Nations Human Rights Council when it came to condemning human rights abuses by China. And this because not all Member States could agree. It is not right that one Member State was able to hold the renewal of our arms embargo on Belarus to ransom, or that sanctions on Venezuela were delayed for months when unanimity could not be reached. This is why today the Commission is proposing to move to qualified majority voting in specific areas of our external relations. I repeat what I said last year on this matter. We should move to qualified majority voting not in all but in specific areas: human rights issues and civilian missions included. This is possible on the basis of the current Treaties and I believe the time has come to make use of this "lost treasure" of the Lisbon Treaty. I also think we should be able to decide on certain tax matters by qualified majority. Mr President, I would like to say a few words about the increasingly worrying way in which we air our disagreements. Heated exchanges amongst governments and institutions are becoming more and more common. Harsh or hurtful words will not get Europe anywhere. The tone is not only worrying when it comes to political discourse. It is also true of the way some seek to shut down debate altogether by targeting media and journalists. Europe must always be a place where freedom of the press is sacrosanct. Too many of our journalists are intimidated, attacked, or even murdered. We must do more to protect our democracy and its agents – our journalists. In general, we must do more to revive the lost art of compromise. Compromise does not mean sacrificing our convictions or selling out on our values. The Commission will resist all attacks on the rule of law. We continue to be very concerned by the developments in some of our Member States. Article 7 must be applied whenever the rule of law is threatened. First Vice-President Timmermans is doing a remarkable but often lonely job of defending the rule of law. The whole Commission, and I personally, support him fully. But we need to be very clear on one point: judgements from the Court of Justice must be respected and implemented. This is vital. The European Union is a community of law. Respecting the rule of law and abiding by Court decisions are not optional. Mr President, Honourable Members of the European Parliament, I started this speech – my last State of the Union though surely not my last speech – by talking about history. I spoke of both the events that have marked this Commission's time in office and of history writ large, the History of Europe. We are all responsible for the Europe of today. And we must all take responsibility for the Europe of tomorrow. Such is history: parliaments and Commissions come and go, Europe is here to stay. But for Europe to become what it must, there are several lessons to be learnt. I want Europe to get off the side-lines of world affairs. Europe can no longer be a spectator or a mere commentator of international events. Europe must be an active player, an architect of tomorrow's world. There is strong demand for Europe throughout the world. To meet such high demand, Europe will have to speak with one voice on the world stage. In the concert of nations, Europe's voice must ring clear in order to be heard. Federica Mogherini has made Europe's diplomacy more coherent. But let us not slide back into the incoherence of competing and parallel national diplomacies. Europe diplomacy must be conducted in the singular. Our solidarity must be all-embracing. I want us to do more to bring together the East and West of Europe. It is time we put an end to the sorry spectacle of a divided Europe. Our continent and those who brought an end to the Cold War deserve better. I would like the European Union to take better care of its social dimension. Those that ignore the legitimate concerns of workers and small businesses undermine European unity. It is time we turned the good intentions that we proclaimed at the Gothenburg Social Summit into law. I would like next year's elections to be a landmark for European democracy. I would like to see the Spitzenkandidaten process – that small step forward for European democracy – repeated. For me, this process would be made all the more credible if we were to have transnational lists. I hope these will be in place by the next European elections in 2024 at the latest. But above all, I would like us to reject unhealthy nationalism and embrace enlightened patriotism. We should never forget that the patriotism of the 21st Century is two-fold: both European and national, with one not excluding the other. As the French philosophe Blaise Pascal said: I like things that go together. In order to stand on its own two feet, Europe must move forward as one. To love Europe, is to love its nations. To love your nation is to love Europe. Patriotism is a virtue. Unchecked nationalism is riddled with both poison and deceit. In short, we must remain true to ourselves. The trees we plant today must provide shade for our great grand-children whether they hail from East or West, from South or North. To give them all they need to grow and breathe easily. A few years ago, standing in this very same spot, I told you that Europe was the love of my life. I love Europe still and shall do so forever more.

EU

Dear President, Honourable Members, One of the most courageous minds of our times, Andrei Sakharov – a man so admired by this House - always spoke of his unshakeable belief in the hidden strength of the human spirit. In these last six months, Europeans have shown how strong that human spirit really is. We saw it in the care workers who moved into nursing homes to look after the ill and the elderly. In the doctors and nurses who became family members for those in their last breath. In the front line workers who worked day after night, week after week, who took risks so most of us didn't have to. We are inspired by their empathy, bravery and sense of duty – and I want to start this speech by paying tribute to them all. Their stories also reveal a lot about the state of our world and the state of our Union. They show the power of humanity and the sense of mourning which will live long in our society. And they expose to us the fragility all around us. A virus a thousand times smaller than a grain of sand exposed how delicate life can be. It laid bare the strains on our health systems and the limits of a model that values wealth above wellbeing. It brought into sharper focus the planetary fragility that we see every day through melting glaciers, burning forests and now through global pandemics. It changed the very way we behave and communicate – keeping our arms at length, our faces behind masks. It showed us just how fragile our community of values really is – and how quickly it can be called into question around the world and even here in our Union. But people want to move out of this corona world, out of this fragility, out of uncertainty. They are ready for change and they are ready to move on. And this is the moment for Europe. The moment for Europe to lead the way from this fragility towards a new vitality.And this is what I want to talk about today. Honourable Members, I say this because in the last months we have rediscovered the value of what we hold in common. As individuals, we have all sacrificed a piece of our personal liberty for the safety of others. And as a Union, we all shared a part of our sovereignty for the common good. We turned fear and division between Member States into confidence in our Union. We showed what is possible when we trust each other and trust our European institutions. And with all of that, we choose to not only repair and recover for the here and now, but to shape a better way of living for the world of tomorrow. This is NextGenerationEU. This is our opportunity to make change happen by design – not by disaster or by diktat from others in the world. To emerge stronger by creating opportunities for the world of tomorrow and not just building contingencies for the world of yesterday. We have everything we need to make this happen. We have shaken off the old excuses and home comforts that have always held us back. We have the vision, we have the plan, we have the investment. It is now time to get to work. This morning, I have sent a Letter of Intent to President Sassoli and Chancellor Merkel – on behalf of the German Presidency - outlining the Commission's plans for the year ahead. I will not present every initiative today but I want to touch on what our Union must focus on in the next twelve months. PULLING THROUGH TOGETHER: MAKING GOOD ON EUROPE'S PROMISE Honourable members, The people of Europe are still suffering. It is a period of profound anxiety for millions who are concerned about the health of their families, the future of their jobs or simply just getting through until the end of the month. The pandemic – and the uncertainty that goes with it – is not over. And the recovery is still in its early stage. So our first priority is to pull each other through this. To be there for those that need it. And thanks to our unique social market economy, Europe can do just that. It is above all a human economy that protects us against the great risks of life - illness, ill-fortune, unemployment or poverty. It offers stability and helps us better absorb shocks. It creates opportunity and prosperity by promoting innovation, growth and fair competition. Never before has that enduring promise of protection, stability and opportunity been more important than it is today. Allow me to explain why. First, Europe must continue to protect lives and livelihoods. This is all the more important in the middle of a pandemic that shows no signs of running out of steam or intensity. We know how quickly numbers can spiral out of control. So we must continue to handle this pandemic with extreme care, responsibility and unity. In the last six months, our health systems and workers have produced miracles. Every country has worked to do its best for its citizens. And Europe has done more together than ever before. When Member States closed borders, we created green lanes for goods. When more than 600,000 European citizens were stranded all over the world, the EU brought them home. When some countries introduced export bans for critical medical goods, we stopped that and ensured that critical medical supply could go where it was needed. We worked with European industry to increase the production of masks, gloves, tests and ventilators. Our Civil Protection Mechanism ensured that doctors from Romania could treat patients in Italy or that Latvia could send masks to its Baltic neighbours. And we achieved this without having full competences. For me, it is crystal clear – we need to build a stronger European Health Union. And to start making this a reality, we must now draw the first lessons from the health crisis. We need to make our new EU4Health programme future proof. This is why I had proposed to increase funding and I am grateful that this Parliament is ready to fight for more funding and remedy the cuts made by the European Council. And we need to strengthen our crisis preparedness and management of cross-border health threats. As a first step, we will propose to reinforce and empowerthe European Medicines Agencyand ECDC – our centre for disease prevention and control. As a second step, we will build a European BARDA – an agency for biomedical advanced research and development. This new agency will support our capacity and readiness to respond to cross-border threats and emergencies – whether of natural or deliberate origin. We need strategic stockpiling to address supply chain dependencies, notably for pharmaceutical products. As a third step, it is clearer than ever that we must discuss the question of health competences. And I think this is a noble and urgent task for the Conference on the Future of Europe. And because this was a global crisis we need to learn the global lessons. This is why, along with Prime Minister Conte and the Italian G20 Presidency, I will convene a Global Health Summit next year in Italy. This will show Europeans that our Union is there to protect all. And this is exactly what we have done when it comes to workers. When I took office, I vowed to create an instrument to protect workers and businesses from external shocks. Because I knew from my experience as a Minister for Labour and Social Affairs that these schemes work. They keep people in jobs, skills in companies and SMEs in business. These SMEs are the motor of our economy and will be the engine of our recovery. This is why the Commission created the SURE programme. And I want to thank this House for working on it in record time. If Europe has so far avoided mass unemployment seen elsewhere, it is thanks in large part to the fact that around 40 million people applied for short-time work schemes. This speed and unity of purpose means that 16 countries will soon receive almost 90 billion euros from SURE to support workers and companies. From Lithuania to Spain, it will give peace of mind to families who need that income to put food on the table or to pay the rent. And it will help protect millions of jobs, incomes and companies right across our Union. This is real European solidarity in action. And it reflects the fact that in our Union the dignity of work must be sacred. But the truth is that for too many people, work no longer pays. Dumping wages destroys the dignity of work, penalises the entrepreneur who pays decent wages and distorts fair competition in the Single Market. This is why the Commission will put forward a legal proposal to support Member States to set up a framework for minimum wages. Everyone must have access to minimum wages either through collective agreements or through statutory minimum wages. I am a strong advocate of collective bargaining and the proposal will fully respect national competencies and traditions. We have seen in many Member States how a well-negotiated minimum wage secures jobs and creates fairness – both for workers and for the companies who really value them. Minimum wages work – and it is time that work paid. The second promise of the social market economy is that of stability. The European Union and its Member States responded to an unprecedented crisis with an unprecedented response. By showing it was united and up to the task, Europe provided the stability our economies needed. The Commission immediately triggered the general escape clause for the first time in our history. We flexibilisedour European funds and State aid rules. Authorising more than 3 trillion euro in support to companies and industry: From fishermen in Croatia and farmers in Greece, to SMEs in Italy and freelancers in Denmark. The European Central Bank took decisive action through its PEPP programme. The Commission proposed NextGenerationEU and a revamped budget in record time. It combines investment with much needed reforms. The Council endorsed it in record time. This House is working towards voting on it with maximum speed. For the first time – and for exceptional times - Europe has put in place its own common tools to complement national fiscal stabilisers. This is a remarkable moment of unity for our Union. This is an achievement that we should take collective pride in. Now is the time to hold our course. We have all seen the forecasts. We can expect our economies to start moving again after a 12% drop in GDP in the second quarter. But as the virus lingers so does the uncertainty – here in Europe and around the world. So this is definitely not the time to withdraw support. Our economies need continued policy support and a delicate balance will need to be struck between providing financial support and ensuring fiscal sustainability. In the longer-term there is no greater way to stability and competitiveness than through a stronger Economic and Monetary Union. Confidence in the euro has never been stronger. The historic agreement on NextGenerationEU shows the political backing that it has. We must now use this opportunity to make structural reforms in our economies and complete the Capital Markets Union and the Banking Union. Deep and liquid capital markets are essential to give businesses access to the finance they need to grow and invest in recovery and in the future. And they are also a pre-requisite to further strengthen the international role of the euro. So let's get to work and finally complete this generational project. Honourable Members, the third enduring promise is the promise of opportunity. The pandemic reminded us of many things we may have forgotten or taken for granted. We were reminded how linked our economies are and how crucial a fully functioning Single Market is to our prosperity and the way we do things. The Single Market is all about opportunity - for a consumer to get value for money, a company to sell anywhere in Europe and for industry to drive its global competitiveness. And for all of us, it is about the opportunity to make the most of the freedoms we cherish as Europeans. It gives our companies the scale they need to prosper and is a safe haven for them in times of trouble. We rely on it every day to make our lives easier – and it is critical for managing the crisis and recovering our strength. Let's give it a boost. We must tear down the barriers of the Single Market. We must cut red tape. We must step up implementation and enforcement. And we must restore the four freedoms – in full and as fast as possible. The linchpin of this is a fully functioning Schengen area of free movement. We will work with Parliament and Member States to bring this high up our political agenda and we will propose a new strategy for the future of Schengen. Based on this strong internal market, the European industry has long powered our economy, providing a stable living for millions and creating the social hubs around which our communities are built. We presented our new industry strategy in March to ensure industry could lead the twin green and digital transition. The last six months have only accelerated that transformation – at a time when the global competitive landscape is fundamentally changing. This is why we will update our industry strategy in the first half of next year and adapt our competition framework which should also keep pace. PROPELLING EUROPE FORWARD: BUILDING THE WORLD WE WANT TO LIVE IN Honourable Members, All of this will ensure Europe gets back to its feet. But as we pull through together, we must also propel ourselves forwards to the world of tomorrow. There is no more urgent need for acceleration than when it comes to the future of our fragile planet. While much of the world's activity froze during lockdowns and shutdowns, the planet continued to get dangerously hotter. We see it all around us: from homes evacuated due to glacier collapse on the Mont Blanc, to fires burning through Oregon, to crops destroyed in Romania by the most severe drought in decades. But we also saw nature come back into our lives. We longed for green spaces and cleaner air for our mental health and our physical wellbeing. We know change is needed – and we also know it is possible. The European Green Deal is our blueprint to make that transformation. At the heart of it is our mission to become the first climate-neutral continent by 2050. But we will not get there with the status quo – we need to go faster and do things better. We looked in-depth at every sector to see how fast we could go and how to do it in a responsible, evidence-based way. We held a wide public consultation and conducted an extensive impact assessment. On this basis, the European Commission is proposing to increase the 2030 target for emission reduction to at least 55%. I recognise that this increase from 40 to 55 is too much for some, and not enough for others. But our impact assessment clearly shows that our economy and industry can manage this And they want it too. Just yesterday, 170 business leaders and investors – from SME's to some of the world's biggest companies - wrote to me calling on Europe to set a target of at least 55%. Our impact assessment clearly shows that meeting this target would put the EU firmly on track for climate neutrality by 2050 and for meeting our Paris Agreement obligations. And if others follow our lead, the world will be able to keep warming below 1.5 degrees Celsius. I am fully aware that many of our partners are far away from that – and I will come back to the Carbon Border Adjustment Mechanism later. But for us, the 2030 target is ambitious, achievable, and beneficial for Europe. We can do it.We have already shown we can do it. While emissions dropped 25% since 1990, our economy grew by more than 60%. The difference is we now have more technology, more expertise and more investment. And we are already embarking towards a circular economy with carbon neutral production. We have more young people pushing for change. We have more proof that what is good for the climate is good for business and is good for us all. And we have a solemn promise to leave no one behind in this transformation. With our Just Transition Fund we will support the regions that have a bigger and more costly change to make. We have it all. Now it's our responsibility to implement it all and make it happen. Honourable Members, Meeting this new target will reduce our energy import dependency, create millions of extra jobs and more than halve air pollution. To get there, we must start now. By next summer, we will revise all of our climate and energy legislation to make it “fit for 55”. We will enhance emission trading, boost renewable energy, improve energy efficiency, reform energy taxation. But the mission of the European Green Deal involves much more than cutting emissions. It is about making systemic modernisation across our economy, society and industry. It is about building a stronger world to live in. Our current levels of consumption of raw materials, energy, water, food and land use are not sustainable. We need to change how we treat nature, how we produce and consume, live and work, eat and heat, travel and transport. So we will tackle everything from hazardous chemicals to deforestation to pollution. This is a plan for a true recovery. It is an investment plan for Europe. And this is where NextGenerationEU will make a real difference. Firstly, 37% of NextGenerationEU will be spent directly on our European Green Deal objectives. And I will ensure that it also takes green financing to the next level. We are world leaders in green finance and the largest issuer of green bonds worldwide. We are leading the way in developing a reliable EU Green Bond Standard. And I can today announce that we will set a target of 30% of NextGenerationEU's 750 billion euro to be raised through green bonds. Secondly, NextGenerationEU should invest in lighthouse European projects with the biggest impact: hydrogen, renovation and 1 million electric charging points. Allow me to explain how this could work: Two weeks ago in Sweden, a unique fossil-free steel pilot began test operations. It will replace coal with hydrogen to produce clean steel. This shows the potential of hydrogen to support our industry with a new, clean, licence to operate. I want NextGenerationEU to create new European Hydrogen Valleys to modernise our industries, power our vehicles and bring new life to rural areas. The second example are the buildings we live and work in. Our buildings generate 40% of our emissions. They need to become less wasteful, less expensive and more sustainable. And we know that the construction sector can even be turned from a carbon source into a carbon sink, if organic building materials like wood and smart technologies like AI are applied. I want NextGenerationEU to kickstart a European renovation wave and make our Union a leader in the circular economy. But this is not just an environmental or economic project: it needs to be a new cultural project for Europe. Every movement has its own look and feel. And we need to give our systemic change its own distinct aesthetic – to match style with sustainability. This is why we will set up a new European Bauhaus – a co-creation space where architects, artists, students, engineers, designers work together to make that happen. This is NextGenerationEU. This is shaping the world we want to live in. A world served by an economy that cuts emissions, boosts competitiveness, reduces energy poverty, creates rewarding jobs and improves quality of life. A world where we use digital technologies to build a healthier, greener society. This can only be achieved if we all do it together and I will insist that recovery plans don't just bring us out the crisis but also help us propel Europe forward to the world of tomorrow. Honourable Members, Imagine for a moment life in this pandemic without digital in our lives. From staying in quarantine – isolated from family and community and cut off from the world of work – to major supply problems. It is in fact not so hard to imagine that this was the case 100 years ago during the last major pandemic. A century later, modern technology has allowed young people to learn remotely and millions to work from home. They enabled companies to sell their products, factories to keep running and government to deliver crucial public services from afar. We saw years' worth of digital innovation and transformation in the space of a few weeks. We are reaching the limits of the things we can do in an analogue way. And this great acceleration is just beginning. We must make this Europe's Digital Decade. We need a common plan for digital Europe with clearly defined goals for 2030, such as for connectivity, skills and digital public services. And we need to follow clear principles: the right to privacy and connectivity, freedom of speech, free flow of data and cybersecurity. But Europe must now lead the way on digital – or it will have to follow the way of others, who are setting these standards for us. This is why we must move fast. There are three areas on which I believe we need to focus. First, data. On personalized data - business to consumer - Europe has been too slow and is now dependent on others. This cannot happen with industrial data. And here the good news is that Europe is in the lead - we have the technology, and crucially we have the industry. But the race is not yet won. The amount of industrial data in the world will quadruple in the next five years - and so will the opportunities that come with it. We have to give our companies, SMEs, start-ups and researchers the opportunity to draw on their full potential. And industrial data is worth its weight in gold when it comes to developing new products and services. But the reality is that 80% of industrial data is still collected and never used. This is pure waste. A real data economy, on the other hand, would be a powerful engine for innovation and new jobs. And this is why we need to secure this data for Europe and make it widely accessible. We need common data spaces - for example, in the energy or healthcare sectors. This will support innovation ecosystems in which universities, companies and researchers can access and collaborate on data. And it is why we will build a European cloud as part of NextGenerationEU - based on GaiaX. The second area we need to focus on is technology - and in particular artificial intelligence. Whether it's precision farming in agriculture, more accurate medical diagnosis or safe autonomous driving - artificial intelligence will open up new worlds for us. But this world also needs rules. We want a set of rules that puts people at the centre. Algorithms must not be a black box and there must be clear rules if something goes wrong. The Commission will propose a law to this effect next year. This includes control over our personal data which still have far too rarely today. Every time an App or website asks us to create a new digital identity or to easily log on via a big platform, we have no idea what happens to our data in reality. That is why the Commission will soon propose a secure European e-identity. One that we trust and that any citizen can use anywhere in Europe to do anything from paying your taxes to renting a bicycle. A technology where we can control ourselves what data and how data is used. The third point is the infrastructure. Data connections must keep pace with the rapid speed of change. If we are striving for a Europe of equal opportunities, it is unacceptable that 40% of people in rural areas still do not have access to fast broadband connections. These connections are now the prerequisite for home working, home learning, online shopping and, increasingly by the day, for new important services. Without broadband connections, it is now barely possible to build or run a business effectively. This is a huge opportunity and the prerequisite for revitalising rural areas. Only then can they fully exploit their potential and attract more people and investment. The investment boost through NextGenerationEU is a unique chance to drive expansion to every village. This is why we want to focus our investments on secure connectivity, on the expansion of 5G, 6G and fiber. NextGenerationEU is also a unique opportunity to develop a more coherent European approach to connectivity and digital infrastructure deployment. None of this is an end in itself - it is about Europe's digital sovereignty, on a small and large scale. In this spirit, I am pleased to announce an investment of 8 billion euros in the next generation of supercomputers - cutting-edge technology made in Europe. And we want the European industry to develop our own next-generation microprocessor that will allow us to use the increasing data volumes energy-efficient and securely. This is what Europe's Digital Decade is all about! Honourable Members, If Europe is to move forward and move fast, we must let go of our hesitancies. This is about giving Europe more control over its future. We have everything it takes to bring it to life. And the private sector is desperately waiting for this too. There has never been a better time to invest in European tech companies with new digital hubs growing everywhere from Sofia to Lisbon to Katowice. We have the people, the ideas and the strength as a Union to succeed. And this is why we will invest 20% of NextGenerationEU on digital. We want to lead the way, the European way, to the Digital Age: based on our values, our strength, our global ambitions. A VITAL EUROPE IN A FRAGILE WORLD Honourable Members, Europe is determined to use this transition to build the world we want to live in. And that of course extends well beyond our borders. The pandemic has simultaneously shown both the fragility of the global system and the importance of cooperation to tackle collective challenges. In the face of the crisis, some around the world choose to retreat into isolation. Others actively destabilise the system. Europe chooses to reach out. Our leadership is not about self-serving propaganda. It is not about Europe First. It is about being the first to seriously answer the call when it matters. In the pandemic, European planes delivering thousands of tonnes of protective equipment landed everywhere from Sudan to Afghanistan, Somalia to Venezuela. None of us will be safe until all of us are safe – wherever we live, whatever we have. An accessible, affordable and safe vaccine is the world's most promising way to do that. At the beginning of the pandemic, there was no funding, no global framework for a COVID vaccine – just the rush to be the first to get one. This is the moment the EU stepped up to lead the global response. With civil society, the G20, WHO and others we brought more than 40 countries together to raise 16 billion euro to finance research on vaccines, tests and treatments for the whole world. This is the EU's unmatched convening power in action. But it is not enough to find a vaccine. We need to make sure that European citizens and those around the world have access to it. Just this month, the EU joined the COVAX global facility and contributed 400 million euro to help ensure that safe vaccines are available not only for those who can afford it – but for everyone who needs it. Vaccine nationalism puts lives at risk. Vaccine cooperation saves them. Honourable Members, We are firm believers in the strength and value of cooperating in international bodies It is with a strong United Nations that we can find long-term solutions for crises like Libya or Syria. It is with a strong World Health Organisation that we can better prepare and respond to global pandemics or local outbreaks – be it Corona or Ebola. And it is with a strong World Trade Organisation that we can ensure fair competition for all. But the truth is also that the need to revitalise and reform the multilateral system has never been so urgent. Our global system has grown into a creeping paralysis. Major powers are either pulling out of institutions or taking them hostage for their own interests. Neither road will lead us anywhere. Yes, we want change. But change by design – not by destruction. And this is why I want the EU to lead reforms of the WTO and WHO so they are fit for today's world. But we know that multilateral reforms take time and in the meantime the world will not stop. Without any doubt, there is a clear need for Europe to take clear positions and quick actions on global affairs. Two days ago, the latest EU-China leaders meeting took place. The relationship between the European Union and China is simultaneously one of the most strategically important and one of the most challenging we have. From the outset I have said China is a negotiating partner, an economic competitor and a systemic rival. We have interests in common on issues such as climate change – and China has shown it is willing to engage through a high-level dialogue. But we expect China to live up to its commitments in the Paris Agreement and lead by example. There is still hard work to do on fair market access for European companies, reciprocity and overcapacity. We continue to have an unbalanced trade and investment partnership. And there is no doubt that we promote very different systems of governance and society. We believe in the universal value of democracy and the rights of the individual. Europe is not without issues – think for example of anti-semitism. But we discuss them publicly. Criticism and opposition are not only accepted but are legally protected. So we must always call out human rights abuses whenever and wherever they occur – be it on Hong Kong or with the Uyghurs. But what holds us back? Why are even simple statements on EU values delayed, watered down or held hostage for other motives? When Member States say Europe is too slow, I say to them be courageous and finally move to qualified majority voting – at least on human rights and sanctions implementation. This House has called many times for a European Magnitsky Act – and I can announce that we will now come forward with a proposal. We need to complete our toolbox. Honourable Members, Be it in Hong Kong, Moscow or Minsk: Europe must take a clear and swift position. I want to say it loud and clear: the European Union is on the side of the people of Belarus. We have all been moved by the immense courage of those peacefully gathering in Independence Square or taking part in the fearless women's march. The elections that brought them into the street were neither free nor fair. And the brutal response by the government ever since has been shameful. The people of Belarus must be free to decide their own future for themselves. They are not pieces on someone else's chess board. To those that advocate closer ties with Russia, I say that the poisoning of Alexei Navalny with an advanced chemical agent is not a one off. We have seen the pattern in Georgia and Ukraine, Syria and Salisbury – and in election meddling around the world. This pattern is not changing – and no pipeline will change that. Turkey is and will always be an important neighbour. But while we are close together on the map, the distance between us appears to be growing. Yes, Turkey is in a troubled neighbourhood. And yes, it is hosting millions of refugees, for which we support them with considerable funding. But none of this is justification for attempts to intimidate its neighbours. Our Member States, Cyprus and Greece, can always count on Europe's full solidarity on protecting their legitimate sovereignty rights. De-escalation in the Eastern Mediterranean is in our mutual interest. The return of exploratory vessels to Turkish ports in the past few days is a positive step in this direction. This is necessary to create the much needed space for dialogue. Refraining from unilateral actions and resuming talks in genuine good faith is the only path forward. The only path to stability and lasting solutions. Honourable Members, As well as responding more assertively to global events, Europe must deepen and refine its partnerships with its friends and allies. And this starts with revitalising our most enduring of partnerships. We might not always agree with recent decisions by the White House. But we will always cherish the transatlantic alliance – based on shared values and history, and an unbreakable bond between our people. So whatever may happen later this year, we are ready to build a new transatlantic agenda. To strengthen our bilateral partnership – be it on trade, tech or taxation. And we are ready to work together on reforming the international system we built together, jointly with like-minded partners. For our own interests and the interest of the common good. We need new beginnings with old friends – on both of sides of the Atlantic and on both sides of the Channel. The scenes in this very room when we held hands and said goodbye with Auld Lang Syne spoke a thousand words. They showed an affection for the British people that will never fade. But with every day that passes the chances of a timely agreement do start to fade. Negotiations are always difficult. We are used to that. And the Commission has the best and most experienced negotiator, Michel Barnier, to navigate us through. But talks have not progressed as we would have wished. And that leaves us very little time. As ever, this House will be the first to know and will have the last say. And I can assure you we will continue to update you throughout, just as we did with the Withdrawal Agreement. That agreement took three years to negotiate and we worked relentlessly on it. Line by line, word by word. And together we succeeded. The result guarantees our citizens' rights, financial interests, the integrity of the Single Market – and crucially the Good Friday Agreement. The EU and the UK jointly agreed it was the best and only way for ensuring peace on the island of Ireland. And we will never backtrack on that. This agreement has been ratified by this House and the House of Commons. It cannot be unilaterally changed, disregarded or dis-applied. This a matter of law, trust and good faith. And that is not just me saying it – I remind you of the words of Margaret Thatcher: “Britain does not break Treaties. It would be bad for Britain, bad for relations with the rest of the world, and bad for any future Treaty on trade”. This was true then, and it is true today. Trust is the foundation of any strong partnership. And Europe will always be ready to build strong partnerships with our closest neighbours. That starts with the Western Balkans. The decision six months ago to open accession negotiations with Albania and North Macedonia was truly historic. Indeed, the future of the whole region lies in the EU. We share the same history, we share the same destiny. The Western Balkans are part of Europe - and not just a stopover on the Silk Road. We will soon present an economic recovery package for the Western Balkans focusing on a number of regional investment initiatives. And we will also be there for the Eastern Partnership countries and our partners in the southern neighbourhood– to help create jobs and kickstart their economies. When I came into office, I chose for the very first trip outside the European Union, to visit the African Union, and it was a natural choice. It was a natural choice and it was a clear message, because we are not just neighbours, we are natural partners. Three months later, I returned with my entire College to set our priorities for our new strategy with Africa. It is a partnership of equals, where both sides share opportunities and responsibilities. Africa will be a key partner in building the world we want to live in – whether on climate, digital or trade. Honourable Members, We will continue to believe in open and fair trade across the world. Not as an end in itself – but as a way to deliver prosperity at home and promote our values and standards. More than 600,000 jobs in Europe are tied to trade with Japan. And our recent agreement with Vietnam alone helped secure historic labour rights for millions of workers in the country. We will use our diplomatic strength and economic clout to broker agreements that make a difference – such as designating maritime protected areas in the Antarctica. This would be one of the biggest acts of environmental protection in history. We will form high ambition coalitions on issues such as digital ethics or fighting deforestation – and develop partnerships with all like-minded partners – from Asian democracies to Australia, Africa, the Americas and anyone else who wants to join. We will work for just globalisation. But we cannot take this for granted. We must insist on fairness and a level playing field. And Europe will move forward – alone or with partners that want to join. We are for example working on a Carbon Border Adjustment Mechanism. Carbon must have its price – because nature cannot pay the price anymore. This Carbon Border Adjustment Mechanism should motivate foreign producers and EU importers to reduce their carbon emissions, while ensuring that we level the playing field in a WTO-compatible way. The same principle applies to digital taxation. We will spare no effort to reach agreement in the framework of OECD and G20. But let there be no doubt: should an agreement fall short of a fair tax system that provides long-term sustainable revenues, Europe will come forward with a proposal early next year. I want Europe to be a global advocate for fairness. A NEW VITALITY FOR EUROPE Honourable Members, If Europe is to play this vital role in the world – it must also create a new vitality internally. And to move forward we must now overcome the differences that have held us back. The historic agreement on NextGenerationEU shows that it can be done. The speed with which we took decisions on fiscal rules, state aid or for SURE – all this shows it can be done. So let's do it. Migration is an issue that has been discussed long enough. Migration has always been a fact for Europe – and it will always be. Throughout centuries, it has defined our societies, enriched our cultures and shaped many of our lives. And this will always be the case. As we all know, the 2015 migration crisis caused many deep divisions between Member States – with some of those scars still healing today. A lot has been done since. But a lot is still missing. If we are all ready to make compromises – without compromising on our principles – we can find that solution. Next week, the Commission will put forward its New Pact on Migration. We will take a human and humane approach. Saving lives at sea is not optional. And those countries who fulfil their legal and moral duties or are more exposed than others, must be able to rely on the solidarity of our whole European Union. We will ensure a closer link between asylum and return. We have to make a clear distinction between those who have the right to stay and those who do not. We will take action to fight smugglers, strengthen external borders, deepen external partnerships and create legal pathways. And we will make sure that people who have the right to stay are integrated and made to feel welcome. They have a future to build – and skills, energy and talent. I think of Suadd, the teenage Syrian refugee who arrived in Europe dreaming of being a doctor. Within three years she was awarded a prestigious scholarship from the Royal College of Surgeons in Ireland. I think of the Libyan and Somalian refugee doctors who offered their medical skills the moment the pandemic struck in France. Honourable Members, if we think about what they have overcome and what they have achieved, then we simply must be able to manage the question of migration together. The images of the Moria camp are a painful reminder of the need for Europe to come together. Everybody has to step up here and take responsibility – and the Commission will do just that. The Commission is now working on a plan for a joint pilot with the Greek authorities for a new camp on Lesvos. We can assist with asylum and return processes and significantly improve the conditions for the refugees. But I want to be clear: if we step up, then I expect all Member States to step up too. Migration is a European challenge and all of Europe must do its part. We must rebuild the trust amongst us and move forward together. And this trust is at the very heart of our Union and the way we do things together. It is anchored in our founding values, our democracies and in our Community of Law – as Walter Hallstein used to call it. This is not an abstract term. The rule of law helps protect people from the rule of the powerful. It is the guarantor of our most basic of every day rights and freedoms. It allows us to give our opinion and be informed by a free press. Before the end of the month, the Commission will adopt the first annual rule of law report covering all Member States. It is a preventive tool for early detection of challenges and for finding solutions. I want this to be a starting point for Commission, Parliament and Member States to ensure there is no backsliding. The Commission attaches the highest importance to the rule of law. This is why we will ensure that money from our budget and NextGenerationEU is protected against any kind of fraud, corruption and conflict of interest. This is non-negotiable. But the last months have also reminded us how fragile it can be. We have a duty to always be vigilant to care and nurture for the rule of law. Breaches of the rule of law cannot be tolerated. I will continue to defend it and the integrity of our European institutions. Be it about the primacy of European law, the freedom of the press, the independence of the judiciary or the sale of golden passports. European values are not for sale. Honourable Members, These values are more important than ever. I say that because when I think about the state of our Union, I am reminded of the words of John Hume – one of the great Europeans who sadly passed away this year. If so many people live in peace today on the island of Ireland, it is in large part because of his unwavering belief in humanity and conflict resolution. He used to say that conflict was about difference and that peace was about respect for difference. And as he so rightly reminded this House in 1998: “The European visionaries decided that difference is not a threat, difference is natural. Difference is the essence of humanity”. These words are just as important today as they ever have been. Because when we look around, we ask ourselves, where is the essence of humanity when three children in Wisconsin watch their father shot by police while they sit in the car? We ask where is the essence of humanity when anti-semitic carnival costumes openly parade on our streets? Where is the essence of humanity when every single day Roma people are excluded from society and others are held back simply because of the colour of their skin or their religious belief? I am proud to live in Europe, in this open society of values and diversity. But even here in this Union – these stories are a daily reality for so many people. And this reminds us that progress on fighting racism and hate is fragile – it is hard won but very easily lost. So now is the moment to make change. To build a truly anti-racist Union – that goes from condemnation to action. And the Commission is putting forward an action plan to start making that happen. As part of this, we will propose to extend the list of EU crimes to all forms of hate crime and hate speech – whether because of race, religion, gender or sexuality. Hate is hate – and no one should have to put up with it. We will strengthen our racial equality laws where there are gaps. We will use our budget to address discrimination in areas such as employment, housing or healthcare. We will get tougher on enforcement when implementation lags behind. Because in this Union, fighting racism will never be optional. We will improve education and knowledge on the historical, cultural causes of racism. We will tackle unconscious bias that exists in people, institutions and even in algorithms. And we will appoint the Commission's first-ever anti-racism coordinator to keep this at the top of our agenda and to work directly with people, civil society and institutions. Honourable Members, I will not rest when it comes to building a Union of equality. A Union where you can be who you are and love who you want – without fear of recrimination or discrimination. Because being yourself is not your ideology. It's your identity. And no one can ever take it away. So I want to be crystal clear – LGBTQI-free zones are humanity free zones. And they have no place in our Union. And to make sure that we support the whole community, the Commission will soon put forward a strategy to strengthen LGBTQI rights. As part of this, I will also push for mutual recognition of family relations in the EU. If you are parent in one country, you are parent in every country. CONCLUSION Honourable Members, This is the world we want to live in. Where we are united in diversity and adversity. Where we work together to overcome our differences – and pull each other through when times are hard. Where we build today the healthier, stronger and more respectful world we want our children to live in tomorrow. But while we try to teach our children about life, our children are busy teaching us what life is about. The last year has shown us just how true this really is. We could speak of the millions of young people asking for change for a better planet. Or of the hundreds of thousands of beautiful rainbows of solidarity posted in the windows of Europe by our children. But there is one image that stuck in my mind from the last six difficult months. An image that captures the world through the eyes of our children. It is the image of Carola and Vittoria. The two young girls playing tennis between the rooftops of Liguria, Italy. It is not just the courage and talent of the girls that sticks out. It is the lesson behind it. About not allowing obstacles stand in your way, about not letting conventions hold you back, about seizing the moment. This is what Carola, Vittoria and all the young people of Europe teach us about life every day. It is what Europe's next generation is all about. This is NextGenerationEU. This year, Europe took a leaf out of their book and took a leap forward together. When we had to find a way forward for our future, we did not allow old conventions hold us back. When we felt fragility around us, we seized the moment to breathe new vitality into our Union. When we had a choice to go it alone like we have done in the past, we used the combined strength of the 27 to give all 27 a chance for the future. We showed that we are in this together and we will get out of this together. Honourable Members, The future will be what we make it. And Europe will be what we want it to be. So let's stop talking it down. And let's get to work for it. Let's make it strong. And let's build the world we want to live in. Long live Europe!

EU

Mr President, Honourable Members, Many are the people who feel their lives have been on pause while the world has been on fast forward. The speed of events and the enormity of the challenges are sometimes difficult to grasp. This has also been a time of soul-searching. From people reassessing their own lives to wider debates on sharing vaccines and on shared values. But as I look back on this past year, if I look at the state of the Union today, I see a strong soul in everything that we do. It was Robert Schuman who said: Europe needs a soul, an ideal, and the political will to serve this ideal. Europe has brought those words to life in the last twelve months. In the biggest global health crisis for a century, we chose to go it together so that every part of Europe got the same access to a life-saving vaccine. In the deepest global economic crisis for decades, we chose to go it together with NextGenerationEU. And in the gravest planetary crisis of all time, again we chose to go it together with the European Green Deal. We did that together as Commission, as Parliament, as 27 Member States. As one Europe. And we can be proud of it. But corona times are not over. There is still much grief in our society as the pandemic lingers. There are hearts we can never mend, life stories we can never finish and time we can never give back to our young. We face new and enduring challenges in a world recovering – and fracturing – unevenly. So there is no question: the next year will be yet another test of character. But I believe that it is when you are tested that your spirit – your soul - truly shines through. As I look across our Union, I know that Europe will pass that test. And what gives me that confidence is the inspiration we can draw from Europe's young people. Because our youth put meaning into empathy and solidarity. They believe we have a responsibility towards the planet. And while they are anxious about the future, they are determined to make it better. Our Union will be stronger if it is more like our next generation: reflective, determined and caring. Grounded in values and bold in action. This spirit will be more important than ever over the next twelve months. This is the message in the Letter of Intent I sent this morning to President Sassoli and Prime Minister Janša to outline our priorities for the year ahead. A EUROPE UNITED THROUGH ADVERSITY AND RECOVERY Honourable Members, A year is a long time in a pandemic. When I stood in front of you 12 months ago, I did not know when – or even if – we would have a safe and effective vaccine against COVID-19. But today, and against all critics, Europe is among the world leaders. More than 70 per cent of adults in the EU are fully vaccinated. We were the only ones to share half of our vaccine production with the rest of the world. We delivered more than 700 million doses to the European people, and we delivered more than another 700 million doses to the rest of the world, to more than 130 countries. We are the only region in the world to achieve that. A pandemic is a marathon, not a sprint. We followed the science. We delivered to Europe. We delivered to the world. We did it the right way, because we did it the European way. And it worked! But while we have every reason to be confident, we have no reason to be complacent. Our first – and most urgent – priority is to speed up global vaccination. With less than 1% of global doses administered in low-income countries, the scale of injustice and the level of urgency are obvious. This is one of the great geopolitical issues of our time. Team Europe is investing one billion Euro to ramp up mRNA production capacity in Africa. We have already committed to share 250 million doses. I can announce today that the Commission will add a new donation of another 200 million doses by the middle of next year. This is an investment in solidarity – but also in global health. The second priority is to continue our efforts here in Europe. We see worrisome divergences in vaccination rates in our Union. So we need to keep up the momentum. And Europe is ready. We have 1.8 billion additional doses secured. This is enough for us and our neighbourhood when booster shots are needed. Let's do everything possible to ensure that this does not turn into a pandemic of the unvaccinated. The final priority is to strengthen our pandemic preparedness. Last year, I said it was time to build a European Health Union. Today we are delivering. With our proposal we get the HERA authority up and running. This will be a huge asset to deal with future health threats earlier and better. We have the innovation and scientific capacity, the private sector knowledge, we have competent national authorities. And now we need to bring all of that together, including massive funding. So I am proposing a new health preparedness and resilience mission for the whole of the EU. And it should be backed up by Team Europe investment of EUR 50 billion by 2027. To make sure that no virus will ever turn a local epidemic into a global pandemic. There is no better return on investment than that. Honourable Members, The work on the European Health Union is a big step forward. And I want to thank this House for your support. We have shown that when we act together, we are able to act fast. Take the EU digital certificate: Today more than 400 million certificates have been generated across Europe. 42 countries in 4 continents are plugged in. We proposed it in March. You pushed it! Three months later it was up and running. Thanks to this joint effort, while the rest of the world talked about it, Europe just did it. We did a lot of things right. We moved fast to create SURE. This supported over 31 million workers and 2.5 million companies across Europe. We learned the lessons from the past when we were too divided and too delayed. And the difference is stark: last time it took 8 years for the Eurozone GDP to get back to pre-crisis levels. This time we expect 19 countries to be at pre-pandemic levels this year with the rest following next. Growth in the euro area outpaced both the US and China in the last quarter. But this is only the beginning. And the lessons from the financial crisis should serve as a cautionary tale. At that time, Europe declared victory too soon and we paid the price for that. And we will not repeat the same mistake. The good news is that with NextGenerationEU we will now invest in both short-term recovery and long-term prosperity. We will address structural issues in our economy: from labour market reforms in Spain, to pension reforms in Slovenia or tax reform in Austria. In an unprecedented manner, we will invest in 5G and fibre. But equally important is the investment in digital skills. This task needs leaders' attention and a structured dialogue at top-level. Our response provides a clear direction to markets and investors alike. But, as we look ahead, we also need to reflect on how the crisis has affected the shape of our economy – from increased debt, to uneven impact on different sectors, or new ways of working. To do that, the Commission will relaunch the discussion on the Economic Governance Review in the coming weeks. The aim is to build a consensus on the way forward well in time for 2023. Honourable Members, We will soon celebrate 30 years of the Single Market. For 30 years it has been the great enabler of progress and prosperity in Europe. At the outset of the pandemic, we defended it against the pressures of erosion and fragmentation. For our recovery, the Single Market is the driver of good jobs and competitiveness. That is particularly important in the digital single market. We have made ambitious proposals in the last year. To contain the gatekeeper power of major platforms; To underpin the democratic responsibility of those platforms; To foster innovation; To channel the power of artificial intelligence. Digital is the make-or-break issue. And Member States share that view. Digital spending in NextGenerationEU will even overshoot the 20% target. That reflects the importance of investing in our European tech sovereignty. We have to double down to shape our digital transformation according to our own rules and values. Allow me to focus on semi-conductors, those tiny chips that make everything work: from smartphones and electric scooters to trains or entire smart factories. There is no digital without chips. And while we speak, whole production lines are already working at reduced speed - despite growing demand - because of a shortage of semi-conductors. But while global demand has exploded, Europe's share across the entire value chain, from design to manufacturing capacity has shrunk. We depend on state-of-the-art chips manufactured in Asia. So this is not just a matter of our competitiveness. This is also a matter of tech sovereignty. So let's put all of our focus on it. We will present a new European Chips Act. We need to link together our world-class research, design and testing capacities. We need to coordinate EU and national investment along the value chain. The aim is to jointly create a state-of-the-art European chip ecosystem, including production. That ensures our security of supply and will develop new markets for ground-breaking European tech. Yes, this is a daunting task. And I know that some claim it cannot be done. But they said the same thing about Galileo 20 years ago. And look what happened. We got our act together. Today European satellites provide the navigation system for more than 2 billion smartphones worldwide. We are world leaders. So let's be bold again, this time with semi-conductors. Honourable Members, The pandemic has left deep scars that have also left their mark on our social market economy. For nights on end, we all stood at our windows and doors to applaud critical workers. We felt how much we relied on all those women and men who work for lower wages, fewer protections and less security. The applause may have faded away but the strength of feeling cannot. This is why the implementation of the European Pillar of Social Rights is so important – to ensure decent jobs, fairer working conditions, better healthcare and better balance in people's lives. If the pandemic taught us one thing, it is that time is precious. And caring for someone you love is the most precious time of all. We will come forward with a new European Care Strategy to support men and women in finding the best care and the best life balance for them. But social fairness is not just a question of time. It is also a question of fair taxation. In our social market economy, it is good for companies to make profits. And they make profits thanks to the quality of our infrastructure, social security and education systems. So the very least we can expect is that they pay their fair share. This is why we will continue to crack down on tax avoidance and evasion. We will put forward a new initiative to address those hiding profits behind shell entities. And we will do everything in our power to seal the historic global deal on minimum taxation. Asking big companies to pay the right amount of tax is not only a question of public finances, but above all a question of basic fairness. Honourable Members, We have all benefited from the principles of our European social market economy – and we must make sure that the next generation can do so to build their future. This is our most educated, talented and motivated generation. And it has missed out on so much to keep others safe. Being young is normally a time of discovery, of creating new experiences. A time to meet lifelong friends, to find your own path. And what did we ask this generation to do? To keep their social distance, to stay locked down and to do school from home. For more than a year. This is why everything that we do – from the European Green Deal to NextGenerationEU – is about protecting their future. That is also why NextGenerationEU must be funded by the new own resources that we are working on. But we must also caution against creating new divides. Because Europe needs all of its youth. We must step up our support to those who fall into the gaps – those not in any kind of employment, education or training. For them, we will put in place a new programme, ALMA. ALMA will help these young Europeans to find temporary work experience in another Member State. Because they too deserve an experience like Erasmus. To gain skills, to create bonds and help forge their own European identity. But if we are to shape our Union in their mould, young people must be able to shape Europe's future. Our Union needs a soul and a vision they can connect to. Or as Jacques Delors asked: How can we ever build Europe if young people do not see it as a collective project and a vision of their own future? This is why we will propose to make 2022 the Year of European Youth. A year dedicated to empowering those who have dedicated so much to others. And it is why we will make sure that young people can help lead the debate in the Conference on the Future of Europe. This is their future and this must be their Conference too. And as we said when we took office, the Commission will be ready to follow up on what is agreed by the Conference. A EUROPE UNITED IN RESPONSIBILITY Honourable Members, This is a generation with a conscience. They are pushing us to go further and faster to tackle the climate crisis. And events of the summer only served to explain why. We saw floods in Belgium and Germany. And wildfires burning from the Greek islands to the hills in France. And if we don't believe our own eyes, we only have to follow the science. The UN recently published the IPCC report, the Intergovernmental Panel on Climate Change. It is the authority on the science of climate change. The report leaves no doubt. Climate change is man-made. But since it is man-made, we can do something about it. As I heard it said recently: It's warming. It's us. We're sure. It's bad. But we can fix it. And change is already happening. More electric vehicles than diesel cars were registered in Germany in the first half of this year. Poland is now the EU's largest exporter of car batteries and electric buses. Or take the New European Bauhaus that led to an explosion of creativity of architects, designers, engineers across our Union. So clearly something is on the move. And this is what the European Green Deal is all about. In my speech last year, I announced our target of at least 55% emission reduction by 2030. Since then we have together turned our climate goals into legal obligations. And we are the first major economy to present comprehensive legislation in order to get it done. You have seen the complexity of the detail. But the goal is simple. We will put a price on pollution. We will clean the energy we use. We will have smarter cars and cleaner airplanes. And we will make sure that higher climate ambition comes with more social ambition. This must be a fair green transition. This is why we proposed a new Social Climate Fund to tackle the energy poverty that already 34 million Europeans suffer from. I count on both Parliament and Member States to keep the package and to keep the ambition together. When it comes to climate change and the nature crisis, Europe can do a lot. And it will support others. I am proud to announce today that the EU will double its external funding for biodiversity, in particular for the most vulnerable countries. But Europe cannot do it alone. The COP26 in Glasgow will be a moment of truth for the global community. Major economies – from the US to Japan – have set ambitions for climate neutrality in 2050 or shortly after. These need now to be backed up by concrete plans in time for Glasgow. Because current commitments for 2030 will not keep global warming to 1.5°C within reach. Every country has a responsibility! The goals that President Xi has set for China are encouraging. But we call for that same leadership on setting out how China will get there. The world would be relieved if they showed they could peak emissions by mid-decade - and move away from coal at home and abroad. But while every country has a responsibility, major economies do have a special duty to the least developed and most vulnerable countries. Climate finance is essential for them - both for mitigation and adaptation. In Mexico and in Paris, the major economies committed to provide 100 billion dollars a year until 2025 to the least developed and most vulnerable countries. We deliver on our commitment. Team Europe contributes 25 billion dollars per year. But others still leave a gaping hole towards reaching the global target. Closing that gap will increase the chance of success at Glasgow. My message today is that Europe is ready to do more. We will now propose an additional 4 billion euro for climate finance until 2027. But we expect the United States and our partners to step up too. Closing the climate finance gap together – the US and the EU – would be a strong signal for global climate leadership. It is time to deliver. Honourable Members, This climate and economic leadership is central to Europe's global and security objectives. It also reflects a wider shift in world affairs at a time of transition towards a new international order. We are entering a new era of hyper-competitiveness. An era in which some stop at nothing to gain influence: from vaccine promises and high-interest loans, to missiles and misinformation. An era of regional rivalries and major powers refocusing their attention towards each other. Recent events in Afghanistan are not the cause of this change – but they are a symptom of it. And first and foremost, I want to be clear. We stand by the Afghan people. The women and children, prosecutors, journalists and human rights defenders. I think in particular of women judges who are now in hiding from the men they jailed. They have been put at risk for their contribution to justice and the rule of law. We must support them and we will coordinate all efforts with Member States to bring them to safety. And we must continue supporting all Afghans in the country and in neighbouring countries. We must do everything to avert the real risk of a major famine and humanitarian disaster. And we will do our part. We will increase again humanitarian aid for Afghanistan by 100 million euro. This will be part of a new, wider Afghan Support Package that we will present in the next weeks to combine all of our efforts. Honourable Members, Witnessing events unfold in Afghanistan was profoundly painful for all the families of fallen servicemen and servicewomen. We bow to the sacrifice of those soldiers, diplomats and aid workers who laid down their lives. To make sure that their service will never be in vain, we have to reflect on how this mission could end so abruptly. There are deeply troubling questions that allies will have to tackle within NATO. But there is simply no security and defence issue where less cooperation is the answer. We need to invest in our joint partnership and to draw on each side's unique strength. This is why we are working with Secretary-General Jens Stoltenberg on a new EU-NATO Joint Declaration to be presented before the end of the year. But this is only one part of the equation. Europe can – and clearly should – be able and willing to do more on its own. But if we are to do more, we first need to explain why. I see three broad categories. First, we need to provide stability in our neighbourhood and across different regions. We are connected to the world by narrow straits, stormy seas and vast land borders. Because of that geography, Europe knows better than anyone that if you don't deal in time with the crisis abroad, the crisis comes to you. Secondly, the nature of the threats we face is evolving rapidly: from hybrid or cyber-attacks to the growing arms race in space. Disruptive technology has been a great equaliser in the way power can be used today by rogue states or non-state groups. You no longer need armies and missiles to cause mass damage. You can paralyse industrial plants, city administrations and hospitals – all you need is your laptop. You can disrupt entire elections with a smartphone and an internet connection. The third reason is that the European Union is a unique security provider. There will be missions where NATO or the UN will not be present, but where the EU should be. On the ground, our soldiers work side-by-side with police officers, lawyers and doctors, with humanitarian workers and human rights defenders, with teachers and engineers. We can combine military and civilian, along with diplomacy and development – and we have a long history in building and protecting peace. The good news is that over the past years, we have started to develop a European defence ecosystem. But what we need is the European Defence Union. In the last weeks, there have been many discussions on expeditionary forces. On what type and how many we need: battlegroups or EU entry forces. This is no doubt part of the debate – and I believe it will be part of the solution. But the more fundamental issue is why this has not worked in the past. You can have the most advanced forces in the world – but if you are never prepared to use them - of what use are they? What has held us back until now is not just a shortfall of capacity – it is the lack of political will. And if we develop this political will, there is a lot that we can do at EU level. Allow me to give you three concrete examples: First, we need to build the foundation for collective decision-making – this is what I call situational awareness. We fall short if Member States active in the same region, do not share their information on the European level. It is vital that we improve intelligence cooperation. But this is not just about intelligence in the narrow sense. It is about bringing together the knowledge from all services and all sources. From space to police trainers, from open source to development agencies. Their work gives us a unique scope and depth of knowledge. It is out there! But we can only use that, to make informed decisions if we have the full picture. And this is currently not the case. We have the knowledge, but it is disjoined. Information is fragmented. This is why the EU could consider its own Joint Situational Awareness Centre to fuse all the different pieces of information. And to be better prepared, to be fully informed and to be able to decide. Secondly, we need to improve interoperability. This is why we are already investing in common European platforms, from fighter jets, to drones and cyber. But we have to keep thinking of new ways to use all possible synergies. One example could be to consider waiving VAT when buying defence equipment developed and produced in Europe. This would not only increase our interoperability, but also decrease our dependencies of today. Third, we cannot talk about defence without talking about cyber. If everything is connected, everything can be hacked. Given that resources are scarce, we have to bundle our forces. And we should not just be satisfied to address the cyber threat, but also strive to become a leader in cyber security. It should be here in Europe where cyber defence tools are developed. This is why we need a European Cyber Defence Policy, including legislation on common standards under a new European Cyber Resilience Act. So, we can do a lot at EU level. But Member States need to do more too. This starts with a common assessment of the threats we face and a common approach to dealing with them. The upcoming Strategic Compass is a key process of this discussion. And we need to decide how we can use all of the possibilities that are already in the Treaty. This is why, under the French Presidency, President Macron and I will convene a Summit on European defence. It is time for Europe to step up to the next level. Honourable Members, In a more contested world, protecting your interests is not only about defending yourself. It is about forging strong and reliable partnerships. This is not a luxury – it is essential for our future stability, security and prosperity. This work starts by deepening our partnership with our closest allies. With the US we will develop our new agenda for global change – from the new Trade and Technology Council to health security and sustainability. The EU and the US will always be stronger – together. The same is true of our neighbours in the Western Balkans. Before the end of the month, I will travel to the region to send a strong signal of our commitment to the accession process. We owe it to all those young people who believe in a European future. This is why we are ramping up our support through our new investment and economic plan, worth around a third of the region's GDP. Because an investment in the future of the Western Balkans is an investment in the future of the EU. And we will also continue investing in our partnerships across our neighbourhood – from stepping up our engagement in the Eastern Partnership to implementing the new Agenda for the Mediterranean and continuing to work on the different aspects of our relationship with Turkey. Honourable Members, If Europe is to become a more active global player, it also needs to focus on the next generation of partnerships. In this spirit, today's new EU - Indo-Pacific strategy is a milestone. It reflects the growing importance of the region to our prosperity and security. But also the fact that autocratic regimes use it to try to expand their influence. Europe needs to be more present and more active in the region. So we will work together to deepen trade links, strengthen global supply chains and develop new investment projects on green and digital technologies. This is a template for how Europe can redesign its model to connect the world. We are good at financing roads. But it does not make sense for Europe to build a perfect road between a Chinese-owned copper mine and a Chinese-owned harbour. We have to get smarter when it comes to these kinds of investments. This is why we will soon present our new connectivity strategy called Global Gateway. We will build Global Gateway partnerships with countries around the world. We want investments in quality infrastructure, connecting goods, people and services around the world. We will take a values-based approach, offering transparency and good governance to our partners. We want to create links and not dependencies! And we know how this can work. Since the summer, a new underwater fibre optic cable has connected Brazil to Portugal. We will invest with Africa to create a market for green hydrogen that connects the two shores of the Mediterranean. We need a Team Europe approach to make Global Gateway happen. We will connect institutions and investment, banks and the business community. And we will make this a priority for regional summits – starting with the next EU-Africa Summit in February. We want to turn Global Gateway into a trusted brand around the world. And let me be very clear: doing business around the world, global trade – all that is good and necessary. But this can never be done at the expense of people's dignity and freedom. There are 25 million people out there, who are threatened or coerced into forced labour. We can never accept that they are forced to make products – and that these products then end up for sale in shops here in Europe. So we will propose a ban on products in our market that have been made by forced labour. Human rights are not for sale – at any price. A EUROPE UNITED IN FREEDOM AND DIVERSITY And, Honourable Members, human beings are not bargaining chips. Look at what happened at our borders with Belarus. The regime in Minsk has instrumentalised human beings. They have put people on planes and literally pushed them towards Europe's borders. This can never be tolerated. And the quick European reaction shows that. And rest assured, we will continue to stand together with Lithuania, Latvia and Poland. And, let's call it what it is: this is a hybrid attack to destabilise Europe. Honourable Members, These are not isolated events. We saw similar incidents at other borders. And we can expect to see it again. This is why, as part of our work on Schengen, we will set out new ways to respond to such aggression and ensure unity in protecting our external borders. But as long as we do not find common ground on how to manage migration, our opponents will continue to target that. Meanwhile, human traffickers continue to exploit people through deadly routes across the Mediterranean. These events show us that every country has a stake in building a European migration system. The New Pact on Migration and Asylum gives us everything we need to manage the different types of situations we face. All the elements are there. This is a balanced and humane system that works for all Member States - in all circumstances. We know that we can find common ground. But in the year since the Commission presented the Pact, progress has been painfully slow. I think, this is the moment now for a European migration management policy. So I urge you, in this House and in Member States, to speed up the process. This ultimately comes down to a question of trust. Trust between Member States. Trust for Europeans that migration can be managed. Trust that Europe will always live up to its enduring duty to the most vulnerable and most in need. There are many strongly held views on migration in Europe but I believe the common ground is not so far away. Because if you ask most Europeans, they would agree that we should act to curb irregular migration but also act to provide a refuge for those forced to flee. They would agree that we should return those who have no right to stay. But that we should welcome those who come here legally and make such a vital contribution to our society and economy. And we should all agree that the topic of migration should never be used to divide. I am convinced that there is a way that Europe can build trust amongst us when it comes to migration. Honourable Members, Societies that build on democracy and common values stand on stable ground. They have trust in people. This is how new ideas are formed, how change happens, how injustices are overcome. Trust in these common values brought our founders together, after World War Two. And it is these same values that united the freedom fighters who tore down the Iron Curtain over 30 years ago. They wanted democracy. They wanted the freedom to choose their government. They wanted the rule of law and for everyone to be equal before the law. They wanted freedom of speech and independent media. To no longer be spied on by their governments. They wanted to combat corruption. And the freedom to be different from the majority. Or, as former Czech President Václav Havel put it, they wanted all those "great European values". These values come from the cultural, religious and humanist heritage of Europe. They are part of our soul, part of what defines us today. These values are now enshrined in our European treaties. This is what we all signed up to when we became part of this Union as free and sovereign countries. We are determined to defend these values. And we will never waver in that determination. Our values are guaranteed by our legal order and safeguarded by the judgments of the European Court of Justice. These judgments are binding. We make sure that they are respected. And we do so in every Member State of our Union. Because protecting the rule of law is not just a noble goal. Protecting the rule of law is also hard work and a constant struggle for improvement. Our Rule of Law reports are part of this process, with for example justice reforms in Malta or corruption inquiries in Slovakia. And from 2022, our Rule of Law reports will come with specific recommendations to Member States. Nevertheless, there are worrying developments in certain Member States. Let me be clear: dialogue always comes first. But dialogue is not an end in itself, it should lead to results. This is why we take a dual approach of dialogue and decisive action. This is what we did last week. And this is what we will continue to do. Because people must be able to rely on the right to an independent judiciary. The right to be treated equally before the law. Everywhere in Europe. Whether you belong to a majority or a minority. Honourable Members, The European budget is the future of our Union cast in figures. That is why it must be protected. We need to ensure that every euro and every cent is spent for its proper purpose and in line with rule of law principles. Investments that enable our children to have a better future must not be allowed to seep away into dark channels. Corruption is not just taxpayer money stolen. It is investors scared off, big favours bought by big money and democracy undermined by the powerful. When it comes to protecting our budget, we will pursue every case, with everything in our power. Honourable Members, Defending our values is also defending freedom. Freedom to be who you are, freedom to say what's on your mind, freedom to love whoever you want. But freedom also means freedom from fear. And during the pandemic, too many women were deprived of that freedom. It was an acutely terrifying time for those with nowhere to hide, nowhere to escape from their abusers. We need to shed light on this darkness, we need to show ways out of the pain. Their abusers must be brought to justice. And those women must have their freedom and their self-determination back. This is why by the end of year, we will propose a law to combat violence against women – from prevention to protection and effective prosecution, online and offline. It is about defending the dignity of each individual. It is about justice. Because this is the soul of Europe. And we must make it even stronger. Honourable members, Allow me to finish with one of the freedoms that gives voice to all other freedoms – media freedom. Journalists are being targeted simply for doing their job. Some have been threatened, some beaten and, tragically, some murdered. Right here, in our European Union. Let me mention some of their names: Daphné Caruana Galizia. Ján Kuciak. Peter de Vries. The details of their stories may be different but what they have in common is that they all fought and died for our right to be informed. Information is a public good. We must protect those who create transparency – the journalists. That is why today we have put forward a recommendation to give journalists better protection. And we need to stop those who threaten media freedom. Media companies cannot be treated as just another business. Their independence is essential. Europe needs a law that safeguards this independence – and the Commission will deliver a Media Freedom Act in the next year. Defending media freedom means defending our democracy. Conclusion Honourable Members, Strengthening Schuman's European ideal that I invoked earlier is a continuous work. And we should not hide away from our inconsistencies and imperfections. But imperfect as it might be, our Union is both beautifully unique and uniquely beautiful. It is a Union where we strengthen our individual liberty through the strength of our community. A Union shaped as much by our shared history and values as by our different cultures and perspectives. A Union with a soul. Trying to find the right words to capture the essence of this feeling is not easy. But it is easier when you borrow them from someone who inspires you. And this is why I have invited a guest of honour to be with us today. Many of you might know her – a gold medallist from Italy who captured my heart this summer. But what you might not know is that only in April, she was told her life was in peril. She went through surgery, she fought back, she recovered. And only 119 days after she left the hospital, she won Paralympic gold. Honourable Members, please join me in welcoming Beatrice Vio. Bebe has overcome so much, so young. Her story is one of rising against all odds. Of succeeding thanks to talent, tenacity and unrelenting positivity. She is in the image of her generation: a leader and an advocate for the causes she believes in. And she has managed to achieve all of that by living up to her belief that - if it seems impossible – then it can be done. Se sembra impossibile, allora si può fare. This was the spirit of Europe's founders and this is the spirit of Europe's next generation. So let's be inspired by Bebe and by all the young people who change our perception of the possible. Who show us that you can be what you want to be. And that you can achieve whatever you believe. Honourable Members: This is the soul of Europe. This is the future of Europe. Let's make it stronger together. Viva l'Europa.

EU

Madam President, Honourable Members, My fellow Europeans, Never before has this Parliament debated the State of our Union with war raging on European soil. We all remember that fateful morning in late February. Europeans from across our Union woke up dismayed by what they saw. Shaken by the resurgent and ruthless face of evil. Haunted by the sounds of sirens and the sheer brutality of war. But from that very moment, a whole continent has risen in solidarity. At the border crossings where refugees found shelter. In our streets, filled with Ukrainian flags. In the classrooms, where Ukrainian children made new friends. From that very moment, Europeans neither hid nor hesitated. They found the courage to do the right thing. And from that very moment, our Union as a whole has risen to the occasion. Fifteen years ago, during the financial crisis, it took us years to find lasting solutions. A decade later, when the global pandemic hit, it took us only weeks. But this year, as soon as Russian troops crossed the border into Ukraine, our response was united, determined and immediate. And we should be proud of that. We have brought Europe's inner strength back to the surface. And we will need all of this strength. The months ahead of us will not be easy. Be it for families who are struggling to make ends meet, or businesses, who are facing tough choices about their future. Let us be very clear: much is at stake here. Not just for Ukraine – but for all of Europe and the world at large. And we will be tested. Tested by those who want to exploit any kind of divisions between us. This is not only a war unleashed by Russia against Ukraine. This is a war on our energy, a war on our economy, a war on our values and a war on our future. This is about autocracy against democracy. And I stand here with the conviction that with courage and solidarity, Putin will fail and Europe will prevail. THE COURAGE TO STAND WITH OUR HEROES Honourable Members, Today - courage has a name, and that name is Ukraine. Courage has a face, the face of Ukrainian men and women who are standing up to Russian aggression. I remember a moment in the early weeks of the invasion. When the First Lady of Ukraine, Olena Zelenska, gathered the parents of Ukrainian children killed by the invader. Hundreds of families for whom the war will never end, and for whom life will never go back to what it was before. We saw the first Lady leading a silent crowd of heartbroken mothers and fathers, and hang small bells in the trees, one for every fallen child. And now the bells will ring forever in the wind, and forever, the innocent victims of this war will live in our memory. And she is here with us today! Dear Olena, it took immense courage to resist Putin's cruelty. But you found that courage. And a nation of heroes has risen. Today, Ukraine stands strong because an entire country has fought street by street, home by home. Ukraine stands strong because people like your husband, President Zelenskyy, have stayed in Kyiv to lead the resistance – together with you and your children, dear First Lady. You have given courage to the whole nation. And we have seen in the last days the bravery of Ukrainians paying off. You have given voice to your people on the global stage. And you have given hope to all of us. So today we want to thank you and all Ukrainians. Glory to a country of European heroes. Slava Ukraini! Europe's solidarity with Ukraine will remain unshakeable. From day one, Europe has stood at Ukraine's side. With weapons. With funds. With hospitality for refugees. And with the toughest sanctions the world has ever seen. Russia's financial sector is on life-support. We have cut off three quarters of Russia's banking sector from international markets. Nearly one thousand international companies have left the country. The production of cars fell by three-quarters compared to last year. Aeroflot is grounding planes because there are no more spare parts. The Russian military is taking chips from dishwashers and refrigerators to fix their military hardware, because they ran out of semiconductors. Russia's industry is in tatters. It is the Kremlin that has put Russia's economy on the path to oblivion. This is the price for Putin's trail of death and destruction. And I want to make it very clear, the sanctions are here to stay. This is the time for us to show resolve, not appeasement. The same is true for our financial support to Ukraine. So far Team Europe have provided more than 19 billion euros in financial assistance. And this is without counting our military support. And we are in it for the long haul. Ukraine's reconstruction will require massive resources. For instance, Russian strikes have damaged or destroyed more than 70 schools. Half a million Ukrainian children have started their school year in the European Union. But many others inside Ukraine simply don't have a classroom to go to. So today I am announcing that we will work with the First Lady to support the rehabilitation of damaged Ukrainian schools. And that is why we will provide 100 million euros. Because the future of Ukraine begins in its schools. We will not only support with finance – but also empower Ukraine to make the most of its potential. Ukraine is already a rising tech hub and home to many innovative young companies. So I want us to mobilise the full power of our Single Market to help accelerate growth and create opportunities. In March, we connected successfully Ukraine to our electricity grid. It was initially planned for 2024. But we did it within two weeks. And today, Ukraine is exporting electricity to us. I want to significantly expand this mutually beneficial trade. We have already suspended import duties on Ukrainian exports to the EU. We will bring Ukraine into our European free roaming area. Our solidarity lanes are a big success. And building on all that, the Commission will work with Ukraine to ensure seamless access to the Single Market. And vice-versa. Our Single Market is one of Europe's greatest success stories. Now it's time to make it a success story for our Ukrainian friends, too. And this is why I am going to Kyiv today, to discuss this in detail with President Zelenskyy. Honourable Members, One lesson from this war is we should have listened to those who know Putin. To Anna Politkovskaya and all the Russian journalists who exposed the crimes, and paid the ultimate price. To our friends in Ukraine, Moldova, Georgia, and to the opposition in Belarus. We should have listened to the voices inside our Union – in Poland, in the Baltics, and all across Central and Eastern Europe. They have been telling us for years that Putin would not stop. And they acted accordingly. Our friends in the Baltics have worked hard to end their dependency on Russia. They have invested in renewable energy, in LNG terminals, and in interconnectors. This costs a lot. But dependency on Russian fossil fuels comes at a much higher price. We have to get rid of this dependency all over Europe. Therefore we agreed on joint storage. We are at 84% now: we are overshooting our target. But unfortunately that will not be enough. We have diversified away from Russia to reliable suppliers. US, Norway, Algeria and others. Last year, Russian gas accounted for 40% of our gas imports. Today it's down to 9% pipeline gas. But Russia keeps on actively manipulating our energy market. They prefer to flare the gas than to deliver it. This market is not functioning anymore. In addition the climate crisis is heavily weighing on our bills. Heat waves have boosted electricity demand. Droughts shut down hydro and nuclear plants. As a result, gas prices have risen by more than 10 times compared to before the pandemic. Making ends meet is becoming a source of anxiety for millions of businesses and households. But Europeans are also coping courageously with this. Workers in ceramics factories in central Italy, have decided to move their shifts to early morning, to benefit from lower energy prices. Just imagine the parents among them, having to leave home early, when the kids are still sleeping, because of a war they haven't chosen. This is one example in a million of Europeans adapting to this new reality. I want our Union to take example from its people. Reducing demand during peak hours will make supply last longer, and it will bring prices down. This is why we are putting forward measures for Member States to reduce their overall electricity consumption. But more targeted supported is needed. For industries, like glass makers who have to turn off their ovens. Or for single parents facing one daunting bill after another. Millions of Europeans need support. EU Member States have already invested billions of euros to assist vulnerable households. But we know this will not be enough. This is why we are proposing a cap on the revenues of companies that produce electricity at a low cost. These companies are making revenues they never accounted for, they never even dreamt of. In our social market economy, profits are good. But in these times it is wrong to receive extraordinary record profits benefitting from war and on the back of consumers. In these times, profits must be shared and channelled to those who need it the most. Our proposal will raise more than 140 billion euros for Member States to cushion the blow directly. And because we are in a fossil fuel crisis, the fossil fuel industry has a special duty, too. Major oil, gas and coal companies are also making huge profits. So they have to pay a fair share – they have to give a crisis contribution. These are all emergency and temporary measures we are working on, including our discussions on price caps. We need to keep working to lower gas prices. We have to ensure our security of supply and, at the same time, ensure our global competitiveness. So we will develop with the Member States a set of measures that take into account the specific nature of our relationship with suppliers – ranging from unreliable suppliers such as Russia to reliable friends such as Norway. I have agreed with Prime Minister Store to set up a task force. Teams have started their work. Another important topic is on the agenda. Today our gas market has changed dramatically: from pipeline mainly to increasing amounts of LNG. But the benchmark used in the gas market – the TTF – has not adapted. This is why the Commission will work on establishing a more representative benchmark. At the same time we also know that energy companies are facing severe problems with liquidity in electricity futures markets, risking the functioning of our energy system. We will work with market regulators to ease these problems by amending the rules on collateral - and by taking measures to limit intra-day price volatility. And we will amend the temporary state aid framework in October to allow for the provision of state guarantees, while preserving a level playing field. These are all first steps. But as we deal with this immediate crisis, we must also look forward. The current electricity market design – based on merit order – is not doing justice to consumers anymore. They should reap the benefits of low-cost renewables. So, we have to decouple the dominant influence of gas on the price of electricity. This is why we will do a deep and comprehensive reform of the electricity market. Now - here is an important point. Half a century ago, in the 1970s, the world faced another fossil fuel crisis. Some of us remember the car-free weekends to save energy. Yet we kept driving on the same road. We did not get rid of our dependency on oil. And worse, fossil fuels were even massively subsidised. This was wrong, not just for the climate, but also for our public finances, and our independence. And we are still paying for this today. Only a few visionaries understood that the real problem was fossil fuels themselves, not just their price. Among them were our Danish friends. When the oil crisis hit, Denmark started to invest heavily into harnessing the power of the wind. They laid the foundations for its global leadership in the sector and created tens of thousands of new jobs. This is the way to go! Not just a quick fix, but a change of paradigm, a leap into the future. STAYING THE COURSE AND PREPARING FOR THE FUTURE Honourable Members, The good news is: this necessary transformation has started. It is happening in the North Sea and the Baltic Sea, where our Member States agreed to invest massively into off-shore wind generation. It is happening in Sicily, where Europe's largest solar factory will soon manufacture the newest generation of panels. And it is happening in Northern Germany, where local trains now run on green hydrogen. And hydrogen can be a game changer for Europe. We need to move our hydrogen economy from niche to scale. With REPowerEU, we have doubled our 2030 target to produce ten million tons of renewable hydrogen in the EU, each year. To achieve this, we must create a market maker for hydrogen, in order to bridge the investment gap and connect future supply and demand. That is why I can today announce that we will create a new European Hydrogen Bank. It will help guarantee the purchase of hydrogen, notably by using resources from the Innovation Fund. It will be able to invest 3 billion euros to help building the future market for hydrogen. This is how we power the economy of the future. This is the European Green Deal. And we have all seen in the last months just how important the European Green Deal is. The summer of 2022 will be remembered as a turning point. We all saw the dry rivers, the burning forests, the impact of the extreme heat. And under the surface, the situation is far starker. So far the glaciers in the Alps helped as an emergency reserve for rivers like the Rhine or Rhone. But with Europe's glaciers melting faster than ever, future droughts will be felt far more acutely. We must work relentlessly to adapt to our climate – making nature our first ally. This is why our Union will push for an ambitious global deal for nature at the UN Biodiversity conference in Montreal later this year. And we will do the same at COP27 in Sharm el-Sheikh. But in the short term, we also need to be better equipped to handle our changing climate. The destructive power of extreme weather is too big for any country to fight on its own. This summer, we sent planes from Greece, Sweden and Italy to fight fires in France and Germany. But as disasters become more frequent and more intense, Europe will need more capacity. This is why I can today announce that we will double our firefighting capacity over the next year. The EU will buy another 10 light amphibious aircrafts and three helicopters to add to the fleet. This is European solidarity in action. Honourable Members, The last years have shown how much Europe can achieve when it is united. After an unprecedented pandemic, our economic output overtook pre-crisis levels in record time. We went from having no vaccine to securing over 4 billion doses for Europeans and for the world. And in record time, we came up with SURE – so that people could stay in their jobs even if their companies had run out of work. We were in the deepest recession since World War 2. We achieved the fastest recovery since the post-war boom And that was possible because we all rallied behind a common recovery plan. NextGenerationEU has been a boost of confidence for our economy. And its journey has only just begun. So far, 100 billion euros have been disbursed to Member States. This means: 700 billion euros still haven't flown into our economy. NextGenerationEU will guarantee a constant stream of investment to sustain jobs and growth. It means relief for our economy. But most importantly, it means renewal. It is financing new wind turbines and solar parks, high-speed trains and energy-saving renovations. We conceived NextGenerationEU almost two years ago, and yet it is exactly what Europe needs today. So let's stick to the plan. Let's get the money on the ground. Honourable Members, The future of our children needs both that we invest in sustainability and that we invest sustainably. We must finance the transition to a digital and net-zero economy. And yet we also have to acknowledge a new reality of higher public debt. We need fiscal rules that allow for strategic investment, while safeguarding fiscal sustainability. Rules that are fit for the challenges of this decade. In October, we will come forward with new ideas for our economic governance. But let me share a few basic principles with you. Member States should have more flexibility on their debt reduction paths. But there should be more accountability on the delivery of what we have agreed on. There should be simpler rules that all can follow. To open the space for strategic investment and to give financial markets the confidence they need. Let us chart once again a joint way forward. With more freedom to invest. And more scrutiny on progress. More ownership by Member States. And better results for citizens. Let us rediscover the Maastricht spirit – stability and growth can only go hand in hand. Honourable Members, As we embark on this transition in our economy, we must rely on the enduring values of our social market economy. It's the simple idea that Europe's greatest strength lies in each and every one of us. Our social market economy encourages everyone to excel, but it also takes care of our fragility as human beings. It rewards performance and guarantees protection. It opens opportunities but also set limits. We need this even more today. Because the strength of our social market economy will drive the green and digital transition. We need an enabling business environment, a workforce with the right skills and access to raw materials our industry needs. Our future competitiveness depends on it. We must remove the obstacles that still hold our small companies back. They must be at the centre of this transformation – because they are the backbone of Europe's long history of industrial prowess. And they have always put their employees first – even and especially in times of crisis. But inflation and uncertainty are weighing especially hard on them. This is why we will put forward an SME Relief Package. It will include a proposal for a single set of tax rules for doing business in Europe – we call it BEFIT. This will make it easier to do business in our Union. Less red tape means better access to the dynamism of a continental market. And we will revise the Late Payment Directive – because it is simply not fair that 1 in 4 bankruptcies are due to invoices not being paid on time. For millions of family businesses, this will be a lifeline in troubled waters. But European companies are also grappling with a shortage of staff. Unemployment is at a record low, and this is great. At the same time, job vacancies are at a record high. Europe lacks truck drivers, waiters and airport workers, as well as nurses, engineers and IT technicians. Both low-end and high-end. We need everyone on board. We need much more focus in our investment on professional education and upskilling. We need better cooperation with the companies, because they know best what they need. And we need to match these needs with people's aspirations. But we also have to attract the right skills to our continent, skills that help companies and strengthen Europe's growth. As a first important step, we need to speed up and facilitate the recognition of qualifications also of third country nationals. This will make Europe more attractive for skilled workers. This is why I am proposing to make 2023 the European Year of Skills. Honourable Members, My third point for our SMEs and our industry. Whether we talk about chips for virtual reality or cells for solar panels, the twin transitions will be fuelled by raw materials Lithium and rare earths are already replacing gas and oil at the heart of our economy. By 2030, our demand for those rare earth metals will increase fivefold. And this is a good sign, because it shows that our European Green Deal is moving fast. The not so good news is – one country dominates the market. So we have to avoid falling into the same dependency as with oil and gas. This is where our trade policy comes into play. New partnerships will advance not only our vital interests – but also our values. Trade that embraces workers' rights and the highest environmental standards is possible with like-minded partners. We need to update our links to reliable countries and key growth regions. And for this reason, I intend to put forward for ratification the agreements with Chile, Mexico and New Zealand. And advance negotiations with key partners like Australia and India. But securing supplies is only a first step. The processing of these metals is just as critical. Today, China controls the global processing industry. Almost 90 % of rare earths and 60 % of lithium are processed in China. We will identify strategic projects all along the supply chain, from extraction to refining, from processing to recycling. And we will build up strategic reserves where supply is at risk. This is why today I am announcing a European Critical Raw Materials Act. We know this approach can work. Five years ago, Europe launched the Battery Alliance. And soon, two third of the batteries we need will be produced in Europe. Last year I announced the European Chips Act. And the first chips gigafactory will break ground in the coming months. We now need to replicate this success. This is also why we will increase our financial participation to Important Projects of Common European Interest. And for the future, I will push to create a new European Sovereignty Fund. Let's make sure that the future of industry is made in Europe. STANDING UP FOR OUR DEMOCRACY Honourable Members, As we look around at the state of the world today, it can often feel like there is a fading away of what once seemed so permanent. And in some way, the passing of Queen Elizabeth II last week reminded us of this. She is a legend! She was a constant throughout the turbulent and transforming events in the last 70 years. Stoic and steadfast in her service. But more than anything, she always found the right words for every moment in time. From the calls she made to war evacuees in 1940 to her historic address during the pandemic. She spoke not only to the heart of her nation but to the soul of the world. And when I think of the situation we are in today, her words at the height of the pandemic still resonate with me. She said: “We will succeed – and that success will belong to every one of us”. She always reminded us that our future is built on new ideas and founded in our oldest values. Since the end of World War 2, we have pursued the promise of democracy and the rule of law. And the nations of the world have built together an international system promoting peace and security, justice and economic progress. Today this is the very target of Russian missiles. What we saw in the streets of Bucha, in the scorched fields of grain, and now at the gates of Ukraine's largest nuclear plant – is not only a violation of international rules. It's a deliberate attempt to discard them. This watershed moment in global politics calls for a rethink of our foreign policy agenda. This is the time to invest in the power of democracies. This work begins with the core group of our like-minded partners: our friends in every single democratic nation on this globe. We see the world with the same eyes. And we should mobilise our collective power to shape global goods. We should strive to expand this core of democracies. The most immediate way to do so is to deepen our ties and strengthen democracies on our continent. This starts with those countries that are already on the path to our Union. We must be at their side every step of the way. Because the path towards strong democracies and the path towards our Union are one and the same. So I want the people of the Western Balkans, of Ukraine, Moldova and Georgia to know: You are part of our family, your future is in our Union, and our Union is not complete without you! We have also seen that there is a need to reach out to the countries of Europe – beyond the accession process. This is why I support the call for a European Political Community – and we will set out our ideas to the European Council. But our future also depends on our ability to engage beyond the core of our democratic partners. Countries near and far, share an interest in working with us on the great challenges of this century, such as climate change and digitalisation. This is the main idea behind Global Gateway, the investment plan I announced right here one year ago. It is already delivering on the ground. Together with our African partners we are building two factories in Rwanda and Senegal to manufacture mRNA vaccines. They will be made in Africa, for Africa, with world-class technology. And we are now replicating this approach across Latin America as part of a larger engagement strategy. This requires investment on a global scale. So we will team up with our friends in the US and with other G7 partners to make this happen. In this spirit, President Biden and I will convene a leaders' meeting to review and announce implementation projects. Honourable Members, This is part of our work of strengthening our democracies. But we should not lose sight of the way foreign autocrats are targeting our own countries. Foreign entities are funding institutes that undermine our values. Their disinformation is spreading from the internet to the halls of our universities. Earlier this year, a university in Amsterdam shut down an allegedly independent research centre, which was actually funded by Chinese entities. This centre was publishing so-called research on human rights, dismissing the evidence of forced labour camps for Uyghurs as “rumours”. These lies are toxic for our democracies. Think about this: We introduced legislation to screen foreign direct investment in our companies for security concerns. If we do that for our economy, shouldn't we do the same for our values? We need to better shield ourselves from malign interference. This is why we will present a Defence of Democracy package. It will bring covert foreign influence and shady funding to light. We will not allow any autocracy's Trojan horses to attack our democracies from within. For more than 70 years, our continent has marched towards democracy. But the gains of our long journey are not assured. Many of us have taken democracy for granted for too long. Especially those, like me, who have never experienced what it means to live under the fist of an authoritarian regime. Today we all see that we must fight for our democracies. Every single day. We must protect them both from the external threats they face, and from the vices that corrode them from within. It is my Commission's duty and most noble role to protect the rule of law. So let me assure you: we will keep insisting on judicial independence. And we will also protect our budget through the conditionality mechanism. And today I would like to focus on corruption, with all its faces. The face of foreign agents trying to influence our political system. The face of shady companies or foundations abusing public money. If we want to be credible when we ask candidate countries to strengthen their democracies, we must also eradicate corruption at home. That is why in the coming year the Commission will present measures to update our legislative framework for fighting corruption. We will raise standards on offences such as illicit enrichment, trafficking in influence and abuse of power, beyond the more classic offences such as bribery. And we will also propose to include corruption in our human rights sanction regime, our new tool to protect our values abroad. Corruption erodes trust in our institutions. So we must fight back with the full force of the law. Honourable Members, Our founders only meant to lay the first stone of this democracy. They always thought that future generations would complete their work. “Democracy has not gone out of fashion, but it must update itself in order to keep improving people's lives.” These are the words of David Sassoli – a great European, who we all pay tribute to today. David Sassoli thought that Europe should always look for new horizons. And through the adversities of these times, we have started to see what our new horizon might be. A braver Union. Closer to its people in times of need. Bolder in responding to historic challenges and daily concerns of Europeans. And to walk at their side when they deal with the big trials of life. This is why the Conference on the Future of Europe was so important. It was a sneak peek of a different kind of citizens' engagement, well beyond election day. And after Europe listened to its citizens' voice, we now need to deliver. The Citizens' Panels that were central to the Conference will now become a regular feature of our democratic life. And in the Letter of Intent that I have sent today to President Metsola and Prime Minister Fiala, I have outlined a number of proposals for the year ahead that stem from the Conference conclusions. They include for example a new initiative on mental health. We should take better care of each other. And for many who feel anxious and lost, appropriate, accessible and affordable support can make all the difference. Honourable Members, Democratic institutions must constantly gain and regain the citizens' trust. We must live up to the new challenges that history always puts before us. Just like Europeans did when millions of Ukrainians came knocking on their door. This is Europe at its best. A Union of determination and solidarity. But this determination and drive for solidarity is still missing in our migration debate. Our actions towards Ukrainian refugees must not be an exception. They can be our blueprint for going forward. We need fair and quick procedures, a system that is crisis proof and quick to deploy, and a permanent and legally binding mechanism that ensures solidarity. And at the same time, we need effective control of our external borders, in line with the respect of fundamental rights. I want a Europe that manages migration with dignity and respect. I want a Europe where all Member States take responsibility for challenges we all share. And I want a Europe that shows solidarity to all Member States. We have progress on the Pact, we now have the Roadmap. And we now need the political will to match. Honourable Members, Three weeks ago, I had the incredible opportunity of joining 1,500 young people from all over Europe and the world, who gathered in Taizé. They have different views, they come from different countries, they have different backgrounds, they speak different languages. And yet, there is something that connects them. They share a set of values and ideals. They believe in these values. They are all passionate about something larger than themselves. This generation is a generation of dreamers but also of makers. In my last State of the Union address, I told you that I would like Europe to look more like these young people. We should put their aspirations at the heart of everything we do. And the place for this is in our founding Treaties. Every action that our Union takes should be inspired by a simple principle. That we should do no harm to our children's future. That we should leave the world a better place for the next generation. And therefore, Honourable Members, I believe that it is time to enshrine solidarity between generations in our Treaties. It is time to renew the European promise. And we also need to improve the way we do things and the way we decide things. Some might say this is not the right time. But if we are serious about preparing for the world of tomorrow we must be able to act on the things that matter the most to people. And as we are serious about a larger union, we also have to be serious about reform. So as this Parliament has called for, I believe the moment has arrived for a European Convention. CONCLUSION Honourable Members, They say that light shines brightest in the dark. And that was certainly true for the women and the children fleeing Russia's bombs. They fled a country at war, filled with sadness for what they had left behind, and fear for what may lie ahead. But they were received with open arms. By many citizens like Magdalena and Agnieszka. Two selfless young women from Poland. As soon as they heard about trains full of refugees, they rushed to the Warsaw Central Station. They started to organise. They set up a tent to assist as many people as possible. They reached out to supermarket chains for food, and to local authorities to organise buses to hospitality centres. In a matter of days, they gathered 3000 volunteers, to welcome refugees 24/7. Honourable Members, Magdalena and Agnieszka are here with us today. Please join me in applauding them and each and every European who opened their hearts and their homes. Their story is about everything our Union stands and strives for. It is a story of heart, character and solidarity. They showed everyone what Europeans can achieve when we rally around a common mission. This is Europe's spirit. A Union that stands strong together. A Union that prevails together. Long live Europe.

EU

Honourable Members, In just under 300 days, Europeans will take to the polls in our unique and remarkable democracy. As with any election, it will be a time for people to reflect on the State of our Union and the work done by those that represent them. But it will also be a time to decide on what kind of future and what kind of Europe they want. Among them will be millions of first-time voters, the youngest of whom were born in 2008. As they stand in that polling booth, they will think about what matters to them. They will think about the war that rages at our borders. Or the impact of destructive climate change. About how artificial intelligence will influence their lives. Or of their chances of getting a house or a job in the years ahead. Our Union today reflects the vision of those who dreamt of a better future after World War II. A future in which a Union of nations, democracies and people would work together to share peace and prosperity. They believed that Europe was the answer to the call of history. When I speak to the new generation of young people, I see that same vision for a better future. That same burning desire to build something better. That same belief that in a world of uncertainty, Europe once again must answer the call of history. And that is what we must do together. Honourable Members, This starts with earning the trust of Europeans to deal with their aspirations and anxieties. And in the next 300 days we must finish the job that they entrusted us with. I want to thank this House for its leading role in delivering on one of the most ambitious transformations this Union has ever embarked on. When I stood in front of you in 2019 with my programme for a green, digital and geopolitical Europe I know that some had doubts. And that was before the world turned upside down with a global pandemic and a brutal war on European soil. But look at where Europe is today. We have seen the birth of a geopolitical Union – supporting Ukraine, standing up to Russia's aggression, responding to an assertive China and investing in partnerships. We now have a European Green Deal as the centrepiece of our economy and unmatched in ambition. We have set the path for the digital transition and become global pioneers in online rights. We have the historic NextGenerationEU – combining 800 billion euros of investment and reform – and creating decent jobs for today and tomorrow. We have set the building blocks for a Health Union, helping to vaccinate an entire continent – and large parts of the world. We have started making ourselves more independent in critical sectors, like energy, chips or raw materials. I would also like to thank you for the ground-breaking and pioneering work we did on gender equality. As a woman, this means a lot to me. We have concluded files that many thought would be blocked forever, like the Women on Boards Directive and the historic accession of the EU to the Istanbul Convention. With the Directive on pay transparency we have cast into law the basic principle that equal work deserves equal pay. There is not a single argument why – for the same type of work – a woman should be paid less than a man. But our work is far from over and we must continue pushing for progress together. I know this house supports our proposal on combating violence against women. Here too, I would like that we cast into law another basic principle: No, means no. There can be no true equality without freedom from violence. And thanks to this Parliament, to Member States and to my team of Commissioners, we have delivered over 90% of the Political Guidelines I presented in 2019. Together, we have shown that when Europe is bold, it gets things done. And our work is far from over - so let's stand together. Let's deliver today and prepare for tomorrow. Honourable Members, Four years ago, the European Green Deal was our answer to the call of history. And this summer – the hottest ever on record in Europe – was a stark reminder of that. Greece and Spain were struck by ravaging wildfires – and were hit again only a few weeks later by devastating floods. And we saw the chaos and carnage of extreme weather – from Slovenia to Bulgaria and right across our Union. This is the reality of a boiling planet. The European Green Deal was born out of this necessity to protect our planet. But it was also designed as an opportunity to preserve our future prosperity. We started this mandate by setting a long-term perspective with the climate law and the 2050 target. We shifted the climate agenda to being an economic one. This has given a clear sense of direction for investment and innovation. And we have already seen this growth strategy delivering in the short-term. Europe's industry is showing every day that it is ready to power this transition. Proving that modernisation and decarbonisation can go hand in hand. In the last five years, the number of clean steel factories in the EU has grown from zero to 38. We are now attracting more investment in clean hydrogen than the US and China combined. And tomorrow I will be in Denmark with Prime Minister Mette Frederiksen to see that innovation first hand. We will mark the launch of the first container ship, powered by clean methanol made with solar energy. This is the strength of Europe's response to climate change. The European Green Deal provides the necessary frame, incentives, and investment – but it is the people, the inventors, the engineers who develop the solutions. And this is why, Honourable Members, as we enter the next phase of the European Green Deal, one thing will never change. We will keep supporting European industry throughout this transition. We started with a package of measures – from the Net-Zero Industry Act to the Critical Raw Materials Act. With our Industry Strategy, we are looking at the risks and needs of each ecosystem in this transition. We need to finish this work. And with this, we need to develop an approach for each industrial ecosystem. Therefore, starting from this month, we will hold a series of Clean Transition Dialogues with industry. The core aim will be to support every sector in building its business model for the decarbonisation of industry. Because we believe that this transition is essential for our future competitiveness in Europe. But this is just as much about the people and their jobs of today. Our wind industry, for instance, is a European success story. But it is currently facing a unique mix of challenges. This is why we will put forward a European Wind Power package – working closely with industry and Member States. We will fast-track permitting even more. We will improve the auction systems across the EU. We will focus on skills, access to finance and stable supply chains. But this is broader than one sector: From wind to steel, from batteries to electric vehicles, our ambition is crystal clear: The future of our clean tech industry has to be made in Europe. Honourable Members, This shows that when it comes to the European Green Deal: We stay the course. We stay ambitious. We stick to our growth strategy. And we will always strive for a fair and just transition! That means a fair outcome for future generations – to live on healthy planet. And a fair journey for all those impacted – with decent jobs and a solemn promise to leave no one behind. Just think about manufacturing jobs and competitiveness: a topic we are discussing a lot these days. Our industry and tech companies like competition. They know that global competition is good for business. And that it creates and protects good jobs here in Europe. But competition is only true as long as it is fair. Too often, our companies are excluded from foreign markets or are victims of predatory practices. They are often undercut by competitors benefitting from huge state subsidies. We have not forgotten how China's unfair trade practices affected our solar industry. Many young businesses were pushed out by heavily subsidised Chinese competitors. Pioneering companies had to file for bankruptcy. Promising talents went searching for fortune abroad. This is why fairness in the global economy is so important – because it affects lives and livelihoods. Entire industries and communities depend on it. So, we have be to be clear-eyed about the risks we face. Take the electric vehicles sector. It is a crucial industry for the clean economy, with a huge potential for Europe. But global markets are now flooded with cheaper Chinese electric cars. And their price is kept artificially low by huge state subsidies. This is distorting our market. And as we do not accept this from the inside, we do not accept this from the outside. So I can announce today that the Commission is launching an anti-subsidy investigation into electric vehicles coming from China. Europe is open for competition. Not for a race to the bottom. We must defend ourselves against unfair practices. But equally, it is vital to keep open lines of communication and dialogue with China. Because there also are topics, where we can and have to cooperate. De-risk, not decouple – this will be my approach with the Chinese leadership at the EU-China Summit later this year. Honourable Members, In the European Union, we are proud of our cultural diversity. We are a ‘Europe of the Regions' with a unique blend of languages, music, art, traditions, crafts and cuisines. We are also a continent of unique biological diversity. Some 6 500 species are found only in Europe. In northern Europe, we find the Wadden Sea, a world natural heritage site and unique habitat offering a home to rare species of flora and fauna and a vital resource for millions of migratory birds. And with the Baltic Sea we have the largest area of brackish sea in the world. South of that is the European Plain, characterised by vast tracts of moorland and wetland. These regions are important allies against ongoing climate change. Protected moors and wetlands absorb enormous volumes of greenhouse gases, secure regional water cycles and are home to unique biodiversity. And Europe is a continent of forests. From the mighty coniferous forests of the North and East, via the last remnants of virgin oak and beech forest in central Europe to the cork oak forests of southern Europe: all these forests are an irreplaceable source of goods and services. They absorb carbon dioxide, supply wood and other products, generate fertile soils, and filter the air and the water. Biodiversity and ecosystem services are vital for all of us in Europe. Loss of nature destroys not only the foundations of our life, but also our feeling of what constitutes home. We must protect it. At the same time, food security, in harmony with nature, remains an essential task. I would like to take this opportunity to express my appreciation to our farmers, to thank them for providing us with food day after day. For us in Europe, this task of agriculture – producing healthy food – is the foundation of our agricultural policy. And self-sufficiency in food is also important for us. That is what our farmers provide. It is not always an easy task, as the consequences of Russia's aggression against Ukraine, climate change bringing droughts, forest fires and flooding, and new obligations are all having a growing impact on farmers' work and incomes. We must bear that in mind. Many are already working towards a more sustainable form of agriculture. We must work together with the men and women in farming to tackle these new challenges. That is the only way to secure the supply of food for the future. We need more dialogue and less polarisation. That is why we want to launch a strategic dialogue on the future of agriculture in the EU. I am and remain convinced that agriculture and protection of the natural world can go hand in hand. We need both. Honourable Members, A fair transition for farmers, families and industry. This is the hallmark of this Mandate. And it is all the more important as we face strong economic headwinds. I see three major economic challenges for our industry in the year ahead: labour and skills shortages, inflation, and making business easier for our companies. The first has to do with our labour market. We have not forgotten the early days of the global pandemic. When everyone predicted a new wave of 1930-style mass unemployment. But we defied this prediction. With SURE – the first-ever European short-time work initiative – we saved 40 million jobs. This is Europe's social market economy in action. And we can be proud of it! We then immediately restarted our economic engine thanks to NextGenerationEU. And today we see the results. Europe is close to full employment. Instead of millions of people looking for jobs, millions of jobs are looking for people. Labour and skills shortages are reaching record levels – both here and across all major economies. 74% of SMEs are saying they are facing skill shortages. In the peak of the tourist season, restaurants and bars in Europe are running reduced hours because they cannot find staff. Hospitals are postponing treatment because of lack of nurses. And two thirds of European companies that are looking for IT specialists cannot find them. At the same time millions of parents – mostly mothers – are struggling to reconcile work and family, because there is no childcare. And 8 million young people are neither in employment, education or training. Their dreams put on hold, their lives on stand-by. This is not only the cause of so much personal distress. It is also one of the most significant bottlenecks for our competitiveness. Because labour shortages hamper the capacity for innovation, growth and prosperity. So we need to improve access to the labour market. Most importantly for young people, for women. And we need qualified migration. In addition, we need to respond to the deep-rooted shifts in technology, society and demography. And for that, we should rely on the expertise of businesses and trade unions, our collective bargaining partners. It is almost forty years since Jacques Delors convened the Val Duchesse meeting that saw the birth of European social dialogue. Since then, social partners have shaped the Union of today – ensuring progress and prosperity for millions. And as the world around us changes faster than ever, social partners must again be at the heart of our future. Together we must focus on the challenges facing the labour market – from skills and labour shortages, to new challenges stemming from AI. This is why together with the Belgian Presidency next year, we will convene a new Social Partner Summit once again at Val Duchesse. The future of Europe will be built with and by our social partners. The second major economic challenge: persistent high inflation. Christine Lagarde and the European Central Bank are working hard to keep inflation under control. We know that returning to the ECB's medium-term target will take some time. The good news is that Europe has started bringing energy prices down. We have not forgotten, Putin's deliberate use of gas as a weapon and how it triggered fears of blackout and an energy crisis like in the 70s. Many thought, we would not have enough energy to get through the winter. But we made it. Because we stayed united – pooling our demand and buying energy together. And at the same time, different to the 70s, we used the crisis to massively invest in renewables and fast-track the clean transition. We used Europe's critical mass to bring prices down and secure our supply. The price for gas in Europe was over 300 euros per MWh one year ago. It is now around 35. So we need to look at how we can replicate this model of success in other fields like critical raw materials or clean hydrogen. The third challenge for European companies is about making it easier to do business. Small companies do not have the capacity to cope with complex administration. Or they are held back by lengthy processes. This often means they do less with the time they have – and that they miss out on opportunities to grow. This is why – before the end of the year – we will appoint an EU SME envoy reporting directly to me. We want to hear directly from small and medium sized businesses, about their everyday challenges. For every new piece of legislation we conduct a competitiveness check by an independent board. And next month, we will make the first legislative proposals towards reducing reporting obligations at the European level by 25%. Honourable Members, Let's be frank – this will not be easy. And we will need your support. Because this is a common endeavour for all European institutions. So we also have to work with Member States, to match the 25% at national level. It is time to make business easier in Europe! But European companies also need access to key technologies to innovate, develop and manufacture. This is a question of European sovereignty as the Leaders underlined in Versailles. It is an economic and national security imperative to preserve a European edge on critical and emerging technologies. This European industrial policy also requires common European funding. This is why – as part of our proposal for a review of our budget – we proposed the STEP platform. With STEP we can boost, leverage and steer EU funds to invest in everything from microelectronics to quantum computing and AI. From biotech to clean tech. Our companies need this support now – so I urge for a quick agreement on our budget proposal. And I know I can count on this House. And there is more when it comes to competitiveness. We have seen real bottlenecks along global supply chains, including because of the deliberate policies of other countries. Just think about China's export restrictions on gallium and germanium – which are essential for goods like semiconductors and solar panels. This shows why it is so important for Europe to step up on economic security. By de-risking and not decoupling. And I am very proud that this concept has found broad support from key partners. From Australia to Japan and the United States. And many other countries around the world want to work together. Many are overly dependent on a single supplier for critical minerals. Others – from Latin America to Africa – want to develop local industries for processing and refining, instead of just shipping their resources abroad. This is why later this year we will convene the first meeting of our new Critical Raw Materials Club. At the same time, we will continue to drive open and fair trade. So far, we have concluded new free trade agreements with Chile, New Zealand and Kenya. We should aim to complete deals with Australia, Mexico and Mercosur by the end of this year. And soon thereafter with India and Indonesia. Smart trade delivers good jobs and prosperity. Honourable Members, These three challenges – labour, inflation and business environment – come at a time when we are also asking industry to lead on the clean transition. So we need to look further ahead and set out how we remain competitive as we do that. This is why I have asked Mario Draghi – one of Europe's great economic minds – to prepare a report on the future of European competitiveness. Because Europe will do “whatever it takes” to keep its competitive edge. Honourable Members, When it comes to making business and life easier, we have seen how important digital technology is. It is telling that we have far overshot the 20% investment target in digital projects of NextGenerationEU. Member States have used that investment to digitise their healthcare, justice system or transport network. At the same time, Europe has led on managing the risks of the digital world. The internet was born as an instrument for sharing knowledge, opening minds and connecting people. But it has also given rise to serious challenges. Disinformation, spread of harmful content, risks to the privacy of our data. All of this led to a lack of trust and a breach of fundamental rights of people. In response, Europe has become the global pioneer of citizen's rights in the digital world. The DSA and DMA are creating a safer digital space where fundamental rights are protected. And they are ensuring fairness with clear responsibilities for big tech. This is a historic achievement – and we should be proud of it. The same should be true for artificial intelligence. It will improve healthcare, boost productivity, address climate change. But we also should not underestimate the very real threats. Hundreds of leading AI developers, academics and experts warned us recently with the following words: “Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war.” AI is a general technology that is accessible, powerful and adaptable for a vast range of uses - both civilian and military. And it is moving faster than even its developers anticipated. So we have a narrowing window of opportunity to guide this technology responsibly. I believe Europe, together with partners, should lead the way on a new global framework for AI, built on three pillars: guardrails, governance and guiding innovation. Firstly, guardrails. Our number one priority is to ensure AI develops in a human-centric, transparent and responsible way. This is why in my Political Guidelines, I committed to setting out a legislative approach in the first 100 days. We put forward the AI Act – the world's first comprehensive pro-innovation AI law. And I want to thank this House and the Council for the tireless work on this groundbreaking law. Our AI Act is already a blueprint for the whole world. We must now focus on adopting the rules as soon as possible and turn to implementation. The second pillar is governance. We are now laying the foundations for a single governance system in Europe. But we should also join forces with our partners to ensure a global approach to understanding the impact of AI in our societies. Think about the invaluable contribution of the IPCC for climate, a global panel that provides the latest science to policymakers. I believe we need a similar body for AI – on the risks and its benefits for humanity. With scientists, tech companies and independent experts all around the table. This will allow us to develop a fast and globally coordinated response – building on the work done by the Hiroshima Process and others. The third pillar is guiding innovation in a responsible way. Thanks to our investment in the last years, Europe has now become a leader in supercomputing – with 3 of the 5 most powerful supercomputers in the world. We need to capitalise on this. This is why I can announce today a new initiative to open up our high-performance computers to AI start-ups to train their models. But this will only be part of our work to guide innovation. We need an open dialogue with those that develop and deploy AI. It happens in the United States, where seven major tech companies have already agreed to voluntary rules around safety, security and trust. It happens here, where we will work with AI companies, so that they voluntarily commit to the principles of the AI Act before it comes into force. Now we should bring all of this work together towards minimum global standards for safe and ethical use of AI. Honourable Members, When I stood here four years ago, I said that if we are united on the inside, nobody will divide us from the outside. And this was the thinking behind the Geopolitical Commission. Our Team Europe approach has enabled us to be more strategic, more assertive and more united. And that is more important than ever. Our heart bleeds when we see the devastating loss of life in Libya and Morocco after the violent floods and earthquake. Europe will always stand ready to support in any way we can. Or think about the Sahel region, one of the poorest yet fastest growing demographically. The succession of military coups will make the region more unstable for years ahead. Russia is both influencing and benefiting from the chaos. And the region has become fertile ground for the rise in terrorism. This is of direct concern for Europe – for our security and prosperity. So we need to show the same unity of purpose towards Africa as we have shown for Ukraine. We need to focus on cooperation with legitimate governments and regional organisations. And we need to develop a mutually beneficial partnership which focuses on common issues for Europe and Africa. This is why, together with High Representative Borrell, we will work on a new strategic approach to take forward at the next EU-AU Summit. Honourable Members, History is on the move. Russia is waging a full-scale war against the founding principles of the UN Charter. This has raised immense concerns in countries from Central Asia to the Indo-Pacific. They are worried that in a lawless world, they might face the same fate as Ukraine. We see a clear attempt by some to return to bloc thinking – trying to isolate and influence countries in between. And it comes at a time when there is a deeper unease by many emerging economies about the way institutions and globalisation work for them. Those concerns are legitimate. These emerging economies – with their people and natural assets – are essential allies in building a cleaner, safer and more prosperous world. Europe will always work with them to reform and improve the international system. We want to lead efforts to make the rules-based order fairer and make distribution more equal. This will also mean working with new and old partners to deepen our connections. And Europe's offer with Global Gateway is truly unique. Global Gateway is more transparent, more sustainable, and more economically attractive. Just last week I was in New Delhi to sign the most ambitious project of our generation. The India-Middle East-Europe Economic Corridor. It will be the most direct connection to date between India, the Arabian Gulf and Europe: With a rail link, that will make trade between India and Europe 40% faster. With an electricity cable and a clean hydrogen pipeline – to foster clean energy trade between Asia, the Middle East and Europe. With a high-speed data cable, to link some of the most innovative digital ecosystems in the world, and create business opportunities all along the way. These are state-of-the-art connections for the world of tomorrow. Faster, shorter, cleaner. And Global Gateway is making the real difference. I have seen it in Latin America, South-East Asia and across Africa – from building a local hydrogen economy with Namibia and Kenya to a digital economy with the Philippines. These are investments in our partners' economy. And they are investments in Europe's prosperity and security in a fast-changing world. Honourable Members, Every day, we see that conflict, climate change and instability are pushing people to seek refuge elsewhere. I have always had a steadfast conviction that migration needs to be managed. It needs endurance and patient work with key partners. And it needs unity within our Union. This is the spirit of the New Pact on Migration and Asylum. When we took office, there seemed to be no possible compromise in sight. But with the Pact, we are striking a new balance. Between protecting borders and protecting people. Between sovereignty and solidarity. Between security and humanity. We listened to all Member States and focused on all routes. And we have translated the spirit of the Pact into practical solutions. We were fast and united in responding to the hybrid attack that Belarus launched against us. We worked closely with our Western Balkan partners and reduced irregular flows. We have signed a partnership with Tunisia that brings mutual benefits beyond migration – from energy and education, to skills and security. And we now want to work on similar agreements with other countries. We stepped up border protection. European Agencies deepened their cooperation with Member States. Allow me to thank in particular Bulgaria and Romania for leading the way – showcasing best practices on both asylum and returns. They have proved it: Bulgaria and Romania are part of our Schengen area. So let us finally bring them in – without any further delay. Ladies and Gentlemen, Our work on migration is based on the conviction that unity is within our reach. An agreement on the pact has never been so close. Parliament and the Council have a historic opportunity to get it over the line. Let us show that Europe can manage migration effectively and with compassion. Let's get this done! Honourable members, We know that migration requires constant work. And nowhere is that more vital than in the fight against human smugglers. They attract desperate people with their lies. And put them on deadly routes across the desert, or on boats that are unfit for the sea. The way these smugglers operate is continuously evolving. But our legislation is over twenty years old and needs an urgent update. So we need new legislation and a new governance structure. We need stronger law enforcement, prosecution and a more prominent role for our agencies – Europol, Eurojust and Frontex. And we need to work with our partners to tackle this global plague of human trafficking. This is why the Commission will organise an International Conference on fighting people smuggling. It is time to put an end to this callous and criminal business! Honourable Members, On the day when Russian tanks crossed the border into Ukraine, a young Ukrainian mother set off for Prague to bring her child to safety. When the Czech border official stamped her passport, she started crying. Her son didn't understand. And he asked his mother why she was crying. She answered: “Because we are home.” “But this is not Ukraine,” he argued. So she explained: “This is Europe.” On that day, that Ukrainian mother, felt that Europe was her home. Because “home is where we trust each other”. And the people of Ukraine could trust their fellow Europeans. Her name was Victoria Amelina. She was one of the great young writers of her generation and a tireless activist for justice. Once her son was safe, Victoria returned to Ukraine to document Russia's war crimes. One year later she was killed by a Russian ballistic missile, while having dinner with colleagues. The victim of a Russian war crime, one of countless attacks against innocent civilians. Amelina was with three friends that day – including Héctor Abad Faciolince, a fellow writer from Colombia. He is part of a campaign called “Aguanta, Ucrania” – “Resist, Ukraine”, created to tell Latin Americans of Russia's war of aggression and attacks on civilians. But Héctor could never imagine becoming the target himself. Afterwards, he said he didn't know why he lived and she died. But now he is telling the world about Victoria. To save her memory and to end this war. And I am honoured that Héctor is here with us today. And I want you to know that we will keep the memory of Victoria – and all other victims – alive. Aguanta, Ucrania. Slava Ukraini! Honourable Members, We will be at Ukraine's side every step of the way. For as long as it takes. Since the start of the war, four million Ukrainians have found refuge in our Union. And I want to say to them that they are as welcome now as they were in those fateful first weeks. We have ensured that they have access to housing, healthcare, the job market and much more. Honourable Members, this was Europe answering the call of history. And so I am proud to announce that the Commission will propose to extend our temporary protection to Ukrainians in the EU. Our support to Ukraine will endure. We have provided 12 billion euros this year alone to help pay wages and pensions. To help keep hospitals, schools and other services running. And through our ASAP proposal we are ramping up ammunition production to help match Ukraine's immediate needs. But we are also looking further ahead. This is why we have proposed an additional 50 billion euros over four years for investment and reforms. This will help build Ukraine's future to rebuild a modern and prosperous country. And that future is clear to see. This House has said it out loud: The future of Ukraine is in our Union. The future of the Western Balkans is in our Union. The future of Moldova is in our Union. And I know just how important the EU perspective is for so many people in Georgia. Honourable Members, I started by speaking of Europe responding to the call of history. And history is now calling us to work on completing our Union. In a world where some are trying to pick off countries one by one, we cannot afford to leave our fellow Europeans behind. In a world where size and weight matters, it is clearly in Europe's strategic and security interests to complete our Union. But beyond the politics and geopolitics of it, we need to picture what is at stake. We need to set out a vision for a successful enlargement. A Union complete with over 500 million people living in a free, democratic and prosperous Union. A Union complete with young people who can live, study and work in freedom. A Union complete with vibrant democracies in which judiciaries are independent, oppositions are respected, and journalists are protected. Because the rule of law and fundamental rights will always be the foundation of our Union – in current and in future Member States. This is why the Commission has made the Rule of Law Reports a key priority. We now work closely with Member States to identify progress and concerns – and make recommendations for the year ahead. This has ensured accountability in front of this House and national parliaments. It has allowed for dialogue between Member States. And it is delivering results. I believe that it can do the same for future Member States. This is why I am very happy to announce that we will open the Rule of Law Reports to those accession countries who get up to speed even faster. This will place them on an equal footing with Member States. And support them in their reform efforts. And it will help ensure that our future is a Union of freedom, rights and values for all. Honourable Members, This is in our shared interest. Think about the great enlargement of 20 years ago. We called it the European Day of Welcomes. And it was a triumph of determination and hope over the burdens of the past. And in the 20 years since we have seen an economic success story which has improved the lives of millions. I want us to look forward to the next European Day of Welcomes and the next economic success stories. We know this is not an easy road. Accession is merit-based – and the Commission will always defend this principle. It takes hard work and leadership. But there is already a lot of progress. We have seen the great strides Ukraine has already made since we granted them candidate status. And we have seen the determination of other candidate countries to reform. Honourable Members, it is now time for us to match that determination. And that means thinking about how we get ready for a completed Union. We need to move past old, binary debates about enlargement. This is not a question of deepening integration or widening the Union. We can and we must do both. To give us the geopolitical weight and the capacity to act. This is what our Union has always done. Each wave of enlargement came with a political deepening. We went from coal and steel towards full economic integration. And after the fall of the Iron Curtain, we turned an economic project into a true Union of people and states. I believe that the next enlargement must also be a catalyst for progress. We have started to build a Health Union at 27. And I believe we can finish it at 30+. We have started to build European Defence Union at 27. And I believe we can finish it at 30+. We have proven that we can be a Geopolitical Union and showed we can move fast when we are united. And I believe that Team Europe also works at 30+. Honourable Members, I know this House believes the same. And the European Parliament has always been one of the main drivers of European integration. It has been so throughout the decades. And it is once again today. And I will always support this House – and all of those who want to reform the EU to make it work better for citizens. And, yes, that means including through a European Convention and Treaty change if and where it is needed! But we cannot – and we should not – wait for Treaty change to move ahead with enlargement. A Union fit for enlargement can be achieved faster. That means answering practical questions about how a Union of over 30 countries will work in practice. And in particular about our capacity to act. The good news is that with every enlargement those who said it would make us less efficient were proven wrong. Take the last few years. We agreed on NextGenerationEU at 27. We agreed to buy vaccines at 27. We agreed on sanctions in record time – also at 27. We agreed to purchase natural gas – not only at 27 but including Ukraine, Moldova and Serbia. So it can be done. But we need to look closer at each policy and see how they would be affected by a larger Union. This is why the Commission will start working on a series of pre-enlargement policy reviews to see how each area may need to be adapted to a larger Union. We will need to think about how our institutions would work – how the Parliament and the Commission would look. We need to discuss the future of our budget – in terms of what it finances, how it finances it, and how it is financed. And we need to understand how to ensure credible security commitments in a world where deterrence matters more than ever. These are questions we must address today if we want to be ready for tomorrow. And the Commission will play its part. This is why we will put forward our ideas to the Leaders' discussion under the Belgian Presidency. We will be driven by the belief that completing our Union is the best investment in peace, security and prosperity for our Continent. So it is time for Europe to once again think big and write our own destiny! Honourable Members, Victoria Amelina believed that it is our collective duty to write a new story for Europe. This is where Europe stands today. At a time and place where history is written. The future of our continent depends on the choices we make today. On the steps we take to complete our Union. The people of Europe want a Union that stands up for them in a time of great power competition. But also one that protects and stands close to them, as a partner and ally in their daily battles. And we will listen to their voice. If it matters to Europeans, it matters to Europe. Think again about the vision and imagination of the young generation I started my speech with. It is the moment to show them that we can build a continent where you can be who you are, love who you want, and aim as high as you want. A continent reconciled with nature and leading the way on new technologies. A continent that is united in freedom and peace. Once again – this is Europe's moment to answer the call of history. Long live Europe.

EU

My Lords and Members of the House of Commons, My Government will continue to pursue its central economic objective of high and stable levels of growth and employment. My Government will ensure the continued economic stability which has enabled it to increase the resources available for education, health, transport and police services. My Government will reflect these policies in its Finance Bill. This is my Government's fourth legislative programme. My Government's main Bills for the coming Session will focus on improving public services and cutting crime. My Government also plans other major Bills and other significant initiatives, particularly in secondary education, with the creation of more specialist schools, urban school reform and improved teaching in the early years of secondary education. My Government is determined to combat all aspects of crime to protect all members of our society. My Government will introduce legislation to modernise and improve law enforcement by, for example, tackling disorderly conduct. Legislation will be introduced to regulate the private security industry. A Bill will be introduced to cut vehicle crime, reduce opportunities to dispose of stolen vehicles and extend the time limit for prosecution for vehicle theft. A Bill will be published in draft to increase powers against money laundering and make it easier to recover the proceeds of crime. The Bill to give courts themselves the power to decide whether certain defendants should be tried by jury or by magistrates will be reintroduced. Legislation will also be brought forward to reduce benefit fraud. This will enable more information to be obtained to prevent fraud and will provide power to withdraw or reduce benefits where a person has twice been convicted of benefit fraud. My Government remains committed to the founding principles of the National Health Service. My Government's NHS Plan showed how it would take forward further reform of health services to improve standards. Legislation will be introduced to support many of the commitments in the plan, in particular to improve the performance of the NHS. The legislation will also take forward my Government's response to the Royal Commission on Long Term Care for the Elderly. A Bill will be brought forward to ban the advertising and promotion of tobacco products. My Government continues to attach the highest importance to improving education. It has already secured a number of changes to the law to further this end, including legislation to reform the training of teachers, to secure improved school standards and to create the Learning and Skills Councils. My Government will introduce a Bill to improve the framework for meeting special educational needs and access to learning for disabled people. During the new Session, my Government will continue to work to improve standards in education. Legislation will be introduced to extend the functions of the Children's Commissioner for Wales to provide better protection for children in Wales. A Bill will be introduced to increase the effectiveness of the power to reduce regulatory burdens by removing inappropriate and over-complex regulation. Legislation will be brought forward to ease the process of buying and selling homes and to improve the protection given to homeless people. Progress will also be made on the purchase of freeholds by leaseholders and on commonhold, a new form of tenure for flat owners. Members of the House of Commons, Estimates for the public service will be laid before you. My Lords and Members of the House of Commons, A Bill will be introduced to enable a free vote to take place on the future of hunting with dogs. My Government has appointed Lord Cullen to head an inquiry into safety on our railways. A Bill will be drafted to provide for safer travel on the railways, in the air, at sea and on the roads, and will take forward proposals for revitalising health and safety at work. A draft Bill will be published to improve the transparency of export controls and to establish their purpose. In Northern Ireland, my Government will continue to work closely with the political parties and the Irish Government to secure the full implementation of the Good Friday agreement. A Bill will be published in draft on the implementation of the recommendations of the review of the criminal justice system in Northern Ireland. My Government is committed to making devolution in Scotland and Wales work and to continue the process of decentralising government in the interests of all the people in the United Kingdom. A Bill will be introduced to maintain the legislation relating to the Armed Forces for the next five years. Other measures will be laid before you. My Lords and Members of the House of Commons, The Duke of Edinburgh and I look forward to our state visit to Norway. My Government will continue to work with our partners to shape the future of the European Union. It will work for rapid progress on the enlargement negotiations and for reform of the institutions of the European Union to prepare them for a wider membership. My Government will continue to ensure that NATO remains the foundation of Britain's defence and security. My Government will continue to work to make the United Nations Security Council more effective and representative. It will support efforts to improve the United Nation's capacity to undertake peace-keeping operations. A White Paper will be published outlining how my Government will work to shape the forces of globalization to benefit the world's poor. My Government believes that those who commit crimes against humanity should be brought to justice. It will introduce a Bill to enable the UK to ratify the statute of the International Criminal Court. My Lords and Members of the House of Commons, I pray that the blessing of Almighty God may rest upon your counsels.

UK

My Lords and Members of the House of Commons, My Government's central objectives are economic stability, and investment and reform in public services, leading to a more prosperous and inclusive society. To this end, my Government will continue to secure low inflation and sound public finances. My Government's main priorities for the forthcoming Session will be reform in education, health, crime and welfare. My Government will introduce legislation to reform education. An education Bill will be introduced to promote diversity and higher standards, particularly in secondary schools. It will provide new opportunities for school sponsorship, more options for tackling failing schools, and greater freedom for successful head teachers and governors. My Government will introduce legislation to reform health services. A Bill will decentralise power and direct resources to National Health Service staff, give patients greater influence on the running of the NHS, and strengthen regulation of the health professions. Legislation will be drafted to reform the provision of health services in Wales. Legislation will be brought forward to reform sentencing and rules of evidence, with measures to tackle corruption and sex offenders. A Bill will be introduced to increase powers against money laundering, establish a criminal assets recovery agency, and make it easier to recover the proceeds of crime and drugs. Legislation will be brought forward to help the police fight crime, ensure that they can co-operate effectively across police force boundaries and establish a new complaints system. Legislation to reform the criminal courts system will be drafted in the light of the forthcoming recommendations from the review by Lord Justice Auld. Legislation will be introduced to extend the life of the Football (Disorder) Act. My Government will introduce legislation to reform the welfare system. A Bill will include measures to help more people back into work. Legislation will also be brought forward to introduce the new tax credits system, and to establish the new pension credit for pensioners. My Government will introduce legislation to encourage enterprise, strengthen competition laws, and promote safeguards for consumers. A draft Bill to create a single regulator for the media and communications industries and reform the broadcasting and telecommunications regulations will be published. Members of the House of Commons, Estimates for the public service will be laid before you. My Lords and Members of the House of Commons, In Northern Ireland, my Government will continue to work closely with the political parties and the Irish Government to secure the full implementation of the Belfast agreement. My Government maintain their commitment to devolution in Scotland and Wales. Following consultation, my Government will introduce legislation to implement the second phase of House of Lords reform. My Government will prepare legislation to allow political parties to make positive moves to increase the representation of women in public life. My Government will publish draft legislation to take forward the recommendations of Lord Cullen's inquiry into rail safety. Legislation will be introduced to reform the system of land registration to promote greater electronic conveyancing. The Bill to reform the purchase of freeholds by leaseholders and to create commonhold, a new form of tenure for flat owners, will be reintroduced. My Government will introduce legislation to make the age entitlement for concessionary travel fares the same for men and women at the age of 60. A Bill will be introduced to reform adoption law to make children's interests paramount, and tackle inter-country adoption. My Government will enable a free vote to take place on the future of hunting with dogs. Other measures will be laid before you. My Lords and Members of the House of Commons, The Duke of Edinburgh and I were delighted to pay a state visit to Norway at the end of May. Similarly, we were pleased to receive the state visit of His Excellency the President of South Africa and Mrs Mbeki last week. The Duke of Edinburgh and I look forward to attending the Commonwealth Heads of Government meeting in Australia and subsequently visiting New Zealand in October. We also look forward to receiving a state visit by the King and Queen of Jordan this autumn. My Government will work with our partners to make sure that Europe has the most competitive knowledge-based economy in the world. They will work for rapid progress on the enlargement of the European Union and will introduce legislation to enable the United Kingdom to ratify the Treaty of Nice and implement the Berlin Own Resources decision on the Union's future funding. NATO will remain the cornerstone of Britain's national security, and my Government will work for a still more effective alliance defence. In this context, and to enable the European Union to act where NATO chooses not to do so, my Government will work to improve the European Union's capacity, and member states' capabilities, for humanitarian, peacekeeping and crisis management tasks. Legislation will be introduced to improve the transparency of export controls and to establish their purpose. Tackling climate change and making a reality of sustainable development will be a priority for my Government. They will fulfil the United Kingdom's international obligations arising from the Kyoto Protocol. My Government will work for an early and comprehensive world trade round, which will benefit industrialised and developing countries alike. In the United Nations, my Government will support a more modern and representative Security Council, and work to make conflict prevention and peacekeeping more effective. My Government will work to encourage universal observance of human rights, including throughout the Commonwealth. My Government will continue to work for a more effective global effort to reduce poverty, and will reintroduce their Bill to entrench and strengthen the poverty focus to development work. My Lords and Members of the House of Commons, I pray that the blessing of Almighty God may rest upon your counsels.

UK

My Lords and Members of the House of Commons, My Government's main priorities are economic stability, investment and reform in public services and a constructive foreign policy. To this end, my Government will maintain sound public finances and will continue to take action to secure high levels of employment. This approach will enable my Government to continue to invest in the public services, while supporting major programmes of reform on health, education, transport and crime. At the heart of my Government's legislative programme is a commitment to reform and rebalance the criminal justice system to deliver justice for all and to safeguard the interests of victims, witnesses and communities. A Bill will be introduced to reform sentencing arrangements and criminal procedures. Sentencing will be reformed to ensure that the punishment is appropriate for the offender. New types of sentence will be introduced to protect the public from dangerous offenders, help reduce re-offending and deal with young offenders. The Bill will also allow retrials for those acquitted of serious offences where new and compelling evidence emerges. It will also simplify the rules of evidence to allow judge and jury to hear all the facts, including relevant previous convictions of a defendant. Legislation will also be introduced to reform the courts system. It will bring together magistrates' courts and the Crown Court to work more effectively under a single organisation. New sanctions will allow courts to enforce the payment of fines more efficiently. My Government will introduce a Bill to tackle anti-social behaviour that damages communities. A Bill will be brought forward to modernise the laws on sexual offences and to strengthen the framework of penalties for sex offenders to protect the public. A Bill will also be introduced to improve international co-operation in tackling crime, including drugs trafficking, and to modernise the arrangements for international mutual assistance to catch criminals. My Government will bring forward legislation to streamline the licensing system for premises selling alcohol. This will abolish fixed opening hours and introduce a range of measures to reduce anti-social behaviour. My Government will continue to modernise the delivery of healthcare based on the founding principles of the National Health Service. Legislation will be brought forward to devolve power and resources to frontline staff; give greater freedom to successful hospitals while increasing their accountability to local communities; and to introduce an independent health inspectorate. A Bill will also be introduced to help ensure that local authorities support older people awaiting discharge from hospital. Raising educational standards remains my Government's main priority for Britain's future prosperity. Secondary school reform will continue to promote opportunity and choice through greater diversity for parents and pupils. University reform proposals will be published to improve access and build on excellence. My Government want to create a welfare state based on giving people rights and responsibilities. They will pursue proposals that focus on the importance of work as part of our social security system. They will also bring forward proposals to tackle problems of truancy. A Bill will be brought forward to establish a railway accident investigation branch in the light of Lord Cullen's recommendations on transport safety and reform the way railways are regulated to improve services for the public. My Government will introduce a Bill to modernise local government by improving the delivery of local services through better financial management and greater freedom for councils based on performance. Legislation will also be introduced to provide for the holding of referendums on the issue of regional governance in England. Legislation will be brought forward to reform the broadcasting and telecommunications industry by promoting competition and investment and giving powers to the Office of Communications. Measures will be brought forward to protect our environment, including legislation on the conservation and proper management of water. My Government will also introduce legislation to speed up the planning system while improving the involvement of local communities. Members of the House of Commons, Estimates for the public services will be laid before you. My Lords and Members of the House of Commons, In Northern Ireland, my Government will continue to work closely with the political parties and the Irish Government to secure the full implementation of the Belfast agreement. Legislation will be brought forward on policing in Northern Ireland. My Government maintain their commitment to devolution in Scotland and Wales. A Bill will be introduced to reform the provision of health services in Wales. A Bill will be introduced to enable Parliament to reach a conclusion on hunting with dogs. Parliament will be invited to scrutinise legislation in draft on a number of measures, reflecting the importance that my Government place on pre-legislative scrutiny by Parliament. Legislation in draft will be published to improve both housing standards and standards of management of private rented accommodation by landlords. Draft legislation will be published on the management of nuclear liabilities. A draft Bill will also be published to reform the laws on corruption. My Government look forward to considering the report from the Joint Committee on House of Lords Reform. Other measures will be laid before you. My Lords and Members of the House of Commons, The Duke of Edinburgh and I look forward to paying a visit to Belgium next spring and to receiving the state visit of His Excellency the President of Russia next summer. My Government will work for rapid progress on enlargement of the European Union, notably at next month's European Council meeting in Copenhagen. Legislation will be introduced to enable the United Kingdom to ratify the accession treaty with prospective member states. My Government will make a decision on whether to recommend entry into the single currency on the basis of the assessment of the five economic tests to be completed by next June. The forthcoming NATO summit in Prague will emphasise the alliance's continuing role as the cornerstone of Britain's national security. My Government will continue work for an enlarged and even more effective NATO, enjoying a close partnership with Russia. My Government will continue to play a leading role in combating terrorism and the proliferation of weapons of mass destruction, which are among the most serious threats to the security of the United Kingdom and our allies. My Government will continue to work with the international community to ensure the implementation of all United Nations Security Council resolutions. My Government will work for rapid and effective implementation of the agreements reached at the recent World Summit for Sustainable Development in Johannesburg and will focus on tackling climate change and finding new ways to meet our energy needs. My Government will continue to work for a more effective global effort to reduce poverty, building on the United Nations Millennium Development Goals and on progress achieved at the recent Monterrey Conference on Financing for Development. Britain's aid budget will be increased and we will work to implement the Africa Action Plan in response to the New Partnership for Africa's Development. My Government will work for a successful outcome to the current round of world trade negotiations that benefits industrialised and developing countries alike. My Lords and Members of the House of Commons, I pray that the blessing of Almighty God may rest upon your counsels.

UK

My Government will maintain its key commitment to economic stability and growth. This will enable my Government to continue to deliver reform of the public services and continue to focus on greater opportunity and social justice, enhanced security and protection and constitutional reform. Delivering a world class education system that enables individuals to achieve their full potential remains my Government's main priority for Britain's future success. Educational reform will continue to raise standards in all schools. A Bill will be introduced to enable more young people to benefit from higher education. Upfront tuition fees will be abolished for all full-time students and a new Office For Fair Access will assist those from disadvantaged backgrounds. Universities will be placed on a sound financial footing. My Government will continue to reform the National Health Service by giving more choice to patients, more freedom to National Health Service staff and more control over hospitals to local communities. My Government will introduce a Bill that will provide all children born from September 2002 with a Child Trust Fund with an initial endowment from the Government and more for poorer children. This will mean that when children reach the age of 18 they have an asset to draw on as a springboard for the future. Legislation will also be introduced to encourage both employers to provide good quality pensions and individuals to save more effectively for their retirement. A Pension Protection Fund will be set up to protect employees and pensioners if companies become insolvent. My Government will maintain its commitment to increased equality and social justice by bringing forward legislation on the registration of civil partnerships between same sex couples. A draft Bill will also be published responding to a review of the law relating to disabilities as part of my Government's programme to extend the rights and opportunities of disabled people. My Government is committed to the maintenance of an effective asylum and immigration system. Legislation will therefore be brought forward to establish a single tier of appeal against asylum decisions, to reduce the scope for delay caused by groundless appeals, and to put in place a range of other measures to tackle abuse of the system and fraudulent claims. My Government will take forward work on an incremental approach to a national identity cards scheme and will publish a draft Bill in the new year. My Government will continue to make the reduction of crime and the fear of crime a priority. The Government will be implementing the Criminal Justice Act to ensure the effective punishment of dangerous and persistent offenders. Firm action will continue to be taken against anti-social behaviour by strengthening the powers available to schools and local authorities. Measures will be introduced to modernise the laws on domestic violence and to establish a Commissioner to speak up for the interests of victims and witnesses. A Bill will be introduced to improve the services designed to protect children. A Children's Commissioner for England will be established. A draft Bill will be brought forward on the Criminal Defence Service. The threat of international terrorism and a changing climate have led to a series of emergencies and heightened concerns for the future. My Government will introduce a Bill creating a long-term foundation for civil contingencies capable of meeting these challenges at national and local level. A Bill will also be brought forward to improve the delivery of fire and rescue services, ensuring that they can respond to the changing demands placed on them in the modern world. A Bill will also be introduced to regulate retention of human tissues after death. My Government will continue its programme of constitutional reform by establishing a Supreme Court, reforming the Judicial Appointments System and providing for the abolition of the current office of Lord Chancellor. Legislation will be brought forward to reform the House of Lords. This will remove hereditary peers and establish an independent Appointments Commission to select non-party members of the Upper House. A draft Bill will be published to enable a referendum to be held on the adoption of the single currency subject to the Government's five economic tests being met. My Government will continue to take forward a Bill on election pilots introduced during the last session. My Government is committed to improving the quality of people's day to day lives. Legislation will be introduced on housing that will help create a fairer housing market and protect the most vulnerable. My Government will continue to take forward a Bill on planning introduced during the last session, which will make the planning system fairer and faster with greater community participation. Legislation will also be brought forward to improve traffic flows and manage road works more effectively. A draft Bill will be published to enable some local authorities to pilot new arrangements for school transport to reduce road congestion. My Government will also introduce legislation on energy matters, to establish a Nuclear Decommissioning Authority and to promote secure, sustainable supplies and a safer environment. My Government will maintain sound public finances and will continue to take action to secure high levels of employment and encourage enterprise. Legislation will be introduced to implement the conclusions of the Government's review of the Employment Relations Act 1999. Legislation will also be introduced to modernise company accounting and audit arrangements. A thriving not-for-profit sector is part of the fabric of a modem democratic society. My Government will introduce a Bill to create Community Interest Companies which will enable social enterprises to meet the needs of their communities in new and innovative ways. A draft Bill on charities will also be published which will modernise charity law and better enable charities to prosper. Further draft clauses of a Bill on gambling will also be published. My Government will continue to take forward a programme of Regulatory Reform Orders to simplify and reform burdensome and outdated legislation. Members of the House of Commons Estimates for the Public Services will be laid before you. My Lords and Members of the House of Commons My Government will continue to work closely with the devolved administrations in Scotland and Wales. Bills will be introduced to create a single public audit body for Wales and to retain the current number of members in the Scottish Parliament. In Northern Ireland, my Government will continue to work closely with the political parties and the Irish Government to secure the full implementation of the Belfast Agreement. Legislation will be brought forward to establish a Northern Ireland Judicial Appointments Commission. Other measures will be laid before you. The Duke of Edinburgh and I look forward to paying a State Visit to Nigeria in December and attending the Commonwealth Heads of Government Meeting. We look forward to receiving the State Visit of His Excellency the President of Poland next May. To mark the centenary of the Entente Cordiale, we look forward to paying a State Visit to France next April and to receiving His Excellency the President of France in the autumn. My Government will play an active role in preparing the European Union for the accession of ten new member states next May. They will work hard to conclude negotiations on a new constitutional treaty for the European Union, following which they will introduce legislation to implement the treaty. My Government will work for a strong partnership between Europe and the United States, underpinned by NATO, and for effective action in tackling the threat from global terrorism and weapons of mass destruction. My Government will maintain Britain's commitment to rebuilding Afghanistan and Iraq, to promoting peace in the Middle East, and to tackling the underlying causes of conflict and extremism. They will help war-torn countries, particularly in Africa, to seize the opportunities for development which peace can bring. My Government will publish a Defence White Paper providing a statement of Defence Policy and an assessment of the new strategic environment in which the Armed Forces operate. A Bill will be introduced to give enabling powers to bring in new pension and compensation arrangements for the Armed Forces. My Government will work to reduce world poverty and for the achievement of the Millennium Development Goals, including increased aid flows and effective debt relief for developing countries committed to reform. My Government will press for a fairer trade system as part of the current round of world trade negotiations. They will work to strengthen the United Nations in response to key global challenges such as AIDS and climate change. My Lords and Members of the House of Commons, I pray that the blessing of Almighty God may rest upon your counsels.

UK

My Lords and Members of the House of Commons, My Government will continue to pursue policies which entrench economic stability and promote growth and prosperity. My Government will continue to reform the public services to ensure they provide more security and opportunity for all. My Government attach the highest importance to extending educational opportunity so that all individuals can realise their full potential and the country can benefit from the talents of all its people. A Bill will be introduced to streamline the regime of school inspections to help raise standards for every child in every school. A Bill will be introduced to extend financial support for 16 to 19 year-olds engaged in training and education. My Government recognise that we live in a time of global uncertainty with an increased threat from international terrorism and organised crime. Measures to extend opportunity will be accompanied by legislation to increase security for all. My Government will legislate to introduce an identity cards scheme, and will publish proposals to support the continuing fight against terrorism in the United Kingdom and elsewhere. Legislation will be introduced to establish the Serious Organised Crime Agency, and the powers the police and others have to fight crime will be strengthened. In particular, the Bill will introduce new measures to deal with harassment by animal rights extremists. My Government will introduce legislation to tackle the problem of drug abuse and the crime that flows from it, and will tackle the disorder and violence that can arise from the abuse of alcohol. My Government have always recognised the importance of clean and safe neighbourhoods. There will be further legislation to tackle anti-social behaviour. A Bill will be introduced to help to reduce further the numbers of those killed or injured on the roads. My Government will bring forward legislation to reduce reoffending by improving the management of offenders. A draft Bill will be published to tackle juvenile crime through more effective rehabilitation and sentencing. Legislation will be introduced to reform the criminal defence service, making better use of legal aid resources. A draft Bill will be published to support those with legitimate civil claims and reform the system of tribunals. A draft Bill will be published to introduce a new offence of corporate manslaughter. My Government will continue to take action to secure high levels of employment as they reform the welfare state. My Government will continue to provide protection from discrimination and exploitation. Legislation will be introduced to combat discrimination in the provision of goods and services on the grounds of religion, as well as race, sex and disability. A single Commission for Equality and Human Rights will be established. My Government will maintain their commitment to social justice and legislate to increase the rights of disabled people. My Government will continue their reform of the National Health Service, offering more information, power and choice to patients, with equal access for all and free at the point of delivery. My Government will continue with legislation to provide a statutory framework for dealing with the financial, health and welfare decisions of those people who might lack capacity through mental illness or disability. Measures to reform the law on mental health will continue to undergo pre-legislative scrutiny. My Government believe that the welfare of children is paramount. Draft legislation will be published to safeguard the welfare of children in circumstances of parental separation and inter-country adoption. Consumer credit law will be updated to provide greater protection from unfair lending practices and create a fairer and more competitive credit market. My Government will also introduce a Bill to improve standards of animal welfare and increase the penalties for abuse. My Government will continue to modernise the constitution and institutions of our country to ensure they are equipped to meet the challenges of the future. Legislation will be brought forward to provide a modern and comprehensive framework for statutory inquiries into matters of public concern. My Government will continue to take forward in this session the constitutional legislation introduced last year. A Bill will be introduced to give effect to the Constitutional Treaty for the European Union, subject to a referendum. My Government are committed to reducing bureaucracy and the costs of government, and to promoting efficiency. A Bill will be introduced to integrate the Inland Revenue and Her Majesty's Customs and Excise. My Government recognise the importance of modern, effective and safe transport to meet the needs of the public and the wider economy. Legislation will be introduced to streamline the organisation of the national rail system to improve performance. A Bill will be brought forward to authorise the construction of Crossrail. The Government will continue to legislate to allow local authorities to provide innovative and safe school transport. My Government believe that the voluntary sector is a great strength of this country. Charity law will be modernised so that a vibrant, diverse and independent charitable sector can continue to flourish with public confidence. My Government will introduce legislation to consolidate the distribution of lottery money to good causes. Proposals will be published to protect the nation's rural heritage, through draft legislation to modernise the management of common land, and to create new arrangements to deliver rural policy. Members of the House of Commons, Estimates for the public services will be laid before you. My Lords and Members of the House of Commons, My Government will continue to work closely with the devolved administrations in Scotland and Wales, and will work to bring about the conditions necessary for the restoration of the political institutions in Northern Ireland. Legislation will be introduced to provide the Welsh Assembly with a range of transport-related powers. Other measures will be laid before you. The Duke of Edinburgh and I look forward to our visit to Canada. We look forward to receiving the state visit of His Excellency the President of the Republic of Korea and receiving the state visit of His Excellency the President of Italy. To mark the centenary of Norway's independence, we also look forward to receiving Their Majesties King Harald and Queen Sonja of Norway. My Government will assume the presidency of the European Union in July and will use this opportunity to work towards building an increasingly prosperous and secure Europe. In addition to the European Union presidency, my Government will hold the G8 presidency in 2005, which will include working on the important issues of Africa and climate change. My Government will continue to work with partners around the world to prevent terrorism and the proliferation of nuclear, chemical and biological weapons, and the problems of drug smuggling and international crime. My Government will work to strengthen commitment on both sides of the Atlantic to the transatlantic relationship and to the continued effectiveness of the North Atlantic Treaty Organisation, and will work with the international community to strengthen the United Nations. My Government will continue to support the Government of Iraq to provide security and stability and ensure that elections can be held in January. My Government will continue to support efforts to build peace in the Middle East, to promote democratic reform and reduce conflict and extremism.

UK

My Lords and Members of the House of Commons, My Government will continue to pursue economic policies which entrench stability and promote long-term growth and prosperity. To this end, my Government will continue to secure low inflation and sound public finances. My Government will build on its programme of reform and accelerate modernisation of the public services to promote opportunity and fairness. My Government will bring forward legislation in the key areas of public service delivery: education; health; welfare; and crime. Education remains my Government's main priority. My Government will further reform the education system to improve quality and choice in the provision of schooling, and build on the progress already made to improve educational standards for all. Legislation will be brought forward to offer greater support for working families by extending maternity benefits and improving the provision of child care. My Government will continue to reform the National Health Service in a way that maintains its founding principles. Measures will be brought forward to introduce more choice and diversity in healthcare provision and to continue to improve the quality of health services and hospital hygiene. Legislation to restrict smoking in enclosed public places and workplaces will also be introduced. A Bill will be brought forward to support patients who wish to seek redress should they experience problems with their healthcare. My Government will continue its reform of the welfare state, in order to reduce poverty further, offer greater equality, and match rights with responsibilities. My Government will introduce legislation to reform support for housing costs. A Bill will be introduced to establish benefits which will facilitate a return to employment, while offering long-term support for those unable to work. My Government will begin long-term reform to provide sustainable income for those in retirement. A Bill will be introduced to improve protection of consumers by bringing home reversion plans within the scope of the Financial Services Authority. My Government is committed to creating safe and secure communities, and fostering a culture of respect. Legislation will be taken forward to introduce an identity cards scheme. A Bill will be introduced to give police and local communities new powers to tackle knives, guns and alcohol-related violence. Further legislation will be introduced to tighten the immigration and asylum system in a way that is fair, flexible, and in the economic interests of the country. Proposals will be brought forward to continue the fight against terrorism in the United Kingdom and elsewhere. My Government will bring forward legislation to reduce re-offending by improving the management of offenders. Legislation will be introduced to reform the criminal defence service, making better use of legal aid resources. My Government believes that the welfare of the child is paramount. A Bill will be introduced to establish a barring and vetting scheme, and other measures to provide better protection for children and vulnerable adults. Legislation will be introduced to safeguard the welfare of children in circumstances of parental separation and to improve the process of inter-country adoption. My Government will continue with legislation to provide a new framework for the provision of compulsory treatment of those with mental disorders. Legislation will be introduced to modernise charity law, to develop a vibrant, diverse and independent charitable sector. My Government will take forward proposals to introduce an offence of corporate manslaughter. My Government will bring forward measures to tackle those who incite religious hatred. Legislation will be introduced to combat discrimination and to establish the Commission for Equality and Human Rights. My Government is committed to achieving sustainable development and supporting rural services. Legislation will be brought forward to ensure the better management and protection of the natural environment and to provide support for rural communities. A Bill to modernise the management of common land will be introduced. Legislation will be brought forward to help reduce casualties on the roads. My Government is committed to promoting efficiency, productivity and value for money. Legislation will be introduced to streamline regulatory structures and make it simpler to remove outdated or unnecessary legislation. Consumer credit law will be updated to provide greater protection for consumers and to create a fairer, more competitive credit market. Company law will be reformed to encourage greater levels of investment and enterprise. Members of the House of Commons Estimates for the Public Services will be laid before you. My Lords and Members of the House of Commons My Government will continue to work closely with the devolved administrations in Scotland and Wales, and will work to bring about the conditions necessary for the restoration of political institutions in Northern Ireland. Legislation will be brought forward to encourage greater voter participation in elections while introducing further measures to combat fraud and increase security. Legislation will also be introduced to reform the National Assembly for Wales. My Government will bring forward proposals to continue the reform of the House of Lords. If London is selected to host the 2012 Olympic Games, legislation will be introduced as soon as possible to establish the necessary powers to ensure the delivery of the Games, and that the requirements of the International Olympic Committee are met. My Government will establish a single system of service law for the Armed Forces. My Government will bring forward a Bill to give effect to the Constitutional Treaty for the European Union, subject to a referendum. Legislation will be introduced to ratify the treaty of accession of Romania and Bulgaria to the European Union. Other measures will be laid before you. My Government will continue to play its full part in international affairs. The Duke of Edinburgh and I look forward to our visit to Canada later today and to our state visit to Malta in November which precedes the Commonwealth Heads of Government Meeting. We look forward to our visit to Australia in March next year for the opening of the Commonwealth Games in Melbourne, followed by our State visit to Singapore. We also look forward to receiving Their Majesties King Harald and Queen Sonja of Norway in the autumn. The United Kingdom will take over the Presidency of the European Union in July, and my Government will work to build an increasingly prosperous and secure Europe. My Government will use its Presidency of the G8 to secure progress in tackling poverty in Africa and climate change. My Government will continue to push for a resolution of the conflict in Darfur. My Government will continue to work to prevent terrorism and the proliferation of nuclear, chemical, and biological weapons, and to combat drug smuggling and international crime. My Government will work to strengthen commitment to the continued effectiveness of the North Atlantic Treaty Organisation, and continue to contribute to a modern and representative United Nations. My Government will work to secure a successful outcome from the United Nations Millennium Review Summit and the Ministerial meeting of the World Trade Organisation in Hong Kong in December. My Government will support the Iraq Transitional Government and Transitional National Assembly as they write a constitution and prepare for future elections. My Government will continue to assist the Government of Afghanistan including in its counter-narcotics efforts, and to support better standards of governance throughout the world. Peace in the Middle East will remain one of my Government's highest priorities. My Government will work to deepen and develop the strong partnership between Europe and the United States in order to meet these objectives. My Lords and Members of the House of Commons I pray that the blessing of Almighty God may rest upon your counsels.

UK

My Lords and Members of the House of Commons, My Government will pursue policies aimed at meeting the challenges which the United Kingdom faces at home and abroad. A stable economy is the foundation of a fair and prosperous society. My Government will continue to maintain low inflation, sound public finances and high employment. At the heart of my Government's programme will be further action to provide strong, secure and stable communities, and to address the threat of terrorism. My Government will put victims at the heart of the criminal justice system, support the police and all those responsible for the public’s safety, and proceed with the development of ID cards. A Bill will be brought forward for the next stage of reform of the criminal justice system, giving the police and probation services new powers to protect the public from violent offenders and anti-social behaviour. Legislation will be introduced to improve the way that offenders are managed and supervised. Measures will be brought forward to give law enforcement agencies new powers to combat serious and organised crime. A Bill will be introduced to provide the Immigration Service with further powers to police the country’s borders, tackle immigration crime, and to make it easier to deport those who break the law. A Bill will be introduced to provide for trials without a jury in serious fraud cases. Legislation will be brought forward to improve the administration of justice by reforming the tribunal system, the qualifications for judicial appointment and the enforcement of judgments. My Government will publish a Bill on climate change as part of its policy to protect the environment, consistent with the need to secure long-term energy supplies. My Government will continue their investment in, and reforms of, the public services in order to improve further their effectiveness and to help the most vulnerable members of society. My Government will take forward legislation to reform the welfare system, and to reduce poverty. A Bill will be introduced to improve the system of child support. A Bill will be introduced providing for long-term reform of pensions. Legislation will provide for free off-peak local bus travel for pensioners and disabled people. My Government’s programme of educational reform will continue to raise standards in schools to help all children achieve their full potential. A Bill will be introduced to reform the further education system so that it can better equip people with the skills that they and the economy need. My Government will carry through the modernisation of healthcare based on the founding principles of the National Health Service. A Bill will be introduced to provide a better framework for treating people with mental disorders. Draft proposals will be published to reform the regulation of human embryology. A draft Bill will be published to tackle road congestion and to improve public transport. My Government will publish proposals to reform the planning system. Legislation will provide for improved arrangements for consumer advocacy and for the regulation of estate agents. My Government will also continue its programme of reform to provide institutions that better serve a modern democracy. It will work to build a consensus on reform of the House of Lords and will bring forward proposals. Bills will provide for reform of local government and enhanced powers for the Mayor and Assembly for London. Legislation will be introduced to create an independent board to enhance confidence in government statistics. Members of the House of Commons, Estimates for the public services will be laid before you. My Lords and Members of the House of Commons, My Government will work closely with the devolved Administrations in Scotland and Wales. My Government will work towards the restoration of devolution in Northern Ireland, including by bringing forward legislation. The Duke of Edinburgh and I look forward to our state visit to the United States of America in May 2007 to celebrate the 400th anniversary of the Jamestown Settlement. We also look forward to receiving the President of Ghana and Mrs Kufuor. My Government remains committed to peace in the Middle East. It will continue to work to find a lasting settlement between Israel and the Palestinians, to support the new Iraqi Government in its efforts to build an enduring constitutional settlement, and to assist the Government of Afghanistan. My Government will work with the United Nations and European Union partners to prevent the spread of weapons of mass destruction, including addressing international concerns over North Korea and Iran, and to promote good governance. My Government will continue to work to build an effective and globally competitive European Union and will also work to strengthen the North Atlantic Treaty Organisation. My Government will contribute to a modern and inclusive United Nations and will work to take forward the World Trade Organisation Doha talks. My Government will continue its focus on Africa, including by seeking a resolution to the crisis in Darfur. I look forward to visiting Kampala next year for the Commonwealth Heads of Government Meeting. My Government will work to foster a strong partnership between Europe and the United States of America in order to meet these objectives. Other measures will be laid before you. My Lords and Members of the House of Commons: I pray that the blessing of Almighty God may rest upon your counsels

UK

My Lords and Members of the House of Commons, my Government will take forward policies to respond to the rising aspirations of the people of the United Kingdom; to ensure security for all; and to entrust more power to Parliament and the people. My Government’s programme will meet people’s aspirations for better education, housing, healthcare and children’s services, and for a cleaner environment. My Government is committed to raising educational standards and giving everyone the chance to reach their full potential. A Bill will be introduced to ensure that young people stay in education or training until age 18, and to provide new rights to skills training for adults. Draft legislation will be brought forward to reform apprenticeships. Available and affordable housing is one of my Government’s main priorities. Legislation will be introduced to create a new Homes and Communities Agency that will deliver more social and affordable housing, and promote regeneration. There will also be a Bill to reform the planning system, providing for quicker and more transparent decision-making. My Government is committed to providing a healthcare system organised around the needs of the patient. Legislation will be introduced to create a stronger health and social care regulator with a remit to ensure clean and safe services and high-quality care. A Bill will be brought forward to reform the regulation of human embryology and to ensure that Britain remains at the forefront of medical research. My Government wants all children to have the best possible start in life. There will be a Bill to improve services for vulnerable children and young people, including those in care. My Government will bring forward proposals to help people achieve a better balance between work and family life. Legislation will be introduced to enable unclaimed money in dormant bank accounts to be used for youth facilities, financial inclusion and social investment. A Bill will place a duty on every employer to contribute to good-quality workplace pensions for their employees. My Government is committed to protecting the environment and to tackling climate change, both at home and abroad. A Bill will be brought forward to make the United Kingdom the first country in the world to introduce a legally binding framework to reduce carbon dioxide emissions. My Government will introduce legislation to provide clean, secure and affordable supplies of energy. There will be legislation to tackle congestion and improve public transport. Alongside measures to meet rising aspirations, my Government will take further action to create stronger communities and tackle terrorism. Legislation to reform the criminal justice system will continue to be taken forward, with the aim of protecting the public and reducing reoffending. My Government will publish a draft Bill on citizenship. My Government will seek a consensus on changes to the law on terrorism so that the police and other agencies have the powers they need to protect the public, whilst preserving essential rights and liberties. My Government will pursue policies to secure a stable and strong economy, with low inflation, sound public finances and high levels of employment. Legislation will be brought forward to protect depositors and ensure confidence in the banking system. A Bill will be introduced to reduce regulatory burdens on business. My Government is committed to openness and accountability and to a strong Parliament able to hold the Government properly to account. Proposals will be brought forward to renew the constitutional settlement and strengthen the relationship between the Government, Parliament and the people. My Government will bring forward proposals on the regulation of party finance and expenditure. Members of the House of Commons, estimates for the public services will be laid before you. My Lords and Members of the House of Commons, my Government will continue to work closely with the devolved Administrations in the interests of all the people of the United Kingdom. My Government will continue to work to build a prosperous and secure European Union, better able to respond to the challenges of globalisation. Legislation will be brought forward to enable Parliament to approve the European Union reform treaty. Reducing global poverty will be a high priority for my Government, with renewed efforts to achieve the millennium development goals. The Duke of Edinburgh and I look forward to visiting Uganda later this month for the Commonwealth Heads of Government Meeting. My Government will continue to work with the Government of Iraq to deliver security, political reconciliation and economic reconstruction. My Government will continue to support the Government of Afghanistan as it tackles extremism, instability and the narcotics trade. My Government will continue to work with the United Nations, G8 and European Union to prevent the spread of weapons of mass destruction, including addressing international concerns over Iran’s nuclear intentions. My Government will maintain Britain’s strong commitment to reaching a lasting peace settlement between Israel and the Palestinians. Other measures will be laid before you. My Lords and Members of the House of Commons, I pray that the blessing of Almighty God may rest upon your counsels.

UK

My Lords and Members of the House of Commons, my Government's overriding priority is to ensure the stability of the British economy during the global economic downturn. My Government is committed to helping families and businesses through difficult times. The strength of the financial sector is vital to the future vibrancy of the economy. Therefore, legislation will continue to be taken forward to ensure fairer and more secure protection for bank depositors and to improve the resilience of the financial sector. My Government will also bring forward proposals to create Saving Gateway Accounts to encourage people on lower incomes to save more by offering financial incentives. My Government will bring forward legislation to promote local economic development and to create greater opportunities for community and individual involvement in local decision-making. A Bill will be brought forward to reform the welfare system, to improve incentives for people to move from benefits into sustained employment and to provide greater support, choice and control for disabled people. My Government is committed to protecting the public and ensuring the nation's safety. A Bill will be brought forward to increase the effectiveness and public accountability of policing, to reduce crime and disorder and to enhance airport security. My Government will also bring forward a Bill to deliver a more effective, transparent and responsive justice system for victims, witnesses and the wider public. The Bill would also improve the coroners service, and the process of death certification, and provide increased support for bereaved families, including the families of servicemen and women. A Bill will be brought forward to strengthen border controls, by bringing together customs and immigration powers. The Bill would also ensure that newcomers to the United Kingdom earn the right to stay. My Government is committed to ensuring everyone has a fair chance in life. My Government will bring forward a Bill to promote equality, fight discrimination and introduce transparency in the workplace to help address the difference in pay between men and women. My Government will enshrine in law its commitment to eradicate child poverty by 2020. Because the health of the nation is vital to its success and well-being, a Bill will be brought forward to strengthen the National Health Service. The Bill would create a duty to take account of the new National Health Service Constitution that will set out the core principles of the Service and the rights and responsibilities of patients and staff. The Bill would also introduce measures to improve the quality of health care and public health. My Government will bring forward a Bill to reform education, training and apprenticeships, to promote excellence in all schools, to improve local services for children and parents and to provide a right for those in work to request time for training. My Government will continue to take forward proposals on constitutional renewal, including strengthening the role of Parliament and other measures. My Government will bring forward measures to protect the environment for future generations. A Bill will be introduced to manage marine resources and to create a new right of public access to the coastline. My Government will continue to work closely with the devolved administrations in the interests of all the people of the United Kingdom. My Government is committed to the Northern Ireland political process and will bring forward further measures for sustainable, devolved government. Members of the House of Commons, estimates for the public services will be laid before you. My Lords and Members of the House of Commons, my Government will work towards European action on economic stability, on climate change, on energy, enlargement and security. My Government will work for a coordinated international response to the global downturn, including by hosting the next G20 Summit on financial markets and the world economy in the United Kingdom in April next year and reforming financial institutions. My Government will continue to work as part of the North Atlantic Treaty Organisation including at its sixtieth anniversary summit. My Government will press for a comprehensive peace settlement in the Middle East, for continued progress in Iraq and for effective measures to address concerns over Iran's nuclear programme. My Government will work with the Governments of Afghanistan and Pakistan for security, stability and prosperity. The Duke of Edinburgh and I look forward to receiving the President of Mexico. Other measures will be laid before you. My Lords and Members of the House of Commons: I pray that the blessing of Almighty God may rest upon your counsels.

UK

My Lords and Members of the House of Commons, my Government's legislative programme will be based upon the principles of freedom, fairness and responsibility. The first priority is to reduce the deficit and restore economic growth. Action will be taken to accelerate the reduction of the structural budget deficit. A new Office for Budget Responsibility will provide confidence in the management of the public finances. The tax and benefits system will be made fairer and simpler. Changes to National Insurance will safeguard jobs and support the economy. People will be supported into work with sanctions for those who refuse available jobs and the timetable for increasing the State Pension Age will be reviewed. Legislation will reform financial services regulation to learn from the financial crisis and to make fair and transparent payments to Equitable Life policy holders. My Government will support investment in new high-speed broadband internet connections, enable the construction of a high-speed railway network and reform the economic regulation of airports to benefit passengers. My Government will modernise the Royal Mail, in partnership with employees, and will ensure it benefits from private sector capital and disciplines. My Government will limit the number of non-European Union economic migrants entering the United Kingdom and end the detention of children for immigration purposes. Legislation will be introduced to improve energy efficiency in homes and businesses, to promote low carbon energy production and to secure energy supplies. My Government will remove barriers to flexible working and promote equal pay. My Government will seek to build a strong and fair society by reforming public services and encouraging individual and social responsibility. Legislation will be introduced to enable more schools to achieve academy status, give teachers greater freedom over the curriculum and allow new providers to run state schools. The voice of patients and the role of doctors will be strengthened in the National Health Service to improve public health alongside actions to reduce health inequalities. A commission will be appointed to consider a sustainable long-term structure for the operation of social care. A Bill will be introduced to make the police service more accountable to local people and to tackle alcohol-related violence and anti-social behaviour. The role of social enterprises, charities and co-operatives in our public services will be enhanced. The cost of bureaucracy and the number of public bodies will be reduced. A Bill will be introduced to devolve greater powers to councils and neighbourhoods and give local communities control over housing and planning decisions. Legislation will be introduced to stop uncompleted plans to create unitary councils. My Government will propose Parliamentary and political reform to restore trust in democratic institutions and rebalance the relationship between the citizen and the state. Measures will be brought forward to introduce fixed term Parliaments of five years. A Bill will be introduced for a referendum on the Alternative Vote system for the House of Commons and to create fewer and more equal sized constituencies. Constituents will be given the right to recall their Members of Parliament where they are guilty of serious wrongdoing. Proposals will be brought forward for a reformed second House that is wholly or mainly elected on the basis of proportional representation. Action will be taken to reform the funding of political parties. A draft Bill will be published on reforming parliamentary privilege. Legislation will be brought forward to restore freedoms and civil liberties, through the abolition of Identity Cards and repeal of unnecessary laws. My Government will work constructively and co-operatively with the devolved institutions. My Government will introduce legislation to implement recommendations from the Final Report of the Commission of Scottish Devolution and is committed to a referendum on additional powers for the National Assembly of Wales. My Government will support the political institutions and stable devolved government in Northern Ireland. Members of the House of Commons, estimates for the public services will be laid before you. My Lords and Members of the House of Commons, my Government will introduce legislation to ensure that in future this Parliament and the British people have their say on any proposed transfer of powers to the European Union. The Duke of Edinburgh and I look forward to our visit to Canada in June and to our visit to the United Nations in New York in July. We also look forward to receiving His Holiness Pope Benedict the Sixteenth in September. My Government will seek effective global collaboration to sustain economic recovery and to combat climate change, including at the climate change conference in Mexico later this year. My Government will fully support our courageous Armed Forces and undertake a full Strategic Defence and Security Review. My Government will work with the Afghan government, Pakistan and international partners for lasting security and stability in Afghanistan. My Government looks forward to an enhanced partnership with India. In the Middle East, my Government will continue to work for a two-state solution that sees a viable Palestinian state existing in peace and security alongside Israel. My Government will work to reduce the threat from nuclear weapons and nuclear proliferation including the serious international concerns posed by Iran's nuclear programme. My Government is committed to spend nought point seven per cent of gross national income in development aid from 2013. Other measures will be laid before you. My Lords and Members of the House of Commons, I pray that the blessing of Almighty God may rest upon your counsels".

UK

My Lords and Members of the House of Commons, my Government's legislative programme will focus on economic growth, justice and constitutional reform. My Ministers' first priority will be to reduce the deficit and restore economic stability. Legislation will be introduced to reduce burdens on business by repealing unnecessary legislation and to limit state inspection of businesses. My Government will introduce legislation to reform competition law to promote enterprise and fair markets. My Government will introduce legislation to establish a Green Investment Bank. Measures will be brought forward to further strengthen regulation of the financial services sector and implement the recommendations of the Independent Commission on Banking. My Government will introduce legislation to establish an independent adjudicator to ensure supermarkets deal fairly and lawfully with suppliers. A Bill will be introduced to reduce burdens on charities, enabling them to claim additional payments on small donations. My Government will propose reform of the electricity market to deliver secure, clean and affordable electricity and ensure prices are fair. A draft Bill will be published to reform the water industry in England and Wales. My Government will bring forward measures to modernise the pension system and reform the state pension, creating a fair, simple and sustainable foundation for private saving. Legislation will be introduced to reform public service pensions in line with the recommendations of the independent commission on public service pensions. A draft Bill will be published setting out measures to close the Audit Commission and establish new arrangements for the audit of local public bodies. My Government will strive to improve the lives of children and families. My Government will propose measures to improve provision for disabled children and children with special educational needs. New arrangements will be proposed to support children involved in family law cases, reform court processes for children in care and strengthen the role of the Children's Commissioner. Measures will be proposed to make parental leave more flexible so both parents may share parenting responsibilities and balance work and family commitments. A draft Bill will be published to modernise adult care and support in England. My Government will continue to work with the fifteen other Commonwealth Realms to take forward reform of the rules governing succession to the Crown. Legislation will be brought forward which will introduce individual registration of electors and improve the administration of elections. A Bill will be brought forward to reform the composition of the House of Lords. My Government will continue to work constructively and co-operatively with the devolved institutions. Members of the House of Commons, estimates for the public services will be laid before you. My Lords and Members of the House of Commons, my Government is committed to reducing and preventing crime. A Bill will be introduced to establish the National Crime Agency to tackle the most serious and organised crime and strengthen border security. The courts and tribunals service will be reformed to increase efficiency, transparency and judicial diversity. Legislation will be introduced to protect freedom of speech and reform the law of defamation. My Government will introduce legislation to strengthen oversight of the security and intelligence agencies. This will also allow courts, through the limited use of closed proceedings, to hear a greater range of evidence in national security cases. My Government intends to bring forward measures to maintain the ability of the law enforcement and intelligence agencies to access vital communications data under strict safeguards to protect the public, subject to scrutiny of draft clauses. My Government will seek the approval of Parliament relating to the agreed financial stability mechanism within the euro area. My Government will seek the approval of Parliament on the anticipated accession of Croatia to the European Union. My Government will work to support a secure and stable Afghanistan, to reduce the threat of nuclear proliferation, including in Iran, and to bring greater stability to the Horn of Africa. In the Middle East and North Africa, my Government will support the extension of political and economic freedom in countries in transition. My Government has set out firm plans to spend nought point seven per cent of gross national income as official development assistance from 2013. This will be the first time the United Kingdom has met this agreed international commitment. My Government will build strategic partnerships with the emerging powers. The United Kingdom will assume the Presidency of the G8 in 2013: my Government will use this opportunity to promote international security and prosperity. In the year of the Diamond Jubilee, Prince Philip and I will continue to take part in celebrations across the United Kingdom. The Prince of Wales and other members of my family are travelling widely to take part in festivities throughout the Commonwealth. Prince Philip and I look forward to the London Olympic and Paralympic Games and to welcoming visitors from around the world to London and venues throughout the country. Other measures will be laid before you. My Lords and Members of the House of Commons, I pray that the blessing of Almighty God may rest upon your counsels.

UK

The Queen, seated on the Throne and attended by Her Officers of State, commanded that the Gentleman Usher of the Black Rod should let the Commons know that it was Her Majesty’s pleasure that they attend Her immediately in this House. When they had come with their Speaker, Her Majesty was pleased to speak as follows: “My Lords and Members of the House of Commons, my Government’s legislative programme will continue to focus on building a stronger economy so that the United Kingdom can compete and succeed in the world. It will also work to promote a fairer society that rewards people who work hard. My Government’s first priority is to strengthen Britain’s economic competitiveness. To this end, it will support the growth of the private sector and the creation of more jobs and opportunities. My Ministers will continue to prioritise measures that reduce the deficit, ensuring interest rates are kept low for home owners and businesses. My Government is committed to building an economy where people who work hard are properly rewarded. It will therefore continue to reform the benefits system, helping people move from welfare to work. Measures will be brought forward to introduce a new employment allowance to support jobs and help small businesses. A Bill will be introduced to reduce the burden of excessive regulation on businesses. A further Bill will make it easier for businesses to protect their intellectual property. A draft Bill will be published establishing a simple set of consumer rights to promote competitive markets and growth. My Government will introduce a Bill that closes the Audit Commission. My Government will continue to invest in infrastructure to deliver jobs and growth for the economy. Legislation will be introduced to enable the building of the High Speed 2 railway line, providing further opportunities for economic growth in many of Britain’s cities. My Government will continue with legislation to update energy infrastructure and to improve the water industry. My Government is committed to a fairer society where aspiration and responsibility are rewarded. To make sure that every child has the best start in life, regardless of background, further measures will be taken to improve the quality of education for young people. Plans will be developed to help working parents with childcare, increasing its availability and helping with its cost. My Government will also take forward plans for a new national curriculum, a world-class exam system and greater flexibility in pay for teachers. My Government will also take steps to ensure that it becomes typical for those leaving school to start a traineeship or an apprenticeship, or to go to university. New arrangements will be put in place to help more people own their own home, with government support provided for mortgages and deposits. My Government is committed to supporting people who have saved for their retirement. Legislation will be introduced to reform the way long-term care is paid for, to ensure the elderly do not have to sell their homes to meet their care bills. My Government will bring forward legislation to create a simpler state pension system that encourages saving and provides more help to those who have spent years caring for children. Legislation will be introduced to ensure sufferers of a certain asbestos-related cancer receive payments where no liable employer or insurer can be traced. My Government will bring forward a Bill that further reforms Britain’s immigration system. The Bill will ensure that this country attracts people who will contribute and deters those who will not. My Government will continue to reduce crime and protect national security. Legislation will be introduced to reform the way in which offenders are rehabilitated in England and Wales. Legislation will be brought forward to introduce new powers to tackle anti-social behaviour, cut crime and further reform the police. In relation to the problem of matching internet protocol addresses, my Government will bring forward proposals to enable the protection of the public and the investigation of crime in cyberspace. Measures will be brought forward to improve the way this country procures defence equipment, as well as strengthening the Reserve Forces. My Ministers will continue to work in co-operation with the devolved Administrations. A Bill will be introduced to give effect to a number of institutional improvements in Northern Ireland. Draft legislation will be published concerning the electoral arrangements for the National Assembly for Wales. My Government will continue to make the case for Scotland to remain part of the United Kingdom. Members of the House of Commons, estimates for the public services will be laid before you. My Lords and Members of the House of Commons, my Government will work to prevent conflict and reduce terrorism. It will support countries in transition in the Middle East and north Africa, and the opening of a peace process in Afghanistan. My Government will work to prevent sexual violence in conflict worldwide. My Government will ensure the security, good governance and development of the Overseas Territories, including by protecting the Falkland Islanders’ and Gibraltarians’ right to determine their political futures. In assuming the presidency of the G8, my Government will promote economic growth, support free trade, tackle tax evasion, encourage greater transparency and accountability while continuing to make progress in tackling climate change. Other measures will be laid before you. My Lords and Members of the House of Commons, I pray that the blessing of Almighty God may rest upon your counsels”.

UK

My Lords and Members of the House of Commons, my Government’s legislative programme will continue to deliver on its long-term plan to build a stronger economy and a fairer society. To strengthen the economy and provide stability and security, my Ministers will continue to reduce the country’s deficit, helping to ensure that mortgage and interest rates remain low. An updated Charter for Budget Responsibility will be brought forward to ensure that future Governments spend taxpayers’ money responsibly. My Government will also continue to cut taxes in order to increase people’s financial security. My Ministers will implement measures to increase further the personal allowance and to freeze fuel duty. Measures will be brought forward for a married couple’s allowance, which will recognise marriage in the tax system. Legislation will be introduced to help make the United Kingdom the most attractive place to start, finance and grow a business. The Bill will support small businesses by cutting bureaucracy and enabling them to access finance. New legislation will require Ministers to set and report on a deregulation target for each Parliament. The legislation will also reduce delays in employment tribunals, improve the fairness of contracts for low-paid workers and establish a public register of company beneficial ownership. Legislation will be introduced to provide for a new statutory code and an adjudicator to increase fairness for public house tenants. Legislation will impose higher penalties on employers who fail to pay their staff the minimum wage. Measures will be brought forward to limit excessive redundancy payments across the public sector. In respect of national insurance contributions, legislation will be brought forward to tackle avoidance and to simplify their collection from the self-employed. My Government will introduce a Bill to bolster investment in infrastructure and reform planning law to improve economic competitiveness. The Bill will enhance the United Kingdom’s energy independence and security by opening up access to shale and geothermal sites and maximising North Sea resources. Legislation will allow for the creation of an allowable solutions scheme to enable all new homes to be built to a zero-carbon standard and will guarantee long-term investment in the road network. My Government will continue to implement major reforms to the electricity market and reduce the use of plastic carrier bags to help protect the environment. A key priority for my Ministers will be to continue to build an economy that rewards those who work hard. Legislation will be brought forward to give those who have saved discretion over the use of their retirement funds. My Government’s pension reforms will also allow for innovation in the private pensions market to give greater control to employees, extend the ISA and premium bond schemes and abolish the savers’ 10 pence tax rate. The overall benefits bill will continue to be capped so that public expenditure continues to be controlled and policies will be pursued so people are helped from welfare to work. My Government will increase housing supply and home ownership by reforming the planning system, enabling new locally-led garden cities and supporting small housebuilding firms. Legislation will be brought forward to sell high-value government land, encouraging development and increasing housing. My Ministers will continue to promote the Help to Buy and Right to Buy schemes to support home ownership. My Government will continue to deliver the best schools and skills for young people. In England, my Ministers will help more schools to become academies and support more free schools to open, whilst continuing investment to deliver more school places. Further reforms to GCSEs and A-levels will be taken forward to raise standards in schools and prepare school pupils for employment. My Government will increase the total number of apprenticeship places to 2 million by the end of the Parliament. My Government will continue to work to build a fairer society. To improve education attainment and child health, my Government will ensure all infants will receive a free school meal. Free childcare will be extended to more of the most disadvantaged two year-olds and a Bill will be introduced to help working families with childcare costs. A Bill will be introduced to strengthen the powers to prevent modern slavery and human trafficking whilst improving support for victims of such crimes. A Bill will be brought forward to provide that where a person acts heroically, responsibly or for the benefit of others, this will be taken into account by the courts. Legislation will be introduced to improve the complaints system in the Armed Forces through the creation of an ombudsman. A serious crime Bill will be brought forward to tackle child neglect, disrupt serious organised crime and strengthen powers to seize the proceeds of crime. My Government will continue its programme of political reform. My Ministers will introduce legislation on the recall of Members of Parliament. My Government will continue to implement new financial powers for the Scottish Parliament and make the case for Scotland to remain a part of the United Kingdom. My Ministers will continue with legislation giving the National Assembly for Wales and Welsh Ministers more power over taxation and investment. My Government will continue to work with the devolved Administration in Northern Ireland to rebalance the economy, promote reconciliation and create a shared future. Draft legislation will be published providing for direct elections to national park authorities in England. Members of the House of Commons, estimates for the public services will be laid before you. My Lords and Members of the House of Commons, the United Kingdom will work for peace and security on Europe’s borders, and for stable relations between Russia and Ukraine based on respect for national sovereignty, territorial integrity and international law. My Government will host the NATO summit in Wales as a sign of the United Kingdom’s commitment to the alliance. My Ministers will strive to improve the humanitarian situation in Syria, to reduce violence and promote a political settlement. It will work for a successful transition in Afghanistan, and will work towards a comprehensive nuclear agreement with Iran. The United Kingdom will lead efforts to prevent sexual violence in conflict worldwide. My Government will work to promote reform in the European Union, including a stronger role for member states and national parliaments. My Ministers will also champion efforts to secure a global agreement on climate change. Prince Philip and I will pay a State Visit to France and will attend events to mark the 70th anniversary of the D-day landings. We look forward to welcoming His Excellency the President of the Republic of Singapore on his forthcoming State Visit. Other measures will be laid before you. My Lords and Members of the House of Commons, I pray that the blessing of Almighty God may rest upon your counsels.

UK

My Lords and Members of the House of Commons, my Government will legislate in the interests of everyone in our country. They will adopt a one-nation approach, helping working people get on, supporting aspiration, giving new opportunities to the most disadvantaged and bringing different parts of our country together. My Government will continue with their long-term plan to provide economic stability and security at every stage of life. They will continue the work of bringing the public finances under control and reducing the deficit, so Britain lives within its means. Measures will be introduced to raise the productive potential of the economy and increase living standards. Legislation will be brought forward to help achieve full employment and provide more people with the security of a job. New duties will require my Ministers to report annually on job creation and apprenticeships. Measures will also be introduced to reduce regulation on small businesses so they can create jobs. Legislation will be brought forward to ensure people working 30 hours a week on the national minimum wage do not pay income tax, and to ensure there are no rises in income tax rates, value added tax or national insurance for the next five years. Measures will be brought forward to help working people by greatly increasing the provision of free childcare. Legislation will be introduced to support home ownership and give housing association tenants the chance to own their own home. Measures will be introduced to increase energy security and to control immigration. My Government will bring forward legislation to reform trade unions and to protect essential public services against strikes. To give new opportunities to the most disadvantaged, my Government will expand the Troubled Families programme and continue to reform welfare, with legislation encouraging employment by capping benefits and requiring young people to earn or learn. Legislation will be brought forward to improve schools and give every child the best start in life, with new powers to take over failing and coasting schools and create more academies. In England, my Government will secure the future of the National Health Service by implementing the National Health Service’s own five-year plan, by increasing the health budget, integrating healthcare and social care, and ensuring the National Health Service works on a seven-day basis. Measures will be introduced to improve access to general practitioners and to mental health care. Measures will also be brought forward to secure the real value of the basic state pension, so that more people live in dignity and security in retirement. Measures will be brought forward to increase the rights of victims of crime. To bring different parts of our country together, my Government will work to bring about a balanced economic recovery. Legislation will be introduced to provide for the devolution of powers to cities with elected metro mayors, helping to build a northern powerhouse. My Government will continue to legislate for high-speed rail links between the different parts of the country. My Government will also bring forward legislation to secure a strong and lasting constitutional settlement, devolving wide-ranging powers to Scotland and Wales. Legislation will be taken forward giving effect to the Stormont House Agreement in Northern Ireland. My Government will continue to work in co-operation with the devolved Administrations on the basis of mutual respect. My Government will bring forward changes to the Standing Orders of the House of Commons. These changes will create fairer procedures to ensure that decisions affecting England, or England and Wales, can be taken only with the consent of the majority of Members of Parliament representing constituencies in those parts of our United Kingdom. My Government will renegotiate the United Kingdom’s relationship with the European Union and pursue reform of the European Union for the benefit of all member states. Alongside this, early legislation will be introduced to provide for an in/out referendum on membership of the European Union before the end of 2017. Measures will also be brought forward to promote social cohesion and protect people by tackling extremism. New legislation will modernise the law on communications data, improve the law on policing and criminal justice, and ban the new generation of psychoactive drugs. My Government will bring forward proposals for a British Bill of Rights. Members of the House of Commons, estimates for the public services will be laid before you. My Lords and Members of the House of Commons, my Government will continue to play a leading role in global affairs, using their presence all over the world to re-engage with and tackle the major international security, economic and humanitarian challenges. My Ministers will remain at the forefront of the NATO alliance and of international efforts to degrade and ultimately defeat terrorism in the Middle East. The United Kingdom will continue to seek a political settlement in Syria, and will offer further support to the Iraqi Government’s programme for political reform and national reconciliation. My Government will maintain pressure on Russia to respect the territorial integrity and sovereignty of Ukraine, and will insist on the full implementation of the Minsk agreements. My Government look forward to an enhanced partnership with India and China. Prince Philip and I look forward to our State Visit to Germany next month and to our State Visit to Malta in November, alongside the Commonwealth Heads of Government Meeting. We also look forward to welcoming His Excellency the President of The People’s Republic of China and Madame Peng on a State Visit in October. My Government will seek effective global collaboration to sustain economic recovery and to combat climate change, including at the climate change conference in Paris later this year. My Government will undertake a full strategic defence and security review, and do whatever is necessary to ensure that our courageous Armed Forces can keep Britain safe. My Government will work to reduce the threat from nuclear weapons, cyber attacks and terrorism. Other measures will be laid before you. My Lords and Members of the House of Commons, I pray that the blessing of Almighty God may rest upon your counsels.

UK

My Lords and Members of the House of Commons, my Government’s priority is to secure the best possible deal as the country leaves the European Union. My Ministers are committed to working with Parliament, the devolved Administrations, business and others to build the widest possible consensus on the country’s future outside the European Union. A Bill will be introduced to repeal the European Communities Act and provide certainty for individuals and businesses. This will be complemented by legislation to ensure that the United Kingdom makes a success of Brexit, establishing new national policies on immigration, international sanctions, nuclear safeguards, agriculture and fisheries. My Government will seek to maintain a deep and special partnership with European allies and to forge new trading relationships across the globe. New Bills on trade and customs will help to implement an independent trade policy, and support will be given to help British businesses export to markets around the world. My Ministers will strengthen the economy so that it supports the creation of jobs and generates the tax revenues needed to invest in the National Health Service, schools and other public services. My Government will continue to improve the public finances while keeping taxes low. It will spread prosperity and opportunity across the country through a new, modern industrial strategy. My Government will work to attract investment in infrastructure to support economic growth. Legislation will be introduced to ensure the United Kingdom remains a world leader in new industries, including electric cars and commercial satellites. A new Bill will also be brought forward to deliver the next phase of high-speed rail. My Government will continue to work to ensure that every child has the opportunity to attend a good school and that all schools are fairly funded. My Ministers will work to ensure people have the skills they need for the high-skilled, high-wage jobs of the future, including through a major reform of technical education. The national living wage will be increased so that people who are on the lowest pay benefit from the same improvements in earnings as higher-paid workers. My Ministers will seek to enhance rights and protections in the modern workplace. Column 6is located here My Government will make further progress to tackle the gender pay gap and discrimination against people on the basis of their race, faith, gender, disability or sexual orientation. Legislation will be brought forward to protect the victims of domestic violence and abuse. My Government will reform mental health legislation and ensure that mental health is prioritised in the National Health Service in England. Proposals will be brought forward to ban unfair tenant fees, promote fairness and transparency in the housing market, and help ensure more homes are built. My Ministers will work to improve social care and will bring forward proposals for consultation. My Government will ensure fairer markets for consumers. This will include bringing forward measures to help tackle unfair practices in the energy market to help reduce energy bills. A priority will be to build a more united country, strengthening the social, economic and cultural bonds between England, Northern Ireland, Scotland and Wales. My Government will work in co-operation with the devolved Administrations, and it will work with all the parties in Northern Ireland to support the return of devolved government. A new law will ensure that the United Kingdom retains its world-class regime protecting personal data, and proposals for a new digital charter will be brought forward to ensure that the United Kingdom is the safest place to be online. Legislation will also be introduced to modernise the courts system and to help reduce motor insurance premiums. My Government will initiate a full public inquiry into the tragic fire at Grenfell Tower, to ascertain the causes and ensure that the appropriate lessons are learned. To support victims, my Government will take forward measures to introduce an independent public advocate, who will act for bereaved families after a public disaster and support them at public inquests. My Ministers will continue to invest in our gallant Armed Forces, meeting the NATO commitment to spend at least 2% of national income on defence, and delivering on the Armed Forces covenant across the United Kingdom. My Government will bring forward proposals to ensure that critical national infrastructure is protected to safeguard national security. A commission for countering extremism will be established to support the Government in stamping out extremist ideology in all its forms, both across society and on the internet, so it is denied a safe space to spread. In the light of the terrorist attacks in Manchester and London, my Government’s counterterrorism strategy will be reviewed to ensure that the police and security services have all the powers they need, and that the length of custodial sentences for terrorism-related offences is sufficient to keep the population safe. My Ministers Toggle showing location ofColumn 7will ensure that the United Kingdom’s leading role on the world stage is maintained and enhanced as it leaves the European Union. As a permanent member of the United Nations Security Council, committed to spending 0.7% of national income on international development, my Government will continue to drive international efforts that increase global security and project British values around the world. My Government will work to find sustainable political solutions to conflicts across the Middle East. It will work to tackle the threat of terrorism at source by continuing the United Kingdom’s leading role in international military action to destroy Daesh in Iraq and Syria. It will also lead efforts to reform the international system to improve the United Kingdom’s ability to tackle mass migration, alleviate poverty and end modern slavery. My Government will continue to support international action against climate change, including the implementation of the Paris Agreement. Prince Philip and I look forward to welcoming Their Majesties King Felipe and Queen Letizia of Spain on a state visit in July. My Government will host the Commonwealth Summit in April of next year to cement its relevance to this and future generations. Members of the House of Commons, estimates for the public services will be laid before you. My Lords and Members of the House of Commons, other measures will be laid before you. I pray that the blessing of Almighty God may rest upon your counsels.

UK

My Lords and Members of the House of Commons, my Government’s priority is to deliver the United Kingdom’s departure from the European Union on 31 January. My Ministers will bring forward legislation to ensure the United Kingdom’s exit on that date, and to make the most of the opportunities that this brings for all the people of the United Kingdom. Thereafter, my Ministers will seek a future relationship with the European Union based on a free trade agreement that benefits the whole of the United Kingdom. They will also begin trade negotiations with other leading global economies. The integrity and prosperity of the United Kingdom is of the utmost importance to my Government. My Ministers will work urgently to facilitate talks to restore devolved government in Northern Ireland. My Government will embark on an ambitious programme of domestic reform that delivers on the people’s priorities. For the first time, the National Health Service’s multi-year funding settlement, agreed earlier this year, will be enshrined in law. Steps will be taken to grow and support the National Health Service’s workforce and a new visa will ensure qualified doctors, nurses and health professionals have fast-track entry to the United Kingdom. Hospital car parking charges will be removed for those in greatest need. My Ministers will seek cross-party consensus on proposals for long term reform of social care. They will ensure that the social care system provides everyone with the dignity and security they deserve and that no one who needs care has to sell their home to pay for it. My Ministers will continue work to reform the Mental Health Act. A modern, fair, points-based immigration system will welcome skilled workers from across the world to contribute to the United Kingdom’s economy, communities and public services. My Government will bring forward measures to support working families, raising the National Insurance threshold and increasing the National Living Wage. To ensure every child has access to a high-quality education, my Ministers will increase levels of funding per pupil in every school. Measures will be brought forward to encourage flexible working, to introduce the entitlement to leave for unpaid carers and to help people save for later life. New measures will be brought forward to protect Toggle showing location ofColumn 8tenants and to improve building safety. My Government will take steps to support home ownership, including by making homes available at a discount for local first-time buyers. My Ministers will develop legislation to improve internet safety for all. My Government is committed to a fair justice system that keeps people safe. My Ministers will establish a Royal Commission to review and improve the efficiency and effectiveness of the criminal justice process. New sentencing laws will ensure the most serious violent offenders, including terrorists, serve longer in custody. New laws will require schools, police, councils and health authorities to work together to prevent serious crime. My Government will ensure those charged with knife possession face swift justice and that the courts work better for all those who engage with them, including victims of domestic abuse. Legislation will be brought forward to support victims of crime and their families. Measures will be developed to tackle hostile activity conducted by foreign states. My Ministers will bring forward measures to ensure that every part of the United Kingdom can prosper. My Government will invest in the country’s public services and infrastructure whilst keeping borrowing and debt under control; maintaining the sustainability of the public finances through a responsible fiscal strategy. My Government will prioritise investment in infrastructure and world-leading science research and skills, in order to unleash productivity and improve daily life for communities across the country. It will give communities more control over how investment is spent so that they can decide what is best for them. To support business, my Government will increase tax credits for research and development, establish a National Skills Fund, and bring forward changes to business rates. New laws will accelerate the delivery of gigabit capable broadband. To ensure people can depend on the transport network, measures will be developed to provide for minimum levels of service during transport strikes. My Government will continue to take steps to meet the world-leading target of net zero greenhouse gas emissions by 2050. It will continue to lead the way in tackling global climate change, hosting the COP26 Summit in 2020. To protect and improve the environment for future generations, a bill will enshrine in law environmental principles and legally binding targets, including for air quality. It will also ban the export of polluting plastic waste to countries outside the Organisation for Economic Co-operation and Development, and establish a new, world-leading independent regulator in statute. A Constitution, Democracy and Rights Commission will be established. Work will be taken forward to repeal the Fixed-term Parliaments Act. My Ministers will continue to invest in our gallant Armed Forces. My Government will honour the Armed Forces Covenant, which will be further incorporated into law, and the NATO commitment to spend at least two per cent of national income on defence. It will bring forward proposals to tackle vexatious claims that undermine our Armed Forces and will continue to seek better ways of dealing with legacy issues that provide better outcomes for victims and survivors. Column 9is located here My Government will work to promote and expand the United Kingdom’s influence in the world. An Integrated Security, Defence and Foreign Policy Review will be undertaken to reassess the nation’s place in the world, covering all aspects of international policy from defence to diplomacy and development. My Ministers will promote the United Kingdom’s interests, including freedom of speech, human rights and the rule of law. My Government will work closely with international partners to help solve the most complex international security issues and to promote peace and security globally. It will stand firm against those who threaten the values of the United Kingdom, including by developing a sanctions regime to directly address human rights abuse, and working to ensure that all girls have access to twelve years of quality education. Members of the House of Commons, estimates for the public services will be laid before you. My Lords and Members of the House of Commons, other measures will be laid before you. I pray that the blessing of Almighty God may rest upon your counsels.

UK

My Lords and Members of the House of Commons, my Government’s priority has always been to secure the United Kingdom’s departure from the European Union on 31 October. My Government intends to work towards a new partnership with the European Union, based on free trade and friendly co-operation. My Ministers will work to implement new regimes for fisheries, agriculture and trade, seizing the opportunities that arise from leaving the European Union. An immigration Bill, ending free movement, will lay the foundation for a fair, modern and global immigration system. My Government remains committed to ensuring that resident European citizens, who have built their lives in, and contributed so much to, the United Kingdom, have the right to remain. The Bill will include measures that reinforce this commitment. Steps will be taken to provide certainty, stability and new opportunities for the financial services and legal sectors. My Government’s new economic plan will be underpinned by a responsible fiscal strategy, investing in economic growth while maintaining the sustainability of the public finances. Measures will be brought forward to support and strengthen the National Health Service, its workforce and resources, enabling it to deliver the highest quality care. New laws will be taken forward to help implement the National Health Service’s Long Term Plan in England, and to establish an independent body to investigate serious healthcare incidents. My Government will bring forward proposals to reform adult social care in England to ensure dignity in old age. My Ministers will continue work to reform the Mental Health Act to improve respect for, and care of, those receiving treatment. My Government is committed to addressing violent crime, and to strengthening public confidence in the criminal justice system. New sentencing laws will see that the most serious offenders spend longer in custody to reflect better the severity of their crimes. Measures will be introduced to improve the justice system’s response to foreign national offenders. My Government will work to improve safety and security in prisons and to strengthen the rehabilitation of offenders. Proposals will be brought forward to ensure that victims receive the support they need and the justice they deserve. Laws will be introduced to ensure that the parole system recognises the pain to victims and their families caused by offenders refusing to disclose information relating to their crimes. A new duty will be placed on public sector bodies, ensuring they work together to address serious violence. Police officers will be provided with the protections they need to keep the population safe. They will also be awarded the power to arrest individuals who are wanted by trusted international partners. My Government will bring forward measures to protect individuals, families and their homes. Legislation will transform the approach of the justice system and other agencies to victims of domestic abuse, and minimise the impact of divorce, particularly on children. My Ministers will continue to develop proposals to improve internet safety, and will bring forward laws to implement new building safety standards. My Ministers will ensure that all young people have access to an excellent education, unlocking their full potential and preparing them for the world of work. Toggle showing location ofColumn 3My Government will take steps to make work fairer, introducing measures that will support those working hard. To help people plan for the future, measures will be brought forward to provide simpler oversight of pensions savings. To protect people’s savings for later life, new laws will provide greater powers to tackle irresponsible management of private pension schemes. To ensure that the benefits of a prospering economy reach every corner of the United Kingdom, my Ministers will bring forward a National Infrastructure Strategy. This will set out a long-term vision to improve the nation’s digital, transport and energy infrastructure. New legislation will help accelerate the delivery of fast, reliable and secure broadband networks to millions of homes. An aviation Bill will provide for the effective and efficient management of the United Kingdom’s airspace. Proposals on railway reform will be brought forward. A White Paper will be published to set out my Government’s ambitions for unleashing regional potential in England, and to enable decisions that affect local people to be made at a local level. My Government is committed to establishing the United Kingdom as a world leader in scientific capability and space technology. Increased investment in science will be complemented by the development of a new funding agency, a more open visa system, and an ambitious national space strategy. My Ministers remain committed to protecting and improving the environment for future generations. For the first time, environmental principles will be enshrined in law. Measures will be introduced to improve air and water quality, tackle plastic pollution and restore habitats so plants and wildlife can thrive. Legislation will also create new legally binding environmental improvement targets. A new, world-leading independent regulator will be established in statute to scrutinise environmental policy and law, investigate complaints and take enforcement action. Proposals will also be brought forward to promote and protect the welfare of animals, including banning imports from trophy hunting. The integrity and prosperity of the union that binds the four nations of the United Kingdom is of the utmost importance to my Government. My Ministers will bring forward measures to support citizens across all the nations of the United Kingdom. My Government remains committed to working with all parties in Northern Ireland to support the return of devolved government and to address the legacy of the past. My Government will take steps to protect the integrity of democracy and the electoral system in the United Kingdom. My Government will continue to invest in our gallant Armed Forces. My Ministers will honour The Armed Forces Covenant and the NATO commitment to spend at least 2% of national income on defence. As the United Kingdom leaves the European Union, my Government will ensure that it continues to play a leading role in global affairs, defending its interests and promoting its values. Column 4is located here My Government will be at the forefront of efforts to solve the most complex international security issues. It will champion global free trade and work alongside international partners to solve the most pressing global challenges. It will prioritise tackling climate change and ensuring that all girls have access to 12 years of quality education. Members of the House of Commons, estimates for the public services will be laid before you. My Lords and Members of the House of Commons, other measures will be laid before you. I pray that the blessing of Almighty God may rest upon your counsels.

UK

My lords and members of the House of Commons. My Government’s priority is to deliver a national recovery from the pandemic that makes the United Kingdom stronger, healthier and more prosperous than before. To achieve this, my Government will level up opportunities across all parts of the United Kingdom, supporting jobs, businesses and economic growth and addressing the impact of the pandemic on public services. My Government will protect the health of the nation, continuing the vaccination programme and providing additional funding to support the NHS. My Ministers will bring forward legislation to empower the NHS to innovate and embrace technology. Patients will receive more tailored and preventative care, closer to home [Health and Care Bill]. Measures will be brought forward to support the health and wellbeing of the nation, including to tackle obesity and improve mental health. Proposals on social care reform will be brought forward. My Government will build on the success of the vaccination programme to lead the world in life sciences, pioneering new treatments against diseases like cancer and securing jobs and investment across the country. My Ministers will oversee the fastest ever increase in public funding for research and development and pass legislation to establish an advanced research agency [Advanced Research and Invention Agency Bill]. Following the unprecedented support provided to businesses during the pandemic, proposals will be brought forward to create and support jobs and improve regulation. My Government will strengthen the economic ties across the union, investing in and improving national infrastructure. Proposals will be taken forward to transform connectivity by rail and bus [High Speed Rail (Crewe – Manchester) Bill] and to extend 5G mobile coverage and gigabit capable broadband [Product Security and Telecommunications Infrastructure Bill]. Legislation will support a lifetime skills guarantee to enable flexible access to high quality education and training throughout people’s lives [Skills and Post-16 Education Bill]. Measures will be introduced to ensure that support for businesses reflects the United Kingdom’s strategic interests and drives economic growth [Subsidy Control Bill]. Laws will simplify procurement in the public sector [Procurement Bill]. Eight new Freeports will create hubs for trade and help regenerate communities [National Insurance Contributions Bill]. My Government will ensure that the public finances are returned to a sustainable path once the economic recovery is secure. Measures will be brought forward to ensure that children have the best start in life, prioritising their early years. My Ministers will address lost learning during the pandemic and ensure every child has a high quality education and is able to fulfil their potential. My Government will help more people to own their own home whilst enhancing the rights of those who rent. Laws to modernise the planning system, so that more homes can be built, will be brought forward, along with measures to end the practice of ground rents for new leasehold properties [Planning Bill, Leasehold Reform (Ground Rent) Bill]. My Ministers will establish in law a new Building Safety Regulator to ensure that the tragedies of the past are never repeated [Building Safety Bill]. Measures will be brought forward to address racial and ethnic disparities and ban conversion therapy. Legislation will support the voluntary sector by reducing unnecessary bureaucracy and releasing additional funds for good causes [Dormant Assets Bill, Charities Bill]. My Government will invest in new green industries to create jobs, while protecting the environment. The United Kingdom is committed to achieving net zero greenhouse gas emissions by 2050 and will continue to lead the way internationally by hosting the COP26 Summit in Glasgow. Legislation will set binding environmental targets [Environment Bill]. Legislation will also be brought forward to ensure the United Kingdom has, and promotes, the highest standards of animal welfare [Animal Welfare (Sentience) Bill, Kept Animals Bill, Animals Abroad Bill]. My Government will strengthen and renew democracy and the constitution. Legislation will be introduced to ensure the integrity of elections, protect freedom of speech and restore the balance of power between the executive, legislature and the courts [Electoral Integrity Bill, Higher Education (Freedom of Speech) Bill, Judicial Review Bill, Dissolution and Calling of Parliament Bill]. My Ministers will promote the strength and integrity of the union. Measures will be brought forward to strengthen devolved Government in Northern Ireland and address the legacy of the past [Northern Ireland (Ministers, Elections and Petitions of Concerns) Bill, Legacy Legislation]. My Government will introduce measures to increase the safety and security of its citizens. Legislation will increase sentences for the most serious and violent offenders and ensure the timely administration of justice [Police, Crime, Sentencing and Courts Bill]. Proposals will be brought forward to address violence, including against women and girls, and to support victims [Draft Victims Bill]. Measures will be brought forward to establish a fairer immigration system that strengthens the United Kingdom’s borders and deters criminals who facilitate dangerous and illegal journeys [New Plan for Immigration Legislation]. My Government will lead the way in ensuring internet safety for all, especially for children [Draft Online Safety Bill] whilst harnessing the benefits of a free, open and secure internet. My Ministers will provide our gallant Armed Services with the biggest spending increase in thirty years, taking forward their programme of modernisation and reinforcing the United Kingdom’s commitment to NATO. My Ministers will honour and strengthen the Armed Forces Covenant, placing it in law [Armed Forces Bill]. Measures will be introduced to provide National Insurance contribution relief for employers of veterans [National Insurance Contributions Bill]. Legislation will be introduced to counter hostile activity by foreign states [Counter-State Threats Bill, Telecommunications (Security) Bill]. My Ministers will implement the Integrated Review of Security, Defence, Development and Foreign Policy. The United Kingdom will host the G7 Summit and lead the global effort to secure a robust economic recovery from the pandemic. My Ministers will deepen trade ties in the Gulf, Africa and the Indo-Pacific. My Government will continue to provide aid where it has the greatest impact on reducing poverty and alleviating human suffering. My Government will uphold human rights and democracy across the world. It will take forward a global effort to get 40 million girls across the world into school. Members of the House of Commons. Estimates for the public services will be laid before you. My lords and members of the House of Commons. Other measures will be laid before you. I pray that the blessing of Almighty God may rest upon your counsels.

UK

My Lords and members of the House of Commons. My Government’s priority is to grow and strengthen the economy and help ease the cost of living for families. My Government will level up opportunity in all parts of the country and support more people into work. My Ministers will continue to support the police to make the streets safer, and fund the National Health Service to reduce the COVID backlogs. In these challenging times, my Government will play a leading role in defending democracy and freedom across the world, including continuing to support the people of Ukraine. My Government will drive economic growth to improve living standards and fund sustainable investment in public services. This will be underpinned by a responsible approach to the public finances, reducing debt while reforming and cutting taxes. My Ministers will support the Bank of England to return inflation to its target. A Bill will be brought forward to drive local growth, empowering local leaders to regenerate their areas, and ensuring everyone can share in the United Kingdom’s success. The planning system will be reformed to give residents more involvement in local development [Levelling Up and Regeneration Bill]. My Government will improve transport across the United Kingdom, delivering safer, cleaner services and enabling more innovations. Legislation will be introduced to modernise rail services and improve reliability for passengers [Transport Bill]. My Ministers will bring forward an Energy Bill to deliver the transition to cheaper, cleaner, and more secure energy. This will build on the success of the COP26 Summit in Glasgow last year [Energy Security Bill]. Draft legislation to promote competition, strengthen consumer rights and protect households and businesses will be published. Measures will also be published to create new competition rules for digital markets and the largest digital firms [Draft Digital Markets, Competition and Consumer Bill]. My Government will establish the UK Infrastructure Bank in legislation, with objectives to support economic growth and the delivery of net zero [UK Infrastructure Bank Bill]. Reforms to education will help every child fulfil their potential wherever they live, raising standards and improving the quality of schools and higher education [Schools Bill, Higher Education Bill]. My Ministers will publish draft legislation to reform the Mental Health Act [Draft Mental Health Act Reform Bill]. My Government will continue to seize the opportunities of the United Kingdom’s departure from the European Union, to support economic growth. Regulations on businesses will be repealed and reformed. A bill will enable law inherited from the European Union to be more easily amended [Brexit Freedoms Bill]. Public sector procurement will be simplified to provide new opportunities for small businesses [Procurement Bill]. New legislation will strengthen the United Kingdom’s financial services industry, ensuring that it continues to act in the interest of all people and communities [Financial Services and Markets Bill]. The United Kingdom’s data protection regime will be reformed [Data Reform Bill]. My Government will continue to champion international trade, delivering jobs across the country and growing the economy. Legislation will be introduced to enable the implementation of the United Kingdom’s first new Free Trade Agreements since leaving the European Union [Trade (Australia and New Zealand) Bill]. My Ministers will encourage agricultural and scientific innovation at home. Legislation will unlock the potential of new technologies to promote sustainable and efficient farming and food production [Genetic Technology (Precision Breeding) Bill]. My Government will protect the integrity of the United Kingdom’s borders and ensure the safety of its people. My Ministers will take action to prevent dangerous and illegal Channel crossings and tackle the criminal gangs who profit from facilitating them. Legislation will be introduced to ensure the police have the powers to make the streets safer [Public Order Bill]. A bill will be brought forward to further strengthen powers to tackle illicit finance, reduce economic crime and help businesses grow [Economic Crime and Corporate Transparency Bill]. Measures will be introduced to support the security services and help them protect the United Kingdom [National Security Bill]. My Government will lead the way in championing security around the world. It will continue to invest in our gallant Armed Forces. My Ministers will work closely with international partners to maintain a united NATO and address the most pressing global security challenges. The continued success and integrity of the whole of the United Kingdom is of paramount importance to my Government, including the internal economic bonds between all of its parts. My Government will prioritise support for the Belfast (Good Friday) Agreement and its institutions, including through legislation to address the legacy of the past [Northern Ireland Troubles (Legacy and Reconciliation) Bill]. My Government will ensure the constitution is defended. My Ministers will restore the balance of power between the legislature and the courts by introducing a Bill of Rights [Bill of Rights]. Legislation will prevent public bodies engaging in boycotts that undermine community cohesion [Boycotts, Divestment and Sanctions Bill]. My Government will introduce legislation to improve the regulation of social housing to strengthen the rights of tenants and ensure better quality, safer homes [Social Housing Regulation Bill]. Legislation will also be introduced to ban conversion therapy [Conversion Therapy Bill]. Proposals will be published to establish an independent regulator of English football. In this year of my Platinum Jubilee, I look forward to the celebrations taking place across the United Kingdom and throughout the Commonwealth, and to the Commonwealth Games in Birmingham this summer. MEMBERS OF THE HOUSE OF COMMONS Estimates for the public services will be laid before you. MY LORDS AND MEMBERS OF THE HOUSE OF COMMONS Other measures will be laid before you. I pray that the blessing of Almighty God may rest upon your counsels.

UK

Mr. Speaker, Mr. Vice President, members of Congress, honored guests, my fellow Americans: We are fortunate to be alive at this moment in history. Never before has our nation enjoyed, at once, so much prosperity and social progress with so little internal crisis and so few external threats. Never before have we had such a blessed opportunity — and, therefore, such a profound obligation — to build the more perfect union of our founders' dreams. We begin the new century with over 20 million new jobs; the fastest economic growth in more than 30 years; the lowest unemployment rates in 30 years; the lowest poverty rates in 20 years; the lowest African American and Hispanic unemployment rates on record; the first back-to-back budget surpluses in 42 years. And next month, America will achieve the longest period of economic growth in our entire history. We have built a new economy. And our economic revolution has been matched by a revival of the American spirit: crime down by 20 percent, to its lowest level in 25 years; teen births down seven years in a row; adoptions up by 30 percent; welfare rolls cut in half to their lowest levels in 30 years. My fellow Americans, the state of our union is the strongest it has ever been. As always, the real credit belongs to the American people. My gratitude also goes to those of you in this chamber who have worked with us to put progress over partisanship. Eight years ago, it was not so clear to most Americans there would be much to celebrate in the year 2000. Then our nation was gripped by economic distress, social decline, political gridlock. The title of a best-selling book asked: "America: What Went Wrong?" In the best traditions of our nation, Americans determined to set things right. We restored the vital center, replacing outmoded ideologies with a new vision anchored in basic, enduring values: opportunity for all, responsibility from all, a community of all Americans. We reinvented government, transforming it into a catalyst for new ideas that stress both opportunity and responsibility, and give our people the tools they need to solve their own problems. With the smallest federal work force in 40 years, we turned record deficits into record surpluses, and doubled our investment in education. We cut crime, with 100,000 community police and the Brady law, which has kept guns out of the hands of half a million criminals. We ended welfare as we knew it — requiring work while protecting health care and nutrition for children, and investing more in child care, transportation, and housing to help their parents go to work. We've helped parents to succeed at home and at work, with family leave, which 20 millions Americans have now used to care for a newborn child or a sick loved one. We've engaged 150,000 young Americans in citizen service through AmeriCorps, while helping them earn money for college. In 1992, we just had a road map; today, we have results. But even more important, America again has the confidence to dream big dreams. But we must not let this confidence drift into complacency. For we, all of us, will be judged by the dreams and deeds we pass on to our children. And on that score, we will be held to a high standard, indeed, because our chance to do good is so great. My fellow Americans, we have crossed the bridge we built to the 21st century. Now, we must shape a 21st century American revolution — of opportunity, responsibility and community. We must be now, as we were in the beginning, a new nation. At the dawn of the last century, Theodore Roosevelt said, "the one characteristic more essential than any other is foresight...it should be the growing nation with a future that takes the long look ahead." So, tonight, let us take our long look ahead — and set great goals for our nation. To 21st century America, let us pledge these things: Every child will begin school ready to learn and graduate ready to succeed. Every family will be able to succeed at home and at work, and no child will be raised in poverty. We will meet the challenge of the aging of America. We will assure quality, affordable health care, at last, for all Americans. We will make America the safest big country on Earth. We will pay off our national debt for the first time since 1835. We will bring prosperity to every American community. We will reverse the course of climate change and leave a safer, cleaner planet. America will lead the world toward shared peace and prosperity, and the far frontiers of science and technology. And we will become at last what our founders pledged us to be so long ago — one nation, under God, indivisible, with liberty and justice for all. These are great goals, worthy of a great nation. We will not reach them all this year. Not even in this decade. But we will reach them. Let us remember that the first American Revolution was not won with a single shot; the continent was not settled in a single year. The lesson of our history — and the lesson of the last seven years — is that great goals are reached step by step, always building on our progress, always gaining ground. Of course, you can't gain ground if you're standing still. And for too long this Congress has been standing still on some of our most pressing national priorities. So let's begin tonight with them. Again, I ask you to pass a real patients' bill of rights. I ask you to pass common-sense gun safety legislation. I ask you to pass campaign finance reform. I ask you to vote up or down on judicial nominations and other important appointees. And, again I ask you — I implore you — to raise the minimum wage. Now, two years ago — let me try to balance the seesaw here — two years ago, as we reached across party lines to reach our first balanced budget, I asked that we meet our responsibility to the next generation by maintaining our fiscal discipline. Because we refused to stray from that path, we are doing something that would have seemed unimaginable seven years ago. We are actually paying down the national debt. Now, if we stay on this path, we can pay down the debt entirely in 13 just years now and make America debt-free for the first time since Andrew Jackson was President in 1835. In 1993, we began to put our fiscal house in order with the Deficit Reduction Act, which you'll all remember won passages in both Houses by just a single vote. Your former colleague, my first Secretary of the Treasury, led that effort and sparked our long boom. He's here with us tonight. Lloyd Bentsen, you have served America well, and we thank you. Beyond paying off the debt, we must ensure that the benefits of debt reduction go to preserving two of the most important guarantees we make to every American — Social Security and Medicare. Tonight, I ask you to work with me to make a bipartisan down payment on Social Security reform by crediting the interest savings from debt reduction to the Social Security Trust Fund so that it will be strong and sound for the next 50 years. But this is just the start of our journey. We must also take the right steps toward reaching our great goals. First and foremost, we need a 21st century revolution in education, guided by our faith that every single child can learn. Because education is more important than ever, more than ever the key to our children's future, we must make sure all our children have that key. That means quality pre-school and after-school, the best trained teachers in the classroom, and college opportunities for all our children. For seven years now, we've worked hard to improve our schools, with opportunity and responsibility — investing more, but demanding more in turn. Reading, math, college entrance scores are up. Some of the most impressive gains are in schools in very poor neighborhoods. But all successful schools have followed the same proven formula: higher standards, more accountability, and extra help so children who need it can get it to reach those standards. I have sent Congress a reform plan based on that formula. It holds states and school districts accountable for progress, and rewards them for results. Each year, our national government invests more than $15 billion in our schools. It is time to support what works and stop supporting what doesn't. Now, as we demand more from our schools, we should also invest more in our schools. Let's double our investment to help states and districts turn around their worst-performing schools, or shut them down. Let's double our investments in after-school and summer school programs, which boost achievement and keep people off the streets and out of trouble. If we do this, we can give every single child in every failing school in America — everyone — the chance to meet high standards. Since 1993, we've nearly doubled our investment in Head Start and improved its quality. Tonight, I ask you for another $1 billion for Head Start, the largest increase in the history of the program. We know that children learn best in smaller classes with good teachers. For two years in a row, Congress has supported my plan to hire 100,000 new qualified teachers to lower class size in the early grades. I thank you for that, and I ask you to make it three in a row. And to make sure all teachers know the subjects they teach, tonight I propose a new teacher quality initiative — to recruit more talented people into the classroom, reward good teachers for staying there, and give all teachers the training they need. We know charter schools provide real public school choice. When I became President, there was just one independent public charter school in all America. Today, thanks to you, there are 1,700. I ask you now to help us meet our goal of 3,000 charter schools by next year. We know we must connect all our classrooms to the Internet, and we're getting there. In 1994, only 3 percent of our classrooms were connected. Today, with the help of the Vice President's E-rate program, more than half of them are. And 90 percent of our schools have at least one Internet connection. But we cannot finish the job when a third of all our schools are in serious disrepair. Many of them have walls and wires so old, they're too old for the Internet. So tonight, I propose to help 5,000 schools a year make immediate and urgent repairs; and again, to help build or modernize 6,000 more, to get students out of trailers and into high-tech classrooms. I ask all of you to help me double our bipartisan Gear-Up program, which provides mentors for disadvantaged young people. If we double it, we can provide mentors for 1.4 million of them. Let's also offer these kids from disadvantaged backgrounds the same chance to take the same college test-prep courses wealthier students use to boost their test scores. To make the American Dream achievable for all, we must make college affordable for all. For seven years, on a bipartisan basis, we have taken action toward that goal: larger Pell grants, more affordable student loans, education IRAs, and our HOPE scholarships, which have already benefitted 5 million young people. Now, 67 percent of high school graduates are going on to college. That's up 10 percent since 1993. Yet millions of families still strain to pay college tuition. They need help. So I propose a landmark $30-billion college opportunity tax cut — a middle class tax deduction for up to $10,000 in college tuition costs. The previous actions of this Congress have already made two years of college affordable for all. It's time to make four years of college affordable for all. If we take all these steps, we'll move a long way toward making sure every child starts school ready to learn and graduates ready to succeed. We need a 21st century revolution to reward work and strengthen families, by giving every parent the tools to succeed at work and at the most important work of all — raising children. That means making sure every family has health care and the support to care for aging parents, the tools to bring their children up right, and that no child grows up in poverty. From my first days as President, we've worked to give families better access to better health care. In 1997, we passed the Children's Health Insurance Program — CHIP — so that workers who don't have coverage through their employers at least can get it for their children. So far, we've enrolled 2 million children; we're well on our way to our goal of 5 million. But there are still more than 40 million of our fellow Americans without health insurance — more than there were in 1993. Tonight I propose that we follow Vice President Gore's suggestion to make low income parents eligible for the insurance that covers their children. Together with our children's initiative — think of this — together with our children's initiative, this action would enable us to cover nearly a quarter of all the uninsured people in America. Again, I want to ask you to let people between the ages of 55 and 65 — the fastest growing group of uninsured — buy into Medicare. And this year I propose to give them a tax credit to make that choice an affordable one. I hope you will support that, as well. When the baby boomers retire, Medicare will be faced with caring for twice as many of our citizens; yet, it is far from ready to do so. My generation must not ask our children's generation to shoulder our burden. We simply must act now to strengthen and modernize Medicare. My budget includes a comprehensive plan to reform Medicare, to make it more efficient and competitive. And it dedicates nearly $400 billion of our budget surplus to keep Medicare solvent past 2025. And, at long last, it also provides funds to give every senior a voluntary choice of affordable coverage for prescription drugs. Lifesaving drugs are an indispensable part of modern medicine. No one creating a Medicare program today would even think of excluding coverage for prescription drugs. Yet more than three in five of our seniors now lack dependable drug coverage which can lengthen and enrich their lives. Millions of older Americans who need prescription drugs the most pay the highest prices for them. In good conscience, we cannot let another year pass without extending to all our seniors this lifeline of affordable prescription drugs. Record numbers of Americans are providing for aging or ailing loved ones at home. It's a loving, but a difficult and often very expensive choice. Last year, I proposed a $1,000 tax credit for long term care. Frankly, it wasn't enough. This year, let's triple it, to $3,000. But this year, let's pass it. We also have to make needed investments to expand access to mental health care. I want to take a moment to thank the person who led our first White House Conference on Mental Health last year, and who for seven years has led all our efforts to break down the barriers to decent treatment of people with mental illness. Thank you, Tipper Gore. Taken together, these proposals would mark the largest investment in health care in the 35 years since Medicare was created — the largest investment in 35 years. That would be a big step toward assuring quality health care for all Americans, young and old. And I ask you to embrace them and pass them. We must also make investments that reward work and support families. Nothing does that better than the Earned Income Tax Credit — the EITC. The "E" in the EITC is about earning, working, taking responsibility and being rewarded for it. In my very first address to you, I asked Congress to greatly expand this credit; and you did. As a result, in 1998 alone, the EITC helped more than 4.3 million Americans work their way out of poverty toward the middle class. That's double the number in 1993. Tonight, I propose another major expansion of the EITC: to reduce the marriage penalty, to make sure it rewards marriage as it rewards work — and also, to expand the tax credit for families that have more than two children. It punishes people with more than two children today. Our proposal would allow families with three or more children to get up to $1,100 more in tax relief. These are working families; their children should not be in poverty. We also can't reward work and family unless men and women get equal pay for equal work. Today, the female unemployment rate is the lowest it has been in 46 years. Yet, women still only earn about 75 cents for every dollar men earn. We must do better, by providing the resources to enforce present equal pay laws; training more women for high-paying, high-tech jobs; and passing the Paycheck Fairness Act. Many working parents spend up to a quarter — a quarter — of their income on child care. Last year, we helped parents provide child care for about 2 million children. My child care initiative, before you now, along with funds already secured in welfare reform, would make child care better, safer and more affordable for another 400,000 children. I ask you to pass that. They need it out there — For hard-pressed middle-income families, we should also expand the child care tax credit. And I believe strongly we should take the next big step and make that tax credit refundable for low income families. For people making under $30,000 a year, that could mean up to $2,400 for child care costs. You know, we all say we're pro-work and pro-family. Passing this proposal would prove it. Tens of millions of Americans live from paycheck to paycheck. As hard as they work, they still don't have the opportunity to save. Too few can make use of IRAs and 401-K plans. We should do more to help all working families save and accumulate wealth. That's the idea behind the Individual Development Accounts, the IDAs. I ask you to take that idea to a new level, with new Retirement Savings Accounts that enable every low- and moderate-income family in America to save for retirement, a first home, a medical emergency, or a college education. I propose to match their contributions, however small, dollar for dollar, every year they save. And I propose to give a major new tax credit to any small business that will provide a meaningful pension to its workers. Those people ought to have retirement as well as the rest of us. Nearly one in three American children grows up without a father. These children are five times more likely to live in poverty than children with both parents at home. Clearly, demanding and supporting responsible fatherhood is critical to lifting all children out of poverty. We've doubled child support collections since 1992. And I'm proposing to you tough new measures to hold still more fathers responsible. But we should recognize that a lot of fathers want to do right by their children, but need help to do it. Carlos Rosas of St. Paul, Minnesota, wanted to do right by his son, and he got the help to do it. Now he's got a good job and he supports his little boy. My budget will help 40,000 more fathers make the same choices Carlos Rosas did. I thank him for being here tonight. Stand up, Carlos. Thank you. If there is any single issue on which we should be able to reach across party lines, it is in our common commitment to reward work and strengthen families, similar to what we did last year. We came together to help people with disabilities keep their health insurance when they go to work. And I thank you for that. Thanks to overwhelming bipartisan support from this Congress, we have improved foster care. We've helped those young people who leave it when they turn 18, and we have dramatically increased the number of foster care children going into adoptive homes. I thank all of you for all of that. Of course, I am forever grateful to the person who has led our efforts from the beginning, and who's worked so tirelessly for children and families for 30 years now: my wife, Hillary. And I thank her. If we take the steps I've just discussed, we can go a long, long way toward empowering parents to succeed at home and at work, and ensuring that no child is raised in poverty. We can make these vital investments in health care, education, support for working families, and still offer tax cuts to help pay for college, for retirement, to care for aging parents, to reduce the marriage penalty. We can do these things without forsaking the path of fiscal discipline that got us to this point here tonight. Indeed, we must make these investments and these tax cuts in the context of a balanced budget that strengthens and extends the life of Social Security and Medicare and pays down the national debt. Crime in America has dropped for the past seven years — that's the longest decline on record — thanks to a national consensus we helped to forge on community police, sensible gun safety laws, and effective prevention. But nobody — nobody here, nobody in America — believes we're safe enough. So again, I ask you to set a higher goal. Let's make this country the safest big country in the world. Last fall, Congress supported my plan to hire, in addition to the 100,000 community police we've already funded, 50,000 more, concentrated in high-crime neighborhoods. I ask your continued support for that. Soon after the Columbine tragedy, Congress considered common-sense gun legislation, to require Brady background checks at the gun shows, child safety locks for new handguns, and a ban on the importation of large-capacity ammunition clips. With courage — and a tie-breaking vote by the Vice President — the Senate faced down the gun lobby, stood up for the American people, and passed this legislation. But the House failed to follow suit. Now, we have all seen what happens when guns fall into the wrong hands. Daniel Mauser was only 15 years old when he was gunned down at Columbine. He was an amazing kid — a straight-A student, a good skier. Like all parents who lose their children, his father Tom has borne unimaginable grief. Somehow he has found the strength to honor his son by transforming his grief into action. Earlier this month, he took a leave of absence from his job to fight for tougher gun safety laws. I pray that his courage and wisdom will at long last move this Congress to make common-sense gun legislation the very next order of business. Tom Mauser, stand up. We thank you for being here tonight. Tom. Thank you, Tom. We must strengthen our gun laws and enforce those already on the books better. Federal gun crime prosecutions are up 16 percent since I took office. But we must do more. I propose to hire more federal and local gun prosecutors and more ATF agents to crack down on illegal gun traffickers and bad-apple dealers. And we must give them the enforcement tools that they need, tools to trace every gun and every bullet used in every gun crime in the United States. I ask you to help us do that. Every state in this country already requires hunters and automobile drivers to have a license. I think they ought to do the same thing for handgun purchases. Now, specifically, I propose a plan to ensure that all new handgun buyers must first have a photo license from their state showing they passed the Brady background check and a gun safety course, before they get the gun. I hope you'll help me pass that in this Congress. Listen to this — listen to this. The accidental gun rate — the accidental gun death rate of children under 15 in the United States is nine times higher than in the other 25 industrialized countries combined. Now, technologies now exist that could lead to guns that can only be fired by the adults who own them. I ask Congress to fund research into smart gun technology, to save these children's lives. I ask responsible leaders in the gun industry to work with us on smart guns, and other steps to keep guns out of the wrong hands, to keep our children safe. You know, every parent I know worries about the impact of violence in the media on their children. I want to begin by thanking the entertainment industry for accepting my challenge to put voluntary ratings on TV programs and video and Internet games. But, frankly, the ratings are too numerous, diverse and confusing to be really useful to parents. So tonight, I ask the industry to accept the First Lady's challenge to develop a single voluntary rating system for all children's entertainment that is easier for parents to understand and enforce. The steps I outline will take us well on our way to making America the safest big country in the world. Now, to keep our historic economic expansion going — the subject of a lot of discussion in this community and others — I believe we need a 21st century revolution to open new markets, start new businesses, hire new workers right here in America — in our inner cities, poor rural areas, and Native American reservations. Our nation's prosperity hasn't yet reached these places. Over the last six months, I've traveled to a lot of them, joined by many of you, and many far-sighted business people, to shine a spotlight on the enormous potential in communities from Appalachia to the Mississippi Delta, from Watts to the Pine Ridge Reservation. Everywhere I go, I meet talented people eager for opportunity, and able to work. Tonight I ask you, let's put them to work. For business, it's the smart thing to do. For America, it's the right thing to do. And let me ask you something — if we don't do this now, when in the wide world will we ever get around to it? So I ask Congress to give businesses the same incentives to invest in America's new markets they now have to invest in markets overseas. Tonight, I propose a large New Markets tax credit and other incentives to spur $22 billion in private-sector capital to create new businesses and new investments in our inner cities and rural areas. Because empowerment zones have been creating these opportunities for five years now, I also ask you to increase incentives to invest in them and to create more of them. And let me say to all of you again what I have tried to say at every turn — this is not a Democratic or a Republican issue. Giving people a chance to live their dreams is an American issue. Mr. Speaker, it was a powerful moment last November when you joined Reverend Jesse Jackson and me in your home state of Illinois, and committed to working toward our common goal, by combining the best ideas from both sides of the aisle. I want to thank you again, and to tell you, Mr. Speaker, I look forward to working with you. This is a worthy, joint endeavor. Thank you. I also ask you to make special efforts to address the areas of our nation with the highest rates of poverty — our Native American reservations and the Mississippi Delta. My budget includes $110 million initiative to promote economic development in the Delta, and a billion dollars to increase economic opportunity, health care, education and law enforcement for our Native American communities. In this new century — we should begin this new century by honoring our historic responsibility to empower the first Americans. And I want to thank tonight the leaders and the members from both parties who've expressed to me an interest in working with us on these efforts. They are profoundly important. There's another part of our American community in trouble tonight — our family farmers. When I signed the Farm Bill in 1996, I said there was great danger it would work well in good times, but not in bad. Well, droughts, floods, and historically low prices have made these times very bad for the farmers. We must work together to strengthen the farm safety net, invest in land conservation, and create some new markets for them by expanding our programs for bio-based fuels and products. Please, they need help — let's do it together. Opportunity for all requires something else today — having access to a computer and knowing how to use it. That means we must close the digital divide between those who've got the tools and those who don't. Connecting classrooms and libraries to the Internet is crucial, but it's just a start. My budget ensures that all new teachers are trained to teach 21st century skills, and it creates technology centers in 1,000 communities to serve adults. This spring, I'll invite high-tech leaders to join me on another New Markets tour, to close the digital divide and open opportunity for our people. I want to thank the high-tech companies that already are doing so much in this area. I hope the new tax incentives I have proposed will get all the rest of them to join us. This is a national crusade. We have got to do this, and do it quickly. Now, again I say to you, these are steps, but step by step, we can go a long way toward our goal of bringing opportunity to every community. To realize the full possibilities of this economy, we must reach beyond our own borders, to shape the revolution that is tearing down barriers and building new networks among nations and individuals, and economies and cultures: globalization. It's the central reality of our time. Of course, change this profound is both liberating and threatening to people. But there's no turning back. And our open, creative society stands to benefit more than any other — if we understand, and act on, the realities of interdependence. We have to be at the center of every vital global network, as a good neighbor and a good partner. We have to recognize that we cannot build our future without helping others to build theirs. The first thing we have got to do is to forge a new consensus on trade. Now, those of us who believe passionately in the power of open trade, we have to ensure that it lifts both our living standards and our values, never tolerating abusive child labor or a race to the bottom in the environment and worker protection. But others must recognize that open markets and rule-based trade are the best engines we know of for raising living standards, reducing global poverty and environmental destruction, and assuring the free flow of ideas. I believe as strongly tonight as I did the first day I got here, the only direction forward for America on trade — the only direction for America on trade is to keep going forward. I ask you to help me forge that consensus. We have to make developing economies our partners in prosperity. That's why I would like to ask you again to finalize our groundbreaking African and Caribbean Basin trade initiatives. But globalization is about more than economics. Our purpose must be to bring together the world around freedom and democracy and peace, and to oppose those who would tear it apart. Here are the fundamental challenges I believe America must meet to shape the 21st century world. First, we must continue to encourage our former adversaries, Russia and China, to emerge as stable, prosperous, democratic nations. Both are being held back today from reaching their full potential: Russia by the legacy of communism, an economy in turmoil, a cruel and self-defeating war in Chechnya; China by the illusion that it can buy stability at the expense of freedom. But think how much has changed in the past decade: 5,000 former Soviet nuclear weapons taken out of commission; Russian soldiers actually serving with ours in the Balkans; Russian people electing their leaders for the first time in a thousand years; and in China, an economy more open to the world than ever before. Of course, no one, not a single person in this chamber tonight, can know for sure what direction these great nations will take. But we do know for sure that we can choose what we do. And we should do everything in our power to increase the chance that they will choose wisely, to be constructive members of our global community. That's why we should support those Russians who are struggling for a democratic, prosperous future; continue to reduce both our nuclear arsenals; and help Russia to safeguard weapons and materials that remain. And that's why I believe Congress should support the agreement we negotiated to bring China into the WTO, by passing Permanent Normal Trade Relations with China as soon as possible this year. I think you ought to do it for two reasons. First of all, our markets are already open to China; this agreement will open China's markets to us. And, second, it will plainly advance the cause of peace in Asia and promote the cause of change in China. No, we don't know where it's going. All we can do is decide what we're going to do. But when all is said and done, we need to know we did everything we possibly could to maximize the chance that China will choose the right future. A second challenge we've got is to protect our own security from conflicts that pose the risk of wider war and threaten our common humanity. We can't prevent every conflict or stop every outrage. But where our interests are at stake and we can make a difference, we should be, and we must be, peacemakers. We should be proud of our role in bringing the Middle East closer to a lasting peace; building peace in Northern Ireland; working for peace in East Timor and Africa; promoting reconciliation between Greece and Turkey and in Cyprus; working to defuse these crises between India and Pakistan; in defending human rights and religious freedom. And we should be proud of the men and women of our Armed Forces and those of our allies who stopped the ethnic cleansing in Kosovo, enabling a million people to return to their homes. When Slobodan Milosevic unleashed his terror on Kosovo, Captain John Cherrey was one of the brave airmen who turned the tide. And when another American plane was shot down over Serbia, he flew into the teeth of enemy air defenses to bring his fellow pilot home. Thanks to our Armed Forces' skill and bravery, we prevailed in Kosovo without losing a single American in combat. I want to introduce Captain Cherrey to you. We honor Captain Cherrey, and we promise you, Captain, we'll finish the job you began. Stand up so we can see you. A third challenge we have is to keep this inexorable march of technology from giving terrorists and potentially hostile nations the means to undermine our defenses. Keep in mind, the same technological advances that have shrunk cell phones to fit in the palms of our hands can also make weapons of terror easier to conceal and easier to use. We must meet this threat by making effective agreements to restrain nuclear and missile programs in North Korea; curbing the flow of lethal technology to Iran; preventing Iraq from threatening its neighbors; increasing our preparedness against chemical and biological attack; protecting our vital computer systems from hackers and criminals; and developing a system to defend against new missile threats — while working to preserve our ABM missile treaty with Russia. We must do all these things. I predict to you, when most of us are long gone, but some time in the next 10 to 20 years, the major security threat this country will face will come from the enemies of the nation state: the narco traffickers and the terrorists and the organized criminals, who will be organized together, working together, with increasing access to ever-more sophisticated chemical and biological weapons. And I want to thank the Pentagon and others for doing what they're doing right now to try to help protect us and plan for that, so that our defenses will be strong. I ask for your support to ensure they can succeed. I also want to ask you for a constructive bipartisan dialogue this year to work to build a consensus which I hope will eventually lead to the ratification of the Comprehensive Nuclear Test Ban Treaty. I hope we can also have a constructive effort to meet the challenge that is presented to our planet by the huge gulf between rich and poor. We cannot accept a world in which part of humanity lives on the cutting edge of a new economy, and the rest live on the bare edge of survival. I think we have to do our part to change that — with expanded trade, expanded aid, and the expansion of freedom. This is interesting — from Nigeria to Indonesia, more people got the right to choose their leaders in 1999 than in 1989, when the Berlin Wall fell. We've got to stand by these democracies — including, and especially tonight, Colombia, which is fighting narco-traffickers, for its own people's lives and our children's lives. I have proposed a strong two-year package to help Colombia win this fight. I want to thank the leaders in both parties in both Houses for listening to me and the President of Colombia about it. We have got to pass this. I want to ask your help. A lot is riding on it. And it's so important for the long-term stability of our country, and for what happens in Latin America. I also want you to know I'm going to send you new legislation to go after what these drug barons value the most — their money. And I hope you'll pass that as well. In a world where over a billion people live on less than a dollar a day, we also have got to do our part in the global endeavor to reduce the debts of the poorest countries, so they can invest in education, health care and economic growth. That's what the Pope and other religious leaders have urged us to do. And last year, Congress made a down payment on America's share. I ask you to continue that. I thank you for what you did, and ask you to stay the course. I also want to say that America must help more nations to break the bonds of disease. Last year in Africa, 10 times as many people died from AIDS as were killed in wars — 10 times. The budget I give you invests $150 million more in the fight against this and other infectious killers. And today, I propose a tax credit to speed the development of vaccines for diseases like malaria, TB and AIDS. I ask the private sector and our partners around the world to join us in embracing this cause. We can save millions of lives together, and we ought to do it. I also want to mention our final challenge, which, as always, is the most important. I ask you to pass a national security budget that keeps our military the best-trained and best-equipped in the world, with heightened readiness and 21st century weapons; which raises salaries for our servicemen and women; which protects our veterans; which fully funds the diplomacy that keeps our soldiers out of war; which makes good on our commitment to pay our U.N. dues and arrears. I ask you to pass this budget. I also want to say something, if I might, very personal tonight. The American people watching us at home, with the help of all the commentators, can tell from who stands and who sits, and who claps and who doesn't, that there's still modest differences of opinion in this room. But I want to thank you for something, every one of you. I want to thank you for the extraordinary support you have given — Republicans and Democrats alike — to our men and women in uniform. I thank you for that. I also want to thank, especially, two people. First, I want to thank our Secretary of Defense, Bill Cohen, for symbolizing our bipartisan commitment to national security. Thank you, sir. Even more, I want to thank his wife, Janet, who, more than any other American citizen, has tirelessly traveled this world to show the support we all feel for our troops. Thank you, Janet Cohen. I appreciate that. Thank you. These are the challenges we have to meet so that we can lead the world toward peace and freedom in an era of globalization. I want to tell you that I am very grateful for many things as President. But one of the things I'm grateful for is the opportunity that the Vice President and I have had to finally put to rest the bogus idea that you cannot grow the economy and protect the environment at the same time. As our economy has grown, we've rid more than 500 neighborhoods of toxic waste, ensured cleaner air and water for millions of people. In the past three months alone, we've helped preserve 40 million acres of roadless lands in the national forests, created three new national monuments. But as our communities grow, our commitment to conservation must continue to grow. Tonight, I propose creating a permanent conservation fund, to restore wildlife, protect coastlines, save natural treasures, from the California redwoods to the Florida Everglades. This Lands Legacy endowment would represent by far the most enduring investment in land preservation ever proposed in this House. I hope we can get together with all the people with different ideas and do this. This is a gift we should give to our children and our grandchildren for all time, across party lines. We can make an agreement to do this. Last year, the Vice President launched a new effort to make communities more liberal — livable — liberal, I know. Wait a minute, I've got a punchline now. That's this year's agenda; last year was livable, right? That's what Senator Lott is going to say in the commentary afterwards. To make our communities more livable. This is big business. This is a big issue. What does that mean? You ask anybody that lives in an unlivable community, and they'll tell you. They want their kids to grow up next to parks, not parking lots; the parents don't have to spend all their time stalled in traffic when they could be home with their children. Tonight, I ask you to support new funding for the following things, to make American communities for liberal — livable. I've done pretty well with this speech, but I can't say that. One, I want you to help us to do three things. We need more funding for advanced transit systems. We need more funding for saving open spaces in places of heavy development. And we need more funding — this ought to have bipartisan appeal — we need more funding for helping major cities around the Great Lakes protect their waterways and enhance their quality of life. We need these things and I want you to help us. The greatest environmental challenge of the new century is global warming. The scientists tell us the 1990s were the hottest decade of the entire millennium. If we fail to reduce the emission of greenhouse gases, deadly heat waves and droughts will become more frequent, coastal areas will flood, and economies will be disrupted. That is going to happen, unless we act. Many people in the United States — some people in this chamber — and lots of folks around the world still believe you cannot cut greenhouse gas emissions without slowing economic growth. In the Industrial Age that may well have been true. But in this digital economy, it is not true anymore. New technologies make it possible to cut harmful emissions and provide even more growth. For example, just last week, automakers unveiled cars that get 70 to 80 miles a gallon — the fruits of a unique research partnership between government and industry. And before you know it, efficient production of bio-fuels will give us the equivalent of hundreds of miles from a gallon of gasoline. To speed innovation in these kind of technologies, I think we should give a major tax incentive to business for the production of clean energy, and to families for buying energy-saving homes and appliances and the next generation of super-efficient cars when they hit the showroom floor. I also ask the auto industry to use the available technologies to make all new cars more fuel-efficient right away. And I ask this Congress to do something else. Please help us make more of our clean energy technology available to the developing world. That will create cleaner growth abroad and a lot more new jobs here in the United States of America. In the new century, innovations in science and technology will be the key not only to the health of the environment, but to miraculous improvements in the quality of our lives and advances in the economy. Later this year, researchers will complete the first draft of the entire human genome, the very blueprint of life. It is important for all our fellow Americans to recognize that federal tax dollars have funded much of this research, and that this and other wise investments in science are leading to a revolution in our ability to detect, treat, and prevent disease. For example, researchers have identified genes that cause Parkinson's, diabetes, and certain kinds of cancer — they are designed precision therapies that will block the harmful effect of these genes for good. Researchers already are using this new technique to target and destroy cells that cause breast cancer. Soon, we may be able to use it to prevent the onset of Alzheimer's. Scientists are also working on an artificial retina to help many blind people to see — and listen to this — microchips that would actually directly stimulate damaged spinal cords in a way that could allow people now paralyzed to stand up and walk. These kinds of innovations are also propelling our remarkable prosperity. Information technology only includes 8 percent of our employment, but now it counts for a third of our economic growth — along with jobs that pay, by the way, about 80 percent above the private sector average. Again, we ought to keep in mind, government-funded research brought supercomputers, the Internet, and communications satellites into being. Soon researchers will bring us devices that can translate foreign languages as fast as you can talk; materials 10 times stronger than steel at a fraction of the weight; and — this is unbelievable to me — molecular computers the size of a tear drop with the power of today's fastest supercomputers. To accelerate the march of discovery across all these disciplines in science and technology, I ask you to support my recommendation of an unprecedented $3 billion in the 21st Century Research Fund, the largest increase in civilian research in a generation. We owe it to our future. Now, these new breakthroughs have to be used in ways that reflect our values. First and foremost, we have to safeguard our citizens' privacy. Last year, we proposed to protect every citizen's medical record. This year, we will finalize those rules. We've also taken the first steps to protect the privacy of bank and credit card records and other financial statements. Soon I will send legislation to you to finish that job. We must also act to prevent any genetic discrimination whatever by employers or insurers. I hope you will support that. These steps will allow us to lead toward the far frontiers of science and technology. They will enhance our health, the environment, the economy in ways we can't even imagine today. But we all know that at a time when science, technology and the forces of globalization are bringing so many changes into all our lives, it's more important than ever that we strengthen the bonds that root us in our local communities and in our national community. No tie binds different people together like citizen service. There's a new spirit of service in America — a movement we've tried to support with AmeriCorps, expanded Peace Corps, unprecedented new partnerships with businesses, foundations, community groups. Partnerships, for example, like the one that enlisted 12,000 companies which have now moved 650,000 of our fellow citizens from welfare to work. Partnerships to battle drug abuse, AIDS, teach young people to read, save America's treasures, strengthen the arts, fight teen pregnancy, prevent violence among young people, promote racial healing. The American people are working together. But we should do more to help Americans help each other. First, we should help faith-based organizations to do more to fight poverty and drug abuse, and help people get back on the right track, with initiatives like Second Chance Homes that do so much to help unwed teen mothers. Second, we should support Americans who tithe and contribute to charities, but don't earn enough to claim a tax deduction for it. Tonight, I propose new tax incentives that would allow low- and middle-income citizens who don't itemize to get that deduction. It's nothing but fair, and it will get more people to give. We should do more to help new immigrants to fully participate in our community. That's why I recommend spending more to teach them civics and English. And since everybody in our community counts, we've got to make sure everyone is counted in this year's census. Within 10 years — just 10 years — there will be no majority race in our largest state of California. In a little more than 50 years, there will be no majority race in America. In a more interconnected world, this diversity can be our greatest strength. Just look around this chamber. Look around. We have members in this Congress from virtually every racial, ethnic, and religious background. And I think you would agree that America is stronger because of it. You also have to agree that all those differences you just clapped for all too often spark hatred and division even here at home. Just in the last couple of years, we've seen a man dragged to death in Texas just because he was black. We saw a young man murdered in Wyoming just because he was gay. Last year, we saw the shootings of African Americans, Asian Americans, and Jewish children just because of who they were. This is not the American way, and we must draw the line. I ask you to draw that line by passing without delay the Hate Crimes Prevention Act and the Employment Non-Discrimination Act. And I ask you to reauthorize the Violence Against Women Act. Finally tonight, I propose the largest-ever investment in our civil rights laws for enforcement, because no American should be subjected to discrimination in finding a home, getting a job, going to school, or securing a loan. Protections in law should be protections in fact. Last February, because I thought this was so important, I created the White House Office of One America to promote racial reconciliation. That's what one of my personal heroes, Hank Aaron, has done all his life. From his days as our all-time home run king to his recent acts of healing, he has always brought people together. We should follow his example, and we're honored to have him with us tonight. Stand up, Hank Aaron. I just want to say one more thing about this, and I want every one of you to think about this the next time you get mad at one of your colleagues on the other side of the aisle. This fall, at the White House, Hillary had one of her millennium dinners, and we had this very distinguished scientist there, who is an expert in this whole work in the human genome. And he said that we are all, regardless of race, genetically 99.9 percent the same. Now, you may find that uncomfortable when you look around here. But it is worth remembering. We can laugh about this, but you think about it. Modern science has confirmed what ancient faiths has always taught: the most important fact of life is our common humanity. Therefore, we should do more than just tolerate our diversity — we should honor it and celebrate it. My fellow Americans, every time I prepare for the State of the Union, I approach it with hope and expectation and excitement for our nation. But tonight is very special, because we stand on the mountain top of a new millennium. Behind us we can look back and see the great expanse of American achievement; and before us we can see even greater, grander frontiers of possibility. We should, all of us, be filled with gratitude and humility for our present progress and prosperity. We should be filled with awe and joy at what lies over the horizon. And we should be filled with absolute determination to make the most of it. You know, when the framers finished crafting our Constitution in Philadelphia, Benjamin Franklin stood in Independence Hall and he reflected on the carving of the sun that was on the back of a chair he saw. The sun was low on the horizon. So he said this — he said, "I've often wondered whether that sun was rising or setting. Today," Franklin said, "I have the happiness to know it's a rising sun." Today, because each succeeding generation of Americans has kept the fire of freedom burning brightly, lighting those frontiers of possibility, we all still bask in the glow and the warmth of Mr. Franklin's rising sun. After 224 years, the American revolution continues. We remain a new nation. And as long as our dreams outweigh our memories, America will be forever young. That is our destiny. And this is our moment. Thank you, God bless you, and God bless America.

US

Mr. Speaker, Mr. Vice President, Members of Congress: It is a great privilege to be here to outline a new budget and a new approach for governing our great country. I thank you for your invitation to speak here tonight. I know Congress had to formally invite me and it could have been a close vote. So, Mr. Vice President, I appreciate you being here to break the tie. I want to thank so many of you who have accepted my invitation to come to the White House to discuss important issues. We are off to a good start. I will continue to meet with you and ask for your input. You have been kind and candid, and I thank you for making a new President feel welcome. The last time I visited the Capitol, I came to take an oath. On the steps of this building, I pledged to honor our Constitution and laws, and I asked you to join me in setting a tone of civility and respect in Washington. I hope America is noticing the difference. We are making progress. Together, we are changing the tone in the Nation’s capital. And this spirit of respect and cooperation is vital, because in the end we will be judged not only by what we say or how we say it, we will be judged by what we are able to accomplish. America today is a Nation with great challenges, but greater resources. An artist using statistics as a brush could paint two very different pictures of our country. One would have warning signs: increasing layoffs, rising energy prices, too many failing schools, persistent poverty, the stubborn vestiges of racism. Another picture would be full of blessings: a balanced budget, big surpluses, a military that is second to none, a country at peace with its neighbors, technology that is revolutionizing the world, and our greatest strength, concerned citizens who care for our country and care for each other. Neither picture is complete in and of itself. And tonight I challenge and invite Congress to work with me to use the resources of one picture to repaint the other, to direct the advantages of our time to solve the problems of our people. Some of these resources will come from government, some but not all. Year after year in Washington, budget debates seem to come down to an old, tired argument: on one side those who want more government, regardless of the cost; on the other, those who want less government, regardless of the need. We should leave those arguments to the last century and chart a different course. Government has a role, and an important role. Yet too much government crowds out initiative and hard work, private charity and the private economy. Our new governing vision says government should be active but limited, engaged but not overbearing. My budget is based on that philosophy. It is reasonable and it is responsible. It meets our obligations and funds our growing needs. We increase spending next year for Social Security and Medicare and other entitlement programs by $81 billion. We have increased spending for discretionary programs by a very responsible 4 percent, above the rate of inflation. My plan pays down an unprecedented amount of our national debt, and then when money is still left over, my plan returns it to the people who earned it in the first place. A budget’s impact is counted in dollars, but measured in lives. Excellent schools, quality health care, a secure retirement, a cleaner environment, a stronger defense, these are all important needs, and we fund them. The highest percentage increase in our budget should go to our children’s education. Education is my top priority. Education is my top priority, and by supporting this budget, you will make it yours as well. Reading is the foundation of all learning, so during the next 5 years we triple spending, adding $5 billion to help every child in America learn to read. Values are important, so we have tripled funding for character education to teach our children not only reading and writing, but right from wrong. We have increased funding to train and recruit teachers, because we know a good education starts with a good teacher. And I have a wonderful partner in this effort. I like teachers so much, I married one. Laura has begun a new effort to recruit Americans to the profession that will shape our future: teaching. She will travel across America to promote sound teaching practices and early reading skills in our schools and in programs such as Head Start. When it comes to our schools, dollars alone do not always make the difference. Funding is important, and so is reform. So we must tie funding to higher standards and accountability for results. I believe in local control of schools. We should not and we will not run public schools from Washington, DC. Yet when the Federal government spends tax dollars, we must insist on results. Children should be tested on basic reading and math skills every year, between grades three and eight. Measuring is the only way to know whether all our children are learning, and I want to know, because I refuse to leave any child behind in America. Critics of testing contend it distracts from learning. They talk about ‘‘teaching to the test.’’ But let us put that logic to the test. If you test a child on basic math and reading skills and you are ‘‘teaching to the test,’’ you are teaching math and reading, and that is the whole idea. As standards rise, local schools will need more flexibility to meet them, so we must streamline the dozens of Federal education programs into five, and let States spend money in those categories as they see fit. Schools will be given a reasonable chance to improve, and the support to do so. Yet if they don’t, if they continue to fail, we must give parents and students different options: a better public school, a private school, tutoring, or a charter school. In the end, every child in a bad situation must be given a better choice, because when it comes to our children, failure is simply not an option. Another priority in my budget is to keep the vital promises of Medicare and Social Security, and together we will do so. To meet the health care needs of all America’s seniors, we double the Medicare budget over the next 10 years. My budget dedicates $238 billion to Medicare next year alone, enough to fund all current programs and to begin a new prescription drug benefit for lowincome seniors. No senior in America should have to choose between buying food and buying prescriptions. To make sure the retirement savings of America’s seniors are not diverted into any other program, my budget protects all $2.6 trillion of the Social Security surplus for Social Security and for Social Security alone. My budget puts a priority on access to health care, without telling Americans what doctor they have to see or what coverage they must choose. Many working Americans do not have health care coverage, so we will help them buy their own insurance with refundable tax credits. And to provide quality care in low-income neighborhoods, over the next 5 years we will double the number of people served at community health care centers. And we will address the concerns of those who have health coverage yet worry their insurance company does not care and won’t pay. Together, this Congress and this President will find common ground to make sure doctors make medical decisions and patients get the health care they deserve with a Patients’ Bill of Rights. When it comes to their health, people want to get the medical care they need, not be forced to go to court because they didn’t get it. We will ensure access to the courts for those with legitimate claims, but first, let us put in place a strong independent review so we promote quality health care, not frivolous lawsuits. My budget also increases funding for medical research, which gives hope to many who struggle with serious disease. Our prayers tonight are with one of your own who is engaged in his own fight against cancer, a fine Representative and a good man, Congressman JOE MOAKLEY. I can think of no more appropriate tribute to JOE than to have the Congress finish the job of doubling the budget for the National Institutes of Health. My New Freedom Initiative for Americans with Disabilities funds new technologies, expands opportunities to work, and makes our society more welcoming. For the more than 50 million Americans with disabilities, we must continue to break down barriers to equality. The budget I propose to you also supports the people who keep our country strong and free, the men and women who serve in the United States military. I am requesting $5.7 billion in increased military pay and benefits, and health care and housing. Our men and women in uniform give America their best, and we owe them our support. America’s veterans honored their commitment to our country through their military service. I will honor our commitment to them with a $1 billion increase to ensure better access to quality care and faster decisions on benefit claims. My budget will improve our environment by accelerating the cleanup of toxic brownfields. I propose we make a major investment in conservation by fully funding the Land and Water Conservation Fund. Our national parks have a special place in our country’s life. Our parks are places of great natural beauty and history. As good stewards, we must leave them better than we have found them, so I propose providing $4.9 billion over 5 years for the upkeep of these national treasures. My budget adopts a hopeful new approach to help the poor and the disadvantaged. We must encourage and support the work of charities and faithbased and community groups that offer help and love, one person at a time. These groups are working in every neighborhood in America to fight homelessness and addiction and domestic violence, to provide a hot meal or a mentor, or a safe haven for our children. Government should welcome these groups to apply for funds, not discriminate against them. Government cannot be replaced by charities or volunteers. Government should not fund religious activities, but our Nation should support the good works of these good people who are helping their neighbors in need. So I propose allowing all taxpayers, whether they itemize or not, to deduct their charitable contributions. Estimates show this could encourage as much as $14 billion a year in new charitable giving, money that will save and change lives. Our budget provides more than $700 million over the next 10 years for a Federal Compassion Capital Fund with a focused and noble mission: to provide a mentor for the more than 1 million children with a parent in prison and to support other local efforts to fight illiteracy, teen pregnancy, drug addiction and other difficult problems. With us tonight is the Mayor of Philadelphia. Please help me welcome Mayor John Street. Hi, Mr. Mayor. Mayor Street has encouraged faithbased and community organizations to make a significant difference in Philadelphia. He has invited me to his city this summer to see compassion in action. I am personally aware of just how effective the mayor is. Mayor Street is a Democrat. Let the record show I lost his city, big time. But some things are bigger than politics. So I look forward to coming to your city to see your faith-based programs in action. As government promotes compassion, it also must promote justice. Too many of our citizens have cause to doubt our Nation’s justice when the law points a finger of suspicion at groups, instead of individuals. All our citizens are created equal and must be treated equally. Earlier today, I asked John Ashcroft, the Attorney General, to develop specific recommendations to end racial profiling. It is wrong, and we will end it in America. It is wrong. In so doing, we will not hinder the work of our Nation’s brave police officers. They protect us every day, often at great risk. But by stopping the abuses of a few, we will add to the public confidence our police officers earn and deserve. My budget has funded a responsible increase in our ongoing operations. It has funded our Nation’s important priorities. It has protected Social Security and Medicare. And our surpluses are big enough that there is still money left over. Many of you have talked about the need to pay down our national debt. I listened, and I agree. We owe it to our children and our grandchildren to act now, and I hope you will join me to pay down $2 trillion in debt during the next 10 years. At the end of those 10 years, we will have paid down all the debt that is available to retire. That is more debt repaid more quickly than has ever been repaid by any nation at any time in history. We should also prepare for the unexpected, for the uncertainties of the future. We should approach our Nation’s budget as any prudent family would, with a contingency fund for emergencies or additional spending needs. For example, after a strategic review, we may need to increase defense spending. We may need to increase spending for our farmers or additional money to reform Medicare. So my budget sets aside almost a trillion dollars over 10 years for additional needs, that is one trillion additional reasons you can feel comfortable supporting this budget. We have increased our budget at a responsible 4 percent. We have funded our priorities. We have paid down all the available debt. We have prepared for contingencies, and we still have money left over. Yogi Berra once said ‘‘when you come to a fork in the road, take it.’’ Now we come to a fork in the road. We have two choices. Even though we have already met our needs, we could spend the money on more and bigger government. That is the road our Nation has traveled in recent years. Last year, government spending shot up 8 percent. That is far more than our economy grew, far more than personal income grew and far more than the rate of inflation. If you continue on that road, you will spend the surplus and have to dip into Social Security to pay other bills. Unrestrained government spending is a dangerous road to deficits, so we must take a different path. The other choice is to let the American people spend their own money to meet their own needs. I hope you will join me in standing firmly on the side of the people. You see, the growing surplus exists because taxes are too high and government is charging more than it needs. The people of America have been overcharged, and on their behalf, I am here asking for a refund. Some say my tax plan is too big. Others say it is too small. I respectfully disagree. This plan is just right. I did not throw darts at a board to come up with a number for tax relief. I did not take a poll or develop an arbitrary formula that might sound good. I looked at problems in the Tax Code and calculated the costs to fix them. A tax rate of 15 percent is too high for those who earn low wages, so we must lower the rate to 10 percent. No one should pay more than a third of the money they earn in Federal income taxes, so we lowered the top rate to 33 percent. This reform will be welcome relief for America’s small businesses, which often pay taxes at the highest rate, and help for small business means jobs for Americans. We simplified the Tax Code by reducing the number of tax rates from the current five rates to four lower ones, 10 percent, 15 percent, 25 percent and 33 percent. In my plan, no one is targeted in or targeted out. Everyone who pays income taxes will get relief. Our government should not tax and thereby discourage marriage, so we reduced the marriage penalty. I want to help families rear and support their children, so we doubled the child credit to $1,000 per child. It is not fair to tax the same earnings twice, once when you earn them and again when you die, so we must repeal the death tax. These changes add up to significant help. A typical family with two children will save $1,600 a year on their Federal income taxes. Now, 1,600 may not sound like a lot to some, but it means a lot to many families. Sixteen hundred dollars buys gas for two cars for an entire year. It pays tuition for a year at a community college. It pays the average family grocery bill for 3 months. That is real money. With us tonight, representing many American families, are Steven and Josefina Ramos. They are from Pennsylvania, but they could be from any one of your districts. Steven is a network administrator for a school district. Josefina is a Spanish teacher at a charter school, and they have a 2-yearold daughter. Steven and Josefina tell me they pay almost $8,000 a year in Federal income taxes. My plan will save them more than $2,000. Let me tell you what Steven says, ‘‘$2,000 a year means a lot to my family. If we had this money, it would help us reach our goal of paying off our personal debt in 2 years time.’’ After that, Steven and Josefina want to start saving for Lianna’s college education. My attitude is government should never stand in the way of families achieving their dreams. And as we debate this issue, always remember, the surplus is not the government’s money, the surplus is the people’s money. For lower-income families, my tax plan restores basic fairness. Right now, complicated tax rules punish hard work. A waitress supporting two children on $25,000 a year can lose nearly half of every additional dollar she earns above the 25,000. For overtime, her hardest hours, are taxed at nearly 50 percent. This sends a terrible message: You will never get ahead. But America’s message must be different. We must honor hard work, never punish it. With tax relief, overtime will no longer be overtax time for the waitress. People with the smallest incomes will get the highest percentage reductions. And millions of additional American families will be removed from the income tax rolls entirely. Tax relief is right and tax relief is urgent. The long economic expansion that began almost 10 years ago is faltering. Lower interest rates will eventually help, but we cannot assume they will do the job all by themselves. Forty years ago and then 20 years ago, two Presidents, one Democrat and one Republican, John F. Kennedy and Ronald Reagan, advocated tax cuts to, in President Kennedy’s words, ‘‘get this country moving again.’’ They knew then, what we must do now, to create economic growth and opportunity, we must put money back into the hands of the people who buy goods and create jobs. We must act quickly. The Chairman of the Federal Reserve has testified before Congress that tax cuts often come too late to stimulate economic recovery. So I want to work with you to give our economy an important jump start by making tax relief retroactive. We must act now because it is the right thing to do. We must also act now because we have other things to do. We must show courage to confront and resolve tough challenges: To restructure our Nation’s defenses, to meet our growing need for energy, and to reform Medicare and Social Security. America has a window of opportunity to extend and secure our present peace by promoting a distinctly American internationalism. We will work with our allies and friends to be a force for good and a champion of freedom. We will work for free markets and free trade and freedom from oppression. Nations making progress toward freedom will find America is their friend. We will promote our values, and we will promote peace. And we need a strong military to keep the peace. But our military was shaped to confront the challenges of the past. So I have asked the Secretary of Defense to review America’s armed forces and prepare to transform them to meet emerging threats. My budget makes a down payment on the research and development that will be required. Yet, in our broader transformation effort, we must put strategy first, then spending. Our defense vision will drive our defense budget, not the other way around. Our Nation also needs a clear strategy to confront the threats of the 21st century, threats that are more widespread and less certain. They range from terrorists who threaten with bombs to tyrants and rogue nations intent on developing weapons of mass destruction. To protect our own people, our allies and friends, we must develop and we must deploy effective missile defenses. And as we transform our military, we can discard Cold War relics, and reduce our own nuclear forces to reflect today’s needs. A strong America is the world’s best hope for peace and freedom. Yet the cause of freedom rests on more than our ability to defend ourselves and our allies. Freedom is exported every day, as we ship goods and products that improve the lives of millions of people. Free trade brings greater political and personal freedom. Each of the previous five presidents has had the ability to negotiate farreaching trade agreements. Tonight I ask to give me the strong hand of presidential trade promotion authority, and to do so quickly. As we meet tonight, many citizens are struggling with the high costs of energy. We have a serious energy problem that demands a national energy policy. The West is confronting a major energy shortage that has resulted in high prices and uncertainty. I have asked Federal agencies to work with California officials to help speed construction of new energy sources. And I have directed Vice President Cheney, Commerce Secretary Evans, Energy Secretary Abraham, and other senior members of my administration to develop a national energy policy. Our energy demand outstrips our supply. We can produce more energy at home while protecting our environment, and we must. We can produce more electricity to meet demand, and we must. We can promote alternative energy sources and conservation, and we must. America must become more energy independent, and we will. Perhaps the biggest test of our foresight and courage will be reforming Medicare and Social Security. Medicare’s finances are strained, and its coverage is outdated. Ninety-nine percent of employer-provided health plans offer some form of prescription drug coverage. Medicare does not. The framework for reform has been developed by Senators FRIST and BREAUX and Congressman THOMAS; and now is the time to act. Medicare must be modernized. And we must make sure that every senior on Medicare can choose a health care plan that offers prescription drugs. Seven years from now, the baby boom generation will begin to claim Social Security benefits. Everyone in this Chamber knows that Social Security is not prepared to fully fund their retirement. And we only have a couple of years to get prepared. Without reform, this country will one day awaken to a stark choice: either a drastic rise in payroll taxes or a radical cut in retirement benefits. There is a better way. This spring I will form a Presidential commission to reform Social Security. The commission will make its recommendations by next fall. Reform should be based on these principles: It must preserve the benefits of all current retirees and those nearing retirement. It must return Social Security to sound financial footing, and it must offer personal savings accounts to younger workers who want them. Social Security now offers workers a return of less than 2 percent on the money they pay into the system. To save the system, we must increase that by allowing younger workers to make safe, sound investments at a higher rate of return. Ownership, access to wealth, and independence should not be the privilege of a few. They are the hope of every American, and we must make them the foundation of Social Security. By confronting the tough challenge of reform, by being responsible with our budget, we can earn the trust of the American people. And we can add to that trust by enacting fair and balanced election and campaign reforms. The agenda I have set before you tonight is worthy of a great Nation. America is a Nation at peace, but not a Nation at rest. Much has been given to us, and much is expected. Let us agree to bridge old divides. But let us also agree that our goodwill must be dedicated to great goals. Bipartisanship is more than minding our manners, it is doing our duty. No one can speak in this Capitol and not be awed by its history. At so many turning points, debates in these chambers have reflected the collected or divided conscience of our country. And when we walk through Statuary Hall and see those men and women of marble, we are reminded of their courage and achievement. Yet America’s purpose is never found only in statues or history. America’s purpose always stands before us. Our generation must show courage in a time of blessing as our Nation has always shown in times of crisis. And our courage, issue by issue, can gather to greatness and serve our country. This is the privilege and responsibility we share. And if we work together, we can prove that public service is noble. We all came here for a reason. We all have things we want to accomplish and promises to keep. Juntos podemos, together we can. We can make Americans proud of their government. Together we can share in the credit of making our country more prosperous and generous and just, and earn from our conscience and from our fellow citizens, the highest possible praise: well done, good and faithful servants. Thank you all. Good night. And God bless.

US

Thank you very much. Mr. Speaker, Vice President Cheney, members of Congress, distinguished guests, fellow citizens: As we gather tonight, our nation is at war, our economy is in recession, and the civilized world faces unprecedented dangers. Yet the state of our Union has never been stronger. (Applause.) President George W. Bush delivers the State of the Union address before a joint session of congress at the Capitol, Tuesday, Jan 29, 2002.We last met in an hour of shock and suffering. In four short months, our nation has comforted the victims, begun to rebuild New York and the Pentagon, rallied a great coalition, captured, arrested, and rid the world of thousands of terrorists, destroyed Afghanistan's terrorist training camps, saved a people from starvation, and freed a country from brutal oppression. (Applause.) The American flag flies again over our embassy in Kabul. Terrorists who once occupied Afghanistan now occupy cells at Guantanamo Bay. (Applause.) And terrorist leaders who urged followers to sacrifice their lives are running for their own. (Applause.) America and Afghanistan are now allies against terror. We'll be partners in rebuilding that country. And this evening we welcome the distinguished interim leader of a liberated Afghanistan: Chairman Hamid Karzai. (Applause.) The last time we met in this chamber, the mothers and daughters of Afghanistan were captives in their own homes, forbidden from working or going to school. Today women are free, and are part of Afghanistan's new government. And we welcome the new Minister of Women's Affairs, Doctor Sima Samar. (Applause.)Timeline Image Map Our progress is a tribute to the spirit of the Afghan people, to the resolve of our coalition, and to the might of the United States military. (Applause.) When I called our troops into action, I did so with complete confidence in their courage and skill. And tonight, thanks to them, we are winning the war on terror. (Applause.) The man and women of our Armed Forces have delivered a message now clear to every enemy of the United States: Even 7,000 miles away, across oceans and continents, on mountaintops and in caves -- you will not escape the justice of this nation. (Applause.) For many Americans, these four months have brought sorrow, and pain that will never completely go away. Every day a retired firefighter returns to Ground Zero, to feel closer to his two sons who died there. At a memorial in New York, a little boy left his football with a note for his lost father: Dear Daddy, please take this to heaven. I don't want to play football until I can play with you again some day. Last month, at the grave of her husband, Michael, a CIA officer and Marine who died in Mazur-e-Sharif, Shannon Spann said these words of farewell: "Semper Fi, my love." Shannon is with us tonight. (Applause.) Shannon, I assure you and all who have lost a loved one that our cause is just, and our country will never forget the debt we owe Michael and all who gave their lives for freedom. Our cause is just, and it continues. Our discoveries in Afghanistan confirmed our worst fears, and showed us the true scope of the task ahead. We have seen the depth of our enemies' hatred in videos, where they laugh about the loss of innocent life. And the depth of their hatred is equaled by the madness of the destruction they design. We have found diagrams of American nuclear power plants and public water facilities, detailed instructions for making chemical weapons, surveillance maps of American cities, and thorough descriptions of landmarks in America and throughout the world. What we have found in Afghanistan confirms that, far from ending there, our war against terror is only beginning. Most of the 19 men who hijacked planes on September the 11th were trained in Afghanistan's camps, and so were tens of thousands of others. Thousands of dangerous killers, schooled in the methods of murder, often supported by outlaw regimes, are now spread throughout the world like ticking time bombs, set to go off without warning. Thanks to the work of our law enforcement officials and coalition partners, hundreds of terrorists have been arrested. Yet, tens of thousands of trained terrorists are still at large. These enemies view the entire world as a battlefield, and we must pursue them wherever they are. (Applause.) So long as training camps operate, so long as nations harbor terrorists, freedom is at risk. And America and our allies must not, and will not, allow it. (Applause.) Our nation will continue to be steadfast and patient and persistent in the pursuit of two great objectives. First, we will shut down terrorist camps, disrupt terrorist plans, and bring terrorists to justice. And, second, we must prevent the terrorists and regimes who seek chemical, biological or nuclear weapons from threatening the United States and the world. (Applause.) Our military has put the terror training camps of Afghanistan out of business, yet camps still exist in at least a dozen countries. A terrorist underworld -- including groups like Hamas, Hezbollah, Islamic Jihad, Jaish-i-Mohammed -- operates in remote jungles and deserts, and hides in the centers of large cities. While the most visible military action is in Afghanistan, America is acting elsewhere. We now have troops in the Philippines, helping to train that country's armed forces to go after terrorist cells that have executed an American, and still hold hostages. Our soldiers, working with the Bosnian government, seized terrorists who were plotting to bomb our embassy. Our Navy is patrolling the coast of Africa to block the shipment of weapons and the establishment of terrorist camps in Somalia. My hope is that all nations will heed our call, and eliminate the terrorist parasites who threaten their countries and our own. Many nations are acting forcefully. Pakistan is now cracking down on terror, and I admire the strong leadership of President Musharraf. (Applause.) But some governments will be timid in the face of terror. And make no mistake about it: If they do not act, America will. (Applause.) Our second goal is to prevent regimes that sponsor terror from threatening America or our friends and allies with weapons of mass destruction. Some of these regimes have been pretty quiet since September the 11th. But we know their true nature. North Korea is a regime arming with missiles and weapons of mass destruction, while starving its citizens. Iran aggressively pursues these weapons and exports terror, while an unelected few repress the Iranian people's hope for freedom. Iraq continues to flaunt its hostility toward America and to support terror. The Iraqi regime has plotted to develop anthrax, and nerve gas, and nuclear weapons for over a decade. This is a regime that has already used poison gas to murder thousands of its own citizens -- leaving the bodies of mothers huddled over their dead children. This is a regime that agreed to international inspections -- then kicked out the inspectors. This is a regime that has something to hide from the civilized world. States like these, and their terrorist allies, constitute an axis of evil, arming to threaten the peace of the world. By seeking weapons of mass destruction, these regimes pose a grave and growing danger. They could provide these arms to terrorists, giving them the means to match their hatred. They could attack our allies or attempt to blackmail the United States. In any of these cases, the price of indifference would be catastrophic. We will work closely with our coalition to deny terrorists and their state sponsors the materials, technology, and expertise to make and deliver weapons of mass destruction. We will develop and deploy effective missile defenses to protect America and our allies from sudden attack. (Applause.) And all nations should know: America will do what is necessary to ensure our nation's security. We'll be deliberate, yet time is not on our side. I will not wait on events, while dangers gather. I will not stand by, as peril draws closer and closer. The United States of America will not permit the world's most dangerous regimes to threaten us with the world's most destructive weapons. (Applause.) Our war on terror is well begun, but it is only begun. This campaign may not be finished on our watch -- yet it must be and it will be waged on our watch. We can't stop short. If we stop now -- leaving terror camps intact and terror states unchecked -- our sense of security would be false and temporary. History has called America and our allies to action, and it is both our responsibility and our privilege to fight freedom's fight. (Applause.) Our first priority must always be the security of our nation, and that will be reflected in the budget I send to Congress. My budget supports three great goals for America: We will win this war; we'll protect our homeland; and we will revive our economy. September the 11th brought out the best in America, and the best in this Congress. And I join the American people in applauding your unity and resolve. (Applause.) Now Americans deserve to have this same spirit directed toward addressing problems here at home. I'm a proud member of my party -- yet as we act to win the war, protect our people, and create jobs in America, we must act, first and foremost, not as Republicans, not as Democrats, but as Americans. (Applause.) It costs a lot to fight this war. We have spent more than a billion dollars a month -- over $30 million a day -- and we must be prepared for future operations. Afghanistan proved that expensive precision weapons defeat the enemy and spare innocent lives, and we need more of them. We need to replace aging aircraft and make our military more agile, to put our troops anywhere in the world quickly and safely. Our men and women in uniform deserve the best weapons, the best equipment, the best training -- and they also deserve another pay raise. (Applause.) My budget includes the largest increase in defense spending in two decades -- because while the price of freedom and security is high, it is never too high. Whatever it costs to defend our country, we will pay. (Applause.) The next priority of my budget is to do everything possible to protect our citizens and strengthen our nation against the ongoing threat of another attack. Time and distance from the events of September the 11th will not make us safer unless we act on its lessons. America is no longer protected by vast oceans. We are protected from attack only by vigorous action abroad, and increased vigilance at home. My budget nearly doubles funding for a sustained strategy of homeland security, focused on four key areas: bioterrorism, emergency response, airport and border security, and improved intelligence. We will develop vaccines to fight anthrax and other deadly diseases. We'll increase funding to help states and communities train and equip our heroic police and firefighters. (Applause.) We will improve intelligence collection and sharing, expand patrols at our borders, strengthen the security of air travel, and use technology to track the arrivals and departures of visitors to the United States. (Applause.) Homeland security will make America not only stronger, but, in many ways, better. Knowledge gained from bioterrorism research will improve public health. Stronger police and fire departments will mean safer neighborhoods. Stricter border enforcement will help combat illegal drugs. (Applause.) And as government works to better secure our homeland, America will continue to depend on the eyes and ears of alert citizens. A few days before Christmas, an airline flight attendant spotted a passenger lighting a match. The crew and passengers quickly subdued the man, who had been trained by al Qaeda and was armed with explosives. The people on that plane were alert and, as a result, likely saved nearly 200 lives. And tonight we welcome and thank flight attendants Hermis Moutardier and Christina Jones. (Applause.) Once we have funded our national security and our homeland security, the final great priority of my budget is economic security for the American people. (Applause.) To achieve these great national objectives -- to win the war, protect the homeland, and revitalize our economy -- our budget will run a deficit that will be small and short-term, so long as Congress restrains spending and acts in a fiscally responsible manner. (Applause.) We have clear priorities and we must act at home with the same purpose and resolve we have shown overseas: We'll prevail in the war, and we will defeat this recession. (Applause.) Americans who have lost their jobs need our help and I support extending unemployment benefits and direct assistance for health care coverage. (Applause.) Yet, American workers want more than unemployment checks -- they want a steady paycheck. (Applause.) When America works, America prospers, so my economic security plan can be summed up in one word: jobs. (Applause.) Good jobs begin with good schools, and here we've made a fine start. (Applause.) Republicans and Democrats worked together to achieve historic education reform so that no child is left behind. I was proud to work with members of both parties: Chairman John Boehner and Congressman George Miller. (Applause.) Senator Judd Gregg. (Applause.) And I was so proud of our work, I even had nice things to say about my friend, Ted Kennedy. (Laughter and applause.) I know the folks at the Crawford coffee shop couldn't believe I'd say such a thing -- (laughter) -- but our work on this bill shows what is possible if we set aside posturing and focus on results. (Applause.) There is more to do. We need to prepare our children to read and succeed in school with improved Head Start and early childhood development programs. (Applause.) We must upgrade our teacher colleges and teacher training and launch a major recruiting drive with a great goal for America: a quality teacher in every classroom. (Applause.) Good jobs also depend on reliable and affordable energy. This Congress must act to encourage conservation, promote technology, build infrastructure, and it must act to increase energy production at home so America is less dependent on foreign oil. (Applause.) Good jobs depend on expanded trade. Selling into new markets creates new jobs, so I ask Congress to finally approve trade promotion authority. (Applause.) On these two key issues, trade and energy, the House of Representatives has acted to create jobs, and I urge the Senate to pass this legislation. (Applause.) Good jobs depend on sound tax policy. (Applause.) Last year, some in this hall thought my tax relief plan was too small; some thought it was too big. (Applause.) But when the checks arrived in the mail, most Americans thought tax relief was just about right. (Applause.) Congress listened to the people and responded by reducing tax rates, doubling the child credit, and ending the death tax. For the sake of long-term growth and to help Americans plan for the future, let's make these tax cuts permanent. (Applause.) The way out of this recession, the way to create jobs, is to grow the economy by encouraging investment in factories and equipment, and by speeding up tax relief so people have more money to spend. For the sake of American workers, let's pass a stimulus package. (Applause.) Good jobs must be the aim of welfare reform. As we reauthorize these important reforms, we must always remember the goal is to reduce dependency on government and offer every American the dignity of a job. (Applause.) Americans know economic security can vanish in an instant without health security. I ask Congress to join me this year to enact a patients' bill of rights -- (applause) -- to give uninsured workers credits to help buy health coverage -- (applause) -- to approve an historic increase in the spending for veterans' health -- (applause) -- and to give seniors a sound and modern Medicare system that includes coverage for prescription drugs. (Applause.) A good job should lead to security in retirement. I ask Congress to enact new safeguards for 401K and pension plans. (Applause.) Employees who have worked hard and saved all their lives should not have to risk losing everything if their company fails. (Applause.) Through stricter accounting standards and tougher disclosure requirements, corporate America must be made more accountable to employees and shareholders and held to the highest standards of conduct. (Applause.) Retirement security also depends upon keeping the commitments of Social Security, and we will. We must make Social Security financially stable and allow personal retirement accounts for younger workers who choose them. (Applause.) Members, you and I will work together in the months ahead on other issues: productive farm policy -- (applause) -- a cleaner environment -- (applause) -- broader home ownership, especially among minorities -- (applause) -- and ways to encourage the good work of charities and faith-based groups. (Applause.) I ask you to join me on these important domestic issues in the same spirit of cooperation we've applied to our war against terrorism. (Applause.) During these last few months, I've been humbled and privileged to see the true character of this country in a time of testing. Our enemies believed America was weak and materialistic, that we would splinter in fear and selfishness. They were as wrong as they are evil. (Applause.) The American people have responded magnificently, with courage and compassion, strength and resolve. As I have met the heroes, hugged the families, and looked into the tired faces of rescuers, I have stood in awe of the American people. And I hope you will join me -- I hope you will join me in expressing thanks to one American for the strength and calm and comfort she brings to our nation in crisis, our First Lady, Laura Bush. (Applause.) None of us would ever wish the evil that was done on September the 11th. Yet after America was attacked, it was as if our entire country looked into a mirror and saw our better selves. We were reminded that we are citizens, with obligations to each other, to our country, and to history. We began to think less of the goods we can accumulate, and more about the good we can do. For too long our culture has said, "If it feels good, do it." Now America is embracing a new ethic and a new creed: "Let's roll." (Applause.) In the sacrifice of soldiers, the fierce brotherhood of firefighters, and the bravery and generosity of ordinary citizens, we have glimpsed what a new culture of responsibility could look like. We want to be a nation that serves goals larger than self. We've been offered a unique opportunity, and we must not let this moment pass. (Applause.) My call tonight is for every American to commit at least two years -- 4,000 hours over the rest of your lifetime -- to the service of your neighbors and your nation. (Applause.) Many are already serving, and I thank you. If you aren't sure how to help, I've got a good place to start. To sustain and extend the best that has emerged in America, I invite you to join the new USA Freedom Corps. The Freedom Corps will focus on three areas of need: responding in case of crisis at home; rebuilding our communities; and extending American compassion throughout the world. One purpose of the USA Freedom Corps will be homeland security. America needs retired doctors and nurses who can be mobilized in major emergencies; volunteers to help police and fire departments; transportation and utility workers well-trained in spotting danger. Our country also needs citizens working to rebuild our communities. We need mentors to love children, especially children whose parents are in prison. And we need more talented teachers in troubled schools. USA Freedom Corps will expand and improve the good efforts of AmeriCorps and Senior Corps to recruit more than 200,000 new volunteers. And America needs citizens to extend the compassion of our country to every part of the world. So we will renew the promise of the Peace Corps, double its volunteers over the next five years -- (applause) -- and ask it to join a new effort to encourage development and education and opportunity in the Islamic world. (Applause.) This time of adversity offers a unique moment of opportunity -- a moment we must seize to change our culture. Through the gathering momentum of millions of acts of service and decency and kindness, I know we can overcome evil with greater good. (Applause.) And we have a great opportunity during this time of war to lead the world toward the values that will bring lasting peace. All fathers and mothers, in all societies, want their children to be educated, and live free from poverty and violence. No people on Earth yearn to be oppressed, or aspire to servitude, or eagerly await the midnight knock of the secret police. If anyone doubts this, let them look to Afghanistan, where the Islamic "street" greeted the fall of tyranny with song and celebration. Let the skeptics look to Islam's own rich history, with its centuries of learning, and tolerance and progress. America will lead by defending liberty and justice because they are right and true and unchanging for all people everywhere. (Applause.) No nation owns these aspirations, and no nation is exempt from them. We have no intention of imposing our culture. But America will always stand firm for the non-negotiable demands of human dignity: the rule of law; limits on the power of the state; respect for women; private property; free speech; equal justice; and religious tolerance. (Applause.) America will take the side of brave men and women who advocate these values around the world, including the Islamic world, because we have a greater objective than eliminating threats and containing resentment. We seek a just and peaceful world beyond the war on terror. In this moment of opportunity, a common danger is erasing old rivalries. America is working with Russia and China and India, in ways we have never before, to achieve peace and prosperity. In every region, free markets and free trade and free societies are proving their power to lift lives. Together with friends and allies from Europe to Asia, and Africa to Latin America, we will demonstrate that the forces of terror cannot stop the momentum of freedom. (Applause.) The last time I spoke here, I expressed the hope that life would return to normal. In some ways, it has. In others, it never will. Those of us who have lived through these challenging times have been changed by them. We've come to know truths that we will never question: evil is real, and it must be opposed. (Applause.) Beyond all differences of race or creed, we are one country, mourning together and facing danger together. Deep in the American character, there is honor, and it is stronger than cynicism. And many have discovered again that even in tragedy -- especially in tragedy -- God is near. (Applause.) In a single instant, we realized that this will be a decisive decade in the history of liberty, that we've been called to a unique role in human events. Rarely has the world faced a choice more clear or consequential. Our enemies send other people's children on missions of suicide and murder. They embrace tyranny and death as a cause and a creed. We stand for a different choice, made long ago, on the day of our founding. We affirm it again today. We choose freedom and the dignity of every life. (Applause.) Steadfast in our purpose, we now press on. We have known freedom's price. We have shown freedom's power. And in this great conflict, my fellow Americans, we will see freedom's victory. Thank you all. May God bless.

US

Mr. Speaker, Vice President Cheney, members of Congress, distinguished citizens and fellow citizens: Every year, by law and by custom, we meet here to consider the state of the union. This year, we gather in this chamber deeply aware of decisive days that lie ahead. President George W. Bush delivers his State of the Union address to the nation and a joint session of Congress in the House Chamber at the U.S. Capitol Tuesday, Jan. 28, 2003. White House photo by Susan SternerYou and I serve our country in a time of great consequence. During this session of Congress, we have the duty to reform domestic programs vital to our country; we have the opportunity to save millions of lives abroad from a terrible disease. We will work for a prosperity that is broadly shared, and we will answer every danger and every enemy that threatens the American people. (Applause.) In all these days of promise and days of reckoning, we can be confident. In a whirlwind of change and hope and peril, our faith is sure, our resolve is firm, and our union is strong. (Applause.) This country has many challenges. We will not deny, we will not ignore, we will not pass along our problems to other Congresses, to other presidents, and other generations. (Applause.) We will confront them with focus and clarity and courage. During the last two years, we have seen what can be accomplished when we work together. To lift the standards of our public schools, we achieved historic education reform -- which must now be carried out in every school and in every classroom, so that every child in America can read and learn and succeed in life. (Applause.) To protect our country, we reorganized our government and created the Department of Homeland Security, which is mobilizing against the threats of a new era. To bring our economy out of recession, we delivered the largest tax relief in a generation. (Applause.) To insist on integrity in American business we passed tough reforms, and we are holding corporate criminals to account. (Applause.) Some might call this a good record; I call it a good start. Tonight I ask the House and Senate to join me in the next bold steps to serve our fellow citizens. Our first goal is clear: We must have an economy that grows fast enough to employ every man and woman who seeks a job. (Applause.) After recession, terrorist attacks, corporate scandals and stock market declines, our economy is recovering -- yet it's not growing fast enough, or strongly enough. With unemployment rising, our nation needs more small businesses to open, more companies to invest and expand, more employers to put up the sign that says, "Help Wanted." (Applause.) Jobs are created when the economy grows; the economy grows when Americans have more money to spend and invest; and the best and fairest way to make sure Americans have that money is not to tax it away in the first place. (Applause.) Congress applauds President Bush during his State of the Union Address at the U.S. Capitol Tuesday Jan. 28, 2003. Discussing the spread of the AIDS virus, President Bush asked Congress to commit $15 billion in aid for African nations and the Caribbean tormented by the disease. “The qualities of courage and compassion that we strive for in America also determine our conduct abroad,” said the President. “This conviction leads us into the world to help the afflicted, and defend the peace, and confound the designs of evil men.” White House photo by Paul MorseI am proposing that all the income tax reductions set for 2004 and 2006 be made permanent and effective this year. (Applause.) And under my plan, as soon as I sign the bill, this extra money will start showing up in workers' paychecks. Instead of gradually reducing the marriage penalty, we should do it now. (Applause.) Instead of slowly raising the child credit to $1,000, we should send the checks to American families now. (Applause.) The tax relief is for everyone who pays income taxes -- and it will help our economy immediately: 92 million Americans will keep, this year, an average of almost $1,000 more of their own money. A family of four with an income of $40,000 would see their federal income taxes fall from $1,178 to $45 per year. (Applause.) Our plan will improve the bottom line for more than 23 million small businesses. You, the Congress, have already passed all these reductions, and promised them for future years. If this tax relief is good for Americans three, or five, or seven years from now, it is even better for Americans today. (Applause.) We should also strengthen the economy by treating investors equally in our tax laws. It's fair to tax a company's profits. It is not fair to again tax the shareholder on the same profits. (Applause.) To boost investor confidence, and to help the nearly 10 million senior who receive dividend income, I ask you to end the unfair double taxation of dividends. (Applause.) Lower taxes and greater investment will help this economy expand. More jobs mean more taxpayers, and higher revenues to our government. The best way to address the deficit and move toward a balanced budget is to encourage economic growth, and to show some spending discipline in Washington, D.C. (Applause.) We must work together to fund only our most important priorities. I will send you a budget that increases discretionary spending by 4 percent next year -- about as much as the average family's income is expected to grow. And that is a good benchmark for us. Federal spending should not rise any faster than the paychecks of American families. (Applause.) A growing economy and a focus on essential priorities will also be crucial to the future of Social Security. As we continue to work together to keep Social Security sound and reliable, we must offer younger workers a chance to invest in retirement accounts that they will control and they will own. (Applause.) President George W. Bush reacts to applause while delivering the State of the Union address at the U.S. Capitol, Tuesday, Jan. 28, 2003. Also pictured are Vice President Dick Cheney, left, and Speaker of the House Dennis Hastert. White House photo by Eric DraperOur second goal is high quality, affordable health care for all Americans. (Applause.) The American system of medicine is a model of skill and innovation, with a pace of discovery that is adding good years to our lives. Yet for many people, medical care costs too much -- and many have no coverage at all. These problems will not be solved with a nationalized health care system that dictates coverage and rations care. (Applause.) Instead, we must work toward a system in which all Americans have a good insurance policy, choose their own doctors, and seniors and low-income Americans receive the help they need. (Applause.) Instead of bureaucrats and trial lawyers and HMOs, we must put doctors and nurses and patients back in charge of American medicine. (Applause.) Health care reform must begin with Medicare; Medicare is the binding commitment of a caring society. (Applause.) We must renew that commitment by giving seniors access to preventive medicine and new drugs that are transforming health care in America. Seniors happy with the current Medicare system should be able to keep their coverage just the way it is. (Applause.) And just like you -- the members of Congress, and your staffs, and other federal employees -- all seniors should have the choice of a health care plan that provides prescription drugs. (Applause.) My budget will commit an additional $400 billion over the next decade to reform and strengthen Medicare. Leaders of both political parties have talked for years about strengthening Medicare. I urge the members of this new Congress to act this year. (Applause.) To improve our health care system, we must address one of the prime causes of higher cost, the constant threat that physicians and hospitals will be unfairly sued. (Applause.) Because of excessive litigation, everybody pays more for health care, and many parts of America are losing fine doctors. No one has ever been healed by a frivolous lawsuit. I urge the Congress to pass medical liability reform. (Applause.) Our third goal is to promote energy independence for our country, while dramatically improving the environment. (Applause.) I have sent you a comprehensive energy plan to promote energy efficiency and conservation, to develop cleaner technology, and to produce more energy at home. (Applause.) I have sent you Clear Skies legislation that mandates a 70-percent cut in air pollution from power plants over the next 15 years. (Applause.) I have sent you a Healthy Forests Initiative, to help prevent the catastrophic fires that devastate communities, kill wildlife, and burn away millions of acres of treasured forest. (Applause.) President George W. Bush hands Vice President Dick Cheney and Speaker of the House Dennis Hastert (not pictured) a copy of his State of the Union Address upon his arrival to the House Chamber at the U.S. Capitol Tuesday, Jan. 28, 2003. White House photo by Eric DraperI urge you to pass these measures, for the good of both our environment and our economy. (Applause.) Even more, I ask you to take a crucial step and protect our environment in ways that generations before us could not have imagined. In this century, the greatest environmental progress will come about not through endless lawsuits or command-and-control regulations, but through technology and innovation. Tonight I'm proposing $1.2 billion in research funding so that America can lead the world in developing clean, hydrogen-powered automobiles. (Applause.) A single chemical reaction between hydrogen and oxygen generates energy, which can be used to power a car -- producing only water, not exhaust fumes. With a new national commitment, our scientists and engineers will overcome obstacles to taking these cars from laboratory to showroom, so that the first car driven by a child born today could be powered by hydrogen, and pollution-free. (Applause.) Join me in this important innovation to make our air significantly cleaner, and our country much less dependent on foreign sources of energy. (Applause.) Our fourth goal is to apply the compassion of America to the deepest problems of America. For so many in our country -- the homeless and the fatherless, the addicted -- the need is great. Yet there's power, wonder-working power, in the goodness and idealism and faith of the American people. Americans are doing the work of compassion every day -- visiting prisoners, providing shelter for battered women, bringing companionship to lonely seniors. These good works deserve our praise; they deserve our personal support; and when appropriate, they deserve the assistance of the federal government. (Applause.) I urge you to pass both my faith-based initiative and the Citizen Service Act, to encourage acts of compassion that can transform America, one heart and one soul at a time. (Applause.) Last year, I called on my fellow citizens to participate in the USA Freedom Corps, which is enlisting tens of thousands of new volunteers across America. Tonight I ask Congress and the American people to focus the spirit of service and the resources of government on the needs of some of our most vulnerable citizens -- boys and girls trying to grow up without guidance and attention, and children who have to go through a prison gate to be hugged by their mom or dad. After delivering his State of the Union speech, President Bush waves to his wife, Laura Bush, as he leaves the House Chamber at the U.S. Capitol Tuesday, Jan. 28, 2003. White House photo by Eric DraperI propose a $450-million initiative to bring mentors to more than a million disadvantaged junior high students and children of prisoners. Government will support the training and recruiting of mentors; yet it is the men and women of America who will fill the need. One mentor, one person can change a life forever. And I urge you to be that one person. (Applause.) Another cause of hopelessness is addiction to drugs. Addiction crowds out friendship, ambition, moral conviction, and reduces all the richness of life to a single destructive desire. As a government, we are fighting illegal drugs by cutting off supplies and reducing demand through anti-drug education programs. Yet for those already addicted, the fight against drugs is a fight for their own lives. Too many Americans in search of treatment cannot get it. So tonight I propose a new $600-million program to help an additional 300,000 Americans receive treatment over the next three years. (Applause.) Our nation is blessed with recovery programs that do amazing work. One of them is found at the Healing Place Church in Baton Rouge, Louisiana. A man in the program said, "God does miracles in people's lives, and you never think it could be you." Tonight, let us bring to all Americans who struggle with drug addiction this message of hope: The miracle of recovery is possible, and it could be you. (Applause.) By caring for children who need mentors, and for addicted men and women who need treatment, we are building a more welcoming society -- a culture that values every life. And in this work we must not overlook the weakest among us. I ask you to protect infants at the very hour of their birth and end the practice of partial-birth abortion. (Applause.) And because no human life should be started or ended as the object of an experiment, I ask you to set a high standard for humanity, and pass a law against all human cloning. (Applause.) The qualities of courage and compassion that we strive for in America also determine our conduct abroad. The American flag stands for more than our power and our interests. Our founders dedicated this country to the cause of human dignity, the rights of every person, and the possibilities of every life. This conviction leads us into the world to help the afflicted, and defend the peace, and confound the designs of evil men. In Afghanistan, we helped liberate an oppressed people. And we will continue helping them secure their country, rebuild their society, and educate all their children -- boys and girls. (Applause.) In the Middle East, we will continue to seek peace between a secure Israel and a democratic Palestine. (Applause.) Across the Earth, America is feeding the hungry -- more than 60 percent of international food aid comes as a gift from the people of the United States. As our nation moves troops and builds alliances to make our world safer, we must also remember our calling as a blessed country is to make this world better. Today, on the continent of Africa, nearly 30 million people have the AIDS virus -- including 3 million children under the age 15. There are whole countries in Africa where more than one-third of the adult population carries the infection. More than 4 million require immediate drug treatment. Yet across that continent, only 50,000 AIDS victims -- only 50,000 -- are receiving the medicine they need. Because the AIDS diagnosis is considered a death sentence, many do not seek treatment. Almost all who do are turned away. A doctor in rural South Africa describes his frustration. He says, "We have no medicines. Many hospitals tell people, you've got AIDS, we can't help you. Go home and die." In an age of miraculous medicines, no person should have to hear those words. (Applause.) AIDS can be prevented. Anti-retroviral drugs can extend life for many years. And the cost of those drugs has dropped from $12,000 a year to under $300 a year -- which places a tremendous possibility within our grasp. Ladies and gentlemen, seldom has history offered a greater opportunity to do so much for so many. We have confronted, and will continue to confront, HIV/AIDS in our own country. And to meet a severe and urgent crisis abroad, tonight I propose the Emergency Plan for AIDS Relief -- a work of mercy beyond all current international efforts to help the people of Africa. This comprehensive plan will prevent 7 million new AIDS infections, treat at least 2 million people with life-extending drugs, and provide humane care for millions of people suffering from AIDS, and for children orphaned by AIDS. (Applause.) I ask the Congress to commit $15 billion over the next five years, including nearly $10 billion in new money, to turn the tide against AIDS in the most afflicted nations of Africa and the Caribbean. (Applause.) This nation can lead the world in sparing innocent people from a plague of nature. And this nation is leading the world in confronting and defeating the man-made evil of international terrorism. (Applause.) There are days when our fellow citizens do not hear news about the war on terror. There's never a day when I do not learn of another threat, or receive reports of operations in progress, or give an order in this global war against a scattered network of killers. The war goes on, and we are winning. (Applause.) To date, we've arrested or otherwise dealt with many key commanders of al Qaeda. They include a man who directed logistics and funding for the September the 11th attacks; the chief of al Qaeda operations in the Persian Gulf, who planned the bombings of our embassies in East Africa and the USS Cole; an al Qaeda operations chief from Southeast Asia; a former director of al Qaeda's training camps in Afghanistan; a key al Qaeda operative in Europe; a major al Qaeda leader in Yemen. All told, more than 3,000 suspected terrorists have been arrested in many countries. Many others have met a different fate. Let's put it this way -- they are no longer a problem to the United States and our friends and allies. (Applause.) We are working closely with other nations to prevent further attacks. America and coalition countries have uncovered and stopped terrorist conspiracies targeting the American embassy in Yemen, the American embassy in Singapore, a Saudi military base, ships in the Straits of Hormuz and the Straits the Gibraltar. We've broken al Qaeda cells in Hamburg, Milan, Madrid, London, Paris, as well as, Buffalo, New York. We have the terrorists on the run. We're keeping them on the run. One by one, the terrorists are learning the meaning of American justice. (Applause.) As we fight this war, we will remember where it began -- here, in our own country. This government is taking unprecedented measures to protect our people and defend our homeland. We've intensified security at the borders and ports of entry, posted more than 50,000 newly-trained federal screeners in airports, begun inoculating troops and first responders against smallpox, and are deploying the nation's first early warning network of sensors to detect biological attack. And this year, for the first time, we are beginning to field a defense to protect this nation against ballistic missiles. (Applause.) I thank the Congress for supporting these measures. I ask you tonight to add to our future security with a major research and production effort to guard our people against bioterrorism, called Project Bioshield. The budget I send you will propose almost $6 billion to quickly make available effective vaccines and treatments against agents like anthrax, botulinum toxin, Ebola, and plague. We must assume that our enemies would use these diseases as weapons, and we must act before the dangers are upon us. (Applause.) Since September the 11th, our intelligence and law enforcement agencies have worked more closely than ever to track and disrupt the terrorists. The FBI is improving its ability to analyze intelligence, and is transforming itself to meet new threats. Tonight, I am instructing the leaders of the FBI, the CIA, the Homeland Security, and the Department of Defense to develop a Terrorist Threat Integration Center, to merge and analyze all threat information in a single location. Our government must have the very best information possible, and we will use it to make sure the right people are in the right places to protect all our citizens. (Applause.) Our war against terror is a contest of will in which perseverance is power. In the ruins of two towers, at the western wall of the Pentagon, on a field in Pennsylvania, this nation made a pledge, and we renew that pledge tonight: Whatever the duration of this struggle, and whatever the difficulties, we will not permit the triumph of violence in the affairs of men -- free people will set the course of history. (Applause.) Today, the gravest danger in the war on terror, the gravest danger facing America and the world, is outlaw regimes that seek and possess nuclear, chemical, and biological weapons. These regimes could use such weapons for blackmail, terror, and mass murder. They could also give or sell those weapons to terrorist allies, who would use them without the least hesitation. This threat is new; America's duty is familiar. Throughout the 20th century, small groups of men seized control of great nations, built armies and arsenals, and set out to dominate the weak and intimidate the world. In each case, their ambitions of cruelty and murder had no limit. In each case, the ambitions of Hitlerism, militarism, and communism were defeated by the will of free peoples, by the strength of great alliances, and by the might of the United States of America. (Applause.) Now, in this century, the ideology of power and domination has appeared again, and seeks to gain the ultimate weapons of terror. Once again, this nation and all our friends are all that stand between a world at peace, and a world of chaos and constant alarm. Once again, we are called to defend the safety of our people, and the hopes of all mankind. And we accept this responsibility. (Applause.) America is making a broad and determined effort to confront these dangers. We have called on the United Nations to fulfill its charter and stand by its demand that Iraq disarm. We're strongly supporting the International Atomic Energy Agency in its mission to track and control nuclear materials around the world. We're working with other governments to secure nuclear materials in the former Soviet Union, and to strengthen global treaties banning the production and shipment of missile technologies and weapons of mass destruction. In all these efforts, however, America's purpose is more than to follow a process -- it is to achieve a result: the end of terrible threats to the civilized world. All free nations have a stake in preventing sudden and catastrophic attacks. And we're asking them to join us, and many are doing so. Yet the course of this nation does not depend on the decisions of others. (Applause.) Whatever action is required, whenever action is necessary, I will defend the freedom and security of the American people. (Applause.) Different threats require different strategies. In Iran, we continue to see a government that represses its people, pursues weapons of mass destruction, and supports terror. We also see Iranian citizens risking intimidation and death as they speak out for liberty and human rights and democracy. Iranians, like all people, have a right to choose their own government and determine their own destiny -- and the United States supports their aspirations to live in freedom. (Applause.) On the Korean Peninsula, an oppressive regime rules a people living in fear and starvation. Throughout the 1990s, the United States relied on a negotiated framework to keep North Korea from gaining nuclear weapons. We now know that that regime was deceiving the world, and developing those weapons all along. And today the North Korean regime is using its nuclear program to incite fear and seek concessions. America and the world will not be blackmailed. (Applause.) America is working with the countries of the region -- South Korea, Japan, China, and Russia -- to find a peaceful solution, and to show the North Korean government that nuclear weapons will bring only isolation, economic stagnation, and continued hardship. (Applause.) The North Korean regime will find respect in the world and revival for its people only when it turns away from its nuclear ambitions. (Applause.) Our nation and the world must learn the lessons of the Korean Peninsula and not allow an even greater threat to rise up in Iraq. A brutal dictator, with a history of reckless aggression, with ties to terrorism, with great potential wealth, will not be permitted to dominate a vital region and threaten the United States. (Applause.) Twelve years ago, Saddam Hussein faced the prospect of being the last casualty in a war he had started and lost. To spare himself, he agreed to disarm of all weapons of mass destruction. For the next 12 years, he systematically violated that agreement. He pursued chemical, biological, and nuclear weapons, even while inspectors were in his country. Nothing to date has restrained him from his pursuit of these weapons -- not economic sanctions, not isolation from the civilized world, not even cruise missile strikes on his military facilities. Almost three months ago, the United Nations Security Council gave Saddam Hussein his final chance to disarm. He has shown instead utter contempt for the United Nations, and for the opinion of the world. The 108 U.N. inspectors were sent to conduct -- were not sent to conduct a scavenger hunt for hidden materials across a country the size of California. The job of the inspectors is to verify that Iraq's regime is disarming. It is up to Iraq to show exactly where it is hiding its banned weapons, lay those weapons out for the world to see, and destroy them as directed. Nothing like this has happened. The United Nations concluded in 1999 that Saddam Hussein had biological weapons sufficient to produce over 25,000 liters of anthrax -- enough doses to kill several million people. He hasn't accounted for that material. He's given no evidence that he has destroyed it. The United Nations concluded that Saddam Hussein had materials sufficient to produce more than 38,000 liters of botulinum toxin -- enough to subject millions of people to death by respiratory failure. He hadn't accounted for that material. He's given no evidence that he has destroyed it. Our intelligence officials estimate that Saddam Hussein had the materials to produce as much as 500 tons of sarin, mustard and VX nerve agent. In such quantities, these chemical agents could also kill untold thousands. He's not accounted for these materials. He has given no evidence that he has destroyed them. U.S. intelligence indicates that Saddam Hussein had upwards of 30,000 munitions capable of delivering chemical agents. Inspectors recently turned up 16 of them -- despite Iraq's recent declaration denying their existence. Saddam Hussein has not accounted for the remaining 29,984 of these prohibited munitions. He's given no evidence that he has destroyed them. From three Iraqi defectors we know that Iraq, in the late 1990s, had several mobile biological weapons labs. These are designed to produce germ warfare agents, and can be moved from place to a place to evade inspectors. Saddam Hussein has not disclosed these facilities. He's given no evidence that he has destroyed them. The International Atomic Energy Agency confirmed in the 1990s that Saddam Hussein had an advanced nuclear weapons development program, had a design for a nuclear weapon and was working on five different methods of enriching uranium for a bomb. The British government has learned that Saddam Hussein recently sought significant quantities of uranium from Africa. Our intelligence sources tell us that he has attempted to purchase high-strength aluminum tubes suitable for nuclear weapons production. Saddam Hussein has not credibly explained these activities. He clearly has much to hide. The dictator of Iraq is not disarming. To the contrary; he is deceiving. From intelligence sources we know, for instance, that thousands of Iraqi security personnel are at work hiding documents and materials from the U.N. inspectors, sanitizing inspection sites and monitoring the inspectors themselves. Iraqi officials accompany the inspectors in order to intimidate witnesses. Iraq is blocking U-2 surveillance flights requested by the United Nations. Iraqi intelligence officers are posing as the scientists inspectors are supposed to interview. Real scientists have been coached by Iraqi officials on what to say. Intelligence sources indicate that Saddam Hussein has ordered that scientists who cooperate with U.N. inspectors in disarming Iraq will be killed, along with their families. Year after year, Saddam Hussein has gone to elaborate lengths, spent enormous sums, taken great risks to build and keep weapons of mass destruction. But why? The only possible explanation, the only possible use he could have for those weapons, is to dominate, intimidate, or attack. With nuclear arms or a full arsenal of chemical and biological weapons, Saddam Hussein could resume his ambitions of conquest in the Middle East and create deadly havoc in that region. And this Congress and the America people must recognize another threat. Evidence from intelligence sources, secret communications, and statements by people now in custody reveal that Saddam Hussein aids and protects terrorists, including members of al Qaeda. Secretly, and without fingerprints, he could provide one of his hidden weapons to terrorists, or help them develop their own. Before September the 11th, many in the world believed that Saddam Hussein could be contained. But chemical agents, lethal viruses and shadowy terrorist networks are not easily contained. Imagine those 19 hijackers with other weapons and other plans -- this time armed by Saddam Hussein. It would take one vial, one canister, one crate slipped into this country to bring a day of horror like none we have ever known. We will do everything in our power to make sure that that day never comes. (Applause.) Some have said we must not act until the threat is imminent. Since when have terrorists and tyrants announced their intentions, politely putting us on notice before they strike? If this threat is permitted to fully and suddenly emerge, all actions, all words, and all recriminations would come too late. Trusting in the sanity and restraint of Saddam Hussein is not a strategy, and it is not an option. (Applause.) The dictator who is assembling the world's most dangerous weapons has already used them on whole villages -- leaving thousands of his own citizens dead, blind, or disfigured. Iraqi refugees tell us how forced confessions are obtained -- by torturing children while their parents are made to watch. International human rights groups have catalogued other methods used in the torture chambers of Iraq: electric shock, burning with hot irons, dripping acid on the skin, mutilation with electric drills, cutting out tongues, and rape. If this is not evil, then evil has no meaning. (Applause.) And tonight I have a message for the brave and oppressed people of Iraq: Your enemy is not surrounding your country -- your enemy is ruling your country. (Applause.) And the day he and his regime are removed from power will be the day of your liberation. (Applause.) The world has waited 12 years for Iraq to disarm. America will not accept a serious and mounting threat to our country, and our friends and our allies. The United States will ask the U.N. Security Council to convene on February the 5th to consider the facts of Iraq's ongoing defiance of the world. Secretary of State Powell will present information and intelligence about Iraqi's legal -- Iraq's illegal weapons programs, its attempt to hide those weapons from inspectors, and its links to terrorist groups. We will consult. But let there be no misunderstanding: If Saddam Hussein does not fully disarm, for the safety of our people and for the peace of the world, we will lead a coalition to disarm him. (Applause.) Tonight I have a message for the men and women who will keep the peace, members of the American Armed Forces: Many of you are assembling in or near the Middle East, and some crucial hours may lay ahead. In those hours, the success of our cause will depend on you. Your training has prepared you. Your honor will guide you. You believe in America, and America believes in you. (Applause.) Sending Americans into battle is the most profound decision a President can make. The technologies of war have changed; the risks and suffering of war have not. For the brave Americans who bear the risk, no victory is free from sorrow. This nation fights reluctantly, because we know the cost and we dread the days of mourning that always come. We seek peace. We strive for peace. And sometimes peace must be defended. A future lived at the mercy of terrible threats is no peace at all. If war is forced upon us, we will fight in a just cause and by just means -- sparing, in every way we can, the innocent. And if war is forced upon us, we will fight with the full force and might of the United States military -- and we will prevail. (Applause.) And as we and our coalition partners are doing in Afghanistan, we will bring to the Iraqi people food and medicines and supplies -- and freedom. (Applause.) Many challenges, abroad and at home, have arrived in a single season. In two years, America has gone from a sense of invulnerability to an awareness of peril; from bitter division in small matters to calm unity in great causes. And we go forward with confidence, because this call of history has come to the right country. Americans are a resolute people who have risen to every test of our time. Adversity has revealed the character of our country, to the world and to ourselves. America is a strong nation, and honorable in the use of our strength. We exercise power without conquest, and we sacrifice for the liberty of strangers. Americans are a free people, who know that freedom is the right of every person and the future of every nation. The liberty we prize is not America's gift to the world, it is God's gift to humanity. (Applause.) We Americans have faith in ourselves, but not in ourselves alone. We do not know -- we do not claim to know all the ways of Providence, yet we can trust in them, placing our confidence in the loving God behind all of life, and all of history. May He guide us now. And may God continue to bless the United States of America.

US

Mr. Speaker, Vice President Cheney, members of Congress, distinguished guests, and fellow citizens: America this evening is a nation called to great responsibilities. And we are rising to meet them. As we gather tonight, hundreds of thousands of American servicemen and women are deployed across the world in the war on terror. By bringing hope to the oppressed, and delivering justice to the violent, they are making America more secure. (Applause.) View Webcast Click Here to View Webcast - Windows Format Click Here to View Webcast - Realmedia Format Each day, law enforcement personnel and intelligence officers are tracking terrorist threats; analysts are examining airline passenger lists; the men and women of our new Homeland Security Department are patrolling our coasts and borders. And their vigilance is protecting America. (Applause.) Americans are proving once again to be the hardest working people in the world. The American economy is growing stronger. The tax relief you passed is working. (Applause.) Tonight, members of Congress can take pride in the great works of compassion and reform that skeptics had thought impossible. You're raising the standards for our public schools, and you are giving our senior citizens prescription drug coverage under Medicare. (Applause.) We have faced serious challenges together, and now we face a choice: We can go forward with confidence and resolve, or we can turn back to the dangerous illusion that terrorists are not plotting and outlaw regimes are no threat to us. We can press on with economic growth, and reforms in education and Medicare, or we can turn back to old policies and old divisions. We've not come all this way -- through tragedy, and trial and war -- only to falter and leave our work unfinished. Americans are rising to the tasks of history, and they expect the same from us. In their efforts, their enterprise, and their character, the American people are showing that the state of our union is confident and strong. (Applause.) President George W. Bush delivers his State of the Union Address to the nation and a joint session of Congress in the House Chamber of the U.S. Capitol Tuesday, Jan. 20, 2004. "We have not come all this way – through tragedy, and trial, and war – only to falter and leave our work unfinished. Americans are rising to the tasks of history, and they expect the same of us," said President Bush in his remarks. White House photo by Eric DraperOur greatest responsibility is the active defense of the American people. Twenty-eight months have passed since September 11th, 2001 -- over two years without an attack on American soil. And it is tempting to believe that the danger is behind us. That hope is understandable, comforting -- and false. The killing has continued in Bali, Jakarta, Casablanca, Riyadh, Mombasa, Jerusalem, Istanbul, and Baghdad. The terrorists continue to plot against America and the civilized world. And by our will and courage, this danger will be defeated. (Applause.) Inside the United States, where the war began, we must continue to give our homeland security and law enforcement personnel every tool they need to defend us. And one of those essential tools is the Patriot Act, which allows federal law enforcement to better share information, to track terrorists, to disrupt their cells, and to seize their assets. For years, we have used similar provisions to catch embezzlers and drug traffickers. If these methods are good for hunting criminals, they are even more important for hunting terrorists. (Applause.) Key provisions of the Patriot Act are set to expire next year. (Applause.) The terrorist threat will not expire on that schedule. (Applause.) Our law enforcement needs this vital legislation to protect our citizens. You need to renew the Patriot Act. (Applause.) America is on the offensive against the terrorists who started this war. Last March, Khalid Shaikh Mohammed, a mastermind of September the 11th, awoke to find himself in the custody of U.S. and Pakistani authorities. Last August the 11th brought the capture of the terrorist Hambali, who was a key player in the attack in Indonesia that killed over 200 people. We're tracking al Qaeda around the world, and nearly two-thirds of their known leaders have now been captured or killed. Thousands of very skilled and determined military personnel are on the manhunt, going after the remaining killers who hide in cities and caves, and one by one, we will bring these terrorists to justice. (Applause.) As part of the offensive against terror, we are also confronting the regimes that harbor and support terrorists, and could supply them with nuclear, chemical or biological weapons. The United States and our allies are determined: We refuse to live in the shadow of this ultimate danger. (Applause.) President George W. Bush arrives at the House Chamber of the U.S. Capitol to deliver his State of the Union Address to the nation and a joint session of Congress Tuesday, Jan. 20, 2004. White House photo by Paul MorseThe first to see our determination were the Taliban, who made Afghanistan the primary training base of al Qaeda killers. As of this month, that country has a new constitution, guaranteeing free elections and full participation by women. Businesses are opening, health care centers are being established, and the boys and girls of Afghanistan are back in school. With the help from the new Afghan army, our coalition is leading aggressive raids against the surviving members of the Taliban and al Qaeda. The men and women of Afghanistan are building a nation that is free and proud and fighting terror -- and America is honored to be their friend. (Applause.) Since we last met in this chamber, combat forces of the United States, Great Britain, Australia, Poland and other countries enforced the demands of the United Nations, ended the rule of Saddam Hussein, and the people of Iraq are free. (Applause.) Having broken the Baathist regime, we face a remnant of violent Saddam supporters. Men who ran away from our troops in battle are now dispersed and attack from the shadows. These killers, joined by foreign terrorists, are a serious, continuing danger. Yet we're making progress against them. The once all-powerful ruler of Iraq was found in a hole, and now sits in a prison cell. (Applause.) Of the top 55 officials of the former regime, we have captured or killed 45. Our forces are on the offensive, leading over 1,600 patrols a day and conducting an average of 180 raids a week. We are dealing with these thugs in Iraq, just as surely as we dealt with Saddam Hussein's evil regime. (Applause.) The work of building a new Iraq is hard, and it is right. And America has always been willing to do what it takes for what is right. Last January, Iraq's only law was the whim of one brutal man. Today our coalition is working with the Iraqi Governing Council to draft a basic law, with a bill of rights. We're working with Iraqis and the United Nations to prepare for a transition to full Iraqi sovereignty by the end of June. As democracy takes hold in Iraq, the enemies of freedom will do all in their power to spread violence and fear. They are trying to shake the will of our country and our friends, but the United States of America will never be intimidated by thugs and assassins. (Applause.) The killers will fail, and the Iraqi people will live in freedom. (Applause.) President George W. Bush delivers his State of the Union Address to the nation and a joint session of Congress in the House Chamber of the U.S. Capitol Tuesday, Jan. 20, 2004. "We must continue to pursue an aggressive, pro-growth economic agenda. Congress has some unfinished business on the issue of taxes," said the President, calling on Congress to make the tax cuts permanent. White House photo by Paul MorseMonth by month, Iraqis are assuming more responsibility for their own security and their own future. And tonight we are honored to welcome one of Iraq's most respected leaders: the current President of the Iraqi Governing Council, Adnan Pachachi. Sir, America stands with you and the Iraqi people as you build a free and peaceful nation. (Applause.) Because of American leadership and resolve, the world is changing for the better. Last month, the leader of Libya voluntarily pledged to disclose and dismantle all of his regime's weapons of mass destruction programs, including a uranium enrichment project for nuclear weapons. Colonel Qadhafi correctly judged that his country would be better off and far more secure without weapons of mass murder. (Applause.) Nine months of intense negotiations involving the United States and Great Britain succeeded with Libya, while 12 years of diplomacy with Iraq did not. And one reason is clear: For diplomacy to be effective, words must be credible, and no one can now doubt the word of America. (Applause.) Different threats require different strategies. Along with nations in the region, we're insisting that North Korea eliminate its nuclear program. America and the international community are demanding that Iran meet its commitments and not develop nuclear weapons. America is committed to keeping the world's most dangerous weapons out of the hands of the most dangerous regimes. (Applause.) When I came to this rostrum on September the 20th, 2001, I brought the police shield of a fallen officer, my reminder of lives that ended, and a task that does not end. I gave to you and to all Americans my complete commitment to securing our country and defeating our enemies. And this pledge, given by one, has been kept by many. You in the Congress have provided the resources for our defense, and cast the difficult votes of war and peace. Our closest allies have been unwavering. America's intelligence personnel and diplomats have been skilled and tireless. And the men and women of the American military -- they have taken the hardest duty. We've seen their skill and their courage in armored charges and midnight raids, and lonely hours on faithful watch. We have seen the joy when they return, and felt the sorrow when one is lost. I've had the honor of meeting our servicemen and women at many posts, from the deck of a carrier in the Pacific to a mess hall in Baghdad. Many of our troops are listening tonight. And I want you and your families to know: America is proud of you. And my administration, and this Congress, will give you the resources you need to fight and win the war on terror. (Applause.) I know that some people question if America is really in a war at all. They view terrorism more as a crime, a problem to be solved mainly with law enforcement and indictments. After the World Trade Center was first attacked in 1993, some of the guilty were indicted and tried and convicted, and sent to prison. But the matter was not settled. The terrorists were still training and plotting in other nations, and drawing up more ambitious plans. After the chaos and carnage of September the 11th, it is not enough to serve our enemies with legal papers. The terrorists and their supporters declared war on the United States, and war is what they got. (Applause.) Some in this chamber, and in our country, did not support the liberation of Iraq. Objections to war often come from principled motives. But let us be candid about the consequences of leaving Saddam Hussein in power. We're seeking all the facts. Already, the Kay Report identified dozens of weapons of mass destruction-related program activities and significant amounts of equipment that Iraq concealed from the United Nations. Had we failed to act, the dictatator's weapons of mass destruction programs would continue to this day. Had we failed to act, Security Council resolutions on Iraq would have been revealed as empty threats, weakening the United Nations and encouraging defiance by dictators around the world. Iraq's torture chambers would still be filled with victims, terrified and innocent. The killing fields of Iraq -- where hundreds of thousands of men and women and children vanished into the sands -- would still be known only to the killers. For all who love freedom and peace, the world without Saddam Hussein's regime is a better and safer place. (Applause.) Some critics have said our duties in Iraq must be internationalized. This particular criticism is hard to explain to our partners in Britain, Australia, Japan, South Korea, the Philippines, Thailand, Italy, Spain, Poland, Denmark, Hungary, Bulgaria, Ukraine, Romania, the Netherlands -- (applause) -- Norway, El Salvador, and the 17 other countries that have committed troops to Iraq. (Applause.) As we debate at home, we must never ignore the vital contributions of our international partners, or dismiss their sacrifices. From the beginning, America has sought international support for our operations in Afghanistan and Iraq, and we have gained much support. There is a difference, however, between leading a coalition of many nations, and submitting to the objections of a few. America will never seek a permission slip to defend the security of our country. (Applause.) We also hear doubts that democracy is a realistic goal for the greater Middle East, where freedom is rare. Yet it is mistaken, and condescending, to assume that whole cultures and great religions are incompatible with liberty and self-government. I believe that God has planted in every human heart the desire to live in freedom. And even when that desire is crushed by tyranny for decades, it will rise again. (Applause.) As long as the Middle East remains a place of tyranny and despair and anger, it will continue to produce men and movements that threaten the safety of America and our friends. So America is pursuing a forward strategy of freedom in the greater Middle East. We will challenge the enemies of reform, confront the allies of terror, and expect a higher standard from our friend. To cut through the barriers of hateful propaganda, the Voice of America and other broadcast services are expanding their programming in Arabic and Persian -- and soon, a new television service will begin providing reliable news and information across the region. I will send you a proposal to double the budget of the National Endowment for Democracy, and to focus its new work on the development of free elections, and free markets, free press, and free labor unions in the Middle East. And above all, we will finish the historic work of democracy in Afghanistan and Iraq, so those nations can light the way for others, and help transform a troubled part of the world. (Applause.) America is a nation with a mission, and that mission comes from our most basic beliefs. We have no desire to dominate, no ambitions of empire. Our aim is a democratic peace -- a peace founded upon the dignity and rights of every man and woman. America acts in this cause with friends and allies at our side, yet we understand our special calling: This great republic will lead the cause of freedom. (Applause.) In the last three years, adversity has also revealed the fundamental strengths of the American economy. We have come through recession, and terrorist attack, and corporate scandals, and the uncertainties of war. And because you acted to stimulate our economy with tax relief, this economy is strong, and growing stronger. (Applause.) You have doubled the child tax credit from $500 to $1,000, reduced the marriage penalty, begun to phase out the death tax, reduced taxes on capital gains and stock dividends, cut taxes on small businesses, and you have lowered taxes for every American who pays income taxes. Americans took those dollars and put them to work, driving this economy forward. The pace of economic growth in the third quarter of 2003 was the fastest in nearly 20 years; new home construction, the highest in almost 20 years; home ownership rates, the highest ever. Manufacturing activity is increasing. Inflation is low. Interest rates are low. Exports are growing. Productivity is high, and jobs are on the rise. (Applause.) These numbers confirm that the American people are using their money far better than government would have -- and you were right to return it. (Applause.) America's growing economy is also a changing economy. As technology transforms the way almost every job is done, America becomes more productive, and workers need new skills. Much of our job growth will be found in high-skilled fields like health care and biotechnology. So we must respond by helping more Americans gain the skills to find good jobs in our new economy. All skills begin with the basics of reading and math, which are supposed to be learned in the early grades of our schools. Yet for too long, for too many children, those skills were never mastered. By passing the No Child Left Behind Act, you have made the expectation of literacy the law of our country. We're providing more funding for our schools -- a 36-percent increase since 2001. We're requiring higher standards. We are regularly testing every child on the fundamentals. We are reporting results to parents, and making sure they have better options when schools are not performing. We are making progress toward excellence for every child in America. (Applause.) But the status quo always has defenders. Some want to undermine the No Child Left Behind Act by weakening standards and accountability. Yet the results we require are really a matter of common sense: We expect third graders to read and do math at the third grade level -- and that's not asking too much. Testing is the only way to identify and help students who are falling behind. This nation will not go back to the days of simply shuffling children along from grade to grade without them learning the basics. I refuse to give up on any child -- and the No Child Left Behind Act is opening the door of opportunity to all of America's children. (Applause.) At the same time, we must ensure that older students and adults can gain the skills they need to find work now. Many of the fastest growing occupations require strong math and science preparation, and training beyond the high school level. So tonight, I propose a series of measures called Jobs for the 21st Century. This program will provide extra help to middle and high school students who fall behind in reading and math, expand advanced placement programs in low-income schools, invite math and science professionals from the private sector to teach part-time in our high schools. I propose larger Pell grants for students who prepare for college with demanding courses in high school. (Applause.) I propose increasing our support for America's fine community colleges, so they can -- (applause.) I do so, so they can train workers for industries that are creating the most new jobs. By all these actions, we'll help more and more Americans to join in the growing prosperity of our country. Job training is important, and so is job creation. We must continue to pursue an aggressive, pro-growth economic agenda. (Applause.) Congress has some unfinished business on the issue of taxes. The tax reductions you passed are set to expire. Unless you act -- (applause) -- unless you act -- unless you act, the unfair tax on marriage will go back up. Unless you act, millions of families will be charged $300 more in federal taxes for every child. Unless you act, small businesses will pay higher taxes. Unless you act, the death tax will eventually come back to life. Unless you act, Americans face a tax increase. What Congress has given, the Congress should not take away. For the sake of job growth, the tax cuts you passed should be permanent. (Applause.) Our agenda for jobs and growth must help small business owners and employees with relief from needless federal regulation, and protect them from junk and frivolous lawsuits. (Applause.) Consumers and businesses need reliable supplies of energy to make our economy run -- so I urge you to pass legislation to modernize our electricity system, promote conservation, and make America less dependent on foreign sources of energy. (Applause.) My administration is promoting free and fair trade to open up new markets for America's entrepreneurs and manufacturers and farmers -- to create jobs for American workers. Younger workers should have the opportunity to build a nest egg by saving part of their Social Security taxes in a personal retirement account. (Applause.) We should make the Social Security system a source of ownership for the American people. (Applause.) And we should limit the burden of government on this economy by acting as good stewards of taxpayers' dollars. (Applause.) In two weeks, I will send you a budget that funds the war, protects the homeland, and meets important domestic needs, while limiting the growth in discretionary spending to less than 4 percent. (Applause.) This will require that Congress focus on priorities, cut wasteful spending, and be wise with the people's money. By doing so, we can cut the deficit in half over the next five years. (Applause.) Tonight, I also ask you to reform our immigration laws so they reflect our values and benefit our economy. I propose a new temporary worker program to match willing foreign workers with willing employers when no Americans can be found to fill the job. This reform will be good for our economy because employers will find needed workers in an honest and orderly system. A temporary worker program will help protect our homeland, allowing Border Patrol and law enforcement to focus on true threats to our national security. I oppose amnesty, because it would encourage further illegal immigration, and unfairly reward those who break our laws. My temporary worker program will preserve the citizenship path for those who respect the law, while bringing millions of hardworking men and women out from the shadows of American life. (Applause.) Our nation's health care system, like our economy, is also in a time of change. Amazing medical technologies are improving and saving lives. This dramatic progress has brought its own challenge, in the rising costs of medical care and health insurance. Members of Congress, we must work together to help control those costs and extend the benefits of modern medicine throughout our country. (Applause.) Meeting these goals requires bipartisan effort, and two months ago, you showed the way. By strengthening Medicare and adding a prescription drug benefit, you kept a basic commitment to our seniors: You are giving them the modern medicine they deserve. (Applause.) Starting this year, under the law you passed, seniors can choose to receive a drug discount card, saving them 10 to 25 percent off the retail price of most prescription drugs -- and millions of low-income seniors can get an additional $600 to buy medicine. Beginning next year, seniors will have new coverage for preventive screenings against diabetes and heart disease, and seniors just entering Medicare can receive wellness exams. In January of 2006, seniors can get prescription drug coverage under Medicare. For a monthly premium of about $35, most seniors who do not have that coverage today can expect to see their drug bills cut roughly in half. Under this reform, senior citizens will be able to keep their Medicare just as it is, or they can choose a Medicare plan that fits them best -- just as you, as members of Congress, can choose an insurance plan that meets your needs. And starting this year, millions of Americans will be able to save money tax-free for their medical expenses in a health savings account. (Applause.) I signed this measure proudly, and any attempt to limit the choices of our seniors, or to take away their prescription drug coverage under Medicare, will meet my veto. (Applause.) On the critical issue of health care, our goal is to ensure that Americans can choose and afford private health care coverage that best fits their individual needs. To make insurance more affordable, Congress must act to address rapidly rising health care costs. Small businesses should be able to band together and negotiate for lower insurance rates, so they can cover more workers with health insurance. I urge you to pass association health plans. (Applause.) I ask you to give lower-income Americans a refundable tax credit that would allow millions to buy their own basic health insurance. (Applause.) By computerizing health records, we can avoid dangerous medical mistakes, reduce costs, and improve care. To protect the doctor-patient relationship, and keep good doctors doing good work, we must eliminate wasteful and frivolous medical lawsuits. (Applause.) And tonight I propose that individuals who buy catastrophic health care coverage, as part of our new health savings accounts, be allowed to deduct 100 percent of the premiums from their taxes. (Applause.) A government-run health care system is the wrong prescription. (Applause.) By keeping costs under control, expanding access, and helping more Americans afford coverage, we will preserve the system of private medicine that makes America's health care the best in the world. (Applause.) We are living in a time of great change -- in our world, in our economy, in science and medicine. Yet some things endure -- courage and compassion, reverence and integrity, respect for differences of faith and race. The values we try to live by never change. And they are instilled in us by fundamental institutions, such as families and schools and religious congregations. These institutions, these unseen pillars of civilization, must remain strong in America, and we will defend them. We must stand with our families to help them raise healthy, responsible children. When it comes to helping children make right choices, there is work for all of us to do. One of the worst decisions our children can make is to gamble their lives and futures on drugs. Our government is helping parents confront this problem with aggressive education, treatment, and law enforcement. Drug use in high school has declined by 11 percent over the last two years. Four hundred thousand fewer young people are using illegal drugs than in the year 2001. (Applause.) In my budget, I proposed new funding to continue our aggressive, community-based strategy to reduce demand for illegal drugs. Drug testing in our schools has proven to be an effective part of this effort. So tonight I proposed an additional $23 million for schools that want to use drug testing as a tool to save children's lives. The aim here is not to punish children, but to send them this message: We love you, and we don't want to lose you. (Applause.) To help children make right choices, they need good examples. Athletics play such an important role in our society, but, unfortunately, some in professional sports are not setting much of an example. The use of performance-enhancing drugs like steroids in baseball, football, and other sports is dangerous, and it sends the wrong message -- that there are shortcuts to accomplishment, and that performance is more important than character. So tonight I call on team owners, union representatives, coaches, and players to take the lead, to send the right signal, to get tough, and to get rid of steroids now. (Applause.) To encourage right choices, we must be willing to confront the dangers young people face -- even when they're difficult to talk about. Each year, about 3 million teenagers contract sexually-transmitted diseases that can harm them, or kill them, or prevent them from ever becoming parents. In my budget, I propose a grassroots campaign to help inform families about these medical risks. We will double federal funding for abstinence programs, so schools can teach this fact of life: Abstinence for young people is the only certain way to avoid sexually-transmitted diseases. (Applause.) Decisions children now make can affect their health and character for the rest of their lives. All of us -- parents and schools and government -- must work together to counter the negative influence of the culture, and to send the right messages to our children. A strong America must also value the institution of marriage. I believe we should respect individuals as we take a principled stand for one of the most fundamental, enduring institutions of our civilization. Congress has already taken a stand on this issue by passing the Defense of Marriage Act, signed in 1996 by President Clinton. That statute protects marriage under federal law as a union of a man and a woman, and declares that one state may not redefine marriage for other states. Activist judges, however, have begun redefining marriage by court order, without regard for the will of the people and their elected representatives. On an issue of such great consequence, the people's voice must be heard. If judges insist on forcing their arbitrary will upon the people, the only alternative left to the people would be the constitutional process. Our nation must defend the sanctity of marriage. (Applause.) The outcome of this debate is important -- and so is the way we conduct it. The same moral tradition that defines marriage also teaches that each individual has dignity and value in God's sight. (Applause.) It's also important to strengthen our communities by unleashing the compassion of America's religious institutions. Religious charities of every creed are doing some of the most vital work in our country -- mentoring children, feeding the hungry, taking the hand of the lonely. Yet government has often denied social service grants and contracts to these groups, just because they have a cross or a Star of David or a crescent on the wall. By executive order, I have opened billions of dollars in grant money to competition that includes faith-based charities. Tonight I ask you to codify this into law, so people of faith can know that the law will never discriminate against them again. (Applause.) In the past, we've worked together to bring mentors to children of prisoners, and provide treatment for the addicted, and help for the homeless. Tonight I ask you to consider another group of Americans in need of help. This year, some 600,000 inmates will be released from prison back into society. We know from long experience that if they can't find work, or a home, or help, they are much more likely to commit crime and return to prison. So tonight, I propose a four-year, $300 million prisoner re-entry initiative to expand job training and placement services, to provide transitional housing, and to help newly released prisoners get mentoring, including from faith-based groups. (Applause.) America is the land of second chance, and when the gates of the prison open, the path ahead should lead to a better life. (Applause.) For all Americans, the last three years have brought tests we did not ask for, and achievements shared by all. By our actions, we have shown what kind of nation we are. In grief, we have found the grace to go on. In challenge, we rediscovered the courage and daring of a free people. In victory, we have shown the noble aims and good heart of America. And having come this far, we sense that we live in a time set apart. I've been witness to the character of the people of America, who have shown calm in times of danger, compassion for one another, and toughness for the long haul. All of us have been partners in a great enterprise. And even some of the youngest understand that we are living in historic times. Last month a girl in Lincoln, Rhode Island, sent me a letter. It began, "Dear George W. Bush. If there's anything you know, I, Ashley Pearson, age 10, can do to help anyone, please send me a letter and tell me what I can do to save our country." She added this P.S.: "If you can send a letter to the troops, please put, 'Ashley Pearson believes in you.'" (Applause.) Tonight, Ashley, your message to our troops has just been conveyed. And, yes, you have some duties yourself. Study hard in school, listen to your mom or dad, help someone in need, and when you and your friends see a man or woman in uniform, say, "thank you." (Applause.) And, Ashley, while you do your part, all of us here in this great chamber will do our best to keep you and the rest of America safe and free. (Applause.) My fellow citizens, we now move forward, with confidence and faith. Our nation is strong and steadfast. The cause we serve is right, because it is the cause of all mankind. The momentum of freedom in our world is unmistakable -- and it is not carried forward by our power alone. We can trust in that greater power who guides the unfolding of the years. And in all that is to come, we can know that His purposes are just and true. May God continue to bless America.

US

Mr. Speaker, Vice President Cheney, members of Congress, fellow citizens: As a new Congress gathers, all of us in the elected branches of government share a great privilege: We've been placed in office by the votes of the people we serve. And tonight that is a privilege we share with newly-elected leaders of Afghanistan, the Palestinian Territories, Ukraine, and a free and sovereign Iraq. (Applause.) Two weeks ago, I stood on the steps of this Capitol and renewed the commitment of our nation to the guiding ideal of liberty for all. This evening I will set forth policies to advance that ideal at home and around the world. Tonight, with a healthy, growing economy, with more Americans going back to work, with our nation an active force for good in the world -- the state of our union is confident and strong. (Applause.) Our generation has been blessed -- by the expansion of opportunity, by advances in medicine, by the security purchased by our parents' sacrifice. Now, as we see a little gray in the mirror -- or a lot of gray -- (laughter) -- and we watch our children moving into adulthood, we ask the question: What will be the state of their union? Members of Congress, the choices we make together will answer that question. Over the next several months, on issue after issue, let us do what Americans have always done, and build a better world for our children and our grandchildren. (Applause.) President George W. Bush receives a standing ovation during his State of the Union Address at the U.S. Capitol, Wednesday, Feb. 2, 2005. White House photo by Susan SternerFirst, we must be good stewards of this economy, and renew the great institutions on which millions of our fellow citizens rely. America's economy is the fastest growing of any major industrialized nation. In the past four years, we provided tax relief to every person who pays income taxes, overcome a recession, opened up new markets abroad, prosecuted corporate criminals, raised homeownership to its highest level in history, and in the last year alone, the United States has added 2.3 million new jobs. (Applause.) When action was needed, the Congress delivered -- and the nation is grateful. Now we must add to these achievements. By making our economy more flexible, more innovative, and more competitive, we will keep America the economic leader of the world. (Applause.) America's prosperity requires restraining the spending appetite of the federal government. I welcome the bipartisan enthusiasm for spending discipline. I will send you a budget that holds the growth of discretionary spending below inflation, makes tax relief permanent, and stays on track to cut the deficit in half by 2009. (Applause.) My budget substantially reduces or eliminates more than 150 government programs that are not getting results, or duplicate current efforts, or do not fulfill essential priorities. The principle here is clear: Taxpayer dollars must be spent wisely, or not at all. (Applause.) To make our economy stronger and more dynamic, we must prepare a rising generation to fill the jobs of the 21st century. Under the No Child Left Behind Act, standards are higher, test scores are on the rise, and we're closing the achievement gap for minority students. Now we must demand better results from our high schools, so every high school diploma is a ticket to success. We will help an additional 200,000 workers to get training for a better career, by reforming our job training system and strengthening America's community colleges. And we'll make it easier for Americans to afford a college education, by increasing the size of Pell Grants. (Applause.) To make our economy stronger and more competitive, America must reward, not punish, the efforts and dreams of entrepreneurs. Small business is the path of advancement, especially for women and minorities, so we must free small businesses from needless regulation and protect honest job-creators from junk lawsuits. (Applause.) Justice is distorted, and our economy is held back by irresponsible class-actions and frivolous asbestos claims -- and I urge Congress to pass legal reforms this year. (Applause.) Members of Congress display purple ink-stained forefingers as a salute to voters in Sunday's Iraqi election, whose fingers were marked in a similar way, during President George W. Bush's State of the Union Address at the U.S. Capitol, Wednesday, Feb. 2, 2005. "We will succeed because the Iraqi people value their own liberty -- as they showed the world last Sunday," President Bush said. "Americans recognize that spirit of liberty, because we share it. In any nation, casting your vote is an act of civic responsibility; for millions of Iraqis, it was also an act of personal courage, and they have earned the respect of us all." White House photo by Paul MorseTo make our economy stronger and more productive, we must make health care more affordable, and give families greater access to good coverage -- (applause) -- and more control over their health decisions. (Applause.) I ask Congress to move forward on a comprehensive health care agenda with tax credits to help low-income workers buy insurance, a community health center in every poor county, improved information technology to prevent medical error and needless costs, association health plans for small businesses and their employees -- (applause) -- expanded health savings accounts -- (applause) -- and medical liability reform that will reduce health care costs and make sure patients have the doctors and care they need. (Applause.) To keep our economy growing, we also need reliable supplies of affordable, environmentally responsible energy. (Applause.) Nearly four years ago, I submitted a comprehensive energy strategy that encourages conservation, alternative sources, a modernized electricity grid, and more production here at home -- including safe, clean nuclear energy. (Applause.) My Clear Skies legislation will cut power plant pollution and improve the health of our citizens. (Applause.) And my budget provides strong funding for leading-edge technology -- from hydrogen-fueled cars, to clean coal, to renewable sources such as ethanol. (Applause.) Four years of debate is enough: I urge Congress to pass legislation that makes America more secure and less dependent on foreign energy. (Applause.) All these proposals are essential to expand this economy and add new jobs -- but they are just the beginning of our duty. To build the prosperity of future generations, we must update institutions that were created to meet the needs of an earlier time. Year after year, Americans are burdened by an archaic, incoherent federal tax code. I've appointed a bipartisan panel to examine the tax code from top to bottom. And when their recommendations are delivered, you and I will work together to give this nation a tax code that is pro-growth, easy to understand, and fair to all. (Applause.) President George W. Bush delivers his fourth State of the Union Address at the U.S. Capitol, Wednesday, Feb. 2, 2005. White House photo by Eric DraperAmerica's immigration system is also outdated -- unsuited to the needs of our economy and to the values of our country. We should not be content with laws that punish hardworking people who want only to provide for their families, and deny businesses willing workers, and invite chaos at our border. It is time for an immigration policy that permits temporary guest workers to fill jobs Americans will not take, that rejects amnesty, that tells us who is entering and leaving our country, and that closes the border to drug dealers and terrorists. (Applause.) One of America's most important institutions -- a symbol of the trust between generations -- is also in need of wise and effective reform. Social Security was a great moral success of the 20th century, and we must honor its great purposes in this new century. (Applause.) The system, however, on its current path, is headed toward bankruptcy. And so we must join together to strengthen and save Social Security. (Applause.) Today, more than 45 million Americans receive Social Security benefits, and millions more are nearing retirement -- and for them the system is sound and fiscally strong. I have a message for every American who is 55 or older: Do not let anyone mislead you; for you, the Social Security system will not change in any way. (Applause.) For younger workers, the Social Security system has serious problems that will grow worse with time. Social Security was created decades ago, for a very different era. In those days, people did not live as long. Benefits were much lower than they are today. And a half-century ago, about sixteen workers paid into the system for each person drawing benefits. Our society has changed in ways the founders of Social Security could not have foreseen. In today's world, people are living longer and, therefore, drawing benefits longer. And those benefits are scheduled to rise dramatically over the next few decades. And instead of sixteen workers paying in for every beneficiary, right now it's only about three workers. And over the next few decades that number will fall to just two workers per beneficiary. With each passing year, fewer workers are paying ever-higher benefits to an ever-larger number of retirees. So here is the result: Thirteen years from now, in 2018, Social Security will be paying out more than it takes in. And every year afterward will bring a new shortfall, bigger than the year before. For example, in the year 2027, the government will somehow have to come up with an extra $200 billion to keep the system afloat -- and by 2033, the annual shortfall would be more than $300 billion. By the year 2042, the entire system would be exhausted and bankrupt. If steps are not taken to avert that outcome, the only solutions would be dramatically higher taxes, massive new borrowing, or sudden and severe cuts in Social Security benefits or other government programs. During the State of the Union Address Wednesday, Feb. 2, 2005, Janet and William Norwood, center, comfort each other as President Bush talks about their son, Marine Corps Sergeant Byron Norwood of Pflugerville, Texas, who died during the assault on Fallujah. "Ladies and gentlemen, with grateful hearts, we honor freedom's defenders, and our military families, represented here this evening by Sergeant Norwood's mom and dad, Janet and Bill Norwood," President Bush said during his speech at the U.S. Capitol. White House photo by Eric DraperI recognize that 2018 and 2042 may seem a long way off. But those dates are not so distant, as any parent will tell you. If you have a five-year-old, you're already concerned about how you'll pay for college tuition 13 years down the road. If you've got children in their 20s, as some of us do, the idea of Social Security collapsing before they retire does not seem like a small matter. And it should not be a small matter to the United States Congress. (Applause.) You and I share a responsibility. We must pass reforms that solve the financial problems of Social Security once and for all. Fixing Social Security permanently will require an open, candid review of the options. Some have suggested limiting benefits for wealthy retirees. Former Congressman Tim Penny has raised the possibility of indexing benefits to prices rather than wages. During the 1990s, my predecessor, President Clinton, spoke of increasing the retirement age. Former Senator John Breaux suggested discouraging early collection of Social Security benefits. The late Senator Daniel Patrick Moynihan recommended changing the way benefits are calculated. All these ideas are on the table. I know that none of these reforms would be easy. But we have to move ahead with courage and honesty, because our children's retirement security is more important than partisan politics. (Applause.) I will work with members of Congress to find the most effective combination of reforms. I will listen to anyone who has a good idea to offer. (Applause.) We must, however, be guided by some basic principles. We must make Social Security permanently sound, not leave that task for another day. We must not jeopardize our economic strength by increasing payroll taxes. We must ensure that lower-income Americans get the help they need to have dignity and peace of mind in their retirement. We must guarantee there is no change for those now retired or nearing retirement. And we must take care that any changes in the system are gradual, so younger workers have years to prepare and plan for their future. Safia Taleb al-Suhail, leader of the Iraqi Women's Political Council, second on right, displays a peace sign as other guests applaud during President George W. Bush's State of the Union speech at the U.S. Capitol, Wednesday, Feb. 2, 2005. Also pictured are, from left, Kindergarten teacher Lorna Clark of Santa Theresa, New Mexico, Army Staff Sergeant Norbert Lara, and Laura Bush. White House photo by Paul MorseAs we fix Social Security, we also have the responsibility to make the system a better deal for younger workers. And the best way to reach that goal is through voluntary personal retirement accounts. (Applause.) Here is how the idea works. Right now, a set portion of the money you earn is taken out of your paycheck to pay for the Social Security benefits of today's retirees. If you're a younger worker, I believe you should be able to set aside part of that money in your own retirement account, so you can build a nest egg for your own future. Here's why the personal accounts are a better deal. Your money will grow, over time, at a greater rate than anything the current system can deliver -- and your account will provide money for retirement over and above the check you will receive from Social Security. In addition, you'll be able to pass along the money that accumulates in your personal account, if you wish, to your children and -- or grandchildren. And best of all, the money in the account is yours, and the government can never take it away. (Applause.) The goal here is greater security in retirement, so we will set careful guidelines for personal accounts. We'll make sure the money can only go into a conservative mix of bonds and stock funds. We'll make sure that your earnings are not eaten up by hidden Wall Street fees. We'll make sure there are good options to protect your investments from sudden market swings on the eve of your retirement. We'll make sure a personal account cannot be emptied out all at once, but rather paid out over time, as an addition to traditional Social Security benefits. And we'll make sure this plan is fiscally responsible, by starting personal retirement accounts gradually, and raising the yearly limits on contributions over time, eventually permitting all workers to set aside four percentage points of their payroll taxes in their accounts. Personal retirement accounts should be familiar to federal employees, because you already have something similar, called the Thrift Savings Plan, which lets workers deposit a portion of their paychecks into any of five different broadly-based investment funds. It's time to extend the same security, and choice, and ownership to young Americans. (Applause.) Our second great responsibility to our children and grandchildren is to honor and to pass along the values that sustain a free society. So many of my generation, after a long journey, have come home to family and faith, and are determined to bring up responsible, moral children. Government is not the source of these values, but government should never undermine them. Because marriage is a sacred institution and the foundation of society, it should not be re-defined by activist judges. For the good of families, children, and society, I support a constitutional amendment to protect the institution of marriage. (Applause.) Because a society is measured by how it treats the weak and vulnerable, we must strive to build a culture of life. Medical research can help us reach that goal, by developing treatments and cures that save lives and help people overcome disabilities -- and I thank the Congress for doubling the funding of the National Institutes of Health. (Applause.) To build a culture of life, we must also ensure that scientific advances always serve human dignity, not take advantage of some lives for the benefit of others. We should all be able to agree -- (applause) -- we should all be able to agree on some clear standards. I will work with Congress to ensure that human embryos are not created for experimentation or grown for body parts, and that human life is never bought and sold as a commodity. (Applause.) America will continue to lead the world in medical research that is ambitious, aggressive, and always ethical. Because courts must always deliver impartial justice, judges have a duty to faithfully interpret the law, not legislate from the bench. (Applause.) As President, I have a constitutional responsibility to nominate men and women who understand the role of courts in our democracy, and are well-qualified to serve on the bench -- and I have done so. (Applause.) The Constitution also gives the Senate a responsibility: Every judicial nominee deserves an up or down vote. (Applause.) Because one of the deepest values of our country is compassion, we must never turn away from any citizen who feels isolated from the opportunities of America. Our government will continue to support faith-based and community groups that bring hope to harsh places. Now we need to focus on giving young people, especially young men in our cities, better options than apathy, or gangs, or jail. Tonight I propose a three-year initiative to help organizations keep young people out of gangs, and show young men an ideal of manhood that respects women and rejects violence. (Applause.) Taking on gang life will be one part of a broader outreach to at-risk youth, which involves parents and pastors, coaches and community leaders, in programs ranging from literacy to sports. And I am proud that the leader of this nationwide effort will be our First Lady, Laura Bush. (Applause.) Because HIV/AIDS brings suffering and fear into so many lives, I ask you to reauthorize the Ryan White Act to encourage prevention, and provide care and treatment to the victims of that disease. (Applause.) And as we update this important law, we must focus our efforts on fellow citizens with the highest rates of new cases, African American men and women. (Applause.) Because one of the main sources of our national unity is our belief in equal justice, we need to make sure Americans of all races and backgrounds have confidence in the system that provides justice. In America we must make doubly sure no person is held to account for a crime he or she did not commit -- so we are dramatically expanding the use of DNA evidence to prevent wrongful conviction. (Applause.) Soon I will send to Congress a proposal to fund special training for defense counsel in capital cases, because people on trial for their lives must have competent lawyers by their side. (Applause.) Our third responsibility to future generations is to leave them an America that is safe from danger, and protected by peace. We will pass along to our children all the freedoms we enjoy -- and chief among them is freedom from fear. In the three and a half years since September the 11th, 2001, we have taken unprecedented actions to protect Americans. We've created a new department of government to defend our homeland, focused the FBI on preventing terrorism, begun to reform our intelligence agencies, broken up terror cells across the country, expanded research on defenses against biological and chemical attack, improved border security, and trained more than a half-million first responders. Police and firefighters, air marshals, researchers, and so many others are working every day to make our homeland safer, and we thank them all. (Applause.) Our nation, working with allies and friends, has also confronted the enemy abroad, with measures that are determined, successful, and continuing. The al Qaeda terror network that attacked our country still has leaders -- but many of its top commanders have been removed. There are still governments that sponsor and harbor terrorists -- but their number has declined. There are still regimes seeking weapons of mass destruction -- but no longer without attention and without consequence. Our country is still the target of terrorists who want to kill many, and intimidate us all -- and we will stay on the offensive against them, until the fight is won. (Applause.) Pursuing our enemies is a vital commitment of the war on terror -- and I thank the Congress for providing our servicemen and women with the resources they have needed. During this time of war, we must continue to support our military and give them the tools for victory. (Applause.) Other nations around the globe have stood with us. In Afghanistan, an international force is helping provide security. In Iraq, 28 countries have troops on the ground, the United Nations and the European Union provided technical assistance for the elections, and NATO is leading a mission to help train Iraqi officers. We're cooperating with 60 governments in the Proliferation Security Initiative, to detect and stop the transit of dangerous materials. We're working closely with the governments in Asia to convince North Korea to abandon its nuclear ambitions. Pakistan, Saudi Arabia, and nine other countries have captured or detained al Qaeda terrorists. In the next four years, my administration will continue to build the coalitions that will defeat the dangers of our time. (Applause.) In the long-term, the peace we seek will only be achieved by eliminating the conditions that feed radicalism and ideologies of murder. If whole regions of the world remain in despair and grow in hatred, they will be the recruiting grounds for terror, and that terror will stalk America and other free nations for decades. The only force powerful enough to stop the rise of tyranny and terror, and replace hatred with hope, is the force of human freedom. (Applause.) Our enemies know this, and that is why the terrorist Zarqawi recently declared war on what he called the "evil principle" of democracy. And we've declared our own intention: America will stand with the allies of freedom to support democratic movements in the Middle East and beyond, with the ultimate goal of ending tyranny in our world. (Applause.) The United States has no right, no desire, and no intention to impose our form of government on anyone else. That is one of the main differences between us and our enemies. They seek to impose and expand an empire of oppression, in which a tiny group of brutal, self-appointed rulers control every aspect of every life. Our aim is to build and preserve a community of free and independent nations, with governments that answer to their citizens, and reflect their own cultures. And because democracies respect their own people and their neighbors, the advance of freedom will lead to peace. (Applause.) That advance has great momentum in our time -- shown by women voting in Afghanistan, and Palestinians choosing a new direction, and the people of Ukraine asserting their democratic rights and electing a president. We are witnessing landmark events in the history of liberty. And in the coming years, we will add to that story. (Applause.) The beginnings of reform and democracy in the Palestinian territories are now showing the power of freedom to break old patterns of violence and failure. Tomorrow morning, Secretary of State Rice departs on a trip that will take her to Israel and the West Bank for meetings with Prime Minister Sharon and President Abbas. She will discuss with them how we and our friends can help the Palestinian people end terror and build the institutions of a peaceful, independent, democratic state. To promote this democracy, I will ask Congress for $350 million to support Palestinian political, economic, and security reforms. The goal of two democratic states, Israel and Palestine, living side by side in peace, is within reach -- and America will help them achieve that goal. (Applause.) To promote peace and stability in the broader Middle East, the United States will work with our friends in the region to fight the common threat of terror, while we encourage a higher standard of freedom. Hopeful reform is already taking hold in an arc from Morocco to Jordan to Bahrain. The government of Saudi Arabia can demonstrate its leadership in the region by expanding the role of its people in determining their future. And the great and proud nation of Egypt, which showed the way toward peace in the Middle East, can now show the way toward democracy in the Middle East. (Applause.) To promote peace in the broader Middle East, we must confront regimes that continue to harbor terrorists and pursue weapons of mass murder. Syria still allows its territory, and parts of Lebanon, to be used by terrorists who seek to destroy every chance of peace in the region. You have passed, and we are applying, the Syrian Accountability Act -- and we expect the Syrian government to end all support for terror and open the door to freedom. (Applause.) Today, Iran remains the world's primary state sponsor of terror -- pursuing nuclear weapons while depriving its people of the freedom they seek and deserve. We are working with European allies to make clear to the Iranian regime that it must give up its uranium enrichment program and any plutonium reprocessing, and end its support for terror. And to the Iranian people, I say tonight: As you stand for your own liberty, America stands with you. (Applause.) Our generational commitment to the advance of freedom, especially in the Middle East, is now being tested and honored in Iraq. That country is a vital front in the war on terror, which is why the terrorists have chosen to make a stand there. Our men and women in uniform are fighting terrorists in Iraq, so we do not have to face them here at home. (Applause.) And the victory of freedom in Iraq will strengthen a new ally in the war on terror, inspire democratic reformers from Damascus to Tehran, bring more hope and progress to a troubled region, and thereby lift a terrible threat from the lives of our children and grandchildren. We will succeed because the Iraqi people value their own liberty -- as they showed the world last Sunday. (Applause.) Across Iraq, often at great risk, millions of citizens went to the polls and elected 275 men and women to represent them in a new Transitional National Assembly. A young woman in Baghdad told of waking to the sound of mortar fire on election day, and wondering if it might be too dangerous to vote. She said, "Hearing those explosions, it occurred to me -- the insurgents are weak, they are afraid of democracy, they are losing. So I got my husband, and I got my parents, and we all came out and voted together." Americans recognize that spirit of liberty, because we share it. In any nation, casting your vote is an act of civic responsibility; for millions of Iraqis, it was also an act of personal courage, and they have earned the respect of us all. (Applause.) One of Iraq's leading democracy and human rights advocates is Safia Taleb al-Suhail. She says of her country, "We were occupied for 35 years by Saddam Hussein. That was the real occupation. Thank you to the American people who paid the cost, but most of all, to the soldiers." Eleven years ago, Safia's father was assassinated by Saddam's intelligence service. Three days ago in Baghdad, Safia was finally able to vote for the leaders of her country -- and we are honored that she is with us tonight. (Applause.) The terrorists and insurgents are violently opposed to democracy, and will continue to attack it. Yet, the terrorists' most powerful myth is being destroyed. The whole world is seeing that the car bombers and assassins are not only fighting coalition forces, they are trying to destroy the hopes of Iraqis, expressed in free elections. And the whole world now knows that a small group of extremists will not overturn the will of the Iraqi people. (Applause.) We will succeed in Iraq because Iraqis are determined to fight for their own freedom, and to write their own history. As Prime Minister Allawi said in his speech to Congress last September, "Ordinary Iraqis are anxious to shoulder all the security burdens of our country as quickly as possible." That is the natural desire of an independent nation, and it is also the stated mission of our coalition in Iraq. The new political situation in Iraq opens a new phase of our work in that country. At the recommendation of our commanders on the ground, and in consultation with the Iraqi government, we will increasingly focus our efforts on helping prepare more capable Iraqi security forces -- forces with skilled officers and an effective command structure. As those forces become more self-reliant and take on greater security responsibilities, America and its coalition partners will increasingly be in a supporting role. In the end, Iraqis must be able to defend their own country -- and we will help that proud, new nation secure its liberty. Recently an Iraqi interpreter said to a reporter, "Tell America not to abandon us." He and all Iraqis can be certain: While our military strategy is adapting to circumstances, our commitment remains firm and unchanging. We are standing for the freedom of our Iraqi friends, and freedom in Iraq will make America safer for generations to come. (Applause.) We will not set an artificial timetable for leaving Iraq, because that would embolden the terrorists and make them believe they can wait us out. We are in Iraq to achieve a result: A country that is democratic, representative of all its people, at peace with its neighbors, and able to defend itself. And when that result is achieved, our men and women serving in Iraq will return home with the honor they have earned. (Applause.) Right now, Americans in uniform are serving at posts across the world, often taking great risks on my orders. We have given them training and equipment; and they have given us an example of idealism and character that makes every American proud. (Applause.) The volunteers of our military are unrelenting in battle, unwavering in loyalty, unmatched in honor and decency, and every day they're making our nation more secure. Some of our servicemen and women have survived terrible injuries, and this grateful country will do everything we can to help them recover. (Applause.) And we have said farewell to some very good men and women, who died for our freedom, and whose memory this nation will honor forever. One name we honor is Marine Corps Sergeant Byron Norwood of Pflugerville, Texas, who was killed during the assault on Fallujah. His mom, Janet, sent me a letter and told me how much Byron loved being a Marine, and how proud he was to be on the front line against terror. She wrote, "When Byron was home the last time, I said that I wanted to protect him like I had since he was born. He just hugged me and said, 'You've done your job, Mom. Now it is my turn to protect you.'" Ladies and gentlemen, with grateful hearts, we honor freedom's defenders, and our military families, represented here this evening by Sergeant Norwood's mom and dad, Janet and Bill Norwood. (Applause.) In these four years, Americans have seen the unfolding of large events. We have known times of sorrow, and hours of uncertainty, and days of victory. In all this history, even when we have disagreed, we have seen threads of purpose that unite us. The attack on freedom in our world has reaffirmed our confidence in freedom's power to change the world. We are all part of a great venture: To extend the promise of freedom in our country, to renew the values that sustain our liberty, and to spread the peace that freedom brings. As Franklin Roosevelt once reminded Americans, "Each age is a dream that is dying, or one that is coming to birth." And we live in the country where the biggest dreams are born. The abolition of slavery was only a dream -- until it was fulfilled. The liberation of Europe from fascism was only a dream -- until it was achieved. The fall of imperial communism was only a dream -- until, one day, it was accomplished. Our generation has dreams of its own, and we also go forward with confidence. The road of Providence is uneven and unpredictable -- yet we know where it leads: It leads to freedom. Thank you, and may God bless America.

US

Thank you all. Mr. Speaker, Vice President Cheney, members of Congress, members of the Supreme Court and diplomatic corps, distinguished guests, and fellow citizens: Today our nation lost a beloved, graceful, courageous woman who called America to its founding ideals and carried on a noble dream. Tonight we are comforted by the hope of a glad reunion with the husband who was taken so long ago, and we are grateful for the good life of Coretta Scott King. (Applause.) Every time I'm invited to this rostrum, I'm humbled by the privilege, and mindful of the history we've seen together. We have gathered under this Capitol dome in moments of national mourning and national achievement. We have served America through one of the most consequential periods of our history -- and it has been my honor to serve with you. In a system of two parties, two chambers, and two elected branches, there will always be differences and debate. But even tough debates can be conducted in a civil tone, and our differences cannot be allowed to harden into anger. To confront the great issues before us, we must act in a spirit of goodwill and respect for one another -- and I will do my part. Tonight the state of our Union is strong -- and together we will make it stronger. (Applause.) In this decisive year, you and I will make choices that determine both the future and the character of our country. We will choose to act confidently in pursuing the enemies of freedom -- or retreat from our duties in the hope of an easier life. We will choose to build our prosperity by leading the world economy -- or shut ourselves off from trade and opportunity. In a complex and challenging time, the road of isolationism and protectionism may seem broad and inviting -- yet it ends in danger and decline. The only way to protect our people, the only way to secure the peace, the only way to control our destiny is by our leadership -- so the United States of America will continue to lead. (Applause.) Abroad, our nation is committed to an historic, long-term goal -- we seek the end of tyranny in our world. Some dismiss that goal as misguided idealism. In reality, the future security of America depends on it. On September the 11th, 2001, we found that problems originating in a failed and oppressive state 7,000 miles away could bring murder and destruction to our country. Dictatorships shelter terrorists, and feed resentment and radicalism, and seek weapons of mass destruction. Democracies replace resentment with hope, respect the rights of their citizens and their neighbors, and join the fight against terror. Every step toward freedom in the world makes our country safer -- so we will act boldly in freedom's cause. (Applause.) Far from being a hopeless dream, the advance of freedom is the great story of our time. In 1945, there were about two dozen lonely democracies in the world. Today, there are 122. And we're writing a new chapter in the story of self-government -- with women lining up to vote in Afghanistan, and millions of Iraqis marking their liberty with purple ink, and men and women from Lebanon to Egypt debating the rights of individuals and the necessity of freedom. At the start of 2006, more than half the people of our world live in democratic nations. And we do not forget the other half -- in places like Syria and Burma, Zimbabwe, North Korea, and Iran -- because the demands of justice, and the peace of this world, require their freedom, as well. (Applause.) No one can deny the success of freedom, but some men rage and fight against it. And one of the main sources of reaction and opposition is radical Islam -- the perversion by a few of a noble faith into an ideology of terror and death. Terrorists like bin Laden are serious about mass murder -- and all of us must take their declared intentions seriously. They seek to impose a heartless system of totalitarian control throughout the Middle East, and arm themselves with weapons of mass murder. Their aim is to seize power in Iraq, and use it as a safe haven to launch attacks against America and the world. Lacking the military strength to challenge us directly, the terrorists have chosen the weapon of fear. When they murder children at a school in Beslan, or blow up commuters in London, or behead a bound captive, the terrorists hope these horrors will break our will, allowing the violent to inherit the Earth. But they have miscalculated: We love our freedom, and we will fight to keep it. (Applause.) In a time of testing, we cannot find security by abandoning our commitments and retreating within our borders. If we were to leave these vicious attackers alone, they would not leave us alone. They would simply move the battlefield to our own shores. There is no peace in retreat. And there is no honor in retreat. By allowing radical Islam to work its will -- by leaving an assaulted world to fend for itself -- we would signal to all that we no longer believe in our own ideals, or even in our own courage. But our enemies and our friends can be certain: The United States will not retreat from the world, and we will never surrender to evil. (Applause.) America rejects the false comfort of isolationism. We are the nation that saved liberty in Europe, and liberated death camps, and helped raise up democracies, and faced down an evil empire. Once again, we accept the call of history to deliver the oppressed and move this world toward peace. We remain on the offensive against terror networks. We have killed or captured many of their leaders -- and for the others, their day will come. We remain on the offensive in Afghanistan, where a fine President and a National Assembly are fighting terror while building the institutions of a new democracy. We're on the offensive in Iraq, with a clear plan for victory. First, we're helping Iraqis build an inclusive government, so that old resentments will be eased and the insurgency will be marginalized. Second, we're continuing reconstruction efforts, and helping the Iraqi government to fight corruption and build a modern economy, so all Iraqis can experience the benefits of freedom. And, third, we're striking terrorist targets while we train Iraqi forces that are increasingly capable of defeating the enemy. Iraqis are showing their courage every day, and we are proud to be their allies in the cause of freedom. (Applause.) Our work in Iraq is difficult because our enemy is brutal. But that brutality has not stopped the dramatic progress of a new democracy. In less than three years, the nation has gone from dictatorship to liberation, to sovereignty, to a constitution, to national elections. At the same time, our coalition has been relentless in shutting off terrorist infiltration, clearing out insurgent strongholds, and turning over territory to Iraqi security forces. I am confident in our plan for victory; I am confident in the will of the Iraqi people; I am confident in the skill and spirit of our military. Fellow citizens, we are in this fight to win, and we are winning. (Applause.) The road of victory is the road that will take our troops home. As we make progress on the ground, and Iraqi forces increasingly take the lead, we should be able to further decrease our troop levels -- but those decisions will be made by our military commanders, not by politicians in Washington, D.C. (Applause.) Our coalition has learned from our experience in Iraq. We've adjusted our military tactics and changed our approach to reconstruction. Along the way, we have benefitted from responsible criticism and counsel offered by members of Congress of both parties. In the coming year, I will continue to reach out and seek your good advice. Yet, there is a difference between responsible criticism that aims for success, and defeatism that refuses to acknowledge anything but failure. (Applause.) Hindsight alone is not wisdom, and second-guessing is not a strategy. (Applause.) With so much in the balance, those of us in public office have a duty to speak with candor. A sudden withdrawal of our forces from Iraq would abandon our Iraqi allies to death and prison, would put men like bin Laden and Zarqawi in charge of a strategic country, and show that a pledge from America means little. Members of Congress, however we feel about the decisions and debates of the past, our nation has only one option: We must keep our word, defeat our enemies, and stand behind the American military in this vital mission. (Applause.) Our men and women in uniform are making sacrifices -- and showing a sense of duty stronger than all fear. They know what it's like to fight house to house in a maze of streets, to wear heavy gear in the desert heat, to see a comrade killed by a roadside bomb. And those who know the costs also know the stakes. Marine Staff Sergeant Dan Clay was killed last month fighting in Fallujah. He left behind a letter to his family, but his words could just as well be addressed to every American. Here is what Dan wrote: "I know what honor is. … It has been an honor to protect and serve all of you. I faced death with the secure knowledge that you would not have to…. Never falter! Don't hesitate to honor and support those of us who have the honor of protecting that which is worth protecting." Staff Sergeant Dan Clay's wife, Lisa, and his mom and dad, Sara Jo and Bud, are with us this evening. Welcome. (Applause.) Our nation is grateful to the fallen, who live in the memory of our country. We're grateful to all who volunteer to wear our nation's uniform -- and as we honor our brave troops, let us never forget the sacrifices of America's military families. (Applause.) Our offensive against terror involves more than military action. Ultimately, the only way to defeat the terrorists is to defeat their dark vision of hatred and fear by offering the hopeful alternative of political freedom and peaceful change. So the United States of America supports democratic reform across the broader Middle East. Elections are vital, but they are only the beginning. Raising up a democracy requires the rule of law, and protection of minorities, and strong, accountable institutions that last longer than a single vote. The great people of Egypt have voted in a multi-party presidential election -- and now their government should open paths of peaceful opposition that will reduce the appeal of radicalism. The Palestinian people have voted in elections. And now the leaders of Hamas must recognize Israel, disarm, reject terrorism, and work for lasting peace. (Applause.) Saudi Arabia has taken the first steps of reform -- now it can offer its people a better future by pressing forward with those efforts. Democracies in the Middle East will not look like our own, because they will reflect the traditions of their own citizens. Yet liberty is the future of every nation in the Middle East, because liberty is the right and hope of all humanity. (Applause.) The same is true of Iran, a nation now held hostage by a small clerical elite that is isolating and repressing its people. The regime in that country sponsors terrorists in the Palestinian territories and in Lebanon -- and that must come to an end. (Applause.) The Iranian government is defying the world with its nuclear ambitions, and the nations of the world must not permit the Iranian regime to gain nuclear weapons. (Applause.) America will continue to rally the world to confront these threats. Tonight, let me speak directly to the citizens of Iran: America respects you, and we respect your country. We respect your right to choose your own future and win your own freedom. And our nation hopes one day to be the closest of friends with a free and democratic Iran. (Applause.) To overcome dangers in our world, we must also take the offensive by encouraging economic progress, and fighting disease, and spreading hope in hopeless lands. Isolationism would not only tie our hands in fighting enemies, it would keep us from helping our friends in desperate need. We show compassion abroad because Americans believe in the God-given dignity and worth of a villager with HIV/AIDS, or an infant with malaria, or a refugee fleeing genocide, or a young girl sold into slavery. We also show compassion abroad because regions overwhelmed by poverty, corruption, and despair are sources of terrorism, and organized crime, and human trafficking, and the drug trade. In recent years, you and I have taken unprecedented action to fight AIDS and malaria, expand the education of girls, and reward developing nations that are moving forward with economic and political reform. For people everywhere, the United States is a partner for a better life. Short-changing these efforts would increase the suffering and chaos of our world, undercut our long-term security, and dull the conscience of our country. I urge members of Congress to serve the interests of America by showing the compassion of America. Our country must also remain on the offensive against terrorism here at home. The enemy has not lost the desire or capability to attack us. Fortunately, this nation has superb professionals in law enforcement, intelligence, the military, and homeland security. These men and women are dedicating their lives, protecting us all, and they deserve our support and our thanks. (Applause.) They also deserve the same tools they already use to fight drug trafficking and organized crime -- so I ask you to reauthorize the Patriot Act. (Applause.) It is said that prior to the attacks of September the 11th, our government failed to connect the dots of the conspiracy. We now know that two of the hijackers in the United States placed telephone calls to al Qaeda operatives overseas. But we did not know about their plans until it was too late. So to prevent another attack –- based on authority given to me by the Constitution and by statute -- I have authorized a terrorist surveillance program to aggressively pursue the international communications of suspected al Qaeda operatives and affiliates to and from America. Previous Presidents have used the same constitutional authority I have, and federal courts have approved the use of that authority. Appropriate members of Congress have been kept informed. The terrorist surveillance program has helped prevent terrorist attacks. It remains essential to the security of America. If there are people inside our country who are talking with al Qaeda, we want to know about it, because we will not sit back and wait to be hit again. (Applause.) In all these areas -- from the disruption of terror networks, to victory in Iraq, to the spread of freedom and hope in troubled regions -- we need the support of our friends and allies. To draw that support, we must always be clear in our principles and willing to act. The only alternative to American leadership is a dramatically more dangerous and anxious world. Yet we also choose to lead because it is a privilege to serve the values that gave us birth. American leaders -- from Roosevelt to Truman to Kennedy to Reagan -- rejected isolation and retreat, because they knew that America is always more secure when freedom is on the march. Our own generation is in a long war against a determined enemy -- a war that will be fought by Presidents of both parties, who will need steady bipartisan support from the Congress. And tonight I ask for yours. Together, let us protect our country, support the men and women who defend us, and lead this world toward freedom. (Applause.) Here at home, America also has a great opportunity: We will build the prosperity of our country by strengthening our economic leadership in the world. Our economy is healthy and vigorous, and growing faster than other major industrialized nations. In the last two-and-a-half years, America has created 4.6 million new jobs -- more than Japan and the European Union combined. (Applause.) Even in the face of higher energy prices and natural disasters, the American people have turned in an economic performance that is the envy of the world. The American economy is preeminent, but we cannot afford to be complacent. In a dynamic world economy, we are seeing new competitors, like China and India, and this creates uncertainty, which makes it easier to feed people's fears. So we're seeing some old temptations return. Protectionists want to escape competition, pretending that we can keep our high standard of living while walling off our economy. Others say that the government needs to take a larger role in directing the economy, centralizing more power in Washington and increasing taxes. We hear claims that immigrants are somehow bad for the economy -- even though this economy could not function without them. (Applause.) All these are forms of economic retreat, and they lead in the same direction -- toward a stagnant and second-rate economy. Tonight I will set out a better path: an agenda for a nation that competes with confidence; an agenda that will raise standards of living and generate new jobs. Americans should not fear our economic future, because we intend to shape it. Keeping America competitive begins with keeping our economy growing. And our economy grows when Americans have more of their own money to spend, save, and invest. In the last five years, the tax relief you passed has left $880 billion in the hands of American workers, investors, small businesses, and families -- and they have used it to help produce more than four years of uninterrupted economic growth. (Applause.) Yet the tax relief is set to expire in the next few years. If we do nothing, American families will face a massive tax increase they do not expect and will not welcome. Because America needs more than a temporary expansion, we need more than temporary tax relief. I urge the Congress to act responsibly, and make the tax cuts permanent. (Applause.) Keeping America competitive requires us to be good stewards of tax dollars. Every year of my presidency, we've reduced the growth of non-security discretionary spending, and last year you passed bills that cut this spending. This year my budget will cut it again, and reduce or eliminate more than 140 programs that are performing poorly or not fulfilling essential priorities. By passing these reforms, we will save the American taxpayer another $14 billion next year, and stay on track to cut the deficit in half by 2009. (Applause.) I am pleased that members of Congress are working on earmark reform, because the federal budget has too many special interest projects. (Applause.) And we can tackle this problem together, if you pass the line-item veto. (Applause.) We must also confront the larger challenge of mandatory spending, or entitlements. This year, the first of about 78 million baby boomers turn 60, including two of my Dad's favorite people -- me and President Clinton. (Laughter.) This milestone is more than a personal crisis -- (laughter) -- it is a national challenge. The retirement of the baby boom generation will put unprecedented strains on the federal government. By 2030, spending for Social Security, Medicare and Medicaid alone will be almost 60 percent of the entire federal budget. And that will present future Congresses with impossible choices -- staggering tax increases, immense deficits, or deep cuts in every category of spending. Congress did not act last year on my proposal to save Social Security -- (applause) -- yet the rising cost of entitlements is a problem that is not going away. (Applause.) And every year we fail to act, the situation gets worse. So tonight, I ask you to join me in creating a commission to examine the full impact of baby boom retirements on Social Security, Medicare, and Medicaid. This commission should include members of Congress of both parties, and offer bipartisan solutions. We need to put aside partisan politics and work together and get this problem solved. (Applause.) Keeping America competitive requires us to open more markets for all that Americans make and grow. One out of every five factory jobs in America is related to global trade, and we want people everywhere to buy American. With open markets and a level playing field, no one can out-produce or out-compete the American worker. (Applause.) Keeping America competitive requires an immigration system that upholds our laws, reflects our values, and serves the interests of our economy. Our nation needs orderly and secure borders. (Applause.) To meet this goal, we must have stronger immigration enforcement and border protection. (Applause.) And we must have a rational, humane guest worker program that rejects amnesty, allows temporary jobs for people who seek them legally, and reduces smuggling and crime at the border. (Applause.) Keeping America competitive requires affordable health care. (Applause.) Our government has a responsibility to provide health care for the poor and the elderly, and we are meeting that responsibility. (Applause.) For all Americans -- for all Americans, we must confront the rising cost of care, strengthen the doctor-patient relationship, and help people afford the insurance coverage they need. (Applause.) We will make wider use of electronic records and other health information technology, to help control costs and reduce dangerous medical errors. We will strengthen health savings accounts -- making sure individuals and small business employees can buy insurance with the same advantages that people working for big businesses now get. (Applause.) We will do more to make this coverage portable, so workers can switch jobs without having to worry about losing their health insurance. (Applause.) And because lawsuits are driving many good doctors out of practice -- leaving women in nearly 1,500 American counties without a single OB/GYN -- I ask the Congress to pass medical liability reform this year. (Applause.) Keeping America competitive requires affordable energy. And here we have a serious problem: America is addicted to oil, which is often imported from unstable parts of the world. The best way to break this addiction is through technology. Since 2001, we have spent nearly $10 billion to develop cleaner, cheaper, and more reliable alternative energy sources -- and we are on the threshold of incredible advances. So tonight, I announce the Advanced Energy Initiative -- a 22-percent increase in clean-energy research -- at the Department of Energy, to push for breakthroughs in two vital areas. To change how we power our homes and offices, we will invest more in zero-emission coal-fired plants, revolutionary solar and wind technologies, and clean, safe nuclear energy. (Applause.) We must also change how we power our automobiles. We will increase our research in better batteries for hybrid and electric cars, and in pollution-free cars that run on hydrogen. We'll also fund additional research in cutting-edge methods of producing ethanol, not just from corn, but from wood chips and stalks, or switch grass. Our goal is to make this new kind of ethanol practical and competitive within six years. (Applause.) Breakthroughs on this and other new technologies will help us reach another great goal: to replace more than 75 percent of our oil imports from the Middle East by 2025. (Applause.) By applying the talent and technology of America, this country can dramatically improve our environment, move beyond a petroleum-based economy, and make our dependence on Middle Eastern oil a thing of the past. (Applause.) And to keep America competitive, one commitment is necessary above all: We must continue to lead the world in human talent and creativity. Our greatest advantage in the world has always been our educated, hardworking, ambitious people -- and we're going to keep that edge. Tonight I announce an American Competitiveness Initiative, to encourage innovation throughout our economy, and to give our nation's children a firm grounding in math and science. (Applause.) First, I propose to double the federal commitment to the most critical basic research programs in the physical sciences over the next 10 years. This funding will support the work of America's most creative minds as they explore promising areas such as nanotechnology, supercomputing, and alternative energy sources. Second, I propose to make permanent the research and development tax credit -- (applause) -- to encourage bolder private-sector initiatives in technology. With more research in both the public and private sectors, we will improve our quality of life -- and ensure that America will lead the world in opportunity and innovation for decades to come. (Applause.) Third, we need to encourage children to take more math and science, and to make sure those courses are rigorous enough to compete with other nations. We've made a good start in the early grades with the No Child Left Behind Act, which is raising standards and lifting test scores across our country. Tonight I propose to train 70,000 high school teachers to lead advanced-placement courses in math and science, bring 30,000 math and science professionals to teach in classrooms, and give early help to students who struggle with math, so they have a better chance at good, high-wage jobs. If we ensure that America's children succeed in life, they will ensure that America succeeds in the world. (Applause.) Preparing our nation to compete in the world is a goal that all of us can share. I urge you to support the American Competitiveness Initiative, and together we will show the world what the American people can achieve. America is a great force for freedom and prosperity. Yet our greatness is not measured in power or luxuries, but by who we are and how we treat one another. So we strive to be a compassionate, decent, hopeful society. In recent years, America has become a more hopeful nation. Violent crime rates have fallen to their lowest levels since the 1970s. Welfare cases have dropped by more than half over the past decade. Drug use among youth is down 19 percent since 2001. There are fewer abortions in America than at any point in the last three decades, and the number of children born to teenage mothers has been falling for a dozen years in a row. (Applause.) These gains are evidence of a quiet transformation -- a revolution of conscience, in which a rising generation is finding that a life of personal responsibility is a life of fulfillment. Government has played a role. Wise policies, such as welfare reform and drug education and support for abstinence and adoption have made a difference in the character of our country. And everyone here tonight, Democrat and Republican, has a right to be proud of this record. (Applause.) Yet many Americans, especially parents, still have deep concerns about the direction of our culture, and the health of our most basic institutions. They're concerned about unethical conduct by public officials, and discouraged by activist courts that try to redefine marriage. They worry about children in our society who need direction and love, and about fellow citizens still displaced by natural disaster, and about suffering caused by treatable diseases. As we look at these challenges, we must never give in to the belief that America is in decline, or that our culture is doomed to unravel. The American people know better than that. We have proven the pessimists wrong before -- and we will do it again. (Applause.) A hopeful society depends on courts that deliver equal justice under the law. The Supreme Court now has two superb new members -- new members on its bench: Chief Justice John Roberts and Justice Sam Alito. (Applause.) I thank the Senate for confirming both of them. I will continue to nominate men and women who understand that judges must be servants of the law, and not legislate from the bench. (Applause.) Today marks the official retirement of a very special American. For 24 years of faithful service to our nation, the United States is grateful to Justice Sandra Day O'Connor. (Applause.) A hopeful society has institutions of science and medicine that do not cut ethical corners, and that recognize the matchless value of every life. Tonight I ask you to pass legislation to prohibit the most egregious abuses of medical research: human cloning in all its forms, creating or implanting embryos for experiments, creating human-animal hybrids, and buying, selling, or patenting human embryos. Human life is a gift from our Creator -- and that gift should never be discarded, devalued or put up for sale. (Applause.) A hopeful society expects elected officials to uphold the public trust. (Applause.) Honorable people in both parties are working on reforms to strengthen the ethical standards of Washington -- I support your efforts. Each of us has made a pledge to be worthy of public responsibility -- and that is a pledge we must never forget, never dismiss, and never betray. (Applause.) As we renew the promise of our institutions, let us also show the character of America in our compassion and care for one another. A hopeful society gives special attention to children who lack direction and love. Through the Helping America's Youth Initiative, we are encouraging caring adults to get involved in the life of a child -- and this good work is being led by our First Lady, Laura Bush. (Applause.) This year we will add resources to encourage young people to stay in school, so more of America's youth can raise their sights and achieve their dreams. A hopeful society comes to the aid of fellow citizens in times of suffering and emergency -- and stays at it until they're back on their feet. So far the federal government has committed $85 billion to the people of the Gulf Coast and New Orleans. We're removing debris and repairing highways and rebuilding stronger levees. We're providing business loans and housing assistance. Yet as we meet these immediate needs, we must also address deeper challenges that existed before the storm arrived. In New Orleans and in other places, many of our fellow citizens have felt excluded from the promise of our country. The answer is not only temporary relief, but schools that teach every child, and job skills that bring upward mobility, and more opportunities to own a home and start a business. As we recover from a disaster, let us also work for the day when all Americans are protected by justice, equal in hope, and rich in opportunity. (Applause.) A hopeful society acts boldly to fight diseases like HIV/AIDS, which can be prevented, and treated, and defeated. More than a million Americans live with HIV, and half of all AIDS cases occur among African Americans. I ask Congress to reform and reauthorize the Ryan White Act, and provide new funding to states, so we end the waiting lists for AIDS medicines in America. (Applause.) We will also lead a nationwide effort, working closely with African American churches and faith-based groups, to deliver rapid HIV tests to millions, end the stigma of AIDS, and come closer to the day when there are no new infections in America. (Applause.) Fellow citizens, we've been called to leadership in a period of consequence. We've entered a great ideological conflict we did nothing to invite. We see great changes in science and commerce that will influence all our lives. Sometimes it can seem that history is turning in a wide arc, toward an unknown shore. Yet the destination of history is determined by human action, and every great movement of history comes to a point of choosing. Lincoln could have accepted peace at the cost of disunity and continued slavery. Martin Luther King could have stopped at Birmingham or at Selma, and achieved only half a victory over segregation. The United States could have accepted the permanent division of Europe, and been complicit in the oppression of others. Today, having come far in our own historical journey, we must decide: Will we turn back, or finish well? Before history is written down in books, it is written in courage. Like Americans before us, we will show that courage and we will finish well. We will lead freedom's advance. We will compete and excel in the global economy. We will renew the defining moral commitments of this land. And so we move forward -- optimistic about our country, faithful to its cause, and confident of the victories to come. May God bless America.

US

Thank you very much. And tonight, I have a high privilege and distinct honor of my own -- as the first President to begin the State of the Union message with these words: Madam Speaker. (Applause.) In his day, the late Congressman Thomas D'Alesandro, Jr. from Baltimore, Maryland, saw Presidents Roosevelt and Truman at this rostrum. But nothing could compare with the sight of his only daughter, Nancy, presiding tonight as Speaker of the House of Representatives. (Applause.) Congratulations, Madam Speaker. (Applause.) President George W. Bush greets people, shakes hands and signs his autograph after delivering the State of the Union Address in the House Chamber at the U.S. Capitol Tuesday, Jan. 23, 2007. White House photo by Paul MorseTwo members of the House and Senate are not with us tonight, and we pray for the recovery and speedy return of Senator Tim Johnson and Congressman Charlie Norwood. (Applause.) Madam Speaker, Vice President Cheney, members of Congress, distinguished guests, and fellow citizens: The rite of custom brings us together at a defining hour -- when decisions are hard and courage is needed. We enter the year 2007 with large endeavors underway, and others that are ours to begin. In all of this, much is asked of us. We must have the will to face difficult challenges and determined enemies -- and the wisdom to face them together. Some in this chamber are new to the House and the Senate -- and I congratulate the Democrat majority. (Applause.) Congress has changed, but not our responsibilities. Each of us is guided by our own convictions -- and to these we must stay faithful. Yet we're all held to the same standards, and called to serve the same good purposes: To extend this nation's prosperity; to spend the people's money wisely; to solve problems, not leave them to future generations; to guard America against all evil; and to keep faith with those we have sent forth to defend us. (Applause.) We're not the first to come here with a government divided and uncertainty in the air. Like many before us, we can work through our differences, and achieve big things for the American people. Our citizens don't much care which side of the aisle we sit on -- as long as we're willing to cross that aisle when there is work to be done. (Applause.) Our job is to make life better for our fellow Americans, and to help them to build a future of hope and opportunity -- and this is the business before us tonight. A future of hope and opportunity begins with a growing economy -- and that is what we have. We're now in the 41st month of uninterrupted job growth, in a recovery that has created 7.2 million new jobs -- so far. Unemployment is low, inflation is low, and wages are rising. This economy is on the move, and our job is to keep it that way, not with more government, but with more enterprise. (Applause.) Next week, I'll deliver a full report on the state of our economy. Tonight, I want to discuss three economic reforms that deserve to be priorities for this Congress. First, we must balance the federal budget. (Applause.) We can do so without raising taxes. (Applause.) What we need to do is impose spending discipline in Washington, D.C. We set a goal of cutting the deficit in half by 2009, and met that goal three years ahead of schedule. (Applause.) Now let us take the next step. In the coming weeks, I will submit a budget that eliminates the federal deficit within the next five years. (Applause.) I ask you to make the same commitment. Together, we can restrain the spending appetite of the federal government, and we can balance the federal budget. (Applause.) President George W. Bush is applauded as he delivers his State of the Union Address Tuesday, Jan. 23, 2007, at the U.S. Capitol. "We need to uphold the great tradition of the melting pot that welcomes and assimilates new arrivals," said the President. "We need to resolve the status of the illegal immigrants who are already in our country without animosity and without amnesty." White House photo by Shealah CraigheadNext, there is the matter of earmarks. These special interest items are often slipped into bills at the last hour -- when not even C-SPAN is watching. (Laughter.) In 2005 alone, the number of earmarks grew to over 13,000 and totaled nearly $18 billion. Even worse, over 90 percent of earmarks never make it to the floor of the House and Senate -- they are dropped into committee reports that are not even part of the bill that arrives on my desk. You didn't vote them into law. I didn't sign them into law. Yet, they're treated as if they have the force of law. The time has come to end this practice. So let us work together to reform the budget process, expose every earmark to the light of day and to a vote in Congress, and cut the number and cost of earmarks at least in half by the end of this session. (Applause.) And, finally, to keep this economy strong we must take on the challenge of entitlements. Social Security and Medicare and Medicaid are commitments of conscience, and so it is our duty to keep them permanently sound. Yet, we're failing in that duty. And this failure will one day leave our children with three bad options: huge tax increases, huge deficits, or huge and immediate cuts in benefits. Everyone in this chamber knows this to be true -- yet somehow we have not found it in ourselves to act. So let us work together and do it now. With enough good sense and goodwill, you and I can fix Medicare and Medicaid -- and save Social Security. (Applause.) Spreading opportunity and hope in America also requires public schools that give children the knowledge and character they need in life. Five years ago, we rose above partisan differences to pass the No Child Left Behind Act, preserving local control, raising standards, and holding those schools accountable for results. And because we acted, students are performing better in reading and math, and minority students are closing the achievement gap. President George W. Bush delivers his State of the Union Address Tuesday, Jan. 23, 2007, at the U.S. Capitol. "For all of us in this room, there is no higher responsibility than to protect the people of this country from danger," said President George W. Bush. "Five years have come and gone since we saw the scenes and felt the sorrow that the terrorists can cause. We've had time to take stock of our situation. We've added many critical protections to guard the homeland. We know with certainty that the horrors of that September morning were just a glimpse of what the terrorists intend for us -- unless we stop them." White House photo by Eric DraperNow the task is to build on the success, without watering down standards, without taking control from local communities, and without backsliding and calling it reform. We can lift student achievement even higher by giving local leaders flexibility to turn around failing schools, and by giving families with children stuck in failing schools the right to choose someplace better. (Applause.) We must increase funds for students who struggle -- and make sure these children get the special help they need. (Applause.) And we can make sure our children are prepared for the jobs of the future and our country is more competitive by strengthening math and science skills. The No Child Left Behind Act has worked for America's children -- and I ask Congress to reauthorize this good law. (Applause.) A future of hope and opportunity requires that all our citizens have affordable and available health care. (Applause.) When it comes to health care, government has an obligation to care for the elderly, the disabled, and poor children. And we will meet those responsibilities. For all other Americans, private health insurance is the best way to meet their needs. (Applause.) But many Americans cannot afford a health insurance policy. And so tonight, I propose two new initiatives to help more Americans afford their own insurance. First, I propose a standard tax deduction for health insurance that will be like the standard tax deduction for dependents. Families with health insurance will pay no income on payroll tax -- or payroll taxes on $15,000 of their income. Single Americans with health insurance will pay no income or payroll taxes on $7,500 of their income. With this reform, more than 100 million men, women, and children who are now covered by employer-provided insurance will benefit from lower tax bills. At the same time, this reform will level the playing field for those who do not get health insurance through their job. For Americans who now purchase health insurance on their own, this proposal would mean a substantial tax savings -- $4,500 for a family of four making $60,000 a year. And for the millions of other Americans who have no health insurance at all, this deduction would help put a basic private health insurance plan within their reach. Changing the tax code is a vital and necessary step to making health care affordable for more Americans. (Applause.) Dikembe Mutombo of the Houston Rockets is recognized by President George W. Bush during the State of the Union Address at U.S. Capitol Tuesday, Jan. 23, 2007. "Dikembe became a star in the NBA, and a citizen of the United States," said President Bush. "But he never forgot the land of his birth, or the duty to share his blessings with others. He built a brand new hospital in his old hometown. A friend has said of this good-hearted man: "Mutombo believes that God has given him this opportunity to do great things." And we are proud to call this son of the Congo a citizen of the United States of America." White House photo by Eric DraperMy second proposal is to help the states that are coming up with innovative ways to cover the uninsured. States that make basic private health insurance available to all their citizens should receive federal funds to help them provide this coverage to the poor and the sick. I have asked the Secretary of Health and Human Services to work with Congress to take existing federal funds and use them to create "Affordable Choices" grants. These grants would give our nation's governors more money and more flexibility to get private health insurance to those most in need. There are many other ways that Congress can help. We need to expand Health Savings Accounts. (Applause.) We need to help small businesses through Association Health Plans. (Applause.) We need to reduce costs and medical errors with better information technology. (Applause.) We will encourage price transparency. And to protect good doctors from junk lawsuits, we passing medical liability reform. (Applause.) In all we do, we must remember that the best health care decisions are made not by government and insurance companies, but by patients and their doctors. (Applause.) Extending hope and opportunity in our country requires an immigration system worthy of America -- with laws that are fair and borders that are secure. When laws and borders are routinely violated, this harms the interests of our country. To secure our border, we're doubling the size of the Border Patrol, and funding new infrastructure and technology. Yet even with all these steps, we cannot fully secure the border unless we take pressure off the border -- and that requires a temporary worker program. We should establish a legal and orderly path for foreign workers to enter our country to work on a temporary basis. As a result, they won't have to try to sneak in, and that will leave Border Agents free to chase down drug smugglers and criminals and terrorists. (Applause.) We'll enforce our immigration laws at the work site and give employers the tools to verify the legal status of their workers, so there's no excuse left for violating the law. (Applause.) Wesley Autrey receives a standing ovation as President Bush recognizes him during his State of the Union Address at the U.S. Capitol Tuesday evening, Jan. 23, 2007. "Three weeks ago, Wesley Autrey was waiting at a Harlem subway station with his two little girls, when he saw a man fall into the path of a train," said President Bush. "With seconds to act, Wesley jumped onto the tracks, pulled the man into the space between the rails, and held him as the train passed right above their heads. He insists he's not a hero. He says: 'We got guys and girls overseas dying for us to have our freedoms. We have got to show each other some love.' There is something wonderful about a country that produces a brave and humble man like Wesley Autrey." White House photo by Shealah CraigheadWe need to uphold the great tradition of the melting pot that welcomes and assimilates new arrivals. (Applause.) We need to resolve the status of the illegal immigrants who are already in our country without animosity and without amnesty. (Applause.) Convictions run deep in this Capitol when it comes to immigration. Let us have a serious, civil, and conclusive debate, so that you can pass, and I can sign, comprehensive immigration reform into law. (Applause.) Extending hope and opportunity depends on a stable supply of energy that keeps America's economy running and America's environment clean. For too long our nation has been dependent on foreign oil. And this dependence leaves us more vulnerable to hostile regimes, and to terrorists -- who could cause huge disruptions of oil shipments, and raise the price of oil, and do great harm to our economy. It's in our vital interest to diversify America's energy supply -- the way forward is through technology. We must continue changing the way America generates electric power, by even greater use of clean coal technology, solar and wind energy, and clean, safe nuclear power. (Applause.) We need to press on with battery research for plug-in and hybrid vehicles, and expand the use of clean diesel vehicles and biodiesel fuel. (Applause.) We must continue investing in new methods of producing ethanol -- (applause) -- using everything from wood chips to grasses, to agricultural wastes. We made a lot of progress, thanks to good policies here in Washington and the strong response of the market. And now even more dramatic advances are within reach. Tonight, I ask Congress to join me in pursuing a great goal. Let us build on the work we've done and reduce gasoline usage in the United States by 20 percent in the next 10 years. (Applause.) When we do that we will have cut our total imports by the equivalent of three-quarters of all the oil we now import from the Middle East. President George W. Bush emphasizes a point during the State of the Union address Tuesday, January 23, 2007. The President told the nation, "We're not the first to come here with a government divided and uncertainty in the air. Like many before us, we can work through our differences and achieve big things for the American people." White House photo by Paul MorseTo reach this goal, we must increase the supply of alternative fuels, by setting a mandatory fuels standard to require 35 billion gallons of renewable and alternative fuels in 2017 -- and that is nearly five times the current target. (Applause.) At the same time, we need to reform and modernize fuel economy standards for cars the way we did for light trucks -- and conserve up to 8.5 billion more gallons of gasoline by 2017. Achieving these ambitious goals will dramatically reduce our dependence on foreign oil, but it's not going to eliminate it. And so as we continue to diversify our fuel supply, we must step up domestic oil production in environmentally sensitive ways. (Applause.) And to further protect America against severe disruptions to our oil supply, I ask Congress to double the current capacity of the Strategic Petroleum Reserve. (Applause.) America is on the verge of technological breakthroughs that will enable us to live our lives less dependent on oil. And these technologies will help us be better stewards of the environment, and they will help us to confront the serious challenge of global climate change. (Applause.) A future of hope and opportunity requires a fair, impartial system of justice. The lives of our citizens across our nation are affected by the outcome of cases pending in our federal courts. We have a shared obligation to ensure that the federal courts have enough judges to hear those cases and deliver timely rulings. As President, I have a duty to nominate qualified men and women to vacancies on the federal bench. And the United States Senate has a duty, as well, to give those nominees a fair hearing, and a prompt up-or-down vote on the Senate floor. (Applause.) For all of us in this room, there is no higher responsibility than to protect the people of this country from danger. Five years have come and gone since we saw the scenes and felt the sorrow that the terrorists can cause. We've had time to take stock of our situation. We've added many critical protections to guard the homeland. We know with certainty that the horrors of that September morning were just a glimpse of what the terrorists intend for us -- unless we stop them. President George W. Bush receives applause while delivering the State of the Union address at the U.S. Capitol, Tuesday, Jan. 23, 2007. Also pictured are Vice President Dick Cheney and Speaker of the House Nancy Pelosi. White House photo by David BohrerWith the distance of time, we find ourselves debating the causes of conflict and the course we have followed. Such debates are essential when a great democracy faces great questions. Yet one question has surely been settled: that to win the war on terror we must take the fight to the enemy. (Applause.) From the start, America and our allies have protected our people by staying on the offense. The enemy knows that the days of comfortable sanctuary, easy movement, steady financing, and free flowing communications are long over. For the terrorists, life since 9/11 has never been the same. Our success in this war is often measured by the things that did not happen. We cannot know the full extent of the attacks that we and our allies have prevented, but here is some of what we do know: We stopped an al Qaeda plot to fly a hijacked airplane into the tallest building on the West Coast. We broke up a Southeast Asian terror cell grooming operatives for attacks inside the United States. We uncovered an al Qaeda cell developing anthrax to be used in attacks against America. And just last August, British authorities uncovered a plot to blow up passenger planes bound for America over the Atlantic Ocean. For each life saved, we owe a debt of gratitude to the brave public servants who devote their lives to finding the terrorists and stopping them. (Applause.) Every success against the terrorists is a reminder of the shoreless ambitions of this enemy. The evil that inspired and rejoiced in 9/11 is still at work in the world. And so long as that's the case, America is still a nation at war. In the mind of the terrorist, this war began well before September the 11th, and will not end until their radical vision is fulfilled. And these past five years have given us a much clearer view of the nature of this enemy. Al Qaeda and its followers are Sunni extremists, possessed by hatred and commanded by a harsh and narrow ideology. Take almost any principle of civilization, and their goal is the opposite. They preach with threats, instruct with bullets and bombs, and promise paradise for the murder of the innocent. Our enemies are quite explicit about their intentions. They want to overthrow moderate governments, and establish safe havens from which to plan and carry out new attacks on our country. By killing and terrorizing Americans, they want to force our country to retreat from the world and abandon the cause of liberty. They would then be free to impose their will and spread their totalitarian ideology. Listen to this warning from the late terrorist Zarqawi: "We will sacrifice our blood and bodies to put an end to your dreams, and what is coming is even worse." Osama bin Laden declared: "Death is better than living on this Earth with the unbelievers among us." President George W. Bush enters the House Chamber of the U.S. Capitol for his State of the Union address, Tuesday, Jan. 23, 2007. White House photo by David BohrerThese men are not given to idle words, and they are just one camp in the Islamist radical movement. In recent times, it has also become clear that we face an escalating danger from Shia extremists who are just as hostile to America, and are also determined to dominate the Middle East. Many are known to take direction from the regime in Iran, which is funding and arming terrorists like Hezbollah -- a group second only to al Qaeda in the American lives it has taken. The Shia and Sunni extremists are different faces of the same totalitarian threat. Whatever slogans they chant, when they slaughter the innocent they have the same wicked purposes. They want to kill Americans, kill democracy in the Middle East, and gain the weapons to kill on an even more horrific scale. In the sixth year since our nation was attacked, I wish I could report to you that the dangers had ended. They have not. And so it remains the policy of this government to use every lawful and proper tool of intelligence, diplomacy, law enforcement, and military action to do our duty, to find these enemies, and to protect the American people. (Applause.) This war is more than a clash of arms -- it is a decisive ideological struggle, and the security of our nation is in the balance. To prevail, we must remove the conditions that inspire blind hatred, and drove 19 men to get onto airplanes and to come and kill us. What every terrorist fears most is human freedom -- societies where men and women make their own choices, answer to their own conscience, and live by their hopes instead of their resentments. Free people are not drawn to violent and malignant ideologies -- and most will choose a better way when they're given a chance. So we advance our own security interests by helping moderates and reformers and brave voices for democracy. The great question of our day is whether America will help men and women in the Middle East to build free societies and share in the rights of all humanity. And I say, for the sake of our own security, we must. (Applause.) In the last two years, we've seen the desire for liberty in the broader Middle East -- and we have been sobered by the enemy's fierce reaction. In 2005, the world watched as the citizens of Lebanon raised the banner of the Cedar Revolution, they drove out the Syrian occupiers and chose new leaders in free elections. In 2005, the people of Afghanistan defied the terrorists and elected a democratic legislature. And in 2005, the Iraqi people held three national elections, choosing a transitional government, adopting the most progressive, democratic constitution in the Arab world, and then electing a government under that constitution. Despite endless threats from the killers in their midst, nearly 12 million Iraqi citizens came out to vote in a show of hope and solidarity that we should never forget. (Applause.) President George W. Bush greets Speaker of the House Nancy Pelosi before delivering his State of the Union Address at the U.S. Capitol Tuesday, Jan. 23, 2007. White House photo by Eric DraperA thinking enemy watched all of these scenes, adjusted their tactics, and in 2006 they struck back. In Lebanon, assassins took the life of Pierre Gemayel, a prominent participant in the Cedar Revolution. Hezbollah terrorists, with support from Syria and Iran, sowed conflict in the region and are seeking to undermine Lebanon's legitimately elected government. In Afghanistan, Taliban and al Qaeda fighters tried to regain power by regrouping and engaging Afghan and NATO forces. In Iraq, al Qaeda and other Sunni extremists blew up one of the most sacred places in Shia Islam -- the Golden Mosque of Samarra. This atrocity, directed at a Muslim house of prayer, was designed to provoke retaliation from Iraqi Shia -- and it succeeded. Radical Shia elements, some of whom receive support from Iran, formed death squads. The result was a tragic escalation of sectarian rage and reprisal that continues to this day. This is not the fight we entered in Iraq, but it is the fight we're in. Every one of us wishes this war were over and won. Yet it would not be like us to leave our promises unkept, our friends abandoned, and our own security at risk. (Applause.) Ladies and gentlemen: On this day, at this hour, it is still within our power to shape the outcome of this battle. Let us find our resolve, and turn events toward victory. (Applause.) We're carrying out a new strategy in Iraq -- a plan that demands more from Iraq's elected government, and gives our forces in Iraq the reinforcements they need to complete their mission. Our goal is a democratic Iraq that upholds the rule of law, respects the rights of its people, provides them security, and is an ally in the war on terror. In order to make progress toward this goal, the Iraqi government must stop the sectarian violence in its capital. But the Iraqis are not yet ready to do this on their own. So we're deploying reinforcements of more than 20,000 additional soldiers and Marines to Iraq. The vast majority will go to Baghdad, where they will help Iraqi forces to clear and secure neighborhoods, and serve as advisers embedded in Iraqi Army units. With Iraqis in the lead, our forces will help secure the city by chasing down the terrorists, insurgents, and the roaming death squads. And in Anbar Province, where al Qaeda terrorists have gathered and local forces have begun showing a willingness to fight them, we're sending an additional 4,000 United States Marines, with orders to find the terrorists and clear them out. (Applause.) We didn't drive al Qaeda out of their safe haven in Afghanistan only to let them set up a new safe haven in a free Iraq. The people of Iraq want to live in peace, and now it's time for their government to act. Iraq's leaders know that our commitment is not open-ended. They have promised to deploy more of their own troops to secure Baghdad -- and they must do so. They pledged that they will confront violent radicals of any faction or political party -- and they need to follow through, and lift needless restrictions on Iraqi and coalition forces, so these troops can achieve their mission of bringing security to all of the people of Baghdad. Iraq's leaders have committed themselves to a series of benchmarks -- to achieve reconciliation, to share oil revenues among all of Iraq's citizens, to put the wealth of Iraq into the rebuilding of Iraq, to allow more Iraqis to re-enter their nation's civic life, to hold local elections, and to take responsibility for security in every Iraqi province. But for all of this to happen, Baghdad must be secure. And our plan will help the Iraqi government take back its capital and make good on its commitments. My fellow citizens, our military commanders and I have carefully weighed the options. We discussed every possible approach. In the end, I chose this course of action because it provides the best chance for success. Many in this chamber understand that America must not fail in Iraq, because you understand that the consequences of failure would be grievous and far-reaching. If American forces step back before Baghdad is secure, the Iraqi government would be overrun by extremists on all sides. We could expect an epic battle between Shia extremists backed by Iran, and Sunni extremists aided by al Qaeda and supporters of the old regime. A contagion of violence could spill out across the country -- and in time, the entire region could be drawn into the conflict. For America, this is a nightmare scenario. For the enemy, this is the objective. Chaos is the greatest ally -- their greatest ally in this struggle. And out of chaos in Iraq would emerge an emboldened enemy with new safe havens, new recruits, new resources, and an even greater determination to harm America. To allow this to happen would be to ignore the lessons of September the 11th and invite tragedy. Ladies and gentlemen, nothing is more important at this moment in our history than for America to succeed in the Middle East, to succeed in Iraq and to spare the American people from this danger. (Applause.) This is where matters stand tonight, in the here and now. I have spoken with many of you in person. I respect you and the arguments you've made. We went into this largely united, in our assumptions and in our convictions. And whatever you voted for, you did not vote for failure. Our country is pursuing a new strategy in Iraq, and I ask you to give it a chance to work. And I ask you to support our troops in the field, and those on their way. (Applause.) The war on terror we fight today is a generational struggle that will continue long after you and I have turned our duties over to others. And that's why it's important to work together so our nation can see this great effort through. Both parties and both branches should work in close consultation. It's why I propose to establish a special advisory council on the war on terror, made up of leaders in Congress from both political parties. We will share ideas for how to position America to meet every challenge that confronts us. We'll show our enemies abroad that we are united in the goal of victory. And one of the first steps we can take together is to add to the ranks of our military so that the American Armed Forces are ready for all the challenges ahead. (Applause.) Tonight I ask the Congress to authorize an increase in the size of our active Army and Marine Corps by 92,000 in the next five years. (Applause.) A second task we can take on together is to design and establish a volunteer Civilian Reserve Corps. Such a corps would function much like our military reserve. It would ease the burden on the Armed Forces by allowing us to hire civilians with critical skills to serve on missions abroad when America needs them. It would give people across America who do not wear the uniform a chance to serve in the defining struggle of our time. Americans can have confidence in the outcome of this struggle because we're not in this struggle alone. We have a diplomatic strategy that is rallying the world to join in the fight against extremism. In Iraq, multinational forces are operating under a mandate from the United Nations. We're working with Jordan and Saudi Arabia and Egypt and the Gulf States to increase support for Iraq's government. The United Nations has imposed sanctions on Iran, and made it clear that the world will not allow the regime in Tehran to acquire nuclear weapons. (Applause.) With the other members of the Quartet -- the U.N., the European Union, and Russia -- we're pursuing diplomacy to help bring peace to the Holy Land, and pursuing the establishment of a democratic Palestinian state living side-by-side with Israel in peace and security. (Applause.) In Afghanistan, NATO has taken the lead in turning back the Taliban and al Qaeda offensive -- the first time the Alliance has deployed forces outside the North Atlantic area. Together with our partners in China, Japan, Russia, and South Korea, we're pursuing intensive diplomacy to achieve a Korean Peninsula free of nuclear weapons. (Applause.) We will continue to speak out for the cause of freedom in places like Cuba, Belarus, and Burma -- and continue to awaken the conscience of the world to save the people of Darfur. (Applause.) American foreign policy is more than a matter of war and diplomacy. Our work in the world is also based on a timeless truth: To whom much is given, much is required. We hear the call to take on the challenges of hunger and poverty and disease -- and that is precisely what America is doing. We must continue to fight HIV/AIDS, especially on the continent of Africa. (Applause.) Because you funded our Emergency Plan for AIDS Relief, the number of people receiving life-saving drugs has grown from 50,000 to more than 800,000 in three short years. I ask you to continue funding our efforts to fight HIV/AIDS. I ask you to provide $1.2 billion over five years so we can combat malaria in 15 African countries. (Applause.) I ask that you fund the Millennium Challenge Account, so that American aid reaches the people who need it, in nations where democracy is on the rise and corruption is in retreat. And let us continue to support the expanded trade and debt relief that are the best hope for lifting lives and eliminating poverty. (Applause.) When America serves others in this way, we show the strength and generosity of our country. These deeds reflect the character of our people. The greatest strength we have is the heroic kindness, courage, and self-sacrifice of the American people. You see this spirit often if you know where to look -- and tonight we need only look above to the gallery. Dikembe Mutombo grew up in Africa, amid great poverty and disease. He came to Georgetown University on a scholarship to study medicine -- but Coach John Thompson got a look at Dikembe and had a different idea. (Laughter.) Dikembe became a star in the NBA, and a citizen of the United States. But he never forgot the land of his birth, or the duty to share his blessings with others. He built a brand new hospital in his old hometown. A friend has said of this good-hearted man: "Mutombo believes that God has given him this opportunity to do great things." And we are proud to call this son of the Congo a citizen of the United States of America. (Applause.) After her daughter was born, Julie Aigner-Clark searched for ways to share her love of music and art with her child. So she borrowed some equipment, and began filming children's videos in her basement. The Baby Einstein Company was born, and in just five years her business grew to more than $20 million in sales. In November 2001, Julie sold Baby Einstein to the Walt Disney Company, and with her help Baby Einstein has grown into a $200 million business. Julie represents the great enterprising spirit of America. And she is using her success to help others -- producing child safety videos with John Walsh of the National Center for Missing and Exploited Children. Julie says of her new project: "I believe it's the most important thing that I have ever done. I believe that children have the right to live in a world that is safe." And so tonight, we are pleased to welcome this talented business entrepreneur and generous social entrepreneur -- Julie Aigner-Clark. (Applause.) Three weeks ago, Wesley Autrey was waiting at a Harlem subway station with his two little girls, when he saw a man fall into the path of a train. With seconds to act, Wesley jumped onto the tracks, pulled the man into the space between the rails, and held him as the train passed right above their heads. He insists he's not a hero. He says: "We got guys and girls overseas dying for us to have our freedoms. We have got to show each other some love." There is something wonderful about a country that produces a brave and humble man like Wesley Autrey. (Applause.) Tommy Rieman was a teenager pumping gas in Independence, Kentucky, when he enlisted in the United States Army. In December 2003, he was on a reconnaissance mission in Iraq when his team came under heavy enemy fire. From his Humvee, Sergeant Rieman returned fire; he used his body as a shield to protect his gunner. He was shot in the chest and arm, and received shrapnel wounds to his legs -- yet he refused medical attention, and stayed in the fight. He helped to repel a second attack, firing grenades at the enemy's position. For his exceptional courage, Sergeant Rieman was awarded the Silver Star. And like so many other Americans who have volunteered to defend us, he has earned the respect and the gratitude of our entire country. (Applause.) In such courage and compassion, ladies and gentlemen, we see the spirit and character of America -- and these qualities are not in short supply. This is a decent and honorable country -- and resilient, too. We've been through a lot together. We've met challenges and faced dangers, and we know that more lie ahead. Yet we can go forward with confidence -- because the State of our Union is strong, our cause in the world is right, and tonight that cause goes on. God bless. (Applause.) See you next year. Thank you for your prayers.

US

Madam Speaker, Vice President Cheney, members of Congress, distinguished guests, and fellow citizens: Seven years have passed since I first stood before you at this rostrum. In that time, our country has been tested in ways none of us could have imagined. We faced hard decisions about peace and war, rising competition in the world economy, and the health and welfare of our citizens. These issues call for vigorous debate, and I think it's fair to say we've answered the call. Yet history will record that amid our differences, we acted with purpose. And together, we showed the world the power and resilience of American self-government. Mrs. Laura Bush and her daughters, Barbara, left, and Jenna applaud from the First Lady's box at the U.S. Capitol, as President George W. Bush delivers his State of the Union Address Monday, Jan. 28, 2008. White House photo by Shealah CraigheadAll of us were sent to Washington to carry out the people's business. That is the purpose of this body. It is the meaning of our oath. It remains our charge to keep. The actions of the 110th Congress will affect the security and prosperity of our nation long after this session has ended. In this election year, let us show our fellow Americans that we recognize our responsibilities and are determined to meet them. Let us show them that Republicans and Democrats can compete for votes and cooperate for results at the same time. (Applause.) From expanding opportunity to protecting our country, we've made good progress. Yet we have unfinished business before us, and the American people expect us to get it done. In the work ahead, we must be guided by the philosophy that made our nation great. As Americans, we believe in the power of individuals to determine their destiny and shape the course of history. We believe that the most reliable guide for our country is the collective wisdom of ordinary citizens. And so in all we do, we must trust in the ability of free peoples to make wise decisions, and empower them to improve their lives for their futures. To build a prosperous future, we must trust people with their own money and empower them to grow our economy. As we meet tonight, our economy is undergoing a period of uncertainty. America has added jobs for a record 52 straight months, but jobs are now growing at a slower pace. Wages are up, but so are prices for food and gas. Exports are rising, but the housing market has declined. At kitchen tables across our country, there is a concern about our economic future. In the long run, Americans can be confident about our economic growth. But in the short run, we can all see that that growth is slowing. So last week, my administration reached agreement with Speaker Pelosi and Republican Leader Boehner on a robust growth package that includes tax relief for individuals and families and incentives for business investment. The temptation will be to load up the bill. That would delay it or derail it, and neither option is acceptable. (Applause.) This is a good agreement that will keep our economy growing and our people working. And this Congress must pass it as soon as possible. (Applause.) Mrs. Laura Bush, joined by her daughters, Barbara, left, and Jenna applaud from the First Lady's box at the U.S. Capitol, as President George W. Bush delivers his State of the Union Address Monday, Jan. 28, 2008. White House photo by Joyce N. BoghosianWe have other work to do on taxes. Unless Congress acts, most of the tax relief we've delivered over the past seven years will be taken away. Some in Washington argue that letting tax relief expire is not a tax increase. Try explaining that to 116 million American taxpayers who would see their taxes rise by an average of $1,800. Others have said they would personally be happy to pay higher taxes. I welcome their enthusiasm. I'm pleased to report that the IRS accepts both checks and money orders. (Laughter and applause.) Most Americans think their taxes are high enough. With all the other pressures on their finances, American families should not have to worry about their federal government taking a bigger bite out of their paychecks. There's only one way to eliminate this uncertainty: Make the tax relief permanent. (Applause.) And members of Congress should know: If any bill raises taxes reaches my desk, I will veto it. (Applause.) Just as we trust Americans with their own money, we need to earn their trust by spending their tax dollars wisely. Next week, I'll send you a budget that terminates or substantially reduces 151 wasteful or bloated programs, totaling more than $18 billion. The budget that I will submit will keep America on track for a surplus in 2012. American families have to balance their budgets; so should their government. (Applause.) The people's trust in their government is undermined by congressional earmarks -- special interest projects that are often snuck in at the last minute, without discussion or debate. Last year, I asked you to voluntarily cut the number and cost of earmarks in half. I also asked you to stop slipping earmarks into committee reports that never even come to a vote. Unfortunately, neither goal was met. So this time, if you send me an appropriations bill that does not cut the number and cost of earmarks in half, I'll send it back to you with my veto. (Applause.) And tomorrow, I will issue an executive order that directs federal agencies to ignore any future earmark that is not voted on by Congress. If these items are truly worth funding, Congress should debate them in the open and hold a public vote. (Applause.) Our shared responsibilities extend beyond matters of taxes and spending. On housing, we must trust Americans with the responsibility of homeownership and empower them to weather turbulent times in the housing market. My administration brought together the HOPE NOW alliance, which is helping many struggling homeowners avoid foreclosure. And Congress can help even more. Tonight I ask you to pass legislation to reform Fannie Mae and Freddie Mac, modernize the Federal Housing Administration, and allow state housing agencies to issue tax-free bonds to help homeowners refinance their mortgages. (Applause.) These are difficult times for many American families, and by taking these steps, we can help more of them keep their homes. President George W. Bush shakes the hand of Secretary of Treasury Henry Paulson as he arrives on the House floor at the U.S. Capitol Monday, Jan. 28, 2008, to deliver his 2008 State of the Union address. Looking on are Secretary of State Condoleezza Rice and U.S. Supreme Court Chief Justice John Roberts. White House photo by Eric DraperTo build a future of quality health care, we must trust patients and doctors to make medical decisions and empower them with better information and better options. We share a common goal: making health care more affordable and accessible for all Americans. (Applause.) The best way to achieve that goal is by expanding consumer choice, not government control. (Applause.) So I have proposed ending the bias in the tax code against those who do not get their health insurance through their employer. This one reform would put private coverage within reach for millions, and I call on the Congress to pass it this year. (Applause.) The Congress must also expand health savings accounts, create Association Health Plans for small businesses, promote health information technology, and confront the epidemic of junk medical lawsuits. (Applause.) With all these steps, we will help ensure that decisions about your medical care are made in the privacy of your doctor's office -- not in the halls of Congress. (Applause.) On education, we must trust students to learn if given the chance, and empower parents to demand results from our schools. In neighborhoods across our country, there are boys and girls with dreams -- and a decent education is their only hope of achieving them. Six years ago, we came together to pass the No Child Left Behind Act, and today no one can deny its results. Last year, fourth and eighth graders achieved the highest math scores on record. Reading scores are on the rise. African American and Hispanic students posted all-time highs. (Applause.) Now we must work together to increase accountability, add flexibility for states and districts, reduce the number of high school dropouts, provide extra help for struggling schools. Members of Congress: The No Child Left Behind Act is a bipartisan achievement. It is succeeding. And we owe it to America's children, their parents, and their teachers to strengthen this good law. (Applause.) President George W. Bush acknowledges the applause Monday, Jan. 28, 2008, as he arrives at the podium on the House floor at the U.S. Capitol to deliver his final State of the Union address. White House photo by Eric DraperWe must also do more to help children when their schools do not measure up. Thanks to the D.C. Opportunity Scholarships you approved, more than 2,600 of the poorest children in our Nation's Capital have found new hope at a faith-based or other non-public school. Sadly, these schools are disappearing at an alarming rate in many of America's inner cities. So I will convene a White House summit aimed at strengthening these lifelines of learning. And to open the doors of these schools to more children, I ask you to support a new $300 million program called Pell Grants for Kids. We have seen how Pell Grants help low-income college students realize their full potential. Together, we've expanded the size and reach of these grants. Now let us apply that same spirit to help liberate poor children trapped in failing public schools. (Applause.) On trade, we must trust American workers to compete with anyone in the world and empower them by opening up new markets overseas. Today, our economic growth increasingly depends on our ability to sell American goods and crops and services all over the world. So we're working to break down barriers to trade and investment wherever we can. We're working for a successful Doha Round of trade talks, and we must complete a good agreement this year. At the same time, we're pursuing opportunities to open up new markets by passing free trade agreements. I thank the Congress for approving a good agreement with Peru. And now I ask you to approve agreements with Colombia and Panama and South Korea. (Applause.) Many products from these nations now enter America duty-free, yet many of our products face steep tariffs in their markets. These agreements will level the playing field. They will give us better access to nearly 100 million customers. They will support good jobs for the finest workers in the world: those whose products say "Made in the USA." (Applause.) These agreements also promote America's strategic interests. The first agreement that will come before you is with Colombia, a friend of America that is confronting violence and terror, and fighting drug traffickers. If we fail to pass this agreement, we will embolden the purveyors of false populism in our hemisphere. So we must come together, pass this agreement, and show our neighbors in the region that democracy leads to a better life. (Applause.) Trade brings better jobs and better choices and better prices. Yet for some Americans, trade can mean losing a job, and the federal government has a responsibility to help. (Applause.) I ask Congress to reauthorize and reform trade adjustment assistance, so we can help these displaced workers learn new skills and find new jobs. (Applause.) President George W. Bush receives a standing ovation during his 2008 State of the Union address Monday, Jan. 28, 2008, at the U.S. Capitol. White House photo by Joyce N. BoghosianTo build a future of energy security, we must trust in the creative genius of American researchers and entrepreneurs and empower them to pioneer a new generation of clean energy technology. (Applause.) Our security, our prosperity, and our environment all require reducing our dependence on oil. Last year, I asked you to pass legislation to reduce oil consumption over the next decade, and you responded. Together we should take the next steps: Let us fund new technologies that can generate coal power while capturing carbon emissions. (Applause.) Let us increase the use of renewable power and emissions-free nuclear power. (Applause.) Let us continue investing in advanced battery technology and renewable fuels to power the cars and trucks of the future. (Applause.) Let us create a new international clean technology fund, which will help developing nations like India and China make greater use of clean energy sources. And let us complete an international agreement that has the potential to slow, stop, and eventually reverse the growth of greenhouse gases. (Applause.) This agreement will be effective only if it includes commitments by every major economy and gives none a free ride. (Applause.) The United States is committed to strengthening our energy security and confronting global climate change. And the best way to meet these goals is for America to continue leading the way toward the development of cleaner and more energy-efficient technology. (Applause.) To keep America competitive into the future, we must trust in the skill of our scientists and engineers and empower them to pursue the breakthroughs of tomorrow. Last year, Congress passed legislation supporting the American Competitiveness Initiative, but never followed through with the funding. This funding is essential to keeping our scientific edge. So I ask Congress to double federal support for critical basic research in the physical sciences and ensure America remains the most dynamic nation on Earth. (Applause.) On matters of life and science, we must trust in the innovative spirit of medical researchers and empower them to discover new treatments while respecting moral boundaries. In November, we witnessed a landmark achievement when scientists discovered a way to reprogram adult skin cells to act like embryonic stem cells. This breakthrough has the potential to move us beyond the divisive debates of the past by extending the frontiers of medicine without the destruction of human life. (Applause.) President George W. Bush receives applause at the State of the Union Address Monday, Jan. 28, 2008, at the U.S. Capitol. Vice President Dick Cheney and Speaker of the House Nancy Pelosi are seen back right. White House photo by Eric DraperSo we're expanding funding for this type of ethical medical research. And as we explore promising avenues of research, we must also ensure that all life is treated with the dignity it deserves. And so I call on Congress to pass legislation that bans unethical practices such as the buying, selling, patenting, or cloning of human life. (Applause.) On matters of justice, we must trust in the wisdom of our founders and empower judges who understand that the Constitution means what it says. (Applause.) I've submitted judicial nominees who will rule by the letter of the law, not the whim of the gavel. Many of these nominees are being unfairly delayed. They are worthy of confirmation, and the Senate should give each of them a prompt up-or-down vote. (Applause.) In communities across our land, we must trust in the good heart of the American people and empower them to serve their neighbors in need. Over the past seven years, more of our fellow citizens have discovered that the pursuit of happiness leads to the path of service. Americans have volunteered in record numbers. Charitable donations are higher than ever. Faith-based groups are bringing hope to pockets of despair, with newfound support from the federal government. And to help guarantee equal treatment of faith-based organizations when they compete for federal funds, I ask you to permanently extend Charitable Choice. (Applause.) Tonight the armies of compassion continue the march to a new day in the Gulf Coast. America honors the strength and resilience of the people of this region. We reaffirm our pledge to help them build stronger and better than before. And tonight I'm pleased to announce that in April we will host this year's North American Summit of Canada, Mexico, and the United States in the great city of New Orleans. (Applause.) There are two other pressing challenges that I've raised repeatedly before this body, and that this body has failed to address: entitlement spending and immigration. Every member in this chamber knows that spending on entitlement programs like Social Security, Medicare, and Medicaid is growing faster than we can afford. We all know the painful choices ahead if America stays on this path: massive tax increases, sudden and drastic cuts in benefits, or crippling deficits. I've laid out proposals to reform these programs. Now I ask members of Congress to offer your proposals and come up with a bipartisan solution to save these vital programs for our children and our grandchildren. (Applause.) Former Senator Bob Dole and former Cabinet Secretary Donna Shalala are recognized and applauded in the First Lady's box Monday evening, Jan. 28, 2008 at the U.S. Captiol, during the State of the Union Address by President George W. Bush. Dole and Shalala were selected by President Bush to co-chair the President's Commission on Care for America's Returning Wounded Warriors. White House photo by Eric DraperThe other pressing challenge is immigration. America needs to secure our borders -- and with your help, my administration is taking steps to do so. We're increasing worksite enforcement, deploying fences and advanced technologies to stop illegal crossings. We've effectively ended the policy of "catch and release" at the border, and by the end of this year, we will have doubled the number of border patrol agents. Yet we also need to acknowledge that we will never fully secure our border until we create a lawful way for foreign workers to come here and support our economy. (Applause.) This will take pressure off the border and allow law enforcement to concentrate on those who mean us harm. We must also find a sensible and humane way to deal with people here illegally. Illegal immigration is complicated, but it can be resolved. And it must be resolved in a way that upholds both our laws and our highest ideals. (Applause.) This is the business of our nation here at home. Yet building a prosperous future for our citizens also depends on confronting enemies abroad and advancing liberty in troubled regions of the world. Our foreign policy is based on a clear premise: We trust that people, when given the chance, will choose a future of freedom and peace. In the last seven years, we have witnessed stirring moments in the history of liberty. We've seen citizens in Georgia and Ukraine stand up for their right to free and fair elections. We've seen people in Lebanon take to the streets to demand their independence. We've seen Afghans emerge from the tyranny of the Taliban and choose a new president and a new parliament. We've seen jubilant Iraqis holding up ink-stained fingers and celebrating their freedom. These images of liberty have inspired us. (Applause.) In the past seven years, we've also seen images that have sobered us. We've watched throngs of mourners in Lebanon and Pakistan carrying the caskets of beloved leaders taken by the assassin's hand. We've seen wedding guests in blood-soaked finery staggering from a hotel in Jordan, Afghans and Iraqis blown up in mosques and markets, and trains in London and Madrid ripped apart by bombs. On a clear September day, we saw thousands of our fellow citizens taken from us in an instant. These horrific images serve as a grim reminder: The advance of liberty is opposed by terrorists and extremists -- evil men who despise freedom, despise America, and aim to subject millions to their violent rule. President George W. Bush is surrounded by members of Congress as he prepares to leave the House chamber Monday evening, Jan. 28, 2008 at the U.S. Capitol, following the President's State of the Union Address. White House photo by Eric DraperSince 9/11, we have taken the fight to these terrorists and extremists. We will stay on the offense, we will keep up the pressure, and we will deliver justice to our enemies. (Applause.) We are engaged in the defining ideological struggle of the 21st century. The terrorists oppose every principle of humanity and decency that we hold dear. Yet in this war on terror, there is one thing we and our enemies agree on: In the long run, men and women who are free to determine their own destinies will reject terror and refuse to live in tyranny. And that is why the terrorists are fighting to deny this choice to the people in Lebanon, Iraq, Afghanistan, Pakistan, and the Palestinian Territories. And that is why, for the security of America and the peace of the world, we are spreading the hope of freedom. (Applause.) In Afghanistan, America, our 25 NATO allies, and 15 partner nations are helping the Afghan people defend their freedom and rebuild their country. Thanks to the courage of these military and civilian personnel, a nation that was once a safe haven for al Qaeda is now a young democracy where boys and girls are going to school, new roads and hospitals are being built, and people are looking to the future with new hope. These successes must continue, so we're adding 3,200 Marines to our forces in Afghanistan, where they will fight the terrorists and train the Afghan Army and police. Defeating the Taliban and al Qaeda is critical to our security, and I thank the Congress for supporting America's vital mission in Afghanistan. (Applause.) In Iraq, the terrorists and extremists are fighting to deny a proud people their liberty, and fighting to establish safe havens for attacks across the world. One year ago, our enemies were succeeding in their efforts to plunge Iraq into chaos. So we reviewed our strategy and changed course. We launched a surge of American forces into Iraq. We gave our troops a new mission: Work with the Iraqi forces to protect the Iraqi people, pursue the enemy in its strongholds, and deny the terrorists sanctuary anywhere in the country. The Iraqi people quickly realized that something dramatic had happened. Those who had worried that America was preparing to abandon them instead saw tens of thousands of American forces flowing into their country. They saw our forces moving into neighborhoods, clearing out the terrorists, and staying behind to ensure the enemy did not return. And they saw our troops, along with Provincial Reconstruction Teams that include Foreign Service officers and other skilled public servants, coming in to ensure that improved security was followed by improvements in daily life. Our military and civilians in Iraq are performing with courage and distinction, and they have the gratitude of our whole nation. (Applause.) President George W. Bush delivers his State of the Union Address Monday, Jan. 28, 2008, at the U.S. Capitol. White House photo by David BohrerThe Iraqis launched a surge of their own. In the fall of 2006, Sunni tribal leaders grew tired of al Qaeda's brutality and started a popular uprising called "The Anbar Awakening." Over the past year, similar movements have spread across the country. And today, the grassroots surge includes more than 80,000 Iraqi citizens who are fighting the terrorists. The government in Baghdad has stepped forward, as well -- adding more than 100,000 new Iraqi soldiers and police during the past year. While the enemy is still dangerous and more work remains, the American and Iraqi surges have achieved results few of us could have imagined just one year ago. (Applause.) When we met last year, many said that containing the violence was impossible. A year later, high profile terrorist attacks are down, civilian deaths are down, sectarian killings are down. When we met last year, militia extremists -- some armed and trained by Iran -- were wreaking havoc in large areas of Iraq. A year later, coalition and Iraqi forces have killed or captured hundreds of militia fighters. And Iraqis of all backgrounds increasingly realize that defeating these militia fighters is critical to the future of their country. When we met last year, al Qaeda had sanctuaries in many areas of Iraq, and their leaders had just offered American forces safe passage out of the country. Today, it is al Qaeda that is searching for safe passage. They have been driven from many of the strongholds they once held, and over the past year, we've captured or killed thousands of extremists in Iraq, including hundreds of key al Qaeda leaders and operatives. Last month, Osama bin Laden released a tape in which he railed against Iraqi tribal leaders who have turned on al Qaeda and admitted that coalition forces are growing stronger in Iraq. Ladies and gentlemen, some may deny the surge is working, but among the terrorists there is no doubt. Al Qaeda is on the run in Iraq, and this enemy will be defeated. (Applause.) President George W. Bush is applauded during his State of the Union Address at the U.S. Capitol Monday evening, Jan. 28, 2008. White House photo by Shealah CraigheadWhen we met last year, our troop levels in Iraq were on the rise. Today, because of the progress just described, we are implementing a policy of "return on success," and the surge forces we sent to Iraq are beginning to come home. This progress is a credit to the valor of our troops and the brilliance of their commanders. This evening, I want to speak directly to our men and women on the front lines. Soldiers and sailors, airmen, Marines, and Coast Guardsmen: In the past year, you have done everything we've asked of you, and more. Our nation is grateful for your courage. We are proud of your accomplishments. And tonight in this hallowed chamber, with the American people as our witness, we make you a solemn pledge: In the fight ahead, you will have all you need to protect our nation. (Applause.) And I ask Congress to meet its responsibilities to these brave men and women by fully funding our troops. (Applause.) Our enemies in Iraq have been hit hard. They are not yet defeated, and we can still expect tough fighting ahead. Our objective in the coming year is to sustain and build on the gains we made in 2007, while transitioning to the next phase of our strategy. American troops are shifting from leading operations, to partnering with Iraqi forces, and, eventually, to a protective overwatch mission. As part of this transition, one Army brigade combat team and one Marine Expeditionary Unit have already come home and will not be replaced. In the coming months, four additional brigades and two Marine battalions will follow suit. Taken together, this means more than 20,000 of our troops are coming home. (Applause.) Any further drawdown of U.S. troops will be based on conditions in Iraq and the recommendations of our commanders. General Petraeus has warned that too fast a drawdown could result in the "disintegration of the Iraqi security forces, al Qaeda-Iraq regaining lost ground, [and] a marked increase in violence." Members of Congress: Having come so far and achieved so much, we must not allow this to happen. (Applause.) In the coming year, we will work with Iraqi leaders as they build on the progress they're making toward political reconciliation. At the local level, Sunnis, Shia, and Kurds are beginning to come together to reclaim their communities and rebuild their lives. Progress in the provinces must be matched by progress in Baghdad. (Applause.) We're seeing some encouraging signs. The national government is sharing oil revenues with the provinces. The parliament recently passed both a pension law and de-Baathification reform. They're now debating a provincial powers law. The Iraqis still have a distance to travel. But after decades of dictatorship and the pain of sectarian violence, reconciliation is taking place -- and the Iraqi people are taking control of their future. (Applause.) President George W. Bush smiles as he delivers his 2008 State of the Union address Monday, Jan. 28, 2008, at the U.S. Capitol. White House photo by Eric DraperThe mission in Iraq has been difficult and trying for our nation. But it is in the vital interest of the United States that we succeed. A free Iraq will deny al Qaeda a safe haven. A free Iraq will show millions across the Middle East that a future of liberty is possible. A free Iraq will be a friend of America, a partner in fighting terror, and a source of stability in a dangerous part of the world. By contrast, a failed Iraq would embolden the extremists, strengthen Iran, and give terrorists a base from which to launch new attacks on our friends, our allies, and our homeland. The enemy has made its intentions clear. At a time when the momentum seemed to favor them, al Qaida's top commander in Iraq declared that they will not rest until they have attacked us here in Washington. My fellow Americans: We will not rest either. We will not rest until this enemy has been defeated. (Applause.) We must do the difficult work today, so that years from now people will look back and say that this generation rose to the moment, prevailed in a tough fight, and left behind a more hopeful region and a safer America. (Applause.) We're also standing against the forces of extremism in the Holy Land, where we have new cause for hope. Palestinians have elected a president who recognizes that confronting terror is essential to achieving a state where his people can live in dignity and at peace with Israel. Israelis have leaders who recognize that a peaceful, democratic Palestinian state will be a source of lasting security. This month in Ramallah and Jerusalem, I assured leaders from both sides that America will do, and I will do, everything we can to help them achieve a peace agreement that defines a Palestinian state by the end of this year. The time has come for a Holy Land where a democratic Israel and a democratic Palestine live side-by-side in peace. (Applause.) We're also standing against the forces of extremism embodied by the regime in Tehran. Iran's rulers oppress a good and talented people. And wherever freedom advances in the Middle East, it seems the Iranian regime is there to oppose it. Iran is funding and training militia groups in Iraq, supporting Hezbollah terrorists in Lebanon, and backing Hamas' efforts to undermine peace in the Holy Land. Tehran is also developing ballistic missiles of increasing range, and continues to develop its capability to enrich uranium, which could be used to create a nuclear weapon. President George W. Bush delivers copies of his speech to Speaker of the House Nancy Pelosi (D-California) and Vice President Dick Cheney before delivering his 2008 State of the Union address Monday, Jan. 28, 2008, at the U.S. Capitol. White House photo by Eric DraperOur message to the people of Iran is clear: We have no quarrel with you. We respect your traditions and your history. We look forward to the day when you have your freedom. Our message to the leaders of Iran is also clear: Verifiably suspend your nuclear enrichment, so negotiations can begin. And to rejoin the community of nations, come clean about your nuclear intentions and past actions, stop your oppression at home, cease your support for terror abroad. But above all, know this: America will confront those who threaten our troops. We will stand by our allies, and we will defend our vital interests in the Persian Gulf. (Applause.) On the home front, we will continue to take every lawful and effective measure to protect our country. This is our most solemn duty. We are grateful that there has not been another attack on our soil since 9/11. This is not for the lack of desire or effort on the part of the enemy. In the past six years, we've stopped numerous attacks, including a plot to fly a plane into the tallest building in Los Angeles and another to blow up passenger jets bound for America over the Atlantic. Dedicated men and women in our government toil day and night to stop the terrorists from carrying out their plans. These good citizens are saving American lives, and everyone in this chamber owes them our thanks. (Applause.) And we owe them something more: We owe them the tools they need to keep our people safe. And one of the most important tools we can give them is the ability to monitor terrorist communications. To protect America, we need to know who the terrorists are talking to, what they are saying, and what they're planning. Last year, Congress passed legislation to help us do that. Unfortunately, Congress set the legislation to expire on February the 1st. That means if you don't act by Friday, our ability to track terrorist threats would be weakened and our citizens will be in greater danger. Congress must ensure the flow of vital intelligence is not disrupted. Congress must pass liability protection for companies believed to have assisted in the efforts to defend America. We've had ample time for debate. The time to act is now. (Applause.) Protecting our nation from the dangers of a new century requires more than good intelligence and a strong military. It also requires changing the conditions that breed resentment and allow extremists to prey on despair. So America is using its influence to build a freer, more hopeful, and more compassionate world. This is a reflection of our national interest; it is the calling of our conscience. America opposes genocide in Sudan. (Applause.) We support freedom in countries from Cuba and Zimbabwe to Belarus and Burma. (Applause.) America is leading the fight against global poverty, with strong education initiatives and humanitarian assistance. We've also changed the way we deliver aid by launching the Millennium Challenge Account. This program strengthens democracy, transparency, and the rule of law in developing nations, and I ask you to fully fund this important initiative. (Applause.) America is leading the fight against global hunger. Today, more than half the world's food aid comes from the United States. And tonight, I ask Congress to support an innovative proposal to provide food assistance by purchasing crops directly from farmers in the developing world, so we can build up local agriculture and help break the cycle of famine. (Applause.) America is leading the fight against disease. With your help, we're working to cut by half the number of malaria-related deaths in 15 African nations. And our Emergency Plan for AIDS Relief is treating 1.4 million people. We can bring healing and hope to many more. So I ask you to maintain the principles that have changed behavior and made this program a success. And I call on you to double our initial commitment to fighting HIV/AIDS by approving an additional $30 billion over the next five years. (Applause.) America is a force for hope in the world because we are a compassionate people, and some of the most compassionate Americans are those who have stepped forward to protect us. We must keep faith with all who have risked life and limb so that we might live in freedom and peace. Over the past seven years, we've increased funding for veterans by more than 95 percent. And as we increase funding -- (applause.) And as increase funding we must also reform our veterans system to meet the needs of a new war and a new generation. (Applause.) I call on the Congress to enact the reforms recommended by Senator Bob Dole and Secretary Donna Shalala, so we can improve the system of care for our wounded warriors and help them build lives of hope and promise and dignity. (Applause.) Our military families also sacrifice for America. They endure sleepless nights and the daily struggle of providing for children while a loved one is serving far from home. We have a responsibility to provide for them. So I ask you to join me in expanding their access to child care, creating new hiring preferences for military spouses across the federal government, and allowing our troops to transfer their unused education benefits to their spouses or children. (Applause.) Our military families serve our nation, they inspire our nation, and tonight our nation honors them. (Applause.) The strength -- the secret of our strength, the miracle of America, is that our greatness lies not in our government, but in the spirit and determination of our people. (Applause.) When the Federal Convention met in Philadelphia in 1787, our nation was bound by the Articles of Confederation, which began with the words, "We the undersigned delegates." When Gouverneur Morris was asked to draft a preamble to our new Constitution, he offered an important revision and opened with words that changed the course of our nation and the history of the world: "We the people." By trusting the people, our Founders wagered that a great and noble nation could be built on the liberty that resides in the hearts of all men and women. By trusting the people, succeeding generations transformed our fragile young democracy into the most powerful nation on Earth and a beacon of hope for millions. And so long as we continue to trust the people, our nation will prosper, our liberty will be secure, and the state of our Union will remain strong. (Applause.) So tonight, with confidence in freedom's power, and trust in the people, let us set forth to do their business. God bless America. (Applause.)

US

Madame Speaker, Mr. Vice President, Members of Congress, and the First Lady of the United States: I’ve come here tonight not only to address the distinguished men and women in this great chamber, but to speak frankly and directly to the men and women who sent us here. I know that for many Americans watching right now, the state of our economy is a concern that rises above all others. And rightly so. If you haven’t been personally affected by this recession, you probably know someone who has – a friend; a neighbor; a member of your family. You don’t need to hear another list of statistics to know that our economy is in crisis, because you live it every day. It’s the worry you wake up with and the source of sleepless nights. It’s the job you thought you’d retire from but now have lost; the business you built your dreams upon that’s now hanging by a thread; the college acceptance letter your child had to put back in the envelope. The impact of this recession is real, and it is everywhere. But while our economy may be weakened and our confidence shaken; though we are living through difficult and uncertain times, tonight I want every American to know this: We will rebuild, we will recover, and the United States of America will emerge stronger than before. The weight of this crisis will not determine the destiny of this nation. The answers to our problems don’t lie beyond our reach. They exist in our laboratories and universities; in our fields and our factories; in the imaginations of our entrepreneurs and the pride of the hardest-working people on Earth. Those qualities that have made America the greatest force of progress and prosperity in human history we still possess in ample measure. What is required now is for this country to pull together, confront boldly the challenges we face, and take responsibility for our future once more. Now, if we’re honest with ourselves, we’ll admit that for too long, we have not always met these responsibilities – as a government or as a people. I say this not to lay blame or look backwards, but because it is only by understanding how we arrived at this moment that we’ll be able to lift ourselves out of this predicament. The fact is, our economy did not fall into decline overnight. Nor did all of our problems begin when the housing market collapsed or the stock market sank. We have known for decades that our survival depends on finding new sources of energy. Yet we import more oil today than ever before. The cost of health care eats up more and more of our savings each year, yet we keep delaying reform. Our children will compete for jobs in a global economy that too many of our schools do not prepare them for. And though all these challenges went unsolved, we still managed to spend more money and pile up more debt, both as individuals and through our government, than ever before. In other words, we have lived through an era where too often, short-term gains were prized over long-term prosperity; where we failed to look beyond the next payment, the next quarter, or the next election. A surplus became an excuse to transfer wealth to the wealthy instead of an opportunity to invest in our future. Regulations were gutted for the sake of a quick profit at the expense of a healthy market. People bought homes they knew they couldn’t afford from banks and lenders who pushed those bad loans anyway. And all the while, critical debates and difficult decisions were put off for some other time on some other day. Well that day of reckoning has arrived, and the time to take charge of our future is here. Now is the time to act boldly and wisely – to not only revive this economy, but to build a new foundation for lasting prosperity. Now is the time to jumpstart job creation, re-start lending, and invest in areas like energy, health care, and education that will grow our economy, even as we make hard choices to bring our deficit down. That is what my economic agenda is designed to do, and that’s what I’d like to talk to you about tonight. It’s an agenda that begins with jobs. As soon as I took office, I asked this Congress to send me a recovery plan by President’s Day that would put people back to work and put money in their pockets. Not because I believe in bigger government – I don’t. Not because I’m not mindful of the massive debt we’ve inherited – I am. I called for action because the failure to do so would have cost more jobs and caused more hardships. In fact, a failure to act would have worsened our long-term deficit by assuring weak economic growth for years. That’s why I pushed for quick action. And tonight, I am grateful that this Congress delivered, and pleased to say that the American Recovery and Reinvestment Act is now law. Over the next two years, this plan will save or create 3.5 million jobs. More than 90% of these jobs will be in the private sector – jobs rebuilding our roads and bridges; constructing wind turbines and solar panels; laying broadband and expanding mass transit. Because of this plan, there are teachers who can now keep their jobs and educate our kids. Health care professionals can continue caring for our sick. There are 57 police officers who are still on the streets of Minneapolis tonight because this plan prevented the layoffs their department was about to make. Because of this plan, 95% of the working households in America will receive a tax cut – a tax cut that you will see in your paychecks beginning on April 1st. Because of this plan, families who are struggling to pay tuition costs will receive a $2,500 tax credit for all four years of college. And Americans who have lost their jobs in this recession will be able to receive extended unemployment benefits and continued health care coverage to help them weather this storm. I know there are some in this chamber and watching at home who are skeptical of whether this plan will work. I understand that skepticism. Here in Washington, we’ve all seen how quickly good intentions can turn into broken promises and wasteful spending. And with a plan of this scale comes enormous responsibility to get it right. That is why I have asked Vice President Biden to lead a tough, unprecedented oversight effort – because nobody messes with Joe. I have told each member of my Cabinet as well as mayors and governors across the country that they will be held accountable by me and the American people for every dollar they spend. I have appointed a proven and aggressive Inspector General to ferret out any and all cases of waste and fraud. And we have created a new website called recovery.gov so that every American can find out how and where their money is being spent. So the recovery plan we passed is the first step in getting our economy back on track. But it is just the first step. Because even if we manage this plan flawlessly, there will be no real recovery unless we clean up the credit crisis that has severely weakened our financial system. I want to speak plainly and candidly about this issue tonight, because every American should know that it directly affects you and your family’s well-being. You should also know that the money you’ve deposited in banks across the country is safe; your insurance is secure; and you can rely on the continued operation of our financial system. That is not the source of concern. The concern is that if we do not re-start lending in this country, our recovery will be choked off before it even begins. You see, the flow of credit is the lifeblood of our economy. The ability to get a loan is how you finance the purchase of everything from a home to a car to a college education; how stores stock their shelves, farms buy equipment, and businesses make payroll. But credit has stopped flowing the way it should. Too many bad loans from the housing crisis have made their way onto the books of too many banks. With so much debt and so little confidence, these banks are now fearful of lending out any more money to households, to businesses, or to each other. When there is no lending, families can’t afford to buy homes or cars. So businesses are forced to make layoffs. Our economy suffers even more, and credit dries up even further. That is why this administration is moving swiftly and aggressively to break this destructive cycle, restore confidence, and re-start lending. We will do so in several ways. First, we are creating a new lending fund that represents the largest effort ever to help provide auto loans, college loans, and small business loans to the consumers and entrepreneurs who keep this economy running. Second, we have launched a housing plan that will help responsible families facing the threat of foreclosure lower their monthly payments and re-finance their mortgages. It’s a plan that won’t help speculators or that neighbor down the street who bought a house he could never hope to afford, but it will help millions of Americans who are struggling with declining home values – Americans who will now be able to take advantage of the lower interest rates that this plan has already helped bring about. In fact, the average family who re-finances today can save nearly $2000 per year on their mortgage. Third, we will act with the full force of the federal government to ensure that the major banks that Americans depend on have enough confidence and enough money to lend even in more difficult times. And when we learn that a major bank has serious problems, we will hold accountable those responsible, force the necessary adjustments, provide the support to clean up their balance sheets, and assure the continuity of a strong, viable institution that can serve our people and our economy. I understand that on any given day, Wall Street may be more comforted by an approach that gives banks bailouts with no strings attached, and that holds nobody accountable for their reckless decisions. But such an approach won’t solve the problem. And our goal is to quicken the day when we re-start lending to the American people and American business and end this crisis once and for all. I intend to hold these banks fully accountable for the assistance they receive, and this time, they will have to clearly demonstrate how taxpayer dollars result in more lending for the American taxpayer. This time, CEOs won’t be able to use taxpayer money to pad their paychecks or buy fancy drapes or disappear on a private jet. Those days are over. Still, this plan will require significant resources from the federal government – and yes, probably more than we’ve already set aside. But while the cost of action will be great, I can assure you that the cost of inaction will be far greater, for it could result in an economy that sputters along for not months or years, but perhaps a decade. That would be worse for our deficit, worse for business, worse for you, and worse for the next generation. And I refuse to let that happen. I understand that when the last administration asked this Congress to provide assistance for struggling banks, Democrats and Republicans alike were infuriated by the mismanagement and results that followed. So were the American taxpayers. So was I. So I know how unpopular it is to be seen as helping banks right now, especially when everyone is suffering in part from their bad decisions. I promise you – I get it. But I also know that in a time of crisis, we cannot afford to govern out of anger, or yield to the politics of the moment. My job – our job – is to solve the problem. Our job is to govern with a sense of responsibility. I will not spend a single penny for the purpose of rewarding a single Wall Street executive, but I will do whatever it takes to help the small business that can’t pay its workers or the family that has saved and still can’t get a mortgage. That’s what this is about. It’s not about helping banks – it’s about helping people. Because when credit is available again, that young family can finally buy a new home. And then some company will hire workers to build it. And then those workers will have money to spend, and if they can get a loan too, maybe they’ll finally buy that car, or open their own business. Investors will return to the market, and American families will see their retirement secured once more. Slowly, but surely, confidence will return, and our economy will recover. So I ask this Congress to join me in doing whatever proves necessary. Because we cannot consign our nation to an open-ended recession. And to ensure that a crisis of this magnitude never happens again, I ask Congress to move quickly on legislation that will finally reform our outdated regulatory system. It is time to put in place tough, new common-sense rules of the road so that our financial market rewards drive and innovation, and punishes short-cuts and abuse. The recovery plan and the financial stability plan are the immediate steps we’re taking to revive our economy in the short-term. But the only way to fully restore America’s economic strength is to make the long-term investments that will lead to new jobs, new industries, and a renewed ability to compete with the rest of the world. The only way this century will be another American century is if we confront at last the price of our dependence on oil and the high cost of health care; the schools that aren’t preparing our children and the mountain of debt they stand to inherit. That is our responsibility. In the next few days, I will submit a budget to Congress. So often, we have come to view these documents as simply numbers on a page or laundry lists of programs. I see this document differently. I see it as a vision for America – as a blueprint for our future. My budget does not attempt to solve every problem or address every issue. It reflects the stark reality of what we’ve inherited – a trillion dollar deficit, a financial crisis, and a costly recession. Given these realities, everyone in this chamber – Democrats and Republicans – will have to sacrifice some worthy priorities for which there are no dollars. And that includes me. But that does not mean we can afford to ignore our long-term challenges. I reject the view that says our problems will simply take care of themselves; that says government has no role in laying the foundation for our common prosperity. For history tells a different story. History reminds us that at every moment of economic upheaval and transformation, this nation has responded with bold action and big ideas. In the midst of civil war, we laid railroad tracks from one coast to another that spurred commerce and industry. From the turmoil of the Industrial Revolution came a system of public high schools that prepared our citizens for a new age. In the wake of war and depression, the GI Bill sent a generation to college and created the largest middle-class in history. And a twilight struggle for freedom led to a nation of highways, an American on the moon, and an explosion of technology that still shapes our world. In each case, government didn’t supplant private enterprise; it catalyzed private enterprise. It created the conditions for thousands of entrepreneurs and new businesses to adapt and to thrive. We are a nation that has seen promise amid peril, and claimed opportunity from ordeal. Now we must be that nation again. That is why, even as it cuts back on the programs we don’t need, the budget I submit will invest in the three areas that are absolutely critical to our economic future: energy, health care, and education. It begins with energy. We know the country that harnesses the power of clean, renewable energy will lead the 21st century. And yet, it is China that has launched the largest effort in history to make their economy energy efficient. We invented solar technology, but we’ve fallen behind countries like Germany and Japan in producing it. New plug-in hybrids roll off our assembly lines, but they will run on batteries made in Korea. Well I do not accept a future where the jobs and industries of tomorrow take root beyond our borders – and I know you don’t either. It is time for America to lead again. Thanks to our recovery plan, we will double this nation’s supply of renewable energy in the next three years. We have also made the largest investment in basic research funding in American history – an investment that will spur not only new discoveries in energy, but breakthroughs in medicine, science, and technology. We will soon lay down thousands of miles of power lines that can carry new energy to cities and towns across this country. And we will put Americans to work making our homes and buildings more efficient so that we can save billions of dollars on our energy bills. But to truly transform our economy, protect our security, and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy the profitable kind of energy. So I ask this Congress to send me legislation that places a market-based cap on carbon pollution and drives the production of more renewable energy in America. And to support that innovation, we will invest fifteen billion dollars a year to develop technologies like wind power and solar power; advanced biofuels, clean coal, and more fuel-efficient cars and trucks built right here in America. As for our auto industry, everyone recognizes that years of bad decision-making and a global recession have pushed our automakers to the brink. We should not, and will not, protect them from their own bad practices. But we are committed to the goal of a re-tooled, re-imagined auto industry that can compete and win. Millions of jobs depend on it. Scores of communities depend on it. And I believe the nation that invented the automobile cannot walk away from it. None of this will come without cost, nor will it be easy. But this is America. We don’t do what’s easy. We do what is necessary to move this country forward. For that same reason, we must also address the crushing cost of health care. This is a cost that now causes a bankruptcy in America every thirty seconds. By the end of the year, it could cause 1.5 million Americans to lose their homes. In the last eight years, premiums have grown four times faster than wages. And in each of these years, one million more Americans have lost their health insurance. It is one of the major reasons why small businesses close their doors and corporations ship jobs overseas. And it’s one of the largest and fastest-growing parts of our budget. Given these facts, we can no longer afford to put health care reform on hold. Already, we have done more to advance the cause of health care reform in the last thirty days than we have in the last decade. When it was days old, this Congress passed a law to provide and protect health insurance for eleven million American children whose parents work full-time. Our recovery plan will invest in electronic health records and new technology that will reduce errors, bring down costs, ensure privacy, and save lives. It will launch a new effort to conquer a disease that has touched the life of nearly every American by seeking a cure for cancer in our time. And it makes the largest investment ever in preventive care, because that is one of the best ways to keep our people healthy and our costs under control. This budget builds on these reforms. It includes an historic commitment to comprehensive health care reform – a down-payment on the principle that we must have quality, affordable health care for every American. It’s a commitment that’s paid for in part by efficiencies in our system that are long overdue. And it’s a step we must take if we hope to bring down our deficit in the years to come. Now, there will be many different opinions and ideas about how to achieve reform, and that is why I’m bringing together businesses and workers, doctors and health care providers, Democrats and Republicans to begin work on this issue next week. I suffer no illusions that this will be an easy process. It will be hard. But I also know that nearly a century after Teddy Roosevelt first called for reform, the cost of our health care has weighed down our economy and the conscience of our nation long enough. So let there be no doubt: health care reform cannot wait, it must not wait, and it will not wait another year. The third challenge we must address is the urgent need to expand the promise of education in America. In a global economy where the most valuable skill you can sell is your knowledge, a good education is no longer just a pathway to opportunity – it is a pre-requisite. Right now, three-quarters of the fastest-growing occupations require more than a high school diploma. And yet, just over half of our citizens have that level of education. We have one of the highest high school dropout rates of any industrialized nation. And half of the students who begin college never finish. This is a prescription for economic decline, because we know the countries that out-teach us today will out-compete us tomorrow. That is why it will be the goal of this administration to ensure that every child has access to a complete and competitive education – from the day they are born to the day they begin a career. Already, we have made an historic investment in education through the economic recovery plan. We have dramatically expanded early childhood education and will continue to improve its quality, because we know that the most formative learning comes in those first years of life. We have made college affordable for nearly seven million more students. And we have provided the resources necessary to prevent painful cuts and teacher layoffs that would set back our children’s progress. But we know that our schools don’t just need more resources. They need more reform. That is why this budget creates new incentives for teacher performance; pathways for advancement, and rewards for success. We’ll invest in innovative programs that are already helping schools meet high standards and close achievement gaps. And we will expand our commitment to charter schools. It is our responsibility as lawmakers and educators to make this system work. But it is the responsibility of every citizen to participate in it. And so tonight, I ask every American to commit to at least one year or more of higher education or career training. This can be community college or a four-year school; vocational training or an apprenticeship. But whatever the training may be, every American will need to get more than a high school diploma. And dropping out of high school is no longer an option. It’s not just quitting on yourself, it’s quitting on your country – and this country needs and values the talents of every American. That is why we will provide the support necessary for you to complete college and meet a new goal: by 2020, America will once again have the highest proportion of college graduates in the world. I know that the price of tuition is higher than ever, which is why if you are willing to volunteer in your neighborhood or give back to your community or serve your country, we will make sure that you can afford a higher education. And to encourage a renewed spirit of national service for this and future generations, I ask this Congress to send me the bipartisan legislation that bears the name of Senator Orrin Hatch as well as an American who has never stopped asking what he can do for his country – Senator Edward Kennedy. These education policies will open the doors of opportunity for our children. But it is up to us to ensure they walk through them. In the end, there is no program or policy that can substitute for a mother or father who will attend those parent/teacher conferences, or help with homework after dinner, or turn off the TV, put away the video games, and read to their child. I speak to you not just as a President, but as a father when I say that responsibility for our children's education must begin at home. There is, of course, another responsibility we have to our children. And that is the responsibility to ensure that we do not pass on to them a debt they cannot pay. With the deficit we inherited, the cost of the crisis we face, and the long-term challenges we must meet, it has never been more important to ensure that as our economy recovers, we do what it takes to bring this deficit down. I’m proud that we passed the recovery plan free of earmarks, and I want to pass a budget next year that ensures that each dollar we spend reflects only our most important national priorities. Yesterday, I held a fiscal summit where I pledged to cut the deficit in half by the end of my first term in office. My administration has also begun to go line by line through the federal budget in order to eliminate wasteful and ineffective programs. As you can imagine, this is a process that will take some time. But we’re starting with the biggest lines. We have already identified two trillion dollars in savings over the next decade. In this budget, we will end education programs that don’t work and end direct payments to large agribusinesses that don’t need them. We’ll eliminate the no-bid contracts that have wasted billions in Iraq, and reform our defense budget so that we’re not paying for Cold War-era weapons systems we don’t use. We will root out the waste, fraud, and abuse in our Medicare program that doesn’t make our seniors any healthier, and we will restore a sense of fairness and balance to our tax code by finally ending the tax breaks for corporations that ship our jobs overseas. In order to save our children from a future of debt, we will also end the tax breaks for the wealthiest 2% of Americans. But let me perfectly clear, because I know you’ll hear the same old claims that rolling back these tax breaks means a massive tax increase on the American people: if your family earns less than $250,000 a year, you will not see your taxes increased a single dime. I repeat: not one single dime. In fact, the recovery plan provides a tax cut – that’s right, a tax cut – for 95% of working families. And these checks are on the way. To preserve our long-term fiscal health, we must also address the growing costs in Medicare and Social Security. Comprehensive health care reform is the best way to strengthen Medicare for years to come. And we must also begin a conversation on how to do the same for Social Security, while creating tax-free universal savings accounts for all Americans. Finally, because we’re also suffering from a deficit of trust, I am committed to restoring a sense of honesty and accountability to our budget. That is why this budget looks ahead ten years and accounts for spending that was left out under the old rules – and for the first time, that includes the full cost of fighting in Iraq and Afghanistan. For seven years, we have been a nation at war. No longer will we hide its price. We are now carefully reviewing our policies in both wars, and I will soon announce a way forward in Iraq that leaves Iraq to its people and responsibly ends this war. And with our friends and allies, we will forge a new and comprehensive strategy for Afghanistan and Pakistan to defeat al Qaeda and combat extremism. Because I will not allow terrorists to plot against the American people from safe havens half a world away. As we meet here tonight, our men and women in uniform stand watch abroad and more are readying to deploy. To each and every one of them, and to the families who bear the quiet burden of their absence, Americans are united in sending one message: we honor your service, we are inspired by your sacrifice, and you have our unyielding support. To relieve the strain on our forces, my budget increases the number of our soldiers and Marines. And to keep our sacred trust with those who serve, we will raise their pay, and give our veterans the expanded health care and benefits that they have earned. To overcome extremism, we must also be vigilant in upholding the values our troops defend – because there is no force in the world more powerful than the example of America. That is why I have ordered the closing of the detention center at Guantanamo Bay, and will seek swift and certain justice for captured terrorists – because living our values doesn’t make us weaker, it makes us safer and it makes us stronger. And that is why I can stand here tonight and say without exception or equivocation that the United States of America does not torture. In words and deeds, we are showing the world that a new era of engagement has begun. For we know that America cannot meet the threats of this century alone, but the world cannot meet them without America. We cannot shun the negotiating table, nor ignore the foes or forces that could do us harm. We are instead called to move forward with the sense of confidence and candor that serious times demand. To seek progress toward a secure and lasting peace between Israel and her neighbors, we have appointed an envoy to sustain our effort. To meet the challenges of the 21st century – from terrorism to nuclear proliferation; from pandemic disease to cyber threats to crushing poverty – we will strengthen old alliances, forge new ones, and use all elements of our national power. And to respond to an economic crisis that is global in scope, we are working with the nations of the G-20 to restore confidence in our financial system, avoid the possibility of escalating protectionism, and spur demand for American goods in markets across the globe. For the world depends on us to have a strong economy, just as our economy depends on the strength of the world’s. As we stand at this crossroads of history, the eyes of all people in all nations are once again upon us – watching to see what we do with this moment; waiting for us to lead. Those of us gathered here tonight have been called to govern in extraordinary times. It is a tremendous burden, but also a great privilege – one that has been entrusted to few generations of Americans. For in our hands lies the ability to shape our world for good or for ill. I know that it is easy to lose sight of this truth – to become cynical and doubtful; consumed with the petty and the trivial. But in my life, I have also learned that hope is found in unlikely places; that inspiration often comes not from those with the most power or celebrity, but from the dreams and aspirations of Americans who are anything but ordinary. I think about Leonard Abess, the bank president from Miami who reportedly cashed out of his company, took a $60 million bonus, and gave it out to all 399 people who worked for him, plus another 72 who used to work for him. He didn’t tell anyone, but when the local newspaper found out, he simply said, ''I knew some of these people since I was 7 years old. I didn't feel right getting the money myself." I think about Greensburg, Kansas, a town that was completely destroyed by a tornado, but is being rebuilt by its residents as a global example of how clean energy can power an entire community – how it can bring jobs and businesses to a place where piles of bricks and rubble once lay. "The tragedy was terrible," said one of the men who helped them rebuild. "But the folks here know that it also provided an incredible opportunity." And I think about Ty’Sheoma Bethea, the young girl from that school I visited in Dillon, South Carolina – a place where the ceilings leak, the paint peels off the walls, and they have to stop teaching six times a day because the train barrels by their classroom. She has been told that her school is hopeless, but the other day after class she went to the public library and typed up a letter to the people sitting in this room. She even asked her principal for the money to buy a stamp. The letter asks us for help, and says, "We are just students trying to become lawyers, doctors, congressmen like yourself and one day president, so we can make a change to not just the state of South Carolina but also the world. We are not quitters." We are not quitters. These words and these stories tell us something about the spirit of the people who sent us here. They tell us that even in the most trying times, amid the most difficult circumstances, there is a generosity, a resilience, a decency, and a determination that perseveres; a willingness to take responsibility for our future and for posterity. Their resolve must be our inspiration. Their concerns must be our cause. And we must show them and all our people that we are equal to the task before us. I know that we haven’t agreed on every issue thus far, and there are surely times in the future when we will part ways. But I also know that every American who is sitting here tonight loves this country and wants it to succeed. That must be the starting point for every debate we have in the coming months, and where we return after those debates are done. That is the foundation on which the American people expect us to build common ground. And if we do – if we come together and lift this nation from the depths of this crisis; if we put our people back to work and restart the engine of our prosperity; if we confront without fear the challenges of our time and summon that enduring spirit of an America that does not quit, then someday years from now our children can tell their children that this was the time when we performed, in the words that are carved into this very chamber, "something worthy to be remembered." Thank you, God Bless you, and may God Bless the United States of America.

US

Madam Speaker, Vice President Biden, members of Congress, distinguished guests, and fellow Americans: Our Constitution declares that from time to time, the President shall give to Congress information about the state of our union. For 220 years, our leaders have fulfilled this duty. They've done so during periods of prosperity and tranquility. And they've done so in the midst of war and depression; at moments of great strife and great struggle. It's tempting to look back on these moments and assume that our progress was inevitable -– that America was always destined to succeed. But when the Union was turned back at Bull Run, and the Allies first landed at Omaha Beach, victory was very much in doubt. When the market crashed on Black Tuesday, and civil rights marchers were beaten on Bloody Sunday, the future was anything but certain. These were the times that tested the courage of our convictions, and the strength of our union. And despite all our divisions and disagreements, our hesitations and our fears, America prevailed because we chose to move forward as one nation, as one people. Again, we are tested. And again, we must answer history's call. One year ago, I took office amid two wars, an economy rocked by a severe recession, a financial system on the verge of collapse, and a government deeply in debt. Experts from across the political spectrum warned that if we did not act, we might face a second depression. So we acted -– immediately and aggressively. And one year later, the worst of the storm has passed. But the devastation remains. One in 10 Americans still cannot find work. Many businesses have shuttered. Home values have declined. Small towns and rural communities have been hit especially hard. And for those who'd already known poverty, life has become that much harder. This recession has also compounded the burdens that America's families have been dealing with for decades –- the burden of working harder and longer for less; of being unable to save enough to retire or help kids with college. So I know the anxieties that are out there right now. They're not new. These struggles are the reason I ran for President. These struggles are what I've witnessed for years in places like Elkhart, Indiana; Galesburg, Illinois. I hear about them in the letters that I read each night. The toughest to read are those written by children -– asking why they have to move from their home, asking when their mom or dad will be able to go back to work. For these Americans and so many others, change has not come fast enough. Some are frustrated; some are angry. They don't understand why it seems like bad behavior on Wall Street is rewarded, but hard work on Main Street isn't; or why Washington has been unable or unwilling to solve any of our problems. They're tired of the partisanship and the shouting and the pettiness. They know we can't afford it. Not now. So we face big and difficult challenges. And what the American people hope -– what they deserve -– is for all of us, Democrats and Republicans, to work through our differences; to overcome the numbing weight of our politics. For while the people who sent us here have different backgrounds, different stories, different beliefs, the anxieties they face are the same. The aspirations they hold are shared: a job that pays the bills; a chance to get ahead; most of all, the ability to give their children a better life. You know what else they share? They share a stubborn resilience in the face of adversity. After one of the most difficult years in our history, they remain busy building cars and teaching kids, starting businesses and going back to school. They're coaching Little League and helping their neighbors. One woman wrote to me and said, "We are strained but hopeful, struggling but encouraged." It's because of this spirit -– this great decency and great strength -– that I have never been more hopeful about America's future than I am tonight. (Applause.) Despite our hardships, our union is strong. We do not give up. We do not quit. We do not allow fear or division to break our spirit. In this new decade, it's time the American people get a government that matches their decency; that embodies their strength. (Applause.) And tonight, tonight I'd like to talk about how together we can deliver on that promise. It begins with our economy. Our most urgent task upon taking office was to shore up the same banks that helped cause this crisis. It was not easy to do. And if there's one thing that has unified Democrats and Republicans, and everybody in between, it's that we all hated the bank bailout. I hated it -- (applause.) I hated it. You hated it. It was about as popular as a root canal. (Laughter.) But when I ran for President, I promised I wouldn't just do what was popular -– I would do what was necessary. And if we had allowed the meltdown of the financial system, unemployment might be double what it is today. More businesses would certainly have closed. More homes would have surely been lost. So I supported the last administration's efforts to create the financial rescue program. And when we took that program over, we made it more transparent and more accountable. And as a result, the markets are now stabilized, and we've recovered most of the money we spent on the banks. (Applause.) Most but not all. To recover the rest, I've proposed a fee on the biggest banks. (Applause.) Now, I know Wall Street isn't keen on this idea. But if these firms can afford to hand out big bonuses again, they can afford a modest fee to pay back the taxpayers who rescued them in their time of need. (Applause.) Now, as we stabilized the financial system, we also took steps to get our economy growing again, save as many jobs as possible, and help Americans who had become unemployed. That's why we extended or increased unemployment benefits for more than 18 million Americans; made health insurance 65 percent cheaper for families who get their coverage through COBRA; and passed 25 different tax cuts. Now, let me repeat: We cut taxes. We cut taxes for 95 percent of working families. (Applause.) We cut taxes for small businesses. We cut taxes for first-time homebuyers. We cut taxes for parents trying to care for their children. We cut taxes for 8 million Americans paying for college. (Applause.) I thought I'd get some applause on that one. (Laughter and applause.) As a result, millions of Americans had more to spend on gas and food and other necessities, all of which helped businesses keep more workers. And we haven't raised income taxes by a single dime on a single person. Not a single dime. (Applause.) Because of the steps we took, there are about two million Americans working right now who would otherwise be unemployed. (Applause.) Two hundred thousand work in construction and clean energy; 300,000 are teachers and other education workers. Tens of thousands are cops, firefighters, correctional officers, first responders. (Applause.) And we're on track to add another one and a half million jobs to this total by the end of the year. The plan that has made all of this possible, from the tax cuts to the jobs, is the Recovery Act. (Applause.) That's right -– the Recovery Act, also known as the stimulus bill. (Applause.) Economists on the left and the right say this bill has helped save jobs and avert disaster. But you don't have to take their word for it. Talk to the small business in Phoenix that will triple its workforce because of the Recovery Act. Talk to the window manufacturer in Philadelphia who said he used to be skeptical about the Recovery Act, until he had to add two more work shifts just because of the business it created. Talk to the single teacher raising two kids who was told by her principal in the last week of school that because of the Recovery Act, she wouldn't be laid off after all. There are stories like this all across America. And after two years of recession, the economy is growing again. Retirement funds have started to gain back some of their value. Businesses are beginning to invest again, and slowly some are starting to hire again. But I realize that for every success story, there are other stories, of men and women who wake up with the anguish of not knowing where their next paycheck will come from; who send out resumes week after week and hear nothing in response. That is why jobs must be our number-one focus in 2010, and that's why I'm calling for a new jobs bill tonight. (Applause.) Now, the true engine of job creation in this country will always be America's businesses. (Applause.) But government can create the conditions necessary for businesses to expand and hire more workers. We should start where most new jobs do –- in small businesses, companies that begin when -- (applause) -- companies that begin when an entrepreneur -- when an entrepreneur takes a chance on a dream, or a worker decides it's time she became her own boss. Through sheer grit and determination, these companies have weathered the recession and they're ready to grow. But when you talk to small businessowners in places like Allentown, Pennsylvania, or Elyria, Ohio, you find out that even though banks on Wall Street are lending again, they're mostly lending to bigger companies. Financing remains difficult for small businessowners across the country, even those that are making a profit. So tonight, I'm proposing that we take $30 billion of the money Wall Street banks have repaid and use it to help community banks give small businesses the credit they need to stay afloat. (Applause.) I'm also proposing a new small business tax credit -– one that will go to over one million small businesses who hire new workers or raise wages. (Applause.) While we're at it, let's also eliminate all capital gains taxes on small business investment, and provide a tax incentive for all large businesses and all small businesses to invest in new plants and equipment. (Applause.) Next, we can put Americans to work today building the infrastructure of tomorrow. (Applause.) From the first railroads to the Interstate Highway System, our nation has always been built to compete. There's no reason Europe or China should have the fastest trains, or the new factories that manufacture clean energy products. Tomorrow, I'll visit Tampa, Florida, where workers will soon break ground on a new high-speed railroad funded by the Recovery Act. (Applause.) There are projects like that all across this country that will create jobs and help move our nation's goods, services, and information. (Applause.) We should put more Americans to work building clean energy facilities -- (applause) -- and give rebates to Americans who make their homes more energy-efficient, which supports clean energy jobs. (Applause.) And to encourage these and other businesses to stay within our borders, it is time to finally slash the tax breaks for companies that ship our jobs overseas, and give those tax breaks to companies that create jobs right here in the United States of America. (Applause.) Now, the House has passed a jobs bill that includes some of these steps. (Applause.) As the first order of business this year, I urge the Senate to do the same, and I know they will. (Applause.) They will. (Applause.) People are out of work. They're hurting. They need our help. And I want a jobs bill on my desk without delay. (Applause.) But the truth is, these steps won't make up for the seven million jobs that we've lost over the last two years. The only way to move to full employment is to lay a new foundation for long-term economic growth, and finally address the problems that America's families have confronted for years. We can't afford another so-called economic "expansion" like the one from the last decade –- what some call the "lost decade" -– where jobs grew more slowly than during any prior expansion; where the income of the average American household declined while the cost of health care and tuition reached record highs; where prosperity was built on a housing bubble and financial speculation. From the day I took office, I've been told that addressing our larger challenges is too ambitious; such an effort would be too contentious. I've been told that our political system is too gridlocked, and that we should just put things on hold for a while. For those who make these claims, I have one simple question: How long should we wait? How long should America put its future on hold? (Applause.) You see, Washington has been telling us to wait for decades, even as the problems have grown worse. Meanwhile, China is not waiting to revamp its economy. Germany is not waiting. India is not waiting. These nations -- they're not standing still. These nations aren't playing for second place. They're putting more emphasis on math and science. They're rebuilding their infrastructure. They're making serious investments in clean energy because they want those jobs. Well, I do not accept second place for the United States of America. (Applause.) As hard as it may be, as uncomfortable and contentious as the debates may become, it's time to get serious about fixing the problems that are hampering our growth. Now, one place to start is serious financial reform. Look, I am not interested in punishing banks. I'm interested in protecting our economy. A strong, healthy financial market makes it possible for businesses to access credit and create new jobs. It channels the savings of families into investments that raise incomes. But that can only happen if we guard against the same recklessness that nearly brought down our entire economy. We need to make sure consumers and middle-class families have the information they need to make financial decisions. (Applause.) We can't allow financial institutions, including those that take your deposits, to take risks that threaten the whole economy. Now, the House has already passed financial reform with many of these changes. (Applause.) And the lobbyists are trying to kill it. But we cannot let them win this fight. (Applause.) And if the bill that ends up on my desk does not meet the test of real reform, I will send it back until we get it right. We've got to get it right. (Applause.) Next, we need to encourage American innovation. Last year, we made the largest investment in basic research funding in history -– (applause) -- an investment that could lead to the world's cheapest solar cells or treatment that kills cancer cells but leaves healthy ones untouched. And no area is more ripe for such innovation than energy. You can see the results of last year's investments in clean energy -– in the North Carolina company that will create 1,200 jobs nationwide helping to make advanced batteries; or in the California business that will put a thousand people to work making solar panels. But to create more of these clean energy jobs, we need more production, more efficiency, more incentives. And that means building a new generation of safe, clean nuclear power plants in this country. (Applause.) It means making tough decisions about opening new offshore areas for oil and gas development. (Applause.) It means continued investment in advanced biofuels and clean coal technologies. (Applause.) And, yes, it means passing a comprehensive energy and climate bill with incentives that will finally make clean energy the profitable kind of energy in America. (Applause.) I am grateful to the House for passing such a bill last year. (Applause.) And this year I'm eager to help advance the bipartisan effort in the Senate. (Applause.) I know there have been questions about whether we can afford such changes in a tough economy. I know that there are those who disagree with the overwhelming scientific evidence on climate change. But here's the thing -- even if you doubt the evidence, providing incentives for energy-efficiency and clean energy are the right thing to do for our future -– because the nation that leads the clean energy economy will be the nation that leads the global economy. And America must be that nation. (Applause.) Third, we need to export more of our goods. (Applause.) Because the more products we make and sell to other countries, the more jobs we support right here in America. (Applause.) So tonight, we set a new goal: We will double our exports over the next five years, an increase that will support two million jobs in America. (Applause.) To help meet this goal, we're launching a National Export Initiative that will help farmers and small businesses increase their exports, and reform export controls consistent with national security. (Applause.) We have to seek new markets aggressively, just as our competitors are. If America sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores. (Applause.) But realizing those benefits also means enforcing those agreements so our trading partners play by the rules. (Applause.) And that's why we'll continue to shape a Doha trade agreement that opens global markets, and why we will strengthen our trade relations in Asia and with key partners like South Korea and Panama and Colombia. (Applause.) Fourth, we need to invest in the skills and education of our people. (Applause.) Now, this year, we've broken through the stalemate between left and right by launching a national competition to improve our schools. And the idea here is simple: Instead of rewarding failure, we only reward success. Instead of funding the status quo, we only invest in reform -- reform that raises student achievement; inspires students to excel in math and science; and turns around failing schools that steal the future of too many young Americans, from rural communities to the inner city. In the 21st century, the best anti-poverty program around is a world-class education. (Applause.) And in this country, the success of our children cannot depend more on where they live than on their potential. When we renew the Elementary and Secondary Education Act, we will work with Congress to expand these reforms to all 50 states. Still, in this economy, a high school diploma no longer guarantees a good job. That's why I urge the Senate to follow the House and pass a bill that will revitalize our community colleges, which are a career pathway to the children of so many working families. (Applause.) To make college more affordable, this bill will finally end the unwarranted taxpayer subsidies that go to banks for student loans. (Applause.) Instead, let's take that money and give families a $10,000 tax credit for four years of college and increase Pell Grants. (Applause.) And let's tell another one million students that when they graduate, they will be required to pay only 10 percent of their income on student loans, and all of their debt will be forgiven after 20 years –- and forgiven after 10 years if they choose a career in public service, because in the United States of America, no one should go broke because they chose to go to college. (Applause.) And by the way, it's time for colleges and universities to get serious about cutting their own costs -– (applause) -- because they, too, have a responsibility to help solve this problem. Now, the price of college tuition is just one of the burdens facing the middle class. That's why last year I asked Vice President Biden to chair a task force on middle-class families. That's why we're nearly doubling the child care tax credit, and making it easier to save for retirement by giving access to every worker a retirement account and expanding the tax credit for those who start a nest egg. That's why we're working to lift the value of a family's single largest investment –- their home. The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1,500 on mortgage payments. This year, we will step up refinancing so that homeowners can move into more affordable mortgages. (Applause.) And it is precisely to relieve the burden on middle-class families that we still need health insurance reform. (Applause.) Yes, we do. (Applause.) Now, let's clear a few things up. (Laughter.) I didn't choose to tackle this issue to get some legislative victory under my belt. And by now it should be fairly obvious that I didn't take on health care because it was good politics. (Laughter.) I took on health care because of the stories I've heard from Americans with preexisting conditions whose lives depend on getting coverage; patients who've been denied coverage; families –- even those with insurance -– who are just one illness away from financial ruin. After nearly a century of trying -- Democratic administrations, Republican administrations -- we are closer than ever to bringing more security to the lives of so many Americans. The approach we've taken would protect every American from the worst practices of the insurance industry. It would give small businesses and uninsured Americans a chance to choose an affordable health care plan in a competitive market. It would require every insurance plan to cover preventive care. And by the way, I want to acknowledge our First Lady, Michelle Obama, who this year is creating a national movement to tackle the epidemic of childhood obesity and make kids healthier. (Applause.) Thank you. She gets embarrassed. (Laughter.) Our approach would preserve the right of Americans who have insurance to keep their doctor and their plan. It would reduce costs and premiums for millions of families and businesses. And according to the Congressional Budget Office -– the independent organization that both parties have cited as the official scorekeeper for Congress –- our approach would bring down the deficit by as much as $1 trillion over the next two decades. (Applause.) Still, this is a complex issue, and the longer it was debated, the more skeptical people became. I take my share of the blame for not explaining it more clearly to the American people. And I know that with all the lobbying and horse-trading, the process left most Americans wondering, "What's in it for me?" But I also know this problem is not going away. By the time I'm finished speaking tonight, more Americans will have lost their health insurance. Millions will lose it this year. Our deficit will grow. Premiums will go up. Patients will be denied the care they need. Small business owners will continue to drop coverage altogether. I will not walk away from these Americans, and neither should the people in this chamber. (Applause.) So, as temperatures cool, I want everyone to take another look at the plan we've proposed. There's a reason why many doctors, nurses, and health care experts who know our system best consider this approach a vast improvement over the status quo. But if anyone from either party has a better approach that will bring down premiums, bring down the deficit, cover the uninsured, strengthen Medicare for seniors, and stop insurance company abuses, let me know. (Applause.) Let me know. Let me know. (Applause.) I'm eager to see it. Here's what I ask Congress, though: Don't walk away from reform. Not now. Not when we are so close. Let us find a way to come together and finish the job for the American people. (Applause.) Let's get it done. Let's get it done. (Applause.) Now, even as health care reform would reduce our deficit, it's not enough to dig us out of a massive fiscal hole in which we find ourselves. It's a challenge that makes all others that much harder to solve, and one that's been subject to a lot of political posturing. So let me start the discussion of government spending by setting the record straight. At the beginning of the last decade, the year 2000, America had a budget surplus of over $200 billion. (Applause.) By the time I took office, we had a one-year deficit of over $1 trillion and projected deficits of $8 trillion over the next decade. Most of this was the result of not paying for two wars, two tax cuts, and an expensive prescription drug program. On top of that, the effects of the recession put a $3 trillion hole in our budget. All this was before I walked in the door. (Laughter and applause.) Now -- just stating the facts. Now, if we had taken office in ordinary times, I would have liked nothing more than to start bringing down the deficit. But we took office amid a crisis. And our efforts to prevent a second depression have added another $1 trillion to our national debt. That, too, is a fact. I'm absolutely convinced that was the right thing to do. But families across the country are tightening their belts and making tough decisions. The federal government should do the same. (Applause.) So tonight, I'm proposing specific steps to pay for the trillion dollars that it took to rescue the economy last year. Starting in 2011, we are prepared to freeze government spending for three years. (Applause.) Spending related to our national security, Medicare, Medicaid, and Social Security will not be affected. But all other discretionary government programs will. Like any cash-strapped family, we will work within a budget to invest in what we need and sacrifice what we don't. And if I have to enforce this discipline by veto, I will. (Applause.) We will continue to go through the budget, line by line, page by page, to eliminate programs that we can't afford and don't work. We've already identified $20 billion in savings for next year. To help working families, we'll extend our middle-class tax cuts. But at a time of record deficits, we will not continue tax cuts for oil companies, for investment fund managers, and for those making over $250,000 a year. We just can't afford it. (Applause.) Now, even after paying for what we spent on my watch, we'll still face the massive deficit we had when I took office. More importantly, the cost of Medicare, Medicaid, and Social Security will continue to skyrocket. That's why I've called for a bipartisan fiscal commission, modeled on a proposal by Republican Judd Gregg and Democrat Kent Conrad. (Applause.) This can't be one of those Washington gimmicks that lets us pretend we solved a problem. The commission will have to provide a specific set of solutions by a certain deadline. Now, yesterday, the Senate blocked a bill that would have created this commission. So I'll issue an executive order that will allow us to go forward, because I refuse to pass this problem on to another generation of Americans. (Applause.) And when the vote comes tomorrow, the Senate should restore the pay-as-you-go law that was a big reason for why we had record surpluses in the 1990s. (Applause.) Now, I know that some in my own party will argue that we can't address the deficit or freeze government spending when so many are still hurting. And I agree -- which is why this freeze won't take effect until next year -- (laughter) -- when the economy is stronger. That's how budgeting works. (Laughter and applause.) But understand –- understand if we don't take meaningful steps to rein in our debt, it could damage our markets, increase the cost of borrowing, and jeopardize our recovery -– all of which would have an even worse effect on our job growth and family incomes. From some on the right, I expect we'll hear a different argument -– that if we just make fewer investments in our people, extend tax cuts including those for the wealthier Americans, eliminate more regulations, maintain the status quo on health care, our deficits will go away. The problem is that's what we did for eight years. (Applause.) That's what helped us into this crisis. It's what helped lead to these deficits. We can't do it again. Rather than fight the same tired battles that have dominated Washington for decades, it's time to try something new. Let's invest in our people without leaving them a mountain of debt. Let's meet our responsibility to the citizens who sent us here. Let's try common sense. (Laughter.) A novel concept. To do that, we have to recognize that we face more than a deficit of dollars right now. We face a deficit of trust -– deep and corrosive doubts about how Washington works that have been growing for years. To close that credibility gap we have to take action on both ends of Pennsylvania Avenue -- to end the outsized influence of lobbyists; to do our work openly; to give our people the government they deserve. (Applause.) That's what I came to Washington to do. That's why -– for the first time in history –- my administration posts on our White House visitors online. That's why we've excluded lobbyists from policymaking jobs, or seats on federal boards and commissions. But we can't stop there. It's time to require lobbyists to disclose each contact they make on behalf of a client with my administration or with Congress. It's time to put strict limits on the contributions that lobbyists give to candidates for federal office. With all due deference to separation of powers, last week the Supreme Court reversed a century of law that I believe will open the floodgates for special interests –- including foreign corporations –- to spend without limit in our elections. (Applause.) I don't think American elections should be bankrolled by America's most powerful interests, or worse, by foreign entities. (Applause.) They should be decided by the American people. And I'd urge Democrats and Republicans to pass a bill that helps to correct some of these problems. I'm also calling on Congress to continue down the path of earmark reform. Applause.) Democrats and Republicans. (Applause.) Democrats and Republicans. You've trimmed some of this spending, you've embraced some meaningful change. But restoring the public trust demands more. For example, some members of Congress post some earmark requests online. (Applause.) Tonight, I'm calling on Congress to publish all earmark requests on a single Web site before there's a vote, so that the American people can see how their money is being spent. (Applause.) Of course, none of these reforms will even happen if we don't also reform how we work with one another. Now, I'm not naïve. I never thought that the mere fact of my election would usher in peace and harmony -- (laughter) -- and some post-partisan era. I knew that both parties have fed divisions that are deeply entrenched. And on some issues, there are simply philosophical differences that will always cause us to part ways. These disagreements, about the role of government in our lives, about our national priorities and our national security, they've been taking place for over 200 years. They're the very essence of our democracy. But what frustrates the American people is a Washington where every day is Election Day. We can't wage a perpetual campaign where the only goal is to see who can get the most embarrassing headlines about the other side -– a belief that if you lose, I win. Neither party should delay or obstruct every single bill just because they can. The confirmation of -- (applause) -- I'm speaking to both parties now. The confirmation of well-qualified public servants shouldn't be held hostage to the pet projects or grudges of a few individual senators. (Applause.) Washington may think that saying anything about the other side, no matter how false, no matter how malicious, is just part of the game. But it's precisely such politics that has stopped either party from helping the American people. Worse yet, it's sowing further division among our citizens, further distrust in our government. So, no, I will not give up on trying to change the tone of our politics. I know it's an election year. And after last week, it's clear that campaign fever has come even earlier than usual. But we still need to govern. To Democrats, I would remind you that we still have the largest majority in decades, and the people expect us to solve problems, not run for the hills. (Applause.) And if the Republican leadership is going to insist that 60 votes in the Senate are required to do any business at all in this town -- a supermajority -- then the responsibility to govern is now yours as well. (Applause.) Just saying no to everything may be good short-term politics, but it's not leadership. We were sent here to serve our citizens, not our ambitions. (Applause.) So let's show the American people that we can do it together. (Applause.) This week, I'll be addressing a meeting of the House Republicans. I'd like to begin monthly meetings with both Democratic and Republican leadership. I know you can't wait. (Laughter.) Throughout our history, no issue has united this country more than our security. Sadly, some of the unity we felt after 9/11 has dissipated. We can argue all we want about who's to blame for this, but I'm not interested in re-litigating the past. I know that all of us love this country. All of us are committed to its defense. So let's put aside the schoolyard taunts about who's tough. Let's reject the false choice between protecting our people and upholding our values. Let's leave behind the fear and division, and do what it takes to defend our nation and forge a more hopeful future -- for America and for the world. (Applause.) That's the work we began last year. Since the day I took office, we've renewed our focus on the terrorists who threaten our nation. We've made substantial investments in our homeland security and disrupted plots that threatened to take American lives. We are filling unacceptable gaps revealed by the failed Christmas attack, with better airline security and swifter action on our intelligence. We've prohibited torture and strengthened partnerships from the Pacific to South Asia to the Arabian Peninsula. And in the last year, hundreds of al Qaeda's fighters and affiliates, including many senior leaders, have been captured or killed -- far more than in 2008. And in Afghanistan, we're increasing our troops and training Afghan security forces so they can begin to take the lead in July of 2011, and our troops can begin to come home. (Applause.) We will reward good governance, work to reduce corruption, and support the rights of all Afghans -- men and women alike. (Applause.) We're joined by allies and partners who have increased their own commitments, and who will come together tomorrow in London to reaffirm our common purpose. There will be difficult days ahead. But I am absolutely confident we will succeed. As we take the fight to al Qaeda, we are responsibly leaving Iraq to its people. As a candidate, I promised that I would end this war, and that is what I am doing as President. We will have all of our combat troops out of Iraq by the end of this August. (Applause.) We will support the Iraqi government -- we will support the Iraqi government as they hold elections, and we will continue to partner with the Iraqi people to promote regional peace and prosperity. But make no mistake: This war is ending, and all of our troops are coming home. (Applause.) Tonight, all of our men and women in uniform -- in Iraq, in Afghanistan, and around the world –- they have to know that we -- that they have our respect, our gratitude, our full support. And just as they must have the resources they need in war, we all have a responsibility to support them when they come home. (Applause.) That's why we made the largest increase in investments for veterans in decades -- last year. (Applause.) That's why we're building a 21st century VA. And that's why Michelle has joined with Jill Biden to forge a national commitment to support military families. (Applause.) Now, even as we prosecute two wars, we're also confronting perhaps the greatest danger to the American people -– the threat of nuclear weapons. I've embraced the vision of John F. Kennedy and Ronald Reagan through a strategy that reverses the spread of these weapons and seeks a world without them. To reduce our stockpiles and launchers, while ensuring our deterrent, the United States and Russia are completing negotiations on the farthest-reaching arms control treaty in nearly two decades. (Applause.) And at April's Nuclear Security Summit, we will bring 44 nations together here in Washington, D.C. behind a clear goal: securing all vulnerable nuclear materials around the world in four years, so that they never fall into the hands of terrorists. (Applause.) Now, these diplomatic efforts have also strengthened our hand in dealing with those nations that insist on violating international agreements in pursuit of nuclear weapons. That's why North Korea now faces increased isolation, and stronger sanctions –- sanctions that are being vigorously enforced. That's why the international community is more united, and the Islamic Republic of Iran is more isolated. And as Iran's leaders continue to ignore their obligations, there should be no doubt: They, too, will face growing consequences. That is a promise. (Applause.) That's the leadership that we are providing –- engagement that advances the common security and prosperity of all people. We're working through the G20 to sustain a lasting global recovery. We're working with Muslim communities around the world to promote science and education and innovation. We have gone from a bystander to a leader in the fight against climate change. We're helping developing countries to feed themselves, and continuing the fight against HIV/AIDS. And we are launching a new initiative that will give us the capacity to respond faster and more effectively to bioterrorism or an infectious disease -– a plan that will counter threats at home and strengthen public health abroad. As we have for over 60 years, America takes these actions because our destiny is connected to those beyond our shores. But we also do it because it is right. That's why, as we meet here tonight, over 10,000 Americans are working with many nations to help the people of Haiti recover and rebuild. (Applause.) That's why we stand with the girl who yearns to go to school in Afghanistan; why we support the human rights of the women marching through the streets of Iran; why we advocate for the young man denied a job by corruption in Guinea. For America must always stand on the side of freedom and human dignity. (Applause.) Always. (Applause.) Abroad, America's greatest source of strength has always been our ideals. The same is true at home. We find unity in our incredible diversity, drawing on the promise enshrined in our Constitution: the notion that we're all created equal; that no matter who you are or what you look like, if you abide by the law you should be protected by it; if you adhere to our common values you should be treated no different than anyone else. We must continually renew this promise. My administration has a Civil Rights Division that is once again prosecuting civil rights violations and employment discrimination. (Applause.) We finally strengthened our laws to protect against crimes driven by hate. (Applause.) This year, I will work with Congress and our military to finally repeal the law that denies gay Americans the right to serve the country they love because of who they are. (Applause.) It's the right thing to do. (Applause.) We're going to crack down on violations of equal pay laws -– so that women get equal pay for an equal day's work. (Applause.) And we should continue the work of fixing our broken immigration system -– to secure our borders and enforce our laws, and ensure that everyone who plays by the rules can contribute to our economy and enrich our nation. (Applause.) In the end, it's our ideals, our values that built America -- values that allowed us to forge a nation made up of immigrants from every corner of the globe; values that drive our citizens still. Every day, Americans meet their responsibilities to their families and their employers. Time and again, they lend a hand to their neighbors and give back to their country. They take pride in their labor, and are generous in spirit. These aren't Republican values or Democratic values that they're living by; business values or labor values. They're American values. Unfortunately, too many of our citizens have lost faith that our biggest institutions -– our corporations, our media, and, yes, our government –- still reflect these same values. Each of these institutions are full of honorable men and women doing important work that helps our country prosper. But each time a CEO rewards himself for failure, or a banker puts the rest of us at risk for his own selfish gain, people's doubts grow. Each time lobbyists game the system or politicians tear each other down instead of lifting this country up, we lose faith. The more that TV pundits reduce serious debates to silly arguments, big issues into sound bites, our citizens turn away. No wonder there's so much cynicism out there. No wonder there's so much disappointment. I campaigned on the promise of change –- change we can believe in, the slogan went. And right now, I know there are many Americans who aren't sure if they still believe we can change –- or that I can deliver it. But remember this –- I never suggested that change would be easy, or that I could do it alone. Democracy in a nation of 300 million people can be noisy and messy and complicated. And when you try to do big things and make big changes, it stirs passions and controversy. That's just how it is. Those of us in public office can respond to this reality by playing it safe and avoid telling hard truths and pointing fingers. We can do what's necessary to keep our poll numbers high, and get through the next election instead of doing what's best for the next generation. But I also know this: If people had made that decision 50 years ago, or 100 years ago, or 200 years ago, we wouldn't be here tonight. The only reason we are here is because generations of Americans were unafraid to do what was hard; to do what was needed even when success was uncertain; to do what it took to keep the dream of this nation alive for their children and their grandchildren. Our administration has had some political setbacks this year, and some of them were deserved. But I wake up every day knowing that they are nothing compared to the setbacks that families all across this country have faced this year. And what keeps me going -– what keeps me fighting -– is that despite all these setbacks, that spirit of determination and optimism, that fundamental decency that has always been at the core of the American people, that lives on. It lives on in the struggling small business owner who wrote to me of his company, "None of us," he said, "…are willing to consider, even slightly, that we might fail." It lives on in the woman who said that even though she and her neighbors have felt the pain of recession, "We are strong. We are resilient. We are American." It lives on in the 8-year-old boy in Louisiana, who just sent me his allowance and asked if I would give it to the people of Haiti. And it lives on in all the Americans who've dropped everything to go someplace they've never been and pull people they've never known from the rubble, prompting chants of "U.S.A.! U.S.A.! U.S.A!" when another life was saved. The spirit that has sustained this nation for more than two centuries lives on in you, its people. We have finished a difficult year. We have come through a difficult decade. But a new year has come. A new decade stretches before us. We don't quit. I don't quit. (Applause.) Let's seize this moment -- to start anew, to carry the dream forward, and to strengthen our union once more. (Applause.) Thank you. God bless you. And God bless the United States of America.

US

Mr. Speaker, Mr. Vice President, members of Congress, distinguished guests, and fellow Americans: Tonight I want to begin by congratulating the men and women of the 112th Congress, as well as your new Speaker, John Boehner. (Applause.) And as we mark this occasion, we’re also mindful of the empty chair in this chamber, and we pray for the health of our colleague -- and our friend -– Gabby Giffords. (Applause.) It’s no secret that those of us here tonight have had our differences over the last two years. The debates have been contentious; we have fought fiercely for our beliefs. And that’s a good thing. That’s what a robust democracy demands. That’s what helps set us apart as a nation. But there’s a reason the tragedy in Tucson gave us pause. Amid all the noise and passion and rancor of our public debate, Tucson reminded us that no matter who we are or where we come from, each of us is a part of something greater -– something more consequential than party or political preference. We are part of the American family. We believe that in a country where every race and faith and point of view can be found, we are still bound together as one people; that we share common hopes and a common creed; that the dreams of a little girl in Tucson are not so different than those of our own children, and that they all deserve the chance to be fulfilled. That, too, is what sets us apart as a nation. (Applause.) Now, by itself, this simple recognition won’t usher in a new era of cooperation. What comes of this moment is up to us. What comes of this moment will be determined not by whether we can sit together tonight, but whether we can work together tomorrow. (Applause.) I believe we can. And I believe we must. That’s what the people who sent us here expect of us. With their votes, they’ve determined that governing will now be a shared responsibility between parties. New laws will only pass with support from Democrats and Republicans. We will move forward together, or not at all -– for the challenges we face are bigger than party, and bigger than politics. At stake right now is not who wins the next election -– after all, we just had an election. At stake is whether new jobs and industries take root in this country, or somewhere else. It’s whether the hard work and industry of our people is rewarded. It’s whether we sustain the leadership that has made America not just a place on a map, but the light to the world. We are poised for progress. Two years after the worst recession most of us have ever known, the stock market has come roaring back. Corporate profits are up. The economy is growing again. But we have never measured progress by these yardsticks alone. We measure progress by the success of our people. By the jobs they can find and the quality of life those jobs offer. By the prospects of a small business owner who dreams of turning a good idea into a thriving enterprise. By the opportunities for a better life that we pass on to our children. That’s the project the American people want us to work on. Together. (Applause.) We did that in December. Thanks to the tax cuts we passed, Americans’ paychecks are a little bigger today. Every business can write off the full cost of new investments that they make this year. And these steps, taken by Democrats and Republicans, will grow the economy and add to the more than one million private sector jobs created last year. But we have to do more. These steps we’ve taken over the last two years may have broken the back of this recession, but to win the future, we’ll need to take on challenges that have been decades in the making. Many people watching tonight can probably remember a time when finding a good job meant showing up at a nearby factory or a business downtown. You didn’t always need a degree, and your competition was pretty much limited to your neighbors. If you worked hard, chances are you’d have a job for life, with a decent paycheck and good benefits and the occasional promotion. Maybe you’d even have the pride of seeing your kids work at the same company. That world has changed. And for many, the change has been painful. I’ve seen it in the shuttered windows of once booming factories, and the vacant storefronts on once busy Main Streets. I’ve heard it in the frustrations of Americans who’ve seen their paychecks dwindle or their jobs disappear -– proud men and women who feel like the rules have been changed in the middle of the game. They’re right. The rules have changed. In a single generation, revolutions in technology have transformed the way we live, work and do business. Steel mills that once needed 1,000 workers can now do the same work with 100. Today, just about any company can set up shop, hire workers, and sell their products wherever there’s an Internet connection. Meanwhile, nations like China and India realized that with some changes of their own, they could compete in this new world. And so they started educating their children earlier and longer, with greater emphasis on math and science. They’re investing in research and new technologies. Just recently, China became the home to the world’s largest private solar research facility, and the world’s fastest computer. So, yes, the world has changed. The competition for jobs is real. But this shouldn’t discourage us. It should challenge us. Remember -– for all the hits we’ve taken these last few years, for all the naysayers predicting our decline, America still has the largest, most prosperous economy in the world. (Applause.) No workers -- no workers are more productive than ours. No country has more successful companies, or grants more patents to inventors and entrepreneurs. We’re the home to the world’s best colleges and universities, where more students come to study than any place on Earth. What’s more, we are the first nation to be founded for the sake of an idea -– the idea that each of us deserves the chance to shape our own destiny. That’s why centuries of pioneers and immigrants have risked everything to come here. It’s why our students don’t just memorize equations, but answer questions like “What do you think of that idea? What would you change about the world? What do you want to be when you grow up?” The future is ours to win. But to get there, we can’t just stand still. As Robert Kennedy told us, “The future is not a gift. It is an achievement.” Sustaining the American Dream has never been about standing pat. It has required each generation to sacrifice, and struggle, and meet the demands of a new age. And now it’s our turn. We know what it takes to compete for the jobs and industries of our time. We need to out-innovate, out-educate, and out-build the rest of the world. (Applause.) We have to make America the best place on Earth to do business. We need to take responsibility for our deficit and reform our government. That’s how our people will prosper. That’s how we’ll win the future. (Applause.) And tonight, I’d like to talk about how we get there. The first step in winning the future is encouraging American innovation. None of us can predict with certainty what the next big industry will be or where the new jobs will come from. Thirty years ago, we couldn’t know that something called the Internet would lead to an economic revolution. What we can do -- what America does better than anyone else -- is spark the creativity and imagination of our people. We’re the nation that put cars in driveways and computers in offices; the nation of Edison and the Wright brothers; of Google and Facebook. In America, innovation doesn’t just change our lives. It is how we make our living. (Applause.) Our free enterprise system is what drives innovation. But because it’s not always profitable for companies to invest in basic research, throughout our history, our government has provided cutting-edge scientists and inventors with the support that they need. That’s what planted the seeds for the Internet. That’s what helped make possible things like computer chips and GPS. Just think of all the good jobs -- from manufacturing to retail -- that have come from these breakthroughs. Half a century ago, when the Soviets beat us into space with the launch of a satellite called Sputnik, we had no idea how we would beat them to the moon. The science wasn’t even there yet. NASA didn’t exist. But after investing in better research and education, we didn’t just surpass the Soviets; we unleashed a wave of innovation that created new industries and millions of new jobs. This is our generation’s Sputnik moment. Two years ago, I said that we needed to reach a level of research and development we haven’t seen since the height of the Space Race. And in a few weeks, I will be sending a budget to Congress that helps us meet that goal. We’ll invest in biomedical research, information technology, and especially clean energy technology -– (applause) -- an investment that will strengthen our security, protect our planet, and create countless new jobs for our people. Already, we’re seeing the promise of renewable energy. Robert and Gary Allen are brothers who run a small Michigan roofing company. After September 11th, they volunteered their best roofers to help repair the Pentagon. But half of their factory went unused, and the recession hit them hard. Today, with the help of a government loan, that empty space is being used to manufacture solar shingles that are being sold all across the country. In Robert’s words, “We reinvented ourselves.” That’s what Americans have done for over 200 years: reinvented ourselves. And to spur on more success stories like the Allen Brothers, we’ve begun to reinvent our energy policy. We’re not just handing out money. We’re issuing a challenge. We’re telling America’s scientists and engineers that if they assemble teams of the best minds in their fields, and focus on the hardest problems in clean energy, we’ll fund the Apollo projects of our time. At the California Institute of Technology, they’re developing a way to turn sunlight and water into fuel for our cars. At Oak Ridge National Laboratory, they’re using supercomputers to get a lot more power out of our nuclear facilities. With more research and incentives, we can break our dependence on oil with biofuels, and become the first country to have a million electric vehicles on the road by 2015. (Applause.) We need to get behind this innovation. And to help pay for it, I’m asking Congress to eliminate the billions in taxpayer dollars we currently give to oil companies. (Applause.) I don’t know if -- I don’t know if you’ve noticed, but they’re doing just fine on their own. (Laughter.) So instead of subsidizing yesterday’s energy, let’s invest in tomorrow’s. Now, clean energy breakthroughs will only translate into clean energy jobs if businesses know there will be a market for what they’re selling. So tonight, I challenge you to join me in setting a new goal: By 2035, 80 percent of America’s electricity will come from clean energy sources. (Applause.) Some folks want wind and solar. Others want nuclear, clean coal and natural gas. To meet this goal, we will need them all -- and I urge Democrats and Republicans to work together to make it happen. (Applause.) Maintaining our leadership in research and technology is crucial to America’s success. But if we want to win the future -– if we want innovation to produce jobs in America and not overseas -– then we also have to win the race to educate our kids. Think about it. Over the next 10 years, nearly half of all new jobs will require education that goes beyond a high school education. And yet, as many as a quarter of our students aren’t even finishing high school. The quality of our math and science education lags behind many other nations. America has fallen to ninth in the proportion of young people with a college degree. And so the question is whether all of us –- as citizens, and as parents –- are willing to do what’s necessary to give every child a chance to succeed. That responsibility begins not in our classrooms, but in our homes and communities. It’s family that first instills the love of learning in a child. Only parents can make sure the TV is turned off and homework gets done. We need to teach our kids that it’s not just the winner of the Super Bowl who deserves to be celebrated, but the winner of the science fair. (Applause.) We need to teach them that success is not a function of fame or PR, but of hard work and discipline. Our schools share this responsibility. When a child walks into a classroom, it should be a place of high expectations and high performance. But too many schools don’t meet this test. That’s why instead of just pouring money into a system that’s not working, we launched a competition called Race to the Top. To all 50 states, we said, “If you show us the most innovative plans to improve teacher quality and student achievement, we’ll show you the money.” Race to the Top is the most meaningful reform of our public schools in a generation. For less than 1 percent of what we spend on education each year, it has led over 40 states to raise their standards for teaching and learning. And these standards were developed, by the way, not by Washington, but by Republican and Democratic governors throughout the country. And Race to the Top should be the approach we follow this year as we replace No Child Left Behind with a law that’s more flexible and focused on what’s best for our kids. (Applause.) You see, we know what’s possible from our children when reform isn’t just a top-down mandate, but the work of local teachers and principals, school boards and communities. Take a school like Bruce Randolph in Denver. Three years ago, it was rated one of the worst schools in Colorado -- located on turf between two rival gangs. But last May, 97 percent of the seniors received their diploma. Most will be the first in their families to go to college. And after the first year of the school’s transformation, the principal who made it possible wiped away tears when a student said, “Thank you, Ms. Waters, for showing that we are smart and we can make it.” (Applause.) That’s what good schools can do, and we want good schools all across the country. Let’s also remember that after parents, the biggest impact on a child’s success comes from the man or woman at the front of the classroom. In South Korea, teachers are known as “nation builders.” Here in America, it’s time we treated the people who educate our children with the same level of respect. (Applause.) We want to reward good teachers and stop making excuses for bad ones. (Applause.) And over the next 10 years, with so many baby boomers retiring from our classrooms, we want to prepare 100,000 new teachers in the fields of science and technology and engineering and math. (Applause.) In fact, to every young person listening tonight who’s contemplating their career choice: If you want to make a difference in the life of our nation; if you want to make a difference in the life of a child -- become a teacher. Your country needs you. (Applause.) Of course, the education race doesn’t end with a high school diploma. To compete, higher education must be within the reach of every American. (Applause.) That’s why we’ve ended the unwarranted taxpayer subsidies that went to banks, and used the savings to make college affordable for millions of students. (Applause.) And this year, I ask Congress to go further, and make permanent our tuition tax credit –- worth $10,000 for four years of college. It’s the right thing to do. (Applause.) Because people need to be able to train for new jobs and careers in today’s fast-changing economy, we’re also revitalizing America’s community colleges. Last month, I saw the promise of these schools at Forsyth Tech in North Carolina. Many of the students there used to work in the surrounding factories that have since left town. One mother of two, a woman named Kathy Proctor, had worked in the furniture industry since she was 18 years old. And she told me she’s earning her degree in biotechnology now, at 55 years old, not just because the furniture jobs are gone, but because she wants to inspire her children to pursue their dreams, too. As Kathy said, “I hope it tells them to never give up.” If we take these steps -– if we raise expectations for every child, and give them the best possible chance at an education, from the day they are born until the last job they take –- we will reach the goal that I set two years ago: By the end of the decade, America will once again have the highest proportion of college graduates in the world. (Applause.) One last point about education. Today, there are hundreds of thousands of students excelling in our schools who are not American citizens. Some are the children of undocumented workers, who had nothing to do with the actions of their parents. They grew up as Americans and pledge allegiance to our flag, and yet they live every day with the threat of deportation. Others come here from abroad to study in our colleges and universities. But as soon as they obtain advanced degrees, we send them back home to compete against us. It makes no sense. Now, I strongly believe that we should take on, once and for all, the issue of illegal immigration. And I am prepared to work with Republicans and Democrats to protect our borders, enforce our laws and address the millions of undocumented workers who are now living in the shadows. (Applause.) I know that debate will be difficult. I know it will take time. But tonight, let’s agree to make that effort. And let’s stop expelling talented, responsible young people who could be staffing our research labs or starting a new business, who could be further enriching this nation. (Applause.) The third step in winning the future is rebuilding America. To attract new businesses to our shores, we need the fastest, most reliable ways to move people, goods, and information -- from high-speed rail to high-speed Internet. (Applause.) Our infrastructure used to be the best, but our lead has slipped. South Korean homes now have greater Internet access than we do. Countries in Europe and Russia invest more in their roads and railways than we do. China is building faster trains and newer airports. Meanwhile, when our own engineers graded our nation’s infrastructure, they gave us a “D.” We have to do better. America is the nation that built the transcontinental railroad, brought electricity to rural communities, constructed the Interstate Highway System. The jobs created by these projects didn’t just come from laying down track or pavement. They came from businesses that opened near a town’s new train station or the new off-ramp. So over the last two years, we’ve begun rebuilding for the 21st century, a project that has meant thousands of good jobs for the hard-hit construction industry. And tonight, I’m proposing that we redouble those efforts. (Applause.) We’ll put more Americans to work repairing crumbling roads and bridges. We’ll make sure this is fully paid for, attract private investment, and pick projects based [on] what’s best for the economy, not politicians. Within 25 years, our goal is to give 80 percent of Americans access to high-speed rail. (Applause.) This could allow you to go places in half the time it takes to travel by car. For some trips, it will be faster than flying –- without the pat-down. (Laughter and applause.) As we speak, routes in California and the Midwest are already underway. Within the next five years, we’ll make it possible for businesses to deploy the next generation of high-speed wireless coverage to 98 percent of all Americans. This isn’t just about -- (applause) -- this isn’t about faster Internet or fewer dropped calls. It’s about connecting every part of America to the digital age. It’s about a rural community in Iowa or Alabama where farmers and small business owners will be able to sell their products all over the world. It’s about a firefighter who can download the design of a burning building onto a handheld device; a student who can take classes with a digital textbook; or a patient who can have face-to-face video chats with her doctor. All these investments -– in innovation, education, and infrastructure –- will make America a better place to do business and create jobs. But to help our companies compete, we also have to knock down barriers that stand in the way of their success. For example, over the years, a parade of lobbyists has rigged the tax code to benefit particular companies and industries. Those with accountants or lawyers to work the system can end up paying no taxes at all. But all the rest are hit with one of the highest corporate tax rates in the world. It makes no sense, and it has to change. (Applause.) So tonight, I’m asking Democrats and Republicans to simplify the system. Get rid of the loopholes. Level the playing field. And use the savings to lower the corporate tax rate for the first time in 25 years –- without adding to our deficit. It can be done. (Applause.) To help businesses sell more products abroad, we set a goal of doubling our exports by 2014 -– because the more we export, the more jobs we create here at home. Already, our exports are up. Recently, we signed agreements with India and China that will support more than 250,000 jobs here in the United States. And last month, we finalized a trade agreement with South Korea that will support at least 70,000 American jobs. This agreement has unprecedented support from business and labor, Democrats and Republicans -- and I ask this Congress to pass it as soon as possible. (Applause.) Now, before I took office, I made it clear that we would enforce our trade agreements, and that I would only sign deals that keep faith with American workers and promote American jobs. That’s what we did with Korea, and that’s what I intend to do as we pursue agreements with Panama and Colombia and continue our Asia Pacific and global trade talks. (Applause.) To reduce barriers to growth and investment, I’ve ordered a review of government regulations. When we find rules that put an unnecessary burden on businesses, we will fix them. (Applause.) But I will not hesitate to create or enforce common-sense safeguards to protect the American people. (Applause.) That’s what we’ve done in this country for more than a century. It’s why our food is safe to eat, our water is safe to drink, and our air is safe to breathe. It’s why we have speed limits and child labor laws. It’s why last year, we put in place consumer protections against hidden fees and penalties by credit card companies and new rules to prevent another financial crisis. (Applause.) And it’s why we passed reform that finally prevents the health insurance industry from exploiting patients. (Applause.) Now, I have heard rumors that a few of you still have concerns about our new health care law. (Laughter.) So let me be the first to say that anything can be improved. If you have ideas about how to improve this law by making care better or more affordable, I am eager to work with you. We can start right now by correcting a flaw in the legislation that has placed an unnecessary bookkeeping burden on small businesses. (Applause.) What I’m not willing to do -- what I’m not willing to do is go back to the days when insurance companies could deny someone coverage because of a preexisting condition. (Applause.) I’m not willing to tell James Howard, a brain cancer patient from Texas, that his treatment might not be covered. I’m not willing to tell Jim Houser, a small business man from Oregon, that he has to go back to paying $5,000 more to cover his employees. As we speak, this law is making prescription drugs cheaper for seniors and giving uninsured students a chance to stay on their patients’ -- parents’ coverage. (Applause.) So I say to this chamber tonight, instead of re-fighting the battles of the last two years, let’s fix what needs fixing and let’s move forward. (Applause.) Now, the final critical step in winning the future is to make sure we aren’t buried under a mountain of debt. We are living with a legacy of deficit spending that began almost a decade ago. And in the wake of the financial crisis, some of that was necessary to keep credit flowing, save jobs, and put money in people’s pockets. But now that the worst of the recession is over, we have to confront the fact that our government spends more than it takes in. That is not sustainable. Every day, families sacrifice to live within their means. They deserve a government that does the same. So tonight, I am proposing that starting this year, we freeze annual domestic spending for the next five years. (Applause.) Now, this would reduce the deficit by more than $400 billion over the next decade, and will bring discretionary spending to the lowest share of our economy since Dwight Eisenhower was President. This freeze will require painful cuts. Already, we’ve frozen the salaries of hardworking federal employees for the next two years. I’ve proposed cuts to things I care deeply about, like community action programs. The Secretary of Defense has also agreed to cut tens of billions of dollars in spending that he and his generals believe our military can do without. (Applause.) I recognize that some in this chamber have already proposed deeper cuts, and I’m willing to eliminate whatever we can honestly afford to do without. But let’s make sure that we’re not doing it on the backs of our most vulnerable citizens. (Applause.) And let’s make sure that what we’re cutting is really excess weight. Cutting the deficit by gutting our investments in innovation and education is like lightening an overloaded airplane by removing its engine. It may make you feel like you’re flying high at first, but it won’t take long before you feel the impact. (Laughter.) Now, most of the cuts and savings I’ve proposed only address annual domestic spending, which represents a little more than 12 percent of our budget. To make further progress, we have to stop pretending that cutting this kind of spending alone will be enough. It won’t. (Applause.) The bipartisan fiscal commission I created last year made this crystal clear. I don’t agree with all their proposals, but they made important progress. And their conclusion is that the only way to tackle our deficit is to cut excessive spending wherever we find it –- in domestic spending, defense spending, health care spending, and spending through tax breaks and loopholes. (Applause.) This means further reducing health care costs, including programs like Medicare and Medicaid, which are the single biggest contributor to our long-term deficit. The health insurance law we passed last year will slow these rising costs, which is part of the reason that nonpartisan economists have said that repealing the health care law would add a quarter of a trillion dollars to our deficit. Still, I’m willing to look at other ideas to bring down costs, including one that Republicans suggested last year -- medical malpractice reform to rein in frivolous lawsuits. (Applause.) To put us on solid ground, we should also find a bipartisan solution to strengthen Social Security for future generations. (Applause.) We must do it without putting at risk current retirees, the most vulnerable, or people with disabilities; without slashing benefits for future generations; and without subjecting Americans’ guaranteed retirement income to the whims of the stock market. (Applause.) And if we truly care about our deficit, we simply can’t afford a permanent extension of the tax cuts for the wealthiest 2 percent of Americans. (Applause.) Before we take money away from our schools or scholarships away from our students, we should ask millionaires to give up their tax break. It’s not a matter of punishing their success. It’s about promoting America’s success. (Applause.) In fact, the best thing we could do on taxes for all Americans is to simplify the individual tax code. (Applause.) This will be a tough job, but members of both parties have expressed an interest in doing this, and I am prepared to join them. (Applause.) So now is the time to act. Now is the time for both sides and both houses of Congress –- Democrats and Republicans -– to forge a principled compromise that gets the job done. If we make the hard choices now to rein in our deficits, we can make the investments we need to win the future. Let me take this one step further. We shouldn’t just give our people a government that’s more affordable. We should give them a government that’s more competent and more efficient. We can’t win the future with a government of the past. (Applause.) We live and do business in the Information Age, but the last major reorganization of the government happened in the age of black-and-white TV. There are 12 different agencies that deal with exports. There are at least five different agencies that deal with housing policy. Then there’s my favorite example: The Interior Department is in charge of salmon while they’re in fresh water, but the Commerce Department handles them when they’re in saltwater. (Laughter.) I hear it gets even more complicated once they’re smoked. (Laughter and applause.) Now, we’ve made great strides over the last two years in using technology and getting rid of waste. Veterans can now download their electronic medical records with a click of the mouse. We’re selling acres of federal office space that hasn’t been used in years, and we’ll cut through red tape to get rid of more. But we need to think bigger. In the coming months, my administration will develop a proposal to merge, consolidate, and reorganize the federal government in a way that best serves the goal of a more competitive America. I will submit that proposal to Congress for a vote –- and we will push to get it passed. (Applause.) In the coming year, we’ll also work to rebuild people’s faith in the institution of government. Because you deserve to know exactly how and where your tax dollars are being spent, you’ll be able to go to a website and get that information for the very first time in history. Because you deserve to know when your elected officials are meeting with lobbyists, I ask Congress to do what the White House has already done -- put that information online. And because the American people deserve to know that special interests aren’t larding up legislation with pet projects, both parties in Congress should know this: If a bill comes to my desk with earmarks inside, I will veto it. I will veto it. (Applause.) The 21st century government that’s open and competent. A government that lives within its means. An economy that’s driven by new skills and new ideas. Our success in this new and changing world will require reform, responsibility, and innovation. It will also require us to approach that world with a new level of engagement in our foreign affairs. Just as jobs and businesses can now race across borders, so can new threats and new challenges. No single wall separates East and West. No one rival superpower is aligned against us. And so we must defeat determined enemies, wherever they are, and build coalitions that cut across lines of region and race and religion. And America’s moral example must always shine for all who yearn for freedom and justice and dignity. And because we’ve begun this work, tonight we can say that American leadership has been renewed and America’s standing has been restored. Look to Iraq, where nearly 100,000 of our brave men and women have left with their heads held high. (Applause.) American combat patrols have ended, violence is down, and a new government has been formed. This year, our civilians will forge a lasting partnership with the Iraqi people, while we finish the job of bringing our troops out of Iraq. America’s commitment has been kept. The Iraq war is coming to an end. (Applause.) Of course, as we speak, al Qaeda and their affiliates continue to plan attacks against us. Thanks to our intelligence and law enforcement professionals, we’re disrupting plots and securing our cities and skies. And as extremists try to inspire acts of violence within our borders, we are responding with the strength of our communities, with respect for the rule of law, and with the conviction that American Muslims are a part of our American family. (Applause.) We’ve also taken the fight to al Qaeda and their allies abroad. In Afghanistan, our troops have taken Taliban strongholds and trained Afghan security forces. Our purpose is clear: By preventing the Taliban from reestablishing a stranglehold over the Afghan people, we will deny al Qaeda the safe haven that served as a launching pad for 9/11. Thanks to our heroic troops and civilians, fewer Afghans are under the control of the insurgency. There will be tough fighting ahead, and the Afghan government will need to deliver better governance. But we are strengthening the capacity of the Afghan people and building an enduring partnership with them. This year, we will work with nearly 50 countries to begin a transition to an Afghan lead. And this July, we will begin to bring our troops home. (Applause.) In Pakistan, al Qaeda’s leadership is under more pressure than at any point since 2001. Their leaders and operatives are being removed from the battlefield. Their safe havens are shrinking. And we’ve sent a message from the Afghan border to the Arabian Peninsula to all parts of the globe: We will not relent, we will not waver, and we will defeat you. (Applause.) American leadership can also be seen in the effort to secure the worst weapons of war. Because Republicans and Democrats approved the New START treaty, far fewer nuclear weapons and launchers will be deployed. Because we rallied the world, nuclear materials are being locked down on every continent so they never fall into the hands of terrorists. (Applause.) Because of a diplomatic effort to insist that Iran meet its obligations, the Iranian government now faces tougher sanctions, tighter sanctions than ever before. And on the Korean Peninsula, we stand with our ally South Korea, and insist that North Korea keeps its commitment to abandon nuclear weapons. (Applause.) This is just a part of how we’re shaping a world that favors peace and prosperity. With our European allies, we revitalized NATO and increased our cooperation on everything from counterterrorism to missile defense. We’ve reset our relationship with Russia, strengthened Asian alliances, built new partnerships with nations like India. This March, I will travel to Brazil, Chile, and El Salvador to forge new alliances across the Americas. Around the globe, we’re standing with those who take responsibility -– helping farmers grow more food, supporting doctors who care for the sick, and combating the corruption that can rot a society and rob people of opportunity. Recent events have shown us that what sets us apart must not just be our power -– it must also be the purpose behind it. In south Sudan -– with our assistance -– the people were finally able to vote for independence after years of war. (Applause.) Thousands lined up before dawn. People danced in the streets. One man who lost four of his brothers at war summed up the scene around him: “This was a battlefield for most of my life,” he said. “Now we want to be free.” (Applause.) And we saw that same desire to be free in Tunisia, where the will of the people proved more powerful than the writ of a dictator. And tonight, let us be clear: The United States of America stands with the people of Tunisia, and supports the democratic aspirations of all people. (Applause.) We must never forget that the things we’ve struggled for, and fought for, live in the hearts of people everywhere. And we must always remember that the Americans who have borne the greatest burden in this struggle are the men and women who serve our country. (Applause.) Tonight, let us speak with one voice in reaffirming that our nation is united in support of our troops and their families. Let us serve them as well as they’ve served us -- by giving them the equipment they need, by providing them with the care and benefits that they have earned, and by enlisting our veterans in the great task of building our own nation. Our troops come from every corner of this country -– they’re black, white, Latino, Asian, Native American. They are Christian and Hindu, Jewish and Muslim. And, yes, we know that some of them are gay. Starting this year, no American will be forbidden from serving the country they love because of who they love. (Applause.) And with that change, I call on all our college campuses to open their doors to our military recruiters and ROTC. It is time to leave behind the divisive battles of the past. It is time to move forward as one nation. (Applause.) We should have no illusions about the work ahead of us. Reforming our schools, changing the way we use energy, reducing our deficit –- none of this will be easy. All of it will take time. And it will be harder because we will argue about everything. The costs. The details. The letter of every law. Of course, some countries don’t have this problem. If the central government wants a railroad, they build a railroad, no matter how many homes get bulldozed. If they don’t want a bad story in the newspaper, it doesn’t get written. And yet, as contentious and frustrating and messy as our democracy can sometimes be, I know there isn’t a person here who would trade places with any other nation on Earth. (Applause.) We may have differences in policy, but we all believe in the rights enshrined in our Constitution. We may have different opinions, but we believe in the same promise that says this is a place where you can make it if you try. We may have different backgrounds, but we believe in the same dream that says this is a country where anything is possible. No matter who you are. No matter where you come from. That dream is why I can stand here before you tonight. That dream is why a working-class kid from Scranton can sit behind me. (Laughter and applause.) That dream is why someone who began by sweeping the floors of his father’s Cincinnati bar can preside as Speaker of the House in the greatest nation on Earth. (Applause.) That dream -– that American Dream -– is what drove the Allen Brothers to reinvent their roofing company for a new era. It’s what drove those students at Forsyth Tech to learn a new skill and work towards the future. And that dream is the story of a small business owner named Brandon Fisher. Brandon started a company in Berlin, Pennsylvania, that specializes in a new kind of drilling technology. And one day last summer, he saw the news that halfway across the world, 33 men were trapped in a Chilean mine, and no one knew how to save them. But Brandon thought his company could help. And so he designed a rescue that would come to be known as Plan B. His employees worked around the clock to manufacture the necessary drilling equipment. And Brandon left for Chile. Along with others, he began drilling a 2,000-foot hole into the ground, working three- or four-hour -- three or four days at a time without any sleep. Thirty-seven days later, Plan B succeeded, and the miners were rescued. (Applause.) But because he didn’t want all of the attention, Brandon wasn’t there when the miners emerged. He’d already gone back home, back to work on his next project. And later, one of his employees said of the rescue, “We proved that Center Rock is a little company, but we do big things.” (Applause.) We do big things. From the earliest days of our founding, America has been the story of ordinary people who dare to dream. That’s how we win the future. We’re a nation that says, “I might not have a lot of money, but I have this great idea for a new company.” “I might not come from a family of college graduates, but I will be the first to get my degree.” “I might not know those people in trouble, but I think I can help them, and I need to try.” “I’m not sure how we’ll reach that better place beyond the horizon, but I know we’ll get there. I know we will.” We do big things. (Applause.) The idea of America endures. Our destiny remains our choice. And tonight, more than two centuries later, it’s because of our people that our future is hopeful, our journey goes forward, and the state of our union is strong. Thank you. God bless you, and may God bless the United States of America.

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Mr. Speaker, Mr. Vice President, members of Congress, distinguished guests, and fellow Americans: Last month, I went to Andrews Air Force Base and welcomed home some of our last troops to serve in Iraq. Together, we offered a final, proud salute to the colors under which more than a million of our fellow citizens fought -- and several thousand gave their lives. We gather tonight knowing that this generation of heroes has made the United States safer and more respected around the world. (Applause.) For the first time in nine years, there are no Americans fighting in Iraq. (Applause.) For the first time in two decades, Osama bin Laden is not a threat to this country. (Applause.) Most of al Qaeda’s top lieutenants have been defeated. The Taliban’s momentum has been broken, and some troops in Afghanistan have begun to come home. These achievements are a testament to the courage, selflessness and teamwork of America’s Armed Forces. At a time when too many of our institutions have let us down, they exceed all expectations. They’re not consumed with personal ambition. They don’t obsess over their differences. They focus on the mission at hand. They work together. Imagine what we could accomplish if we followed their example. (Applause.) Think about the America within our reach: A country that leads the world in educating its people. An America that attracts a new generation of high-tech manufacturing and high-paying jobs. A future where we’re in control of our own energy, and our security and prosperity aren’t so tied to unstable parts of the world. An economy built to last, where hard work pays off, and responsibility is rewarded. We can do this. I know we can, because we’ve done it before. At the end of World War II, when another generation of heroes returned home from combat, they built the strongest economy and middle class the world has ever known. (Applause.) My grandfather, a veteran of Patton’s Army, got the chance to go to college on the GI Bill. My grandmother, who worked on a bomber assembly line, was part of a workforce that turned out the best products on Earth. The two of them shared the optimism of a nation that had triumphed over a depression and fascism. They understood they were part of something larger; that they were contributing to a story of success that every American had a chance to share -- the basic American promise that if you worked hard, you could do well enough to raise a family, own a home, send your kids to college, and put a little away for retirement. The defining issue of our time is how to keep that promise alive. No challenge is more urgent. No debate is more important. We can either settle for a country where a shrinking number of people do really well while a growing number of Americans barely get by, or we can restore an economy where everyone gets a fair shot, and everyone does their fair share, and everyone plays by the same set of rules. (Applause.) What’s at stake aren’t Democratic values or Republican values, but American values. And we have to reclaim them. Let’s remember how we got here. Long before the recession, jobs and manufacturing began leaving our shores. Technology made businesses more efficient, but also made some jobs obsolete. Folks at the top saw their incomes rise like never before, but most hardworking Americans struggled with costs that were growing, paychecks that weren’t, and personal debt that kept piling up. In 2008, the house of cards collapsed. We learned that mortgages had been sold to people who couldn’t afford or understand them. Banks had made huge bets and bonuses with other people’s money. Regulators had looked the other way, or didn’t have the authority to stop the bad behavior. It was wrong. It was irresponsible. And it plunged our economy into a crisis that put millions out of work, saddled us with more debt, and left innocent, hardworking Americans holding the bag. In the six months before I took office, we lost nearly 4 million jobs. And we lost another 4 million before our policies were in full effect. Those are the facts. But so are these: In the last 22 months, businesses have created more than 3 million jobs. (Applause.) Last year, they created the most jobs since 2005. American manufacturers are hiring again, creating jobs for the first time since the late 1990s. Together, we’ve agreed to cut the deficit by more than $2 trillion. And we’ve put in place new rules to hold Wall Street accountable, so a crisis like this never happens again. (Applause.) The state of our Union is getting stronger. And we’ve come too far to turn back now. As long as I’m President, I will work with anyone in this chamber to build on this momentum. But I intend to fight obstruction with action, and I will oppose any effort to return to the very same policies that brought on this economic crisis in the first place. (Applause.) No, we will not go back to an economy weakened by outsourcing, bad debt, and phony financial profits. Tonight, I want to speak about how we move forward, and lay out a blueprint for an economy that’s built to last -– an economy built on American manufacturing, American energy, skills for American workers, and a renewal of American values. Now, this blueprint begins with American manufacturing. On the day I took office, our auto industry was on the verge of collapse. Some even said we should let it die. With a million jobs at stake, I refused to let that happen. In exchange for help, we demanded responsibility. We got workers and automakers to settle their differences. We got the industry to retool and restructure. Today, General Motors is back on top as the world’s number-one automaker. (Applause.) Chrysler has grown faster in the U.S. than any major car company. Ford is investing billions in U.S. plants and factories. And together, the entire industry added nearly 160,000 jobs. We bet on American workers. We bet on American ingenuity. And tonight, the American auto industry is back. (Applause.) What’s happening in Detroit can happen in other industries. It can happen in Cleveland and Pittsburgh and Raleigh. We can’t bring every job back that’s left our shore. But right now, it’s getting more expensive to do business in places like China. Meanwhile, America is more productive. A few weeks ago, the CEO of Master Lock told me that it now makes business sense for him to bring jobs back home. (Applause.) Today, for the first time in 15 years, Master Lock’s unionized plant in Milwaukee is running at full capacity. (Applause.) So we have a huge opportunity, at this moment, to bring manufacturing back. But we have to seize it. Tonight, my message to business leaders is simple: Ask yourselves what you can do to bring jobs back to your country, and your country will do everything we can to help you succeed. (Applause.) We should start with our tax code. Right now, companies get tax breaks for moving jobs and profits overseas. Meanwhile, companies that choose to stay in America get hit with one of the highest tax rates in the world. It makes no sense, and everyone knows it. So let’s change it. First, if you’re a business that wants to outsource jobs, you shouldn’t get a tax deduction for doing it. (Applause.) That money should be used to cover moving expenses for companies like Master Lock that decide to bring jobs home. (Applause.) Second, no American company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas. (Applause.) From now on, every multinational company should have to pay a basic minimum tax. And every penny should go towards lowering taxes for companies that choose to stay here and hire here in America. (Applause.) Third, if you’re an American manufacturer, you should get a bigger tax cut. If you’re a high-tech manufacturer, we should double the tax deduction you get for making your products here. And if you want to relocate in a community that was hit hard when a factory left town, you should get help financing a new plant, equipment, or training for new workers. (Applause.) So my message is simple. It is time to stop rewarding businesses that ship jobs overseas, and start rewarding companies that create jobs right here in America. Send me these tax reforms, and I will sign them right away. (Applause.) We’re also making it easier for American businesses to sell products all over the world. Two years ago, I set a goal of doubling U.S. exports over five years. With the bipartisan trade agreements we signed into law, we’re on track to meet that goal ahead of schedule. (Applause.) And soon, there will be millions of new customers for American goods in Panama, Colombia, and South Korea. Soon, there will be new cars on the streets of Seoul imported from Detroit, and Toledo, and Chicago. (Applause.) I will go anywhere in the world to open new markets for American products. And I will not stand by when our competitors don’t play by the rules. We’ve brought trade cases against China at nearly twice the rate as the last administration –- and it’s made a difference. (Applause.) Over a thousand Americans are working today because we stopped a surge in Chinese tires. But we need to do more. It’s not right when another country lets our movies, music, and software be pirated. It’s not fair when foreign manufacturers have a leg up on ours only because they’re heavily subsidized. Tonight, I’m announcing the creation of a Trade Enforcement Unit that will be charged with investigating unfair trading practices in countries like China. (Applause.) There will be more inspections to prevent counterfeit or unsafe goods from crossing our borders. And this Congress should make sure that no foreign company has an advantage over American manufacturing when it comes to accessing financing or new markets like Russia. Our workers are the most productive on Earth, and if the playing field is level, I promise you -– America will always win. (Applause.) I also hear from many business leaders who want to hire in the United States but can’t find workers with the right skills. Growing industries in science and technology have twice as many openings as we have workers who can do the job. Think about that –- openings at a time when millions of Americans are looking for work. It’s inexcusable. And we know how to fix it. Jackie Bray is a single mom from North Carolina who was laid off from her job as a mechanic. Then Siemens opened a gas turbine factory in Charlotte, and formed a partnership with Central Piedmont Community College. The company helped the college design courses in laser and robotics training. It paid Jackie’s tuition, then hired her to help operate their plant. I want every American looking for work to have the same opportunity as Jackie did. Join me in a national commitment to train 2 million Americans with skills that will lead directly to a job. (Applause.) My administration has already lined up more companies that want to help. Model partnerships between businesses like Siemens and community colleges in places like Charlotte, and Orlando, and Louisville are up and running. Now you need to give more community colleges the resources they need to become community career centers -– places that teach people skills that businesses are looking for right now, from data management to high-tech manufacturing. And I want to cut through the maze of confusing training programs, so that from now on, people like Jackie have one program, one website, and one place to go for all the information and help that they need. It is time to turn our unemployment system into a reemployment system that puts people to work. (Applause.) These reforms will help people get jobs that are open today. But to prepare for the jobs of tomorrow, our commitment to skills and education has to start earlier. For less than 1 percent of what our nation spends on education each year, we’ve convinced nearly every state in the country to raise their standards for teaching and learning -- the first time that’s happened in a generation. But challenges remain. And we know how to solve them. At a time when other countries are doubling down on education, tight budgets have forced states to lay off thousands of teachers. We know a good teacher can increase the lifetime income of a classroom by over $250,000. A great teacher can offer an escape from poverty to the child who dreams beyond his circumstance. Every person in this chamber can point to a teacher who changed the trajectory of their lives. Most teachers work tirelessly, with modest pay, sometimes digging into their own pocket for school supplies -- just to make a difference. Teachers matter. So instead of bashing them, or defending the status quo, let’s offer schools a deal. Give them the resources to keep good teachers on the job, and reward the best ones. (Applause.) And in return, grant schools flexibility: to teach with creativity and passion; to stop teaching to the test; and to replace teachers who just aren’t helping kids learn. That’s a bargain worth making. (Applause.) We also know that when students don’t walk away from their education, more of them walk the stage to get their diploma. When students are not allowed to drop out, they do better. So tonight, I am proposing that every state -- every state -- requires that all students stay in high school until they graduate or turn 18. (Applause.) When kids do graduate, the most daunting challenge can be the cost of college. At a time when Americans owe more in tuition debt than credit card debt, this Congress needs to stop the interest rates on student loans from doubling in July. (Applause.) Extend the tuition tax credit we started that saves millions of middle-class families thousands of dollars, and give more young people the chance to earn their way through college by doubling the number of work-study jobs in the next five years. (Applause.) Of course, it’s not enough for us to increase student aid. We can’t just keep subsidizing skyrocketing tuition; we’ll run out of money. States also need to do their part, by making higher education a higher priority in their budgets. And colleges and universities have to do their part by working to keep costs down. Recently, I spoke with a group of college presidents who’ve done just that. Some schools redesign courses to help students finish more quickly. Some use better technology. The point is, it’s possible. So let me put colleges and universities on notice: If you can’t stop tuition from going up, the funding you get from taxpayers will go down. (Applause.) Higher education can’t be a luxury -– it is an economic imperative that every family in America should be able to afford. Let’s also remember that hundreds of thousands of talented, hardworking students in this country face another challenge: the fact that they aren’t yet American citizens. Many were brought here as small children, are American through and through, yet they live every day with the threat of deportation. Others came more recently, to study business and science and engineering, but as soon as they get their degree, we send them home to invent new products and create new jobs somewhere else. That doesn’t make sense. I believe as strongly as ever that we should take on illegal immigration. That’s why my administration has put more boots on the border than ever before. That’s why there are fewer illegal crossings than when I took office. The opponents of action are out of excuses. We should be working on comprehensive immigration reform right now. (Applause.) But if election-year politics keeps Congress from acting on a comprehensive plan, let’s at least agree to stop expelling responsible young people who want to staff our labs, start new businesses, defend this country. Send me a law that gives them the chance to earn their citizenship. I will sign it right away. (Applause.) You see, an economy built to last is one where we encourage the talent and ingenuity of every person in this country. That means women should earn equal pay for equal work. (Applause.) It means we should support everyone who’s willing to work, and every risk-taker and entrepreneur who aspires to become the next Steve Jobs. After all, innovation is what America has always been about. Most new jobs are created in start-ups and small businesses. So let’s pass an agenda that helps them succeed. Tear down regulations that prevent aspiring entrepreneurs from getting the financing to grow. (Applause.) Expand tax relief to small businesses that are raising wages and creating good jobs. Both parties agree on these ideas. So put them in a bill, and get it on my desk this year. (Applause.) Innovation also demands basic research. Today, the discoveries taking place in our federally financed labs and universities could lead to new treatments that kill cancer cells but leave healthy ones untouched. New lightweight vests for cops and soldiers that can stop any bullet. Don’t gut these investments in our budget. Don’t let other countries win the race for the future. Support the same kind of research and innovation that led to the computer chip and the Internet; to new American jobs and new American industries. And nowhere is the promise of innovation greater than in American-made energy. Over the last three years, we’ve opened millions of new acres for oil and gas exploration, and tonight, I’m directing my administration to open more than 75 percent of our potential offshore oil and gas resources. (Applause.) Right now -- right now -- American oil production is the highest that it’s been in eight years. That’s right -- eight years. Not only that -- last year, we relied less on foreign oil than in any of the past 16 years. (Applause.) But with only 2 percent of the world’s oil reserves, oil isn’t enough. This country needs an all-out, all-of-the-above strategy that develops every available source of American energy. (Applause.) A strategy that’s cleaner, cheaper, and full of new jobs. We have a supply of natural gas that can last America nearly 100 years. (Applause.) And my administration will take every possible action to safely develop this energy. Experts believe this will support more than 600,000 jobs by the end of the decade. And I’m requiring all companies that drill for gas on public lands to disclose the chemicals they use. (Applause.) Because America will develop this resource without putting the health and safety of our citizens at risk. The development of natural gas will create jobs and power trucks and factories that are cleaner and cheaper, proving that we don’t have to choose between our environment and our economy. (Applause.) And by the way, it was public research dollars, over the course of 30 years, that helped develop the technologies to extract all this natural gas out of shale rock –- reminding us that government support is critical in helping businesses get new energy ideas off the ground. (Applause.) Now, what’s true for natural gas is just as true for clean energy. In three years, our partnership with the private sector has already positioned America to be the world’s leading manufacturer of high-tech batteries. Because of federal investments, renewable energy use has nearly doubled, and thousands of Americans have jobs because of it. When Bryan Ritterby was laid off from his job making furniture, he said he worried that at 55, no one would give him a second chance. But he found work at Energetx, a wind turbine manufacturer in Michigan. Before the recession, the factory only made luxury yachts. Today, it’s hiring workers like Bryan, who said, “I’m proud to be working in the industry of the future.” Our experience with shale gas, our experience with natural gas, shows us that the payoffs on these public investments don’t always come right away. Some technologies don’t pan out; some companies fail. But I will not walk away from the promise of clean energy. I will not walk away from workers like Bryan. (Applause.) I will not cede the wind or solar or battery industry to China or Germany because we refuse to make the same commitment here. We’ve subsidized oil companies for a century. That’s long enough. (Applause.) It’s time to end the taxpayer giveaways to an industry that rarely has been more profitable, and double-down on a clean energy industry that never has been more promising. Pass clean energy tax credits. Create these jobs. (Applause.) We can also spur energy innovation with new incentives. The differences in this chamber may be too deep right now to pass a comprehensive plan to fight climate change. But there’s no reason why Congress shouldn’t at least set a clean energy standard that creates a market for innovation. So far, you haven’t acted. Well, tonight, I will. I’m directing my administration to allow the development of clean energy on enough public land to power 3 million homes. And I’m proud to announce that the Department of Defense, working with us, the world’s largest consumer of energy, will make one of the largest commitments to clean energy in history -– with the Navy purchasing enough capacity to power a quarter of a million homes a year. (Applause.) Of course, the easiest way to save money is to waste less energy. So here’s a proposal: Help manufacturers eliminate energy waste in their factories and give businesses incentives to upgrade their buildings. Their energy bills will be $100 billion lower over the next decade, and America will have less pollution, more manufacturing, more jobs for construction workers who need them. Send me a bill that creates these jobs. (Applause.) Building this new energy future should be just one part of a broader agenda to repair America’s infrastructure. So much of America needs to be rebuilt. We’ve got crumbling roads and bridges; a power grid that wastes too much energy; an incomplete high-speed broadband network that prevents a small business owner in rural America from selling her products all over the world. During the Great Depression, America built the Hoover Dam and the Golden Gate Bridge. After World War II, we connected our states with a system of highways. Democratic and Republican administrations invested in great projects that benefited everybody, from the workers who built them to the businesses that still use them today. In the next few weeks, I will sign an executive order clearing away the red tape that slows down too many construction projects. But you need to fund these projects. Take the money we’re no longer spending at war, use half of it to pay down our debt, and use the rest to do some nation-building right here at home. (Applause.) There’s never been a better time to build, especially since the construction industry was one of the hardest hit when the housing bubble burst. Of course, construction workers weren’t the only ones who were hurt. So were millions of innocent Americans who’ve seen their home values decline. And while government can’t fix the problem on its own, responsible homeowners shouldn’t have to sit and wait for the housing market to hit bottom to get some relief. And that’s why I’m sending this Congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage, by refinancing at historically low rates. (Applause.) No more red tape. No more runaround from the banks. A small fee on the largest financial institutions will ensure that it won’t add to the deficit and will give those banks that were rescued by taxpayers a chance to repay a deficit of trust. (Applause.) Let’s never forget: Millions of Americans who work hard and play by the rules every day deserve a government and a financial system that do the same. It’s time to apply the same rules from top to bottom. No bailouts, no handouts, and no copouts. An America built to last insists on responsibility from everybody. We’ve all paid the price for lenders who sold mortgages to people who couldn’t afford them, and buyers who knew they couldn’t afford them. That’s why we need smart regulations to prevent irresponsible behavior. (Applause.) Rules to prevent financial fraud or toxic dumping or faulty medical devices -- these don’t destroy the free market. They make the free market work better. There’s no question that some regulations are outdated, unnecessary, or too costly. In fact, I’ve approved fewer regulations in the first three years of my presidency than my Republican predecessor did in his. (Applause.) I’ve ordered every federal agency to eliminate rules that don’t make sense. We’ve already announced over 500 reforms, and just a fraction of them will save business and citizens more than $10 billion over the next five years. We got rid of one rule from 40 years ago that could have forced some dairy farmers to spend $10,000 a year proving that they could contain a spill -- because milk was somehow classified as an oil. With a rule like that, I guess it was worth crying over spilled milk. (Laughter and applause.) Now, I’m confident a farmer can contain a milk spill without a federal agency looking over his shoulder. (Applause.) Absolutely. But I will not back down from making sure an oil company can contain the kind of oil spill we saw in the Gulf two years ago. (Applause.) I will not back down from protecting our kids from mercury poisoning, or making sure that our food is safe and our water is clean. I will not go back to the days when health insurance companies had unchecked power to cancel your policy, deny your coverage, or charge women differently than men. (Applause.) And I will not go back to the days when Wall Street was allowed to play by its own set of rules. The new rules we passed restore what should be any financial system’s core purpose: Getting funding to entrepreneurs with the best ideas, and getting loans to responsible families who want to buy a home, or start a business, or send their kids to college. So if you are a big bank or financial institution, you’re no longer allowed to make risky bets with your customers’ deposits. You’re required to write out a “living will” that details exactly how you’ll pay the bills if you fail –- because the rest of us are not bailing you out ever again. (Applause.) And if you’re a mortgage lender or a payday lender or a credit card company, the days of signing people up for products they can’t afford with confusing forms and deceptive practices -- those days are over. Today, American consumers finally have a watchdog in Richard Cordray with one job: To look out for them. (Applause.) We’ll also establish a Financial Crimes Unit of highly trained investigators to crack down on large-scale fraud and protect people’s investments. Some financial firms violate major anti-fraud laws because there’s no real penalty for being a repeat offender. That’s bad for consumers, and it’s bad for the vast majority of bankers and financial service professionals who do the right thing. So pass legislation that makes the penalties for fraud count. And tonight, I’m asking my Attorney General to create a special unit of federal prosecutors and leading state attorney general to expand our investigations into the abusive lending and packaging of risky mortgages that led to the housing crisis. (Applause.) This new unit will hold accountable those who broke the law, speed assistance to homeowners, and help turn the page on an era of recklessness that hurt so many Americans. Now, a return to the American values of fair play and shared responsibility will help protect our people and our economy. But it should also guide us as we look to pay down our debt and invest in our future. Right now, our most immediate priority is stopping a tax hike on 160 million working Americans while the recovery is still fragile. (Applause.) People cannot afford losing $40 out of each paycheck this year. There are plenty of ways to get this done. So let’s agree right here, right now: No side issues. No drama. Pass the payroll tax cut without delay. Let’s get it done. (Applause.) When it comes to the deficit, we’ve already agreed to more than $2 trillion in cuts and savings. But we need to do more, and that means making choices. Right now, we’re poised to spend nearly $1 trillion more on what was supposed to be a temporary tax break for the wealthiest 2 percent of Americans. Right now, because of loopholes and shelters in the tax code, a quarter of all millionaires pay lower tax rates than millions of middle-class households. Right now, Warren Buffett pays a lower tax rate than his secretary. Do we want to keep these tax cuts for the wealthiest Americans? Or do we want to keep our investments in everything else –- like education and medical research; a strong military and care for our veterans? Because if we’re serious about paying down our debt, we can’t do both. The American people know what the right choice is. So do I. As I told the Speaker this summer, I’m prepared to make more reforms that rein in the long-term costs of Medicare and Medicaid, and strengthen Social Security, so long as those programs remain a guarantee of security for seniors. But in return, we need to change our tax code so that people like me, and an awful lot of members of Congress, pay our fair share of taxes. (Applause.) Tax reform should follow the Buffett Rule. If you make more than $1 million a year, you should not pay less than 30 percent in taxes. And my Republican friend Tom Coburn is right: Washington should stop subsidizing millionaires. In fact, if you’re earning a million dollars a year, you shouldn’t get special tax subsidies or deductions. On the other hand, if you make under $250,000 a year, like 98 percent of American families, your taxes shouldn’t go up. (Applause.) You’re the ones struggling with rising costs and stagnant wages. You’re the ones who need relief. Now, you can call this class warfare all you want. But asking a billionaire to pay at least as much as his secretary in taxes? Most Americans would call that common sense. We don’t begrudge financial success in this country. We admire it. When Americans talk about folks like me paying my fair share of taxes, it’s not because they envy the rich. It’s because they understand that when I get a tax break I don’t need and the country can’t afford, it either adds to the deficit, or somebody else has to make up the difference -- like a senior on a fixed income, or a student trying to get through school, or a family trying to make ends meet. That’s not right. Americans know that’s not right. They know that this generation’s success is only possible because past generations felt a responsibility to each other, and to the future of their country, and they know our way of life will only endure if we feel that same sense of shared responsibility. That’s how we’ll reduce our deficit. That’s an America built to last. (Applause.) Now, I recognize that people watching tonight have differing views about taxes and debt, energy and health care. But no matter what party they belong to, I bet most Americans are thinking the same thing right about now: Nothing will get done in Washington this year, or next year, or maybe even the year after that, because Washington is broken. Can you blame them for feeling a little cynical? The greatest blow to our confidence in our economy last year didn’t come from events beyond our control. It came from a debate in Washington over whether the United States would pay its bills or not. Who benefited from that fiasco? I’ve talked tonight about the deficit of trust between Main Street and Wall Street. But the divide between this city and the rest of the country is at least as bad -- and it seems to get worse every year. Some of this has to do with the corrosive influence of money in politics. So together, let’s take some steps to fix that. Send me a bill that bans insider trading by members of Congress; I will sign it tomorrow. (Applause.) Let’s limit any elected official from owning stocks in industries they impact. Let’s make sure people who bundle campaign contributions for Congress can’t lobby Congress, and vice versa -- an idea that has bipartisan support, at least outside of Washington. Some of what’s broken has to do with the way Congress does its business these days. A simple majority is no longer enough to get anything -– even routine business –- passed through the Senate. (Applause.) Neither party has been blameless in these tactics. Now both parties should put an end to it. (Applause.) For starters, I ask the Senate to pass a simple rule that all judicial and public service nominations receive a simple up or down vote within 90 days. (Applause.) The executive branch also needs to change. Too often, it’s inefficient, outdated and remote. (Applause.) That’s why I’ve asked this Congress to grant me the authority to consolidate the federal bureaucracy, so that our government is leaner, quicker, and more responsive to the needs of the American people. (Applause.) Finally, none of this can happen unless we also lower the temperature in this town. We need to end the notion that the two parties must be locked in a perpetual campaign of mutual destruction; that politics is about clinging to rigid ideologies instead of building consensus around common-sense ideas. I’m a Democrat. But I believe what Republican Abraham Lincoln believed: That government should do for people only what they cannot do better by themselves, and no more. (Applause.) That’s why my education reform offers more competition, and more control for schools and states. That’s why we’re getting rid of regulations that don’t work. That’s why our health care law relies on a reformed private market, not a government program. On the other hand, even my Republican friends who complain the most about government spending have supported federally financed roads, and clean energy projects, and federal offices for the folks back home. The point is, we should all want a smarter, more effective government. And while we may not be able to bridge our biggest philosophical differences this year, we can make real progress. With or without this Congress, I will keep taking actions that help the economy grow. But I can do a whole lot more with your help. Because when we act together, there’s nothing the United States of America can’t achieve. (Applause.) That’s the lesson we’ve learned from our actions abroad over the last few years. Ending the Iraq war has allowed us to strike decisive blows against our enemies. From Pakistan to Yemen, the al Qaeda operatives who remain are scrambling, knowing that they can’t escape the reach of the United States of America. (Applause.) From this position of strength, we’ve begun to wind down the war in Afghanistan. Ten thousand of our troops have come home. Twenty-three thousand more will leave by the end of this summer. This transition to Afghan lead will continue, and we will build an enduring partnership with Afghanistan, so that it is never again a source of attacks against America. (Applause.) As the tide of war recedes, a wave of change has washed across the Middle East and North Africa, from Tunis to Cairo; from Sana’a to Tripoli. A year ago, Qaddafi was one of the world’s longest-serving dictators -– a murderer with American blood on his hands. Today, he is gone. And in Syria, I have no doubt that the Assad regime will soon discover that the forces of change cannot be reversed, and that human dignity cannot be denied. (Applause.) How this incredible transformation will end remains uncertain. But we have a huge stake in the outcome. And while it’s ultimately up to the people of the region to decide their fate, we will advocate for those values that have served our own country so well. We will stand against violence and intimidation. We will stand for the rights and dignity of all human beings –- men and women; Christians, Muslims and Jews. We will support policies that lead to strong and stable democracies and open markets, because tyranny is no match for liberty. And we will safeguard America’s own security against those who threaten our citizens, our friends, and our interests. Look at Iran. Through the power of our diplomacy, a world that was once divided about how to deal with Iran’s nuclear program now stands as one. The regime is more isolated than ever before; its leaders are faced with crippling sanctions, and as long as they shirk their responsibilities, this pressure will not relent. Let there be no doubt: America is determined to prevent Iran from getting a nuclear weapon, and I will take no options off the table to achieve that goal. (Applause.) But a peaceful resolution of this issue is still possible, and far better, and if Iran changes course and meets its obligations, it can rejoin the community of nations. The renewal of American leadership can be felt across the globe. Our oldest alliances in Europe and Asia are stronger than ever. Our ties to the Americas are deeper. Our ironclad commitment -- and I mean ironclad -- to Israel’s security has meant the closest military cooperation between our two countries in history. (Applause.) We’ve made it clear that America is a Pacific power, and a new beginning in Burma has lit a new hope. From the coalitions we’ve built to secure nuclear materials, to the missions we’ve led against hunger and disease; from the blows we’ve dealt to our enemies, to the enduring power of our moral example, America is back. Anyone who tells you otherwise, anyone who tells you that America is in decline or that our influence has waned, doesn’t know what they’re talking about. (Applause.) That’s not the message we get from leaders around the world who are eager to work with us. That’s not how people feel from Tokyo to Berlin, from Cape Town to Rio, where opinions of America are higher than they’ve been in years. Yes, the world is changing. No, we can’t control every event. But America remains the one indispensable nation in world affairs –- and as long as I’m President, I intend to keep it that way. (Applause.) That’s why, working with our military leaders, I’ve proposed a new defense strategy that ensures we maintain the finest military in the world, while saving nearly half a trillion dollars in our budget. To stay one step ahead of our adversaries, I’ve already sent this Congress legislation that will secure our country from the growing dangers of cyber-threats. (Applause.) Above all, our freedom endures because of the men and women in uniform who defend it. (Applause.) As they come home, we must serve them as well as they’ve served us. That includes giving them the care and the benefits they have earned –- which is why we’ve increased annual VA spending every year I’ve been President. (Applause.) And it means enlisting our veterans in the work of rebuilding our nation. With the bipartisan support of this Congress, we’re providing new tax credits to companies that hire vets. Michelle and Jill Biden have worked with American businesses to secure a pledge of 135,000 jobs for veterans and their families. And tonight, I’m proposing a Veterans Jobs Corps that will help our communities hire veterans as cops and firefighters, so that America is as strong as those who defend her. (Applause.) Which brings me back to where I began. Those of us who’ve been sent here to serve can learn a thing or two from the service of our troops. When you put on that uniform, it doesn’t matter if you’re black or white; Asian, Latino, Native American; conservative, liberal; rich, poor; gay, straight. When you’re marching into battle, you look out for the person next to you, or the mission fails. When you’re in the thick of the fight, you rise or fall as one unit, serving one nation, leaving no one behind. One of my proudest possessions is the flag that the SEAL Team took with them on the mission to get bin Laden. On it are each of their names. Some may be Democrats. Some may be Republicans. But that doesn’t matter. Just like it didn’t matter that day in the Situation Room, when I sat next to Bob Gates -- a man who was George Bush’s defense secretary -- and Hillary Clinton -- a woman who ran against me for president. All that mattered that day was the mission. No one thought about politics. No one thought about themselves. One of the young men involved in the raid later told me that he didn’t deserve credit for the mission. It only succeeded, he said, because every single member of that unit did their job -- the pilot who landed the helicopter that spun out of control; the translator who kept others from entering the compound; the troops who separated the women and children from the fight; the SEALs who charged up the stairs. More than that, the mission only succeeded because every member of that unit trusted each other -- because you can’t charge up those stairs, into darkness and danger, unless you know that there’s somebody behind you, watching your back. So it is with America. Each time I look at that flag, I’m reminded that our destiny is stitched together like those 50 stars and those 13 stripes. No one built this country on their own. This nation is great because we built it together. This nation is great because we worked as a team. This nation is great because we get each other’s backs. And if we hold fast to that truth, in this moment of trial, there is no challenge too great; no mission too hard. As long as we are joined in common purpose, as long as we maintain our common resolve, our journey moves forward, and our future is hopeful, and the state of our Union will always be strong. Thank you, God bless you, and God bless the United States of America.

US

Mr. Speaker, Mr. Vice President, members of Congress, fellow citizens: Fifty-one years ago, John F. Kennedy declared to this chamber that “the Constitution makes us not rivals for power but partners for progress.” (Applause.) “It is my task,” he said, “to report the State of the Union -- to improve it is the task of us all.” Tonight, thanks to the grit and determination of the American people, there is much progress to report. After a decade of grinding war, our brave men and women in uniform are coming home. (Applause.) After years of grueling recession, our businesses have created over six million new jobs. We buy more American cars than we have in five years, and less foreign oil than we have in 20. (Applause.) Our housing market is healing, our stock market is rebounding, and consumers, patients, and homeowners enjoy stronger protections than ever before. (Applause.) So, together, we have cleared away the rubble of crisis, and we can say with renewed confidence that the State of our Union is stronger. (Applause.) But we gather here knowing that there are millions of Americans whose hard work and dedication have not yet been rewarded. Our economy is adding jobs -- but too many people still can’t find full-time employment. Corporate profits have skyrocketed to all-time highs -- but for more than a decade, wages and incomes have barely budged. It is our generation’s task, then, to reignite the true engine of America’s economic growth -- a rising, thriving middle class. (Applause.) It is our unfinished task to restore the basic bargain that built this country -- the idea that if you work hard and meet your responsibilities, you can get ahead, no matter where you come from, no matter what you look like, or who you love. It is our unfinished task to make sure that this government works on behalf of the many, and not just the few; that it encourages free enterprise, rewards individual initiative, and opens the doors of opportunity to every child across this great nation. (Applause.) The American people don’t expect government to solve every problem. They don’t expect those of us in this chamber to agree on every issue. But they do expect us to put the nation’s interests before party. (Applause.) They do expect us to forge reasonable compromise where we can. For they know that America moves forward only when we do so together, and that the responsibility of improving this union remains the task of us all. Our work must begin by making some basic decisions about our budget -- decisions that will have a huge impact on the strength of our recovery. Over the last few years, both parties have worked together to reduce the deficit by more than $2.5 trillion -- mostly through spending cuts, but also by raising tax rates on the wealthiest 1 percent of Americans. As a result, we are more than halfway towards the goal of $4 trillion in deficit reduction that economists say we need to stabilize our finances. Now we need to finish the job. And the question is, how? In 2011, Congress passed a law saying that if both parties couldn’t agree on a plan to reach our deficit goal, about a trillion dollars’ worth of budget cuts would automatically go into effect this year. These sudden, harsh, arbitrary cuts would jeopardize our military readiness. They’d devastate priorities like education, and energy, and medical research. They would certainly slow our recovery, and cost us hundreds of thousands of jobs. That’s why Democrats, Republicans, business leaders, and economists have already said that these cuts, known here in Washington as the sequester, are a really bad idea. Now, some in Congress have proposed preventing only the defense cuts by making even bigger cuts to things like education and job training, Medicare and Social Security benefits. That idea is even worse. (Applause.) Yes, the biggest driver of our long-term debt is the rising cost of health care for an aging population. And those of us who care deeply about programs like Medicare must embrace the need for modest reforms -- otherwise, our retirement programs will crowd out the investments we need for our children, and jeopardize the promise of a secure retirement for future generations. But we can’t ask senior citizens and working families to shoulder the entire burden of deficit reduction while asking nothing more from the wealthiest and the most powerful. (Applause.) We won’t grow the middle class simply by shifting the cost of health care or college onto families that are already struggling, or by forcing communities to lay off more teachers and more cops and more firefighters. Most Americans -- Democrats, Republicans, and independents -- understand that we can’t just cut our way to prosperity. They know that broad-based economic growth requires a balanced approach to deficit reduction, with spending cuts and revenue, and with everybody doing their fair share. And that’s the approach I offer tonight. On Medicare, I’m prepared to enact reforms that will achieve the same amount of health care savings by the beginning of the next decade as the reforms proposed by the bipartisan Simpson-Bowles commission. (Applause.) Already, the Affordable Care Act is helping to slow the growth of health care costs. (Applause.) And the reforms I’m proposing go even further. We’ll reduce taxpayer subsidies to prescription drug companies and ask more from the wealthiest seniors. (Applause.) We’ll bring down costs by changing the way our government pays for Medicare, because our medical bills shouldn’t be based on the number of tests ordered or days spent in the hospital; they should be based on the quality of care that our seniors receive. (Applause.) And I am open to additional reforms from both parties, so long as they don’t violate the guarantee of a secure retirement. Our government shouldn’t make promises we cannot keep -- but we must keep the promises we’ve already made. (Applause.) To hit the rest of our deficit reduction target, we should do what leaders in both parties have already suggested, and save hundreds of billions of dollars by getting rid of tax loopholes and deductions for the well-off and the well-connected. After all, why would we choose to make deeper cuts to education and Medicare just to protect special interest tax breaks? How is that fair? Why is it that deficit reduction is a big emergency justifying making cuts in Social Security benefits but not closing some loopholes? How does that promote growth? (Applause.) Now is our best chance for bipartisan, comprehensive tax reform that encourages job creation and helps bring down the deficit. (Applause.) We can get this done. The American people deserve a tax code that helps small businesses spend less time filling out complicated forms, and more time expanding and hiring -- a tax code that ensures billionaires with high-powered accountants can’t work the system and pay a lower rate than their hardworking secretaries; a tax code that lowers incentives to move jobs overseas, and lowers tax rates for businesses and manufacturers that are creating jobs right here in the United States of America. That’s what tax reform can deliver. That’s what we can do together. (Applause.) I realize that tax reform and entitlement reform will not be easy. The politics will be hard for both sides. None of us will get 100 percent of what we want. But the alternative will cost us jobs, hurt our economy, visit hardship on millions of hardworking Americans. So let’s set party interests aside and work to pass a budget that replaces reckless cuts with smart savings and wise investments in our future. And let’s do it without the brinksmanship that stresses consumers and scares off investors. (Applause.) The greatest nation on Earth cannot keep conducting its business by drifting from one manufactured crisis to the next. (Applause.) We can't do it. Let’s agree right here, right now to keep the people’s government open, and pay our bills on time, and always uphold the full faith and credit of the United States of America. (Applause.) The American people have worked too hard, for too long, rebuilding from one crisis to see their elected officials cause another. (Applause.) Now, most of us agree that a plan to reduce the deficit must be part of our agenda. But let’s be clear, deficit reduction alone is not an economic plan. (Applause.) A growing economy that creates good, middle-class jobs -- that must be the North Star that guides our efforts. (Applause.) Every day, we should ask ourselves three questions as a nation: How do we attract more jobs to our shores? How do we equip our people with the skills they need to get those jobs? And how do we make sure that hard work leads to a decent living? A year and a half ago, I put forward an American Jobs Act that independent economists said would create more than 1 million new jobs. And I thank the last Congress for passing some of that agenda. I urge this Congress to pass the rest. (Applause.) But tonight, I’ll lay out additional proposals that are fully paid for and fully consistent with the budget framework both parties agreed to just 18 months ago. Let me repeat -- nothing I’m proposing tonight should increase our deficit by a single dime. It is not a bigger government we need, but a smarter government that sets priorities and invests in broad-based growth. (Applause.) That's what we should be looking for. Our first priority is making America a magnet for new jobs and manufacturing. After shedding jobs for more than 10 years, our manufacturers have added about 500,000 jobs over the past three. Caterpillar is bringing jobs back from Japan. Ford is bringing jobs back from Mexico. And this year, Apple will start making Macs in America again. (Applause.) There are things we can do, right now, to accelerate this trend. Last year, we created our first manufacturing innovation institute in Youngstown, Ohio. A once-shuttered warehouse is now a state-of-the art lab where new workers are mastering the 3D printing that has the potential to revolutionize the way we make almost everything. There’s no reason this can’t happen in other towns. So tonight, I’m announcing the launch of three more of these manufacturing hubs, where businesses will partner with the Department of Defense and Energy to turn regions left behind by globalization into global centers of high-tech jobs. And I ask this Congress to help create a network of 15 of these hubs and guarantee that the next revolution in manufacturing is made right here in America. We can get that done. (Applause.) Now, if we want to make the best products, we also have to invest in the best ideas. Every dollar we invested to map the human genome returned $140 to our economy -- every dollar. Today, our scientists are mapping the human brain to unlock the answers to Alzheimer’s. They’re developing drugs to regenerate damaged organs; devising new material to make batteries 10 times more powerful. Now is not the time to gut these job-creating investments in science and innovation. Now is the time to reach a level of research and development not seen since the height of the Space Race. We need to make those investments. (Applause.) Today, no area holds more promise than our investments in American energy. After years of talking about it, we’re finally poised to control our own energy future. We produce more oil at home than we have in 15 years. (Applause.) We have doubled the distance our cars will go on a gallon of gas, and the amount of renewable energy we generate from sources like wind and solar -- with tens of thousands of good American jobs to show for it. We produce more natural gas than ever before -- and nearly everyone’s energy bill is lower because of it. And over the last four years, our emissions of the dangerous carbon pollution that threatens our planet have actually fallen. But for the sake of our children and our future, we must do more to combat climate change. (Applause.) Now, it’s true that no single event makes a trend. But the fact is the 12 hottest years on record have all come in the last 15. Heat waves, droughts, wildfires, floods -- all are now more frequent and more intense. We can choose to believe that Superstorm Sandy, and the most severe drought in decades, and the worst wildfires some states have ever seen were all just a freak coincidence. Or we can choose to believe in the overwhelming judgment of science -- and act before it’s too late. (Applause.) Now, the good news is we can make meaningful progress on this issue while driving strong economic growth. I urge this Congress to get together, pursue a bipartisan, market-based solution to climate change, like the one John McCain and Joe Lieberman worked on together a few years ago. But if Congress won’t act soon to protect future generations, I will. (Applause.) I will direct my Cabinet to come up with executive actions we can take, now and in the future, to reduce pollution, prepare our communities for the consequences of climate change, and speed the transition to more sustainable sources of energy. Four years ago, other countries dominated the clean energy market and the jobs that came with it. And we’ve begun to change that. Last year, wind energy added nearly half of all new power capacity in America. So let’s generate even more. Solar energy gets cheaper by the year -- let’s drive down costs even further. As long as countries like China keep going all in on clean energy, so must we. Now, in the meantime, the natural gas boom has led to cleaner power and greater energy independence. We need to encourage that. And that’s why my administration will keep cutting red tape and speeding up new oil and gas permits. (Applause.) That’s got to be part of an all-of-the-above plan. But I also want to work with this Congress to encourage the research and technology that helps natural gas burn even cleaner and protects our air and our water. In fact, much of our new-found energy is drawn from lands and waters that we, the public, own together. So tonight, I propose we use some of our oil and gas revenues to fund an Energy Security Trust that will drive new research and technology to shift our cars and trucks off oil for good. If a nonpartisan coalition of CEOs and retired generals and admirals can get behind this idea, then so can we. Let’s take their advice and free our families and businesses from the painful spikes in gas prices we’ve put up with for far too long. I’m also issuing a new goal for America: Let’s cut in half the energy wasted by our homes and businesses over the next 20 years. (Applause.) We'll work with the states to do it. Those states with the best ideas to create jobs and lower energy bills by constructing more efficient buildings will receive federal support to help make that happen. America’s energy sector is just one part of an aging infrastructure badly in need of repair. Ask any CEO where they’d rather locate and hire -- a country with deteriorating roads and bridges, or one with high-speed rail and Internet; high-tech schools, self-healing power grids. The CEO of Siemens America -- a company that brought hundreds of new jobs to North Carolina -- said that if we upgrade our infrastructure, they’ll bring even more jobs. And that’s the attitude of a lot of companies all around the world. And I know you want these job-creating projects in your district. I’ve seen all those ribbon-cuttings. (Laughter.) So tonight, I propose a “Fix-It-First” program to put people to work as soon as possible on our most urgent repairs, like the nearly 70,000 structurally deficient bridges across the country. (Applause.) And to make sure taxpayers don’t shoulder the whole burden, I’m also proposing a Partnership to Rebuild America that attracts private capital to upgrade what our businesses need most: modern ports to move our goods, modern pipelines to withstand a storm, modern schools worthy of our children. (Applause.) Let’s prove that there’s no better place to do business than here in the United States of America, and let’s start right away. We can get this done. And part of our rebuilding effort must also involve our housing sector. The good news is our housing market is finally healing from the collapse of 2007. Home prices are rising at the fastest pace in six years. Home purchases are up nearly 50 percent, and construction is expanding again. But even with mortgage rates near a 50-year low, too many families with solid credit who want to buy a home are being rejected. Too many families who never missed a payment and want to refinance are being told no. That’s holding our entire economy back. We need to fix it. Right now, there’s a bill in this Congress that would give every responsible homeowner in America the chance to save $3,000 a year by refinancing at today’s rates. Democrats and Republicans have supported it before, so what are we waiting for? Take a vote, and send me that bill. (Applause.) Why would we be against that? (Applause.) Why would that be a partisan issue, helping folks refinance? Right now, overlapping regulations keep responsible young families from buying their first home. What’s holding us back? Let’s streamline the process, and help our economy grow. These initiatives in manufacturing, energy, infrastructure, housing -- all these things will help entrepreneurs and small business owners expand and create new jobs. But none of it will matter unless we also equip our citizens with the skills and training to fill those jobs. (Applause.) And that has to start at the earliest possible age. Study after study shows that the sooner a child begins learning, the better he or she does down the road. But today, fewer than 3 in 10 four year-olds are enrolled in a high-quality preschool program. Most middle-class parents can’t afford a few hundred bucks a week for a private preschool. And for poor kids who need help the most, this lack of access to preschool education can shadow them for the rest of their lives. So tonight, I propose working with states to make high-quality preschool available to every single child in America. (Applause.) That's something we should be able to do. Every dollar we invest in high-quality early childhood education can save more than seven dollars later on -- by boosting graduation rates, reducing teen pregnancy, even reducing violent crime. In states that make it a priority to educate our youngest children, like Georgia or Oklahoma, studies show students grow up more likely to read and do math at grade level, graduate high school, hold a job, form more stable families of their own. We know this works. So let’s do what works and make sure none of our children start the race of life already behind. Let’s give our kids that chance. (Applause.) Let’s also make sure that a high school diploma puts our kids on a path to a good job. Right now, countries like Germany focus on graduating their high school students with the equivalent of a technical degree from one of our community colleges. So those German kids, they're ready for a job when they graduate high school. They've been trained for the jobs that are there. Now at schools like P-Tech in Brooklyn, a collaboration between New York Public Schools and City University of New York and IBM, students will graduate with a high school diploma and an associate's degree in computers or engineering. We need to give every American student opportunities like this. (Applause.) And four years ago, we started Race to the Top -- a competition that convinced almost every state to develop smarter curricula and higher standards, all for about 1 percent of what we spend on education each year. Tonight, I’m announcing a new challenge to redesign America’s high schools so they better equip graduates for the demands of a high-tech economy. And we’ll reward schools that develop new partnerships with colleges and employers, and create classes that focus on science, technology, engineering and math -- the skills today’s employers are looking for to fill the jobs that are there right now and will be there in the future. Now, even with better high schools, most young people will need some higher education. It’s a simple fact the more education you’ve got, the more likely you are to have a good job and work your way into the middle class. But today, skyrocketing costs price too many young people out of a higher education, or saddle them with unsustainable debt. Through tax credits, grants and better loans, we’ve made college more affordable for millions of students and families over the last few years. But taxpayers can’t keep on subsidizing higher and higher and higher costs for higher education. Colleges must do their part to keep costs down, and it’s our job to make sure that they do. (Applause.) So tonight, I ask Congress to change the Higher Education Act so that affordability and value are included in determining which colleges receive certain types of federal aid. (Applause.) And tomorrow, my administration will release a new “College Scorecard” that parents and students can use to compare schools based on a simple criteria -- where you can get the most bang for your educational buck. Now, to grow our middle class, our citizens have to have access to the education and training that today’s jobs require. But we also have to make sure that America remains a place where everyone who’s willing to work -- everybody who’s willing to work hard has the chance to get ahead. Our economy is stronger when we harness the talents and ingenuity of striving, hopeful immigrants. (Applause.) And right now, leaders from the business, labor, law enforcement, faith communities -- they all agree that the time has come to pass comprehensive immigration reform. (Applause.) Now is the time to do it. Now is the time to get it done. Now is the time to get it done. (Applause.) Real reform means strong border security, and we can build on the progress my administration has already made -- putting more boots on the Southern border than at any time in our history and reducing illegal crossings to their lowest levels in 40 years. Real reform means establishing a responsible pathway to earned citizenship -- a path that includes passing a background check, paying taxes and a meaningful penalty, learning English, and going to the back of the line behind the folks trying to come here legally. (Applause.) And real reform means fixing the legal immigration system to cut waiting periods and attract the highly-skilled entrepreneurs and engineers that will help create jobs and grow our economy. (Applause.) In other words, we know what needs to be done. And as we speak, bipartisan groups in both chambers are working diligently to draft a bill, and I applaud their efforts. So let’s get this done. Send me a comprehensive immigration reform bill in the next few months, and I will sign it right away. And America will be better for it. (Applause.) Let’s get it done. Let’s get it done. But we can’t stop there. We know our economy is stronger when our wives, our mothers, our daughters can live their lives free from discrimination in the workplace, and free from the fear of domestic violence. Today, the Senate passed the Violence Against Women Act that Joe Biden originally wrote almost 20 years ago. And I now urge the House to do the same. (Applause.) Good job, Joe. And I ask this Congress to declare that women should earn a living equal to their efforts, and finally pass the Paycheck Fairness Act this year. (Applause.) We know our economy is stronger when we reward an honest day’s work with honest wages. But today, a full-time worker making the minimum wage earns $14,500 a year. Even with the tax relief we put in place, a family with two kids that earns the minimum wage still lives below the poverty line. That’s wrong. That’s why, since the last time this Congress raised the minimum wage, 19 states have chosen to bump theirs even higher. Tonight, let’s declare that in the wealthiest nation on Earth, no one who works full-time should have to live in poverty, and raise the federal minimum wage to $9.00 an hour. (Applause.) We should be able to get that done. (Applause.) This single step would raise the incomes of millions of working families. It could mean the difference between groceries or the food bank; rent or eviction; scraping by or finally getting ahead. For businesses across the country, it would mean customers with more money in their pockets. And a whole lot of folks out there would probably need less help from government. In fact, working folks shouldn’t have to wait year after year for the minimum wage to go up while CEO pay has never been higher. So here’s an idea that Governor Romney and I actually agreed on last year -- let’s tie the minimum wage to the cost of living, so that it finally becomes a wage you can live on. (Applause.) Tonight, let’s also recognize that there are communities in this country where no matter how hard you work, it is virtually impossible to get ahead. Factory towns decimated from years of plants packing up. Inescapable pockets of poverty, urban and rural, where young adults are still fighting for their first job. America is not a place where the chance of birth or circumstance should decide our destiny. And that’s why we need to build new ladders of opportunity into the middle class for all who are willing to climb them. Let’s offer incentives to companies that hire Americans who’ve got what it takes to fill that job opening, but have been out of work so long that no one will give them a chance anymore. Let’s put people back to work rebuilding vacant homes in run-down neighborhoods. And this year, my administration will begin to partner with 20 of the hardest-hit towns in America to get these communities back on their feet. We’ll work with local leaders to target resources at public safety, and education, and housing. We’ll give new tax credits to businesses that hire and invest. And we’ll work to strengthen families by removing the financial deterrents to marriage for low-income couples, and do more to encourage fatherhood -- because what makes you a man isn’t the ability to conceive a child; it’s having the courage to raise one. And we want to encourage that. We want to help that. (Applause.) Stronger families. Stronger communities. A stronger America. It is this kind of prosperity -- broad, shared, built on a thriving middle class -- that has always been the source of our progress at home. It’s also the foundation of our power and influence throughout the world. Tonight, we stand united in saluting the troops and civilians who sacrifice every day to protect us. Because of them, we can say with confidence that America will complete its mission in Afghanistan and achieve our objective of defeating the core of al Qaeda. (Applause.) Already, we have brought home 33,000 of our brave servicemen and women. This spring, our forces will move into a support role, while Afghan security forces take the lead. Tonight, I can announce that over the next year, another 34,000 American troops will come home from Afghanistan. This drawdown will continue and by the end of next year, our war in Afghanistan will be over. (Applause.) Beyond 2014, America’s commitment to a unified and sovereign Afghanistan will endure, but the nature of our commitment will change. We're negotiating an agreement with the Afghan government that focuses on two missions -- training and equipping Afghan forces so that the country does not again slip into chaos, and counterterrorism efforts that allow us to pursue the remnants of al Qaeda and their affiliates. Today, the organization that attacked us on 9/11 is a shadow of its former self. (Applause.) It's true, different al Qaeda affiliates and extremist groups have emerged -- from the Arabian Peninsula to Africa. The threat these groups pose is evolving. But to meet this threat, we don’t need to send tens of thousands of our sons and daughters abroad or occupy other nations. Instead, we'll need to help countries like Yemen, and Libya, and Somalia provide for their own security, and help allies who take the fight to terrorists, as we have in Mali. And where necessary, through a range of capabilities, we will continue to take direct action against those terrorists who pose the gravest threat to Americans. (Applause.) Now, as we do, we must enlist our values in the fight. That's why my administration has worked tirelessly to forge a durable legal and policy framework to guide our counterterrorism efforts. Throughout, we have kept Congress fully informed of our efforts. I recognize that in our democracy, no one should just take my word for it that we’re doing things the right way. So in the months ahead, I will continue to engage Congress to ensure not only that our targeting, detention and prosecution of terrorists remains consistent with our laws and system of checks and balances, but that our efforts are even more transparent to the American people and to the world. (Applause.) Of course, our challenges don’t end with al Qaeda. America will continue to lead the effort to prevent the spread of the world’s most dangerous weapons. The regime in North Korea must know they will only achieve security and prosperity by meeting their international obligations. Provocations of the sort we saw last night will only further isolate them, as we stand by our allies, strengthen our own missile defense and lead the world in taking firm action in response to these threats. Likewise, the leaders of Iran must recognize that now is the time for a diplomatic solution, because a coalition stands united in demanding that they meet their obligations, and we will do what is necessary to prevent them from getting a nuclear weapon. (Applause.) At the same time, we’ll engage Russia to seek further reductions in our nuclear arsenals, and continue leading the global effort to secure nuclear materials that could fall into the wrong hands -- because our ability to influence others depends on our willingness to lead and meet our obligations. America must also face the rapidly growing threat from cyber-attacks. (Applause.) Now, we know hackers steal people’s identities and infiltrate private emails. We know foreign countries and companies swipe our corporate secrets. Now our enemies are also seeking the ability to sabotage our power grid, our financial institutions, our air traffic control systems. We cannot look back years from now and wonder why we did nothing in the face of real threats to our security and our economy. And that’s why, earlier today, I signed a new executive order that will strengthen our cyber defenses by increasing information sharing, and developing standards to protect our national security, our jobs, and our privacy. (Applause.) But now Congress must act as well, by passing legislation to give our government a greater capacity to secure our networks and deter attacks. This is something we should be able to get done on a bipartisan basis. (Applause.) Now, even as we protect our people, we should remember that today’s world presents not just dangers, not just threats, it presents opportunities. To boost American exports, support American jobs and level the playing field in the growing markets of Asia, we intend to complete negotiations on a Trans-Pacific Partnership. And tonight, I’m announcing that we will launch talks on a comprehensive Transatlantic Trade and Investment Partnership with the European Union -- because trade that is fair and free across the Atlantic supports millions of good-paying American jobs. (Applause.) We also know that progress in the most impoverished parts of our world enriches us all -- not only because it creates new markets, more stable order in certain regions of the world, but also because it’s the right thing to do. In many places, people live on little more than a dollar a day. So the United States will join with our allies to eradicate such extreme poverty in the next two decades by connecting more people to the global economy; by empowering women; by giving our young and brightest minds new opportunities to serve, and helping communities to feed, and power, and educate themselves; by saving the world’s children from preventable deaths; and by realizing the promise of an AIDS-free generation, which is within our reach. (Applause.) You see, America must remain a beacon to all who seek freedom during this period of historic change. I saw the power of hope last year in Rangoon, in Burma, when Aung San Suu Kyi welcomed an American President into the home where she had been imprisoned for years; when thousands of Burmese lined the streets, waving American flags, including a man who said, “There is justice and law in the United States. I want our country to be like that.” In defense of freedom, we’ll remain the anchor of strong alliances from the Americas to Africa; from Europe to Asia. In the Middle East, we will stand with citizens as they demand their universal rights, and support stable transitions to democracy. (Applause.) We know the process will be messy, and we cannot presume to dictate the course of change in countries like Egypt, but we can -- and will -- insist on respect for the fundamental rights of all people. We’ll keep the pressure on a Syrian regime that has murdered its own people, and support opposition leaders that respect the rights of every Syrian. And we will stand steadfast with Israel in pursuit of security and a lasting peace. (Applause.) These are the messages I'll deliver when I travel to the Middle East next month. And all this work depends on the courage and sacrifice of those who serve in dangerous places at great personal risk –- our diplomats, our intelligence officers, and the men and women of the United States Armed Forces. As long as I’m Commander-in-Chief, we will do whatever we must to protect those who serve their country abroad, and we will maintain the best military the world has ever known. (Applause.) We'll invest in new capabilities, even as we reduce waste and wartime spending. We will ensure equal treatment for all servicemembers, and equal benefits for their families -- gay and straight. (Applause.) We will draw upon the courage and skills of our sisters and daughters and moms, because women have proven under fire that they are ready for combat. We will keep faith with our veterans, investing in world-class care, including mental health care, for our wounded warriors -- (applause) -- supporting our military families; giving our veterans the benefits and education and job opportunities that they have earned. And I want to thank my wife, Michelle, and Dr. Jill Biden for their continued dedication to serving our military families as well as they have served us. Thank you, honey. Thank you, Jill. (Applause.) Defending our freedom, though, is not just the job of our military alone. We must all do our part to make sure our God-given rights are protected here at home. That includes one of the most fundamental right of a democracy: the right to vote. (Applause.) When any American, no matter where they live or what their party, are denied that right because they can’t afford to wait for five or six or seven hours just to cast their ballot, we are betraying our ideals. (Applause.) So tonight, I’m announcing a nonpartisan commission to improve the voting experience in America. And it definitely needs improvement. I’m asking two long-time experts in the field -- who, by the way, recently served as the top attorneys for my campaign and for Governor Romney’s campaign -- to lead it. We can fix this, and we will. The American people demand it, and so does our democracy. (Applause.) Of course, what I’ve said tonight matters little if we don’t come together to protect our most precious resource: our children. It has been two months since Newtown. I know this is not the first time this country has debated how to reduce gun violence. But this time is different. Overwhelming majorities of Americans -- Americans who believe in the Second Amendment -- have come together around common-sense reform, like background checks that will make it harder for criminals to get their hands on a gun. (Applause.) Senators of both parties are working together on tough new laws to prevent anyone from buying guns for resale to criminals. Police chiefs are asking our help to get weapons of war and massive ammunition magazines off our streets, because these police chiefs, they’re tired of seeing their guys and gals being outgunned. Each of these proposals deserves a vote in Congress. (Applause.) Now, if you want to vote no, that’s your choice. But these proposals deserve a vote. Because in the two months since Newtown, more than a thousand birthdays, graduations, anniversaries have been stolen from our lives by a bullet from a gun -- more than a thousand. One of those we lost was a young girl named Hadiya Pendleton. She was 15 years old. She loved Fig Newtons and lip gloss. She was a majorette. She was so good to her friends they all thought they were her best friend. Just three weeks ago, she was here, in Washington, with her classmates, performing for her country at my inauguration. And a week later, she was shot and killed in a Chicago park after school, just a mile away from my house. Hadiya’s parents, Nate and Cleo, are in this chamber tonight, along with more than two dozen Americans whose lives have been torn apart by gun violence. They deserve a vote. They deserve a vote. (Applause.) Gabby Giffords deserves a vote. (Applause.) The families of Newtown deserve a vote. (Applause.) The families of Aurora deserve a vote. (Applause.) The families of Oak Creek and Tucson and Blacksburg, and the countless other communities ripped open by gun violence –- they deserve a simple vote. (Applause.) They deserve a simple vote. Our actions will not prevent every senseless act of violence in this country. In fact, no laws, no initiatives, no administrative acts will perfectly solve all the challenges I’ve outlined tonight. But we were never sent here to be perfect. We were sent here to make what difference we can, to secure this nation, expand opportunity, uphold our ideals through the hard, often frustrating, but absolutely necessary work of self-government. We were sent here to look out for our fellow Americans the same way they look out for one another, every single day, usually without fanfare, all across this country. We should follow their example. We should follow the example of a New York City nurse named Menchu Sanchez. When Hurricane Sandy plunged her hospital into darkness, she wasn’t thinking about how her own home was faring. Her mind was on the 20 precious newborns in her care and the rescue plan she devised that kept them all safe. We should follow the example of a North Miami woman named Desiline Victor. When Desiline arrived at her polling place, she was told the wait to vote might be six hours. And as time ticked by, her concern was not with her tired body or aching feet, but whether folks like her would get to have their say. And hour after hour, a throng of people stayed in line to support her -- because Desiline is 102 years old. (Applause.) And they erupted in cheers when she finally put on a sticker that read, “I voted.” (Applause.) We should follow the example of a police officer named Brian Murphy. When a gunman opened fire on a Sikh temple in Wisconsin and Brian was the first to arrive, he did not consider his own safety. He fought back until help arrived and ordered his fellow officers to protect the safety of the Americans worshiping inside, even as he lay bleeding from 12 bullet wounds. And when asked how he did that, Brian said, “That’s just the way we’re made.” That’s just the way we’re made. We may do different jobs and wear different uniforms, and hold different views than the person beside us. But as Americans, we all share the same proud title -- we are citizens. It’s a word that doesn’t just describe our nationality or legal status. It describes the way we’re made. It describes what we believe. It captures the enduring idea that this country only works when we accept certain obligations to one another and to future generations, that our rights are wrapped up in the rights of others; and that well into our third century as a nation, it remains the task of us all, as citizens of these United States, to be the authors of the next great chapter of our American story. Thank you. God bless you, and God bless these United States of America.

US

Mr. Speaker, Mr. Vice President, Members of Congress, my fellow Americans: Today in America, a teacher spent extra time with a student who needed it, and did her part to lift America’s graduation rate to its highest level in more than three decades. An entrepreneur flipped on the lights in her tech startup, and did her part to add to the more than eight million new jobs our businesses have created over the past four years. An autoworker fine-tuned some of the best, most fuel-efficient cars in the world, and did his part to help America wean itself off foreign oil. A farmer prepared for the spring after the strongest five-year stretch of farm exports in our history. A rural doctor gave a young child the first prescription to treat asthma that his mother could afford. A man took the bus home from the graveyard shift, bone-tired but dreaming big dreams for his son. And in tight-knit communities across America, fathers and mothers will tuck in their kids, put an arm around their spouse, remember fallen comrades, and give thanks for being home from a war that, after twelve long years, is finally coming to an end. Tonight, this chamber speaks with one voice to the people we represent: it is you, our citizens, who make the state of our union strong. Here are the results of your efforts: The lowest unemployment rate in over five years. A rebounding housing market. A manufacturing sector that’s adding jobs for the first time since the 1990s. More oil produced at home than we buy from the rest of the world – the first time that’s happened in nearly twenty years. Our deficits – cut by more than half. And for the first time in over a decade, business leaders around the world have declared that China is no longer the world’s number one place to invest; America is. That’s why I believe this can be a breakthrough year for America. After five years of grit and determined effort, the United States is better-positioned for the 21st century than any other nation on Earth. The question for everyone in this chamber, running through every decision we make this year, is whether we are going to help or hinder this progress. For several years now, this town has been consumed by a rancorous argument over the proper size of the federal government. It’s an important debate – one that dates back to our very founding. But when that debate prevents us from carrying out even the most basic functions of our democracy – when our differences shut down government or threaten the full faith and credit of the United States – then we are not doing right by the American people. As President, I’m committed to making Washington work better, and rebuilding the trust of the people who sent us here. I believe most of you are, too. Last month, thanks to the work of Democrats and Republicans, this Congress finally produced a budget that undoes some of last year’s severe cuts to priorities like education. Nobody got everything they wanted, and we can still do more to invest in this country’s future while bringing down our deficit in a balanced way. But the budget compromise should leave us freer to focus on creating new jobs, not creating new crises. In the coming months, let’s see where else we can make progress together. Let’s make this a year of action. That’s what most Americans want – for all of us in this chamber to focus on their lives, their hopes, their aspirations. And what I believe unites the people of this nation, regardless of race or region or party, young or old, rich or poor, is the simple, profound belief in opportunity for all – the notion that if you work hard and take responsibility, you can get ahead. Let’s face it: that belief has suffered some serious blows. Over more than three decades, even before the Great Recession hit, massive shifts in technology and global competition had eliminated a lot of good, middle-class jobs, and weakened the economic foundations that families depend on. Today, after four years of economic growth, corporate profits and stock prices have rarely been higher, and those at the top have never done better. But average wages have barely budged. Inequality has deepened. Upward mobility has stalled. The cold, hard fact is that even in the midst of recovery, too many Americans are working more than ever just to get by – let alone get ahead. And too many still aren’t working at all. Our job is to reverse these trends. It won’t happen right away, and we won’t agree on everything. But what I offer tonight is a set of concrete, practical proposals to speed up growth, strengthen the middle class, and build new ladders of opportunity into the middle class. Some require Congressional action, and I’m eager to work with all of you. But America does not stand still – and neither will I. So wherever and whenever I can take steps without legislation to expand opportunity for more American families, that’s what I’m going to do. As usual, our First Lady sets a good example. Michelle’s Let’s Move partnership with schools, businesses, and local leaders has helped bring down childhood obesity rates for the first time in thirty years – an achievement that will improve lives and reduce health care costs for decades to come. The Joining Forces alliance that Michelle and Jill Biden launched has already encouraged employers to hire or train nearly 400,000 veterans and military spouses. Taking a page from that playbook, the White House just organized a College Opportunity Summit where already, 150 universities, businesses, and nonprofits have made concrete commitments to reduce inequality in access to higher education – and help every hardworking kid go to college and succeed when they get to campus. Across the country, we’re partnering with mayors, governors, and state legislatures on issues from homelessness to marriage equality. The point is, there are millions of Americans outside Washington who are tired of stale political arguments, and are moving this country forward. They believe, and I believe, that here in America, our success should depend not on accident of birth, but the strength of our work ethic and the scope of our dreams. That’s what drew our forebears here. It’s how the daughter of a factory worker is CEO of America’s largest automaker; how the son of a barkeeper is Speaker of the House; how the son of a single mom can be President of the greatest nation on Earth. Opportunity is who we are. And the defining project of our generation is to restore that promise. We know where to start: the best measure of opportunity is access to a good job. With the economy picking up speed, companies say they intend to hire more people this year. And over half of big manufacturers say they’re thinking of insourcing jobs from abroad. So let’s make that decision easier for more companies. Both Democrats and Republicans have argued that our tax code is riddled with wasteful, complicated loopholes that punish businesses investing here, and reward companies that keep profits abroad. Let’s flip that equation. Let’s work together to close those loopholes, end those incentives to ship jobs overseas, and lower tax rates for businesses that create jobs here at home. Moreover, we can take the money we save with this transition to tax reform to create jobs rebuilding our roads, upgrading our ports, unclogging our commutes – because in today’s global economy, first-class jobs gravitate to first-class infrastructure. We’ll need Congress to protect more than three million jobs by finishing transportation and waterways bills this summer. But I will act on my own to slash bureaucracy and streamline the permitting process for key projects, so we can get more construction workers on the job as fast as possible. We also have the chance, right now, to beat other countries in the race for the next wave of high-tech manufacturing jobs. My administration has launched two hubs for high-tech manufacturing in Raleigh and Youngstown, where we’ve connected businesses to research universities that can help America lead the world in advanced technologies. Tonight, I’m announcing we’ll launch six more this year. Bipartisan bills in both houses could double the number of these hubs and the jobs they create. So get those bills to my desk and put more Americans back to work. Let’s do more to help the entrepreneurs and small business owners who create most new jobs in America. Over the past five years, my administration has made more loans to small business owners than any other. And when ninety-eight percent of our exporters are small businesses, new trade partnerships with Europe and the Asia-Pacific will help them create more jobs. We need to work together on tools like bipartisan trade promotion authority to protect our workers, protect our environment, and open new markets to new goods stamped “Made in the USA.” China and Europe aren’t standing on the sidelines. Neither should we. We know that the nation that goes all-in on innovation today will own the global economy tomorrow. This is an edge America cannot surrender. Federally-funded research helped lead to the ideas and inventions behind Google and smartphones. That’s why Congress should undo the damage done by last year’s cuts to basic research so we can unleash the next great American discovery – whether it’s vaccines that stay ahead of drug-resistant bacteria, or paper-thin material that’s stronger than steel. And let’s pass a patent reform bill that allows our businesses to stay focused on innovation, not costly, needless litigation. Now, one of the biggest factors in bringing more jobs back is our commitment to American energy. The all-of-the-above energy strategy I announced a few years ago is working, and today, America is closer to energy independence than we’ve been in decades. One of the reasons why is natural gas – if extracted safely, it’s the bridge fuel that can power our economy with less of the carbon pollution that causes climate change. Businesses plan to invest almost $100 billion in new factories that use natural gas. I’ll cut red tape to help states get those factories built, and this Congress can help by putting people to work building fueling stations that shift more cars and trucks from foreign oil to American natural gas. My administration will keep working with the industry to sustain production and job growth while strengthening protection of our air, our water, and our communities. And while we’re at it, I’ll use my authority to protect more of our pristine federal lands for future generations. It’s not just oil and natural gas production that’s booming; we’re becoming a global leader in solar, too. Every four minutes, another American home or business goes solar; every panel pounded into place by a worker whose job can’t be outsourced. Let’s continue that progress with a smarter tax policy that stops giving $4 billion a year to fossil fuel industries that don’t need it, so that we can invest more in fuels of the future that do. And even as we’ve increased energy production, we’ve partnered with businesses, builders, and local communities to reduce the energy we consume. When we rescued our automakers, for example, we worked with them to set higher fuel efficiency standards for our cars. In the coming months, I’ll build on that success by setting new standards for our trucks, so we can keep driving down oil imports and what we pay at the pump. Taken together, our energy policy is creating jobs and leading to a cleaner, safer planet. Over the past eight years, the United States has reduced our total carbon pollution more than any other nation on Earth. But we have to act with more urgency – because a changing climate is already harming western communities struggling with drought, and coastal cities dealing with floods. That’s why I directed my administration to work with states, utilities, and others to set new standards on the amount of carbon pollution our power plants are allowed to dump into the air. The shift to a cleaner energy economy won’t happen overnight, and it will require tough choices along the way. But the debate is settled. Climate change is a fact. And when our children’s children look us in the eye and ask if we did all we could to leave them a safer, more stable world, with new sources of energy, I want us to be able to say yes, we did. Finally, if we are serious about economic growth, it is time to heed the call of business leaders, labor leaders, faith leaders, and law enforcement – and fix our broken immigration system. Republicans and Democrats in the Senate have acted. I know that members of both parties in the House want to do the same. Independent economists say immigration reform will grow our economy and shrink our deficits by almost $1 trillion in the next two decades. And for good reason: when people come here to fulfill their dreams – to study, invent, and contribute to our culture – they make our country a more attractive place for businesses to locate and create jobs for everyone. So let’s get immigration reform done this year. The ideas I’ve outlined so far can speed up growth and create more jobs. But in this rapidly-changing economy, we have to make sure that every American has the skills to fill those jobs. The good news is, we know how to do it. Two years ago, as the auto industry came roaring back, Andra Rush opened up a manufacturing firm in Detroit. She knew that Ford needed parts for the best-selling truck in America, and she knew how to make them. She just needed the workforce. So she dialed up what we call an American Job Center – places where folks can walk in to get the help or training they need to find a new job, or better job. She was flooded with new workers. And today, Detroit Manufacturing Systems has more than 700 employees. What Andra and her employees experienced is how it should be for every employer – and every job seeker. So tonight, I’ve asked Vice President Biden to lead an across-the-board reform of America’s training programs to make sure they have one mission: train Americans with the skills employers need, and match them to good jobs that need to be filled right now. That means more on-the-job training, and more apprenticeships that set a young worker on an upward trajectory for life. It means connecting companies to community colleges that can help design training to fill their specific needs. And if Congress wants to help, you can concentrate funding on proven programs that connect more ready-to-work Americans with ready-to-be-filled jobs. I’m also convinced we can help Americans return to the workforce faster by reforming unemployment insurance so that it’s more effective in today’s economy. But first, this Congress needs to restore the unemployment insurance you just let expire for 1.6 million people. Let me tell you why. Misty DeMars is a mother of two young boys. She’d been steadily employed since she was a teenager. She put herself through college. She’d never collected unemployment benefits. In May, she and her husband used their life savings to buy their first home. A week later, budget cuts claimed the job she loved. Last month, when their unemployment insurance was cut off, she sat down and wrote me a letter – the kind I get every day. “We are the face of the unemployment crisis,” she wrote. “I am not dependent on the government…Our country depends on people like us who build careers, contribute to society…care about our neighbors…I am confident that in time I will find a job…I will pay my taxes, and we will raise our children in their own home in the community we love. Please give us this chance.” Congress, give these hardworking, responsible Americans that chance. They need our help, but more important, this country needs them in the game. That’s why I’ve been asking CEOs to give more long-term unemployed workers a fair shot at that new job and new chance to support their families; this week, many will come to the White House to make that commitment real. Tonight, I ask every business leader in America to join us and to do the same – because we are stronger when America fields a full team. Of course, it’s not enough to train today’s workforce. We also have to prepare tomorrow’s workforce, by guaranteeing every child access to a world-class education. Estiven Rodriguez couldn’t speak a word of English when he moved to New York City at age nine. But last month, thanks to the support of great teachers and an innovative tutoring program, he led a march of his classmates – through a crowd of cheering parents and neighbors – from their high school to the post office, where they mailed off their college applications. And this son of a factory worker just found out he’s going to college this fall. Five years ago, we set out to change the odds for all our kids. We worked with lenders to reform student loans, and today, more young people are earning college degrees than ever before. Race to the Top, with the help of governors from both parties, has helped states raise expectations and performance. Teachers and principals in schools from Tennessee to Washington, D.C. are making big strides in preparing students with skills for the new economy – problem solving, critical thinking, science, technology, engineering, and math. Some of this change is hard. It requires everything from more challenging curriculums and more demanding parents to better support for teachers and new ways to measure how well our kids think, not how well they can fill in a bubble on a test. But it’s worth it – and it’s working. The problem is we’re still not reaching enough kids, and we’re not reaching them in time. That has to change. Research shows that one of the best investments we can make in a child’s life is high-quality early education. Last year, I asked this Congress to help states make high-quality pre-K available to every four year-old. As a parent as well as a President, I repeat that request tonight. But in the meantime, thirty states have raised pre-k funding on their own. They know we can’t wait. So just as we worked with states to reform our schools, this year, we’ll invest in new partnerships with states and communities across the country in a race to the top for our youngest children. And as Congress decides what it’s going to do, I’m going to pull together a coalition of elected officials, business leaders, and philanthropists willing to help more kids access the high-quality pre-K they need. Last year, I also pledged to connect 99 percent of our students to high-speed broadband over the next four years. Tonight, I can announce that with the support of the FCC and companies like Apple, Microsoft, Sprint, and Verizon, we’ve got a down payment to start connecting more than 15,000 schools and twenty million students over the next two years, without adding a dime to the deficit. We’re working to redesign high schools and partner them with colleges and employers that offer the real-world education and hands-on training that can lead directly to a job and career. We’re shaking up our system of higher education to give parents more information, and colleges more incentives to offer better value, so that no middle-class kid is priced out of a college education. We’re offering millions the opportunity to cap their monthly student loan payments to ten percent of their income, and I want to work with Congress to see how we can help even more Americans who feel trapped by student loan debt. And I’m reaching out to some of America’s leading foundations and corporations on a new initiative to help more young men of color facing tough odds stay on track and reach their full potential. The bottom line is, Michelle and I want every child to have the same chance this country gave us. But we know our opportunity agenda won’t be complete – and too many young people entering the workforce today will see the American Dream as an empty promise – unless we do more to make sure our economy honors the dignity of work, and hard work pays off for every single American. Today, women make up about half our workforce. But they still make 77 cents for every dollar a man earns. That is wrong, and in 2014, it’s an embarrassment. A woman deserves equal pay for equal work. She deserves to have a baby without sacrificing her job. A mother deserves a day off to care for a sick child or sick parent without running into hardship – and you know what, a father does, too. It’s time to do away with workplace policies that belong in a “Mad Men” episode. This year, let’s all come together – Congress, the White House, and businesses from Wall Street to Main Street – to give every woman the opportunity she deserves. Because I firmly believe when women succeed, America succeeds. Now, women hold a majority of lower-wage jobs – but they’re not the only ones stifled by stagnant wages. Americans understand that some people will earn more than others, and we don’t resent those who, by virtue of their efforts, achieve incredible success. But Americans overwhelmingly agree that no one who works full time should ever have to raise a family in poverty. In the year since I asked this Congress to raise the minimum wage, five states have passed laws to raise theirs. Many businesses have done it on their own. Nick Chute is here tonight with his boss, John Soranno. John’s an owner of Punch Pizza in Minneapolis, and Nick helps make the dough. Only now he makes more of it: John just gave his employees a raise, to ten bucks an hour – a decision that eased their financial stress and boosted their morale. Tonight, I ask more of America’s business leaders to follow John’s lead and do what you can to raise your employees’ wages. To every mayor, governor, and state legislator in America, I say, you don’t have to wait for Congress to act; Americans will support you if you take this on. And as a chief executive, I intend to lead by example. Profitable corporations like Costco see higher wages as the smart way to boost productivity and reduce turnover. We should too. In the coming weeks, I will issue an Executive Order requiring federal contractors to pay their federally-funded employees a fair wage of at least $10.10 an hour – because if you cook our troops’ meals or wash their dishes, you shouldn’t have to live in poverty. Of course, to reach millions more, Congress needs to get on board. Today, the federal minimum wage is worth about twenty percent less than it was when Ronald Reagan first stood here. Tom Harkin and George Miller have a bill to fix that by lifting the minimum wage to $10.10. This will help families. It will give businesses customers with more money to spend. It doesn’t involve any new bureaucratic program. So join the rest of the country. Say yes. Give America a raise. There are other steps we can take to help families make ends meet, and few are more effective at reducing inequality and helping families pull themselves up through hard work than the Earned Income Tax Credit. Right now, it helps about half of all parents at some point. But I agree with Republicans like Senator Rubio that it doesn’t do enough for single workers who don’t have kids. So let’s work together to strengthen the credit, reward work, and help more Americans get ahead. Let’s do more to help Americans save for retirement. Today, most workers don’t have a pension. A Social Security check often isn’t enough on its own. And while the stock market has doubled over the last five years, that doesn’t help folks who don’t have 401ks. That’s why, tomorrow, I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It’s a new savings bond that encourages folks to build a nest egg. MyRA guarantees a decent return with no risk of losing what you put in. And if this Congress wants to help, work with me to fix an upside-down tax code that gives big tax breaks to help the wealthy save, but does little to nothing for middle-class Americans. Offer every American access to an automatic IRA on the job, so they can save at work just like everyone in this chamber can. And since the most important investment many families make is their home, send me legislation that protects taxpayers from footing the bill for a housing crisis ever again, and keeps the dream of homeownership alive for future generations of Americans. One last point on financial security. For decades, few things exposed hard-working families to economic hardship more than a broken health care system. And in case you haven’t heard, we’re in the process of fixing that. A pre-existing condition used to mean that someone like Amanda Shelley, a physician assistant and single mom from Arizona, couldn’t get health insurance. But on January 1st, she got covered. On January 3rd, she felt a sharp pain. On January 6th, she had emergency surgery. Just one week earlier, Amanda said, that surgery would’ve meant bankruptcy. That’s what health insurance reform is all about – the peace of mind that if misfortune strikes, you don’t have to lose everything. Already, because of the Affordable Care Act, more than three million Americans under age 26 have gained coverage under their parents’ plans. More than nine million Americans have signed up for private health insurance or Medicaid coverage. And here’s another number: zero. Because of this law, no American can ever again be dropped or denied coverage for a preexisting condition like asthma, back pain, or cancer. No woman can ever be charged more just because she’s a woman. And we did all this while adding years to Medicare’s finances, keeping Medicare premiums flat, and lowering prescription costs for millions of seniors. Now, I don’t expect to convince my Republican friends on the merits of this law. But I know that the American people aren’t interested in refighting old battles. So again, if you have specific plans to cut costs, cover more people, and increase choice – tell America what you’d do differently. Let’s see if the numbers add up. But let’s not have another forty-something votes to repeal a law that’s already helping millions of Americans like Amanda. The first forty were plenty. We got it. We all owe it to the American people to say what we’re for, not just what we’re against. And if you want to know the real impact this law is having, just talk to Governor Steve Beshear of Kentucky, who’s here tonight. Kentucky’s not the most liberal part of the country, but he’s like a man possessed when it comes to covering his commonwealth’s families. “They are our friends and neighbors,” he said. “They are people we shop and go to church with…farmers out on the tractors…grocery clerks…they are people who go to work every morning praying they don’t get sick. No one deserves to live that way.” Steve’s right. That’s why, tonight, I ask every American who knows someone without health insurance to help them get covered by March 31st. Moms, get on your kids to sign up. Kids, call your mom and walk her through the application. It will give her some peace of mind – plus, she’ll appreciate hearing from you. After all, that’s the spirit that has always moved this nation forward. It’s the spirit of citizenship – the recognition that through hard work and responsibility, we can pursue our individual dreams, but still come together as one American family to make sure the next generation can pursue its dreams as well. Citizenship means standing up for everyone’s right to vote. Last year, part of the Voting Rights Act was weakened. But conservative Republicans and liberal Democrats are working together to strengthen it; and the bipartisan commission I appointed last year has offered reforms so that no one has to wait more than a half hour to vote. Let’s support these efforts. It should be the power of our vote, not the size of our bank account, that drives our democracy. Citizenship means standing up for the lives that gun violence steals from us each day. I have seen the courage of parents, students, pastors, and police officers all over this country who say “we are not afraid,” and I intend to keep trying, with or without Congress, to help stop more tragedies from visiting innocent Americans in our movie theaters, shopping malls, or schools like Sandy Hook. Citizenship demands a sense of common cause; participation in the hard work of self-government; an obligation to serve to our communities. And I know this chamber agrees that few Americans give more to their country than our diplomats and the men and women of the United States Armed Forces. Tonight, because of the extraordinary troops and civilians who risk and lay down their lives to keep us free, the United States is more secure. When I took office, nearly 180,000 Americans were serving in Iraq and Afghanistan. Today, all our troops are out of Iraq. More than 60,000 of our troops have already come home from Afghanistan. With Afghan forces now in the lead for their own security, our troops have moved to a support role. Together with our allies, we will complete our mission there by the end of this year, and America’s longest war will finally be over. After 2014, we will support a unified Afghanistan as it takes responsibility for its own future. If the Afghan government signs a security agreement that we have negotiated, a small force of Americans could remain in Afghanistan with NATO allies to carry out two narrow missions: training and assisting Afghan forces, and counterterrorism operations to pursue any remnants of al Qaeda. For while our relationship with Afghanistan will change, one thing will not: our resolve that terrorists do not launch attacks against our country. The fact is, that danger remains. While we have put al Qaeda’s core leadership on a path to defeat, the threat has evolved, as al Qaeda affiliates and other extremists take root in different parts of the world. In Yemen, Somalia, Iraq, and Mali, we have to keep working with partners to disrupt and disable these networks. In Syria, we’ll support the opposition that rejects the agenda of terrorist networks. Here at home, we’ll keep strengthening our defenses, and combat new threats like cyberattacks. And as we reform our defense budget, we have to keep faith with our men and women in uniform, and invest in the capabilities they need to succeed in future missions. We have to remain vigilant. But I strongly believe our leadership and our security cannot depend on our military alone. As Commander-in-Chief, I have used force when needed to protect the American people, and I will never hesitate to do so as long as I hold this office. But I will not send our troops into harm’s way unless it’s truly necessary; nor will I allow our sons and daughters to be mired in open-ended conflicts. We must fight the battles that need to be fought, not those that terrorists prefer from us – large-scale deployments that drain our strength and may ultimately feed extremism. So, even as we aggressively pursue terrorist networks – through more targeted efforts and by building the capacity of our foreign partners – America must move off a permanent war footing. That’s why I’ve imposed prudent limits on the use of drones – for we will not be safer if people abroad believe we strike within their countries without regard for the consequence. That’s why, working with this Congress, I will reform our surveillance programs – because the vital work of our intelligence community depends on public confidence, here and abroad, that the privacy of ordinary people is not being violated. And with the Afghan war ending, this needs to be the year Congress lifts the remaining restrictions on detainee transfers and we close the prison at Guantanamo Bay – because we counter terrorism not just through intelligence and military action, but by remaining true to our Constitutional ideals, and setting an example for the rest of the world. You see, in a world of complex threats, our security and leadership depends on all elements of our power – including strong and principled diplomacy. American diplomacy has rallied more than fifty countries to prevent nuclear materials from falling into the wrong hands, and allowed us to reduce our own reliance on Cold War stockpiles. American diplomacy, backed by the threat of force, is why Syria’s chemical weapons are being eliminated, and we will continue to work with the international community to usher in the future the Syrian people deserve – a future free of dictatorship, terror and fear. As we speak, American diplomacy is supporting Israelis and Palestinians as they engage in difficult but necessary talks to end the conflict there; to achieve dignity and an independent state for Palestinians, and lasting peace and security for the State of Israel – a Jewish state that knows America will always be at their side. And it is American diplomacy, backed by pressure, that has halted the progress of Iran’s nuclear program – and rolled parts of that program back – for the very first time in a decade. As we gather here tonight, Iran has begun to eliminate its stockpile of higher levels of enriched uranium. It is not installing advanced centrifuges. Unprecedented inspections help the world verify, every day, that Iran is not building a bomb. And with our allies and partners, we’re engaged in negotiations to see if we can peacefully achieve a goal we all share: preventing Iran from obtaining a nuclear weapon. These negotiations will be difficult. They may not succeed. We are clear-eyed about Iran’s support for terrorist organizations like Hezbollah, which threaten our allies; and the mistrust between our nations cannot be wished away. But these negotiations do not rely on trust; any long-term deal we agree to must be based on verifiable action that convinces us and the international community that Iran is not building a nuclear bomb. If John F. Kennedy and Ronald Reagan could negotiate with the Soviet Union, then surely a strong and confident America can negotiate with less powerful adversaries today. The sanctions that we put in place helped make this opportunity possible. But let me be clear: if this Congress sends me a new sanctions bill now that threatens to derail these talks, I will veto it. For the sake of our national security, we must give diplomacy a chance to succeed. If Iran’s leaders do not seize this opportunity, then I will be the first to call for more sanctions, and stand ready to exercise all options to make sure Iran does not build a nuclear weapon. But if Iran’s leaders do seize the chance, then Iran could take an important step to rejoin the community of nations, and we will have resolved one of the leading security challenges of our time without the risks of war. Finally, let’s remember that our leadership is defined not just by our defense against threats, but by the enormous opportunities to do good and promote understanding around the globe – to forge greater cooperation, to expand new markets, to free people from fear and want. And no one is better positioned to take advantage of those opportunities than America. Our alliance with Europe remains the strongest the world has ever known. From Tunisia to Burma, we’re supporting those who are willing to do the hard work of building democracy. In Ukraine, we stand for the principle that all people have the right to express themselves freely and peacefully, and have a say in their country’s future. Across Africa, we’re bringing together businesses and governments to double access to electricity and help end extreme poverty. In the Americas, we are building new ties of commerce, but we’re also expanding cultural and educational exchanges among young people. And we will continue to focus on the Asia-Pacific, where we support our allies, shape a future of greater security and prosperity, and extend a hand to those devastated by disaster – as we did in the Philippines, when our Marines and civilians rushed to aid those battered by a typhoon, and were greeted with words like, “We will never forget your kindness” and “God bless America!” We do these things because they help promote our long-term security. And we do them because we believe in the inherent dignity and equality of every human being, regardless of race or religion, creed or sexual orientation. And next week, the world will see one expression of that commitment – when Team USA marches the red, white, and blue into the Olympic Stadium – and brings home the gold. My fellow Americans, no other country in the world does what we do. On every issue, the world turns to us, not simply because of the size of our economy or our military might – but because of the ideals we stand for, and the burdens we bear to advance them. No one knows this better than those who serve in uniform. As this time of war draws to a close, a new generation of heroes returns to civilian life. We’ll keep slashing that backlog so our veterans receive the benefits they’ve earned, and our wounded warriors receive the health care – including the mental health care – that they need. We’ll keep working to help all our veterans translate their skills and leadership into jobs here at home. And we all continue to join forces to honor and support our remarkable military families. Let me tell you about one of those families I’ve come to know. I first met Cory Remsburg, a proud Army Ranger, at Omaha Beach on the 65th anniversary of D-Day. Along with some of his fellow Rangers, he walked me through the program – a strong, impressive young man, with an easy manner, sharp as a tack. We joked around, and took pictures, and I told him to stay in touch. A few months later, on his tenth deployment, Cory was nearly killed by a massive roadside bomb in Afghanistan. His comrades found him in a canal, face down, underwater, shrapnel in his brain. For months, he lay in a coma. The next time I met him, in the hospital, he couldn’t speak; he could barely move. Over the years, he’s endured dozens of surgeries and procedures, and hours of grueling rehab every day. Even now, Cory is still blind in one eye. He still struggles on his left side. But slowly, steadily, with the support of caregivers like his dad Craig, and the community around him, Cory has grown stronger. Day by day, he’s learned to speak again and stand again and walk again – and he’s working toward the day when he can serve his country again. “My recovery has not been easy,” he says. “Nothing in life that’s worth anything is easy.” Cory is here tonight. And like the Army he loves, like the America he serves, Sergeant First Class Cory Remsburg never gives up, and he does not quit. My fellow Americans, men and women like Cory remind us that America has never come easy. Our freedom, our democracy, has never been easy. Sometimes we stumble; we make mistakes; we get frustrated or discouraged. But for more than two hundred years, we have put those things aside and placed our collective shoulder to the wheel of progress – to create and build and expand the possibilities of individual achievement; to free other nations from tyranny and fear; to promote justice, and fairness, and equality under the law, so that the words set to paper by our founders are made real for every citizen. The America we want for our kids – a rising America where honest work is plentiful and communities are strong; where prosperity is widely shared and opportunity for all lets us go as far as our dreams and toil will take us – none of it is easy. But if we work together; if we summon what is best in us, with our feet planted firmly in today but our eyes cast towards tomorrow – I know it’s within our reach. Believe it. God bless you, and God bless the United States of America.

US

Mr. Speaker, Mr. Vice President, Members of Congress, my fellow Americans: We are 15 years into this new century. Fifteen years that dawned with terror touching our shores; that unfolded with a new generation fighting two long and costly wars; that saw a vicious recession spread across our nation and the world. It has been, and still is, a hard time for many. But tonight, we turn the page. Tonight, after a breakthrough year for America, our economy is growing and creating jobs at the fastest pace since 1999. (Applause.) Our unemployment rate is now lower than it was before the financial crisis. More of our kids are graduating than ever before. More of our people are insured than ever before. (Applause.) And we are as free from the grip of foreign oil as we’ve been in almost 30 years. (Applause.) Tonight, for the first time since 9/11, our combat mission in Afghanistan is over. (Applause.) Six years ago, nearly 180,000 American troops served in Iraq and Afghanistan. Today, fewer than 15,000 remain. And we salute the courage and sacrifice of every man and woman in this 9/11 Generation who has served to keep us safe. (Applause.) We are humbled and grateful for your service. America, for all that we have endured; for all the grit and hard work required to come back; for all the tasks that lie ahead, know this: The shadow of crisis has passed, and the State of the Union is strong. (Applause.) At this moment -- with a growing economy, shrinking deficits, bustling industry, booming energy production -- we have risen from recession freer to write our own future than any other nation on Earth. It’s now up to us to choose who we want to be over the next 15 years and for decades to come. Will we accept an economy where only a few of us do spectacularly well? Or will we commit ourselves to an economy that generates rising incomes and chances for everyone who makes the effort? (Applause.) Will we approach the world fearful and reactive, dragged into costly conflicts that strain our military and set back our standing? Or will we lead wisely, using all elements of our power to defeat new threats and protect our planet? Will we allow ourselves to be sorted into factions and turned against one another? Or will we recapture the sense of common purpose that has always propelled America forward? In two weeks, I will send this Congress a budget filled with ideas that are practical, not partisan. And in the months ahead, I’ll crisscross the country making a case for those ideas. So tonight, I want to focus less on a checklist of proposals, and focus more on the values at stake in the choices before us. It begins with our economy. Seven years ago, Rebekah and Ben Erler of Minneapolis were newlyweds. (Laughter.) She waited tables. He worked construction. Their first child, Jack, was on the way. They were young and in love in America. And it doesn’t get much better than that. “If only we had known,” Rebekah wrote to me last spring, “what was about to happen to the housing and construction market.” As the crisis worsened, Ben’s business dried up, so he took what jobs he could find, even if they kept him on the road for long stretches of time. Rebekah took out student loans and enrolled in community college, and retrained for a new career. They sacrificed for each other. And slowly, it paid off. They bought their first home. They had a second son, Henry. Rebekah got a better job and then a raise. Ben is back in construction -- and home for dinner every night. “It is amazing,” Rebekah wrote, “what you can bounce back from when you have to…we are a strong, tight-knit family who has made it through some very, very hard times.” We are a strong, tight-knit family who has made it through some very, very hard times. America, Rebekah and Ben’s story is our story. They represent the millions who have worked hard and scrimped, and sacrificed and retooled. You are the reason that I ran for this office. You are the people I was thinking of six years ago today, in the darkest months of the crisis, when I stood on the steps of this Capitol and promised we would rebuild our economy on a new foundation. And it has been your resilience, your effort that has made it possible for our country to emerge stronger. We believed we could reverse the tide of outsourcing and draw new jobs to our shores. And over the past five years, our businesses have created more than 11 million new jobs. (Applause.) We believed we could reduce our dependence on foreign oil and protect our planet. And today, America is number one in oil and gas. America is number one in wind power. Every three weeks, we bring online as much solar power as we did in all of 2008. (Applause.) And thanks to lower gas prices and higher fuel standards, the typical family this year should save about $750 at the pump. (Applause.) We believed we could prepare our kids for a more competitive world. And today, our younger students have earned the highest math and reading scores on record. Our high school graduation rate has hit an all-time high. More Americans finish college than ever before. (Applause.) We believed that sensible regulations could prevent another crisis, shield families from ruin, and encourage fair competition. Today, we have new tools to stop taxpayer-funded bailouts, and a new consumer watchdog to protect us from predatory lending and abusive credit card practices. And in the past year alone, about 10 million uninsured Americans finally gained the security of health coverage. (Applause.) At every step, we were told our goals were misguided or too ambitious; that we would crush jobs and explode deficits. Instead, we’ve seen the fastest economic growth in over a decade, our deficits cut by two-thirds, a stock market that has doubled, and health care inflation at its lowest rate in 50 years. (Applause.) This is good news, people. (Laughter and applause.) So the verdict is clear. Middle-class economics works. Expanding opportunity works. And these policies will continue to work as long as politics don’t get in the way. We can’t slow down businesses or put our economy at risk with government shutdowns or fiscal showdowns. We can’t put the security of families at risk by taking away their health insurance, or unraveling the new rules on Wall Street, or refighting past battles on immigration when we’ve got to fix a broken system. And if a bill comes to my desk that tries to do any of these things, I will veto it. It will have earned my veto. (Applause.) Today, thanks to a growing economy, the recovery is touching more and more lives. Wages are finally starting to rise again. We know that more small business owners plan to raise their employees’ pay than at any time since 2007. But here’s the thing: Those of us here tonight, we need to set our sights higher than just making sure government doesn’t screw things up; that government doesn’t halt the progress we’re making. We need to do more than just do no harm. Tonight, together, let’s do more to restore the link between hard work and growing opportunity for every American. (Applause.) Because families like Rebekah’s still need our help. She and Ben are working as hard as ever, but they’ve had to forego vacations and a new car so that they can pay off student loans and save for retirement. Friday night pizza, that’s a big splurge. Basic childcare for Jack and Henry costs more than their mortgage, and almost as much as a year at the University of Minnesota. Like millions of hardworking Americans, Rebekah isn’t asking for a handout, but she is asking that we look for more ways to help families get ahead. And in fact, at every moment of economic change throughout our history, this country has taken bold action to adapt to new circumstances and to make sure everyone gets a fair shot. We set up worker protections, Social Security, Medicare, Medicaid to protect ourselves from the harshest adversity. We gave our citizens schools and colleges, infrastructure and the Internet -- tools they needed to go as far as their effort and their dreams will take them. That’s what middle-class economics is -- the idea that this country does best when everyone gets their fair shot, everyone does their fair share, everyone plays by the same set of rules. (Applause.) We don’t just want everyone to share in America’s success, we want everyone to contribute to our success. (Applause.) So what does middle-class economics require in our time? First, middle-class economics means helping working families feel more secure in a world of constant change. That means helping folks afford childcare, college, health care, a home, retirement. And my budget will address each of these issues, lowering the taxes of working families and putting thousands of dollars back into their pockets each year. (Applause.) Here’s one example. During World War II, when men like my grandfather went off to war, having women like my grandmother in the workforce was a national security priority -- so this country provided universal childcare. In today’s economy, when having both parents in the workforce is an economic necessity for many families, we need affordable, high-quality childcare more than ever. (Applause.) It’s not a nice-to-have -- it’s a must-have. So it’s time we stop treating childcare as a side issue, or as a women’s issue, and treat it like the national economic priority that it is for all of us. (Applause.) And that’s why my plan will make quality childcare more available and more affordable for every middle-class and low-income family with young children in America -- by creating more slots and a new tax cut of up to $3,000 per child, per year. (Applause.) Here’s another example. Today, we are the only advanced country on Earth that doesn’t guarantee paid sick leave or paid maternity leave to our workers. Forty-three million workers have no paid sick leave -- 43 million. Think about that. And that forces too many parents to make the gut-wrenching choice between a paycheck and a sick kid at home. So I’ll be taking new action to help states adopt paid leave laws of their own. And since paid sick leave won where it was on the ballot last November, let’s put it to a vote right here in Washington. (Applause.) Send me a bill that gives every worker in America the opportunity to earn seven days of paid sick leave. It’s the right thing to do. It’s the right thing to do. (Applause.) Of course, nothing helps families make ends meet like higher wages. That’s why this Congress still needs to pass a law that makes sure a woman is paid the same as a man for doing the same work. (Applause.) It’s 2015. (Laughter.) It’s time. We still need to make sure employees get the overtime they’ve earned. (Applause.) And to everyone in this Congress who still refuses to raise the minimum wage, I say this: If you truly believe you could work full-time and support a family on less than $15,000 a year, try it. If not, vote to give millions of the hardest-working people in America a raise. (Applause.) Now, these ideas won’t make everybody rich, won’t relieve every hardship. That’s not the job of government. To give working families a fair shot, we still need more employers to see beyond next quarter’s earnings and recognize that investing in their workforce is in their company’s long-term interest. We still need laws that strengthen rather than weaken unions, and give American workers a voice. (Applause.) But you know, things like childcare and sick leave and equal pay; things like lower mortgage premiums and a higher minimum wage -- these ideas will make a meaningful difference in the lives of millions of families. That’s a fact. And that’s what all of us, Republicans and Democrats alike, were sent here to do. Second, to make sure folks keep earning higher wages down the road, we have to do more to help Americans upgrade their skills. (Applause.) America thrived in the 20th century because we made high school free, sent a generation of GIs to college, trained the best workforce in the world. We were ahead of the curve. But other countries caught on. And in a 21st century economy that rewards knowledge like never before, we need to up our game. We need to do more. By the end of this decade, two in three job openings will require some higher education -- two in three. And yet, we still live in a country where too many bright, striving Americans are priced out of the education they need. It’s not fair to them, and it’s sure not smart for our future. That’s why I’m sending this Congress a bold new plan to lower the cost of community college -- to zero. (Applause.) Keep in mind 40 percent of our college students choose community college. Some are young and starting out. Some are older and looking for a better job. Some are veterans and single parents trying to transition back into the job market. Whoever you are, this plan is your chance to graduate ready for the new economy without a load of debt. Understand, you’ve got to earn it. You’ve got to keep your grades up and graduate on time. Tennessee, a state with Republican leadership, and Chicago, a city with Democratic leadership, are showing that free community college is possible. I want to spread that idea all across America, so that two years of college becomes as free and universal in America as high school is today. (Applause.) Let’s stay ahead of the curve. (Applause.) And I want to work with this Congress to make sure those already burdened with student loans can reduce their monthly payments so that student debt doesn’t derail anyone’s dreams. (Applause.) Thanks to Vice President Biden’s great work to update our job training system, we’re connecting community colleges with local employers to train workers to fill high-paying jobs like coding, and nursing, and robotics. Tonight, I’m also asking more businesses to follow the lead of companies like CVS and UPS, and offer more educational benefits and paid apprenticeships -- opportunities that give workers the chance to earn higher-paying jobs even if they don’t have a higher education. And as a new generation of veterans comes home, we owe them every opportunity to live the American Dream they helped defend. Already, we’ve made strides towards ensuring that every veteran has access to the highest quality care. We’re slashing the backlog that had too many veterans waiting years to get the benefits they need. And we’re making it easier for vets to translate their training and experience into civilian jobs. And Joining Forces, the national campaign launched by Michelle and Jill Biden -- (applause) -- thank you, Michelle; thank you, Jill -- has helped nearly 700,000 veterans and military spouses get a new job. (Applause.) So to every CEO in America, let me repeat: If you want somebody who’s going to get the job done and done right, hire a veteran. (Applause.) Finally, as we better train our workers, we need the new economy to keep churning out high-wage jobs for our workers to fill. Since 2010, America has put more people back to work than Europe, Japan, and all advanced economies combined. (Applause.) Our manufacturers have added almost 800,000 new jobs. Some of our bedrock sectors, like our auto industry, are booming. But there are also millions of Americans who work in jobs that didn’t even exist 10 or 20 years ago -- jobs at companies like Google, and eBay, and Tesla. So no one knows for certain which industries will generate the jobs of the future. But we do know we want them here in America. We know that. (Applause.) And that’s why the third part of middle-class economics is all about building the most competitive economy anywhere, the place where businesses want to locate and hire. Twenty-first century businesses need 21st century infrastructure -- modern ports, and stronger bridges, faster trains and the fastest Internet. Democrats and Republicans used to agree on this. So let’s set our sights higher than a single oil pipeline. Let’s pass a bipartisan infrastructure plan that could create more than 30 times as many jobs per year, and make this country stronger for decades to come. (Applause.) Let’s do it. Let’s get it done. Let’s get it done. (Applause.) Twenty-first century businesses, including small businesses, need to sell more American products overseas. Today, our businesses export more than ever, and exporters tend to pay their workers higher wages. But as we speak, China wants to write the rules for the world’s fastest-growing region. That would put our workers and our businesses at a disadvantage. Why would we let that happen? We should write those rules. We should level the playing field. That’s why I’m asking both parties to give me trade promotion authority to protect American workers, with strong new trade deals from Asia to Europe that aren’t just free, but are also fair. It’s the right thing to do. (Applause.) Look, I’m the first one to admit that past trade deals haven’t always lived up to the hype, and that’s why we’ve gone after countries that break the rules at our expense. But 95 percent of the world’s customers live outside our borders. We can’t close ourselves off from those opportunities. More than half of manufacturing executives have said they’re actively looking to bring jobs back from China. So let’s give them one more reason to get it done. Twenty-first century businesses will rely on American science and technology, research and development. I want the country that eliminated polio and mapped the human genome to lead a new era of medicine -- one that delivers the right treatment at the right time. (Applause.) In some patients with cystic fibrosis, this approach has reversed a disease once thought unstoppable. So tonight, I’m launching a new Precision Medicine Initiative to bring us closer to curing diseases like cancer and diabetes, and to give all of us access to the personalized information we need to keep ourselves and our families healthier. We can do this. (Applause.) I intend to protect a free and open Internet, extend its reach to every classroom, and every community -- (applause) -- and help folks build the fastest networks so that the next generation of digital innovators and entrepreneurs have the platform to keep reshaping our world. I want Americans to win the race for the kinds of discoveries that unleash new jobs -- converting sunlight into liquid fuel; creating revolutionary prosthetics, so that a veteran who gave his arms for his country can play catch with his kids again. (Applause.) Pushing out into the solar system not just to visit, but to stay. Last month, we launched a new spacecraft as part of a reenergized space program that will send American astronauts to Mars. And in two months, to prepare us for those missions, Scott Kelly will begin a year-long stay in space. So good luck, Captain. Make sure to Instagram it. We’re proud of you. (Applause.) Now, the truth is, when it comes to issues like infrastructure and basic research, I know there’s bipartisan support in this chamber. Members of both parties have told me so. Where we too often run onto the rocks is how to pay for these investments. As Americans, we don’t mind paying our fair share of taxes as long as everybody else does, too. But for far too long, lobbyists have rigged the tax code with loopholes that let some corporations pay nothing while others pay full freight. They’ve riddled it with giveaways that the super-rich don’t need, while denying a break to middle-class families who do. This year, we have an opportunity to change that. Let’s close loopholes so we stop rewarding companies that keep profits abroad, and reward those that invest here in America. (Applause.) Let’s use those savings to rebuild our infrastructure and to make it more attractive for companies to bring jobs home. Let’s simplify the system and let a small business owner file based on her actual bank statement, instead of the number of accountants she can afford. (Applause.) And let’s close the loopholes that lead to inequality by allowing the top one percent to avoid paying taxes on their accumulated wealth. We can use that money to help more families pay for childcare and send their kids to college. We need a tax code that truly helps working Americans trying to get a leg up in the new economy, and we can achieve that together. (Applause.) We can achieve it together. Helping hardworking families make ends meet. Giving them the tools they need for good-paying jobs in this new economy. Maintaining the conditions of growth and competitiveness. This is where America needs to go. I believe it’s where the American people want to go. It will make our economy stronger a year from now, 15 years from now, and deep into the century ahead. Of course, if there’s one thing this new century has taught us, it’s that we cannot separate our work here at home from challenges beyond our shores. My first duty as Commander-in-Chief is to defend the United States of America. In doing so, the question is not whether America leads in the world, but how. When we make rash decisions, reacting to the headlines instead of using our heads; when the first response to a challenge is to send in our military -- then we risk getting drawn into unnecessary conflicts, and neglect the broader strategy we need for a safer, more prosperous world. That’s what our enemies want us to do. I believe in a smarter kind of American leadership. We lead best when we combine military power with strong diplomacy; when we leverage our power with coalition building; when we don’t let our fears blind us to the opportunities that this new century presents. That’s exactly what we’re doing right now. And around the globe, it is making a difference. First, we stand united with people around the world who have been targeted by terrorists -- from a school in Pakistan to the streets of Paris. (Applause.) We will continue to hunt down terrorists and dismantle their networks, and we reserve the right to act unilaterally, as we have done relentlessly since I took office to take out terrorists who pose a direct threat to us and our allies. (Applause.) At the same time, we’ve learned some costly lessons over the last 13 years. Instead of Americans patrolling the valleys of Afghanistan, we’ve trained their security forces, who have now taken the lead, and we’ve honored our troops’ sacrifice by supporting that country’s first democratic transition. Instead of sending large ground forces overseas, we’re partnering with nations from South Asia to North Africa to deny safe haven to terrorists who threaten America. In Iraq and Syria, American leadership -- including our military power -- is stopping ISIL’s advance. Instead of getting dragged into another ground war in the Middle East, we are leading a broad coalition, including Arab nations, to degrade and ultimately destroy this terrorist group. (Applause.) We’re also supporting a moderate opposition in Syria that can help us in this effort, and assisting people everywhere who stand up to the bankrupt ideology of violent extremism. Now, this effort will take time. It will require focus. But we will succeed. And tonight, I call on this Congress to show the world that we are united in this mission by passing a resolution to authorize the use of force against ISIL. We need that authority. (Applause.) Second, we’re demonstrating the power of American strength and diplomacy. We’re upholding the principle that bigger nations can’t bully the small -- by opposing Russian aggression, and supporting Ukraine’s democracy, and reassuring our NATO allies. (Applause.) Last year, as we were doing the hard work of imposing sanctions along with our allies, as we were reinforcing our presence with frontline states, Mr. Putin’s aggression it was suggested was a masterful display of strategy and strength. That's what I heard from some folks. Well, today, it is America that stands strong and united with our allies, while Russia is isolated with its economy in tatters. That’s how America leads -- not with bluster, but with persistent, steady resolve. (Applause.) In Cuba, we are ending a policy that was long past its expiration date. (Applause.) When what you’re doing doesn’t work for 50 years, it’s time to try something new. (Applause.) And our shift in Cuba policy has the potential to end a legacy of mistrust in our hemisphere. It removes a phony excuse for restrictions in Cuba. It stands up for democratic values, and extends the hand of friendship to the Cuban people. And this year, Congress should begin the work of ending the embargo. (Applause.) As His Holiness, Pope Francis, has said, diplomacy is the work of “small steps.” These small steps have added up to new hope for the future in Cuba. And after years in prison, we are overjoyed that Alan Gross is back where he belongs. Welcome home, Alan. We're glad you're here. (Applause.) Our diplomacy is at work with respect to Iran, where, for the first time in a decade, we’ve halted the progress of its nuclear program and reduced its stockpile of nuclear material. Between now and this spring, we have a chance to negotiate a comprehensive agreement that prevents a nuclear-armed Iran, secures America and our allies -- including Israel, while avoiding yet another Middle East conflict. There are no guarantees that negotiations will succeed, and I keep all options on the table to prevent a nuclear Iran. But new sanctions passed by this Congress, at this moment in time, will all but guarantee that diplomacy fails -- alienating America from its allies; making it harder to maintain sanctions; and ensuring that Iran starts up its nuclear program again. It doesn’t make sense. And that's why I will veto any new sanctions bill that threatens to undo this progress. (Applause.) The American people expect us only to go to war as a last resort, and I intend to stay true to that wisdom. Third, we’re looking beyond the issues that have consumed us in the past to shape the coming century. No foreign nation, no hacker, should be able to shut down our networks, steal our trade secrets, or invade the privacy of American families, especially our kids. (Applause.) So we're making sure our government integrates intelligence to combat cyber threats, just as we have done to combat terrorism. And tonight, I urge this Congress to finally pass the legislation we need to better meet the evolving threat of cyber attacks, combat identity theft, and protect our children’s information. That should be a bipartisan effort. (Applause.) If we don’t act, we’ll leave our nation and our economy vulnerable. If we do, we can continue to protect the technologies that have unleashed untold opportunities for people around the globe. In West Africa, our troops, our scientists, our doctors, our nurses, our health care workers are rolling back Ebola -- saving countless lives and stopping the spread of disease. (Applause.) I could not be prouder of them, and I thank this Congress for your bipartisan support of their efforts. But the job is not yet done, and the world needs to use this lesson to build a more effective global effort to prevent the spread of future pandemics, invest in smart development, and eradicate extreme poverty. In the Asia Pacific, we are modernizing alliances while making sure that other nations play by the rules -- in how they trade, how they resolve maritime disputes, how they participate in meeting common international challenges like nonproliferation and disaster relief. And no challenge -- no challenge -- poses a greater threat to future generations than climate change. (Applause.) 2014 was the planet’s warmest year on record. Now, one year doesn’t make a trend, but this does: 14 of the 15 warmest years on record have all fallen in the first 15 years of this century. I’ve heard some folks try to dodge the evidence by saying they’re not scientists; that we don’t have enough information to act. Well, I’m not a scientist, either. But you know what, I know a lot of really good scientists at NASA, and at NOAA, and at our major universities. And the best scientists in the world are all telling us that our activities are changing the climate, and if we don’t act forcefully, we’ll continue to see rising oceans, longer, hotter heat waves, dangerous droughts and floods, and massive disruptions that can trigger greater migration and conflict and hunger around the globe. The Pentagon says that climate change poses immediate risks to our national security. We should act like it. (Applause.) And that’s why, over the past six years, we’ve done more than ever to combat climate change, from the way we produce energy to the way we use it. That’s why we’ve set aside more public lands and waters than any administration in history. And that’s why I will not let this Congress endanger the health of our children by turning back the clock on our efforts. I am determined to make sure that American leadership drives international action. (Applause.) In Beijing, we made a historic announcement: The United States will double the pace at which we cut carbon pollution. And China committed, for the first time, to limiting their emissions. And because the world’s two largest economies came together, other nations are now stepping up, and offering hope that this year the world will finally reach an agreement to protect the one planet we’ve got. And there’s one last pillar of our leadership, and that’s the example of our values. As Americans, we respect human dignity, even when we’re threatened, which is why I have prohibited torture, and worked to make sure our use of new technology like drones is properly constrained. (Applause.) It’s why we speak out against the deplorable anti-Semitism that has resurfaced in certain parts of the world. (Applause.) It’s why we continue to reject offensive stereotypes of Muslims, the vast majority of whom share our commitment to peace. That’s why we defend free speech, and advocate for political prisoners, and condemn the persecution of women, or religious minorities, or people who are lesbian, gay, bisexual or transgender. We do these things not only because they are the right thing to do, but because ultimately they will make us safer. (Applause.) As Americans, we have a profound commitment to justice. So it makes no sense to spend $3 million per prisoner to keep open a prison that the world condemns and terrorists use to recruit. (Applause.) Since I’ve been President, we’ve worked responsibly to cut the population of Gitmo in half. Now it is time to finish the job. And I will not relent in my determination to shut it down. It is not who we are. It’s time to close Gitmo. (Applause.) As Americans, we cherish our civil liberties, and we need to uphold that commitment if we want maximum cooperation from other countries and industry in our fight against terrorist networks. So while some have moved on from the debates over our surveillance programs, I have not. As promised, our intelligence agencies have worked hard, with the recommendations of privacy advocates, to increase transparency and build more safeguards against potential abuse. And next month, we’ll issue a report on how we’re keeping our promise to keep our country safe while strengthening privacy. Looking to the future instead of the past. Making sure we match our power with diplomacy, and use force wisely. Building coalitions to meet new challenges and opportunities. Leading -- always -- with the example of our values. That’s what makes us exceptional. That’s what keeps us strong. That’s why we have to keep striving to hold ourselves to the highest of standards -- our own. You know, just over a decade ago, I gave a speech in Boston where I said there wasn’t a liberal America or a conservative America; a black America or a white America -- but a United States of America. I said this because I had seen it in my own life, in a nation that gave someone like me a chance; because I grew up in Hawaii, a melting pot of races and customs; because I made Illinois my home -- a state of small towns, rich farmland, one of the world’s great cities; a microcosm of the country where Democrats and Republicans and Independents, good people of every ethnicity and every faith, share certain bedrock values. Over the past six years, the pundits have pointed out more than once that my presidency hasn’t delivered on this vision. How ironic, they say, that our politics seems more divided than ever. It’s held up as proof not just of my own flaws -- of which there are many -- but also as proof that the vision itself is misguided, naïve, that there are too many people in this town who actually benefit from partisanship and gridlock for us to ever do anything about it. I know how tempting such cynicism may be. But I still think the cynics are wrong. I still believe that we are one people. I still believe that together, we can do great things, even when the odds are long. (Applause.) I believe this because over and over in my six years in office, I have seen America at its best. I’ve seen the hopeful faces of young graduates from New York to California, and our newest officers at West Point, Annapolis, Colorado Springs, New London. I’ve mourned with grieving families in Tucson and Newtown, in Boston, in West Texas, and West Virginia. I’ve watched Americans beat back adversity from the Gulf Coast to the Great Plains, from Midwest assembly lines to the Mid-Atlantic seaboard. I’ve seen something like gay marriage go from a wedge issue used to drive us apart to a story of freedom across our country, a civil right now legal in states that seven in 10 Americans call home. (Applause.) So I know the good, and optimistic, and big-hearted generosity of the American people who every day live the idea that we are our brother’s keeper and our sister’s keeper. And I know they expect those of us who serve here to set a better example. So the question for those of us here tonight is how we, all of us, can better reflect America’s hopes. I’ve served in Congress with many of you. I know many of you well. There are a lot of good people here, on both sides of the aisle. And many of you have told me that this isn’t what you signed up for -- arguing past each other on cable shows, the constant fundraising, always looking over your shoulder at how the base will react to every decision. Imagine if we broke out of these tired old patterns. Imagine if we did something different. Understand, a better politics isn’t one where Democrats abandon their agenda or Republicans simply embrace mine. A better politics is one where we appeal to each other’s basic decency instead of our basest fears. A better politics is one where we debate without demonizing each other; where we talk issues and values, and principles and facts, rather than “gotcha” moments, or trivial gaffes, or fake controversies that have nothing to do with people’s daily lives. (Applause.) A politics -- a better politics is one where we spend less time drowning in dark money for ads that pull us into the gutter, and spend more time lifting young people up with a sense of purpose and possibility, asking them to join in the great mission of building America. If we’re going to have arguments, let’s have arguments, but let’s make them debates worthy of this body and worthy of this country. We still may not agree on a woman’s right to choose, but surely we can agree it’s a good thing that teen pregnancies and abortions are nearing all-time lows, and that every woman should have access to the health care that she needs. (Applause.) Yes, passions still fly on immigration, but surely we can all see something of ourselves in the striving young student, and agree that no one benefits when a hardworking mom is snatched from her child, and that it’s possible to shape a law that upholds our tradition as a nation of laws and a nation of immigrants. I’ve talked to Republicans and Democrats about that. That’s something that we can share. We may go at it in campaign season, but surely we can agree that the right to vote is sacred; that it’s being denied to too many -- (applause) -- and that on this 50th anniversary of the great march from Selma to Montgomery and the passage of the Voting Rights Act, we can come together, Democrats and Republicans, to make voting easier for every single American. (Applause.) We may have different takes on the events of Ferguson and New York. But surely we can understand a father who fears his son can’t walk home without being harassed. And surely we can understand the wife who won’t rest until the police officer she married walks through the front door at the end of his shift. (Applause.) And surely we can agree that it’s a good thing that for the first time in 40 years, the crime rate and the incarceration rate have come down together, and use that as a starting point for Democrats and Republicans, community leaders and law enforcement, to reform America’s criminal justice system so that it protects and serves all of us. (Applause.) That’s a better politics. That’s how we start rebuilding trust. That’s how we move this country forward. That’s what the American people want. And that’s what they deserve. I have no more campaigns to run. (Applause.) My only agenda -- (laughter) -- I know because I won both of them. (Applause.) My only agenda for the next two years is the same as the one I’ve had since the day I swore an oath on the steps of this Capitol -- to do what I believe is best for America. If you share the broad vision I outlined tonight, I ask you to join me in the work at hand. If you disagree with parts of it, I hope you’ll at least work with me where you do agree. And I commit to every Republican here tonight that I will not only seek out your ideas, I will seek to work with you to make this country stronger. (Applause.) Because I want this chamber, I want this city to reflect the truth -- that for all our blind spots and shortcomings, we are a people with the strength and generosity of spirit to bridge divides, to unite in common effort, to help our neighbors, whether down the street or on the other side of the world. I want our actions to tell every child in every neighborhood, your life matters, and we are committed to improving your life chances as committed as we are to working on behalf of our own kids. (Applause.) I want future generations to know that we are a people who see our differences as a great gift, that we’re a people who value the dignity and worth of every citizen -- man and woman, young and old, black and white, Latino, Asian, immigrant, Native American, gay, straight, Americans with mental illness or physical disability. Everybody matters. I want them to grow up in a country that shows the world what we still know to be true: that we are still more than a collection of red states and blue states; that we are the United States of America. (Applause.) I want them to grow up in a country where a young mom can sit down and write a letter to her President with a story that sums up these past six years: “It’s amazing what you can bounce back from when you have to…we are a strong, tight-knit family who’s made it through some very, very hard times.” My fellow Americans, we, too, are a strong, tight-knit family. We, too, have made it through some hard times. Fifteen years into this new century, we have picked ourselves up, dusted ourselves off, and begun again the work of remaking America. We have laid a new foundation. A brighter future is ours to write. Let’s begin this new chapter together -- and let’s start the work right now. (Applause.) Thank you. God bless you. God bless this country we love. Thank you.

US

Mr. Speaker, Mr. Vice President, Members of Congress, my fellow Americans: Tonight marks the eighth year that I’ve come here to report on the State of the Union. And for this final one, I’m going to try to make it a little shorter. (Applause.) I know some of you are antsy to get back to Iowa. (Laughter.) I've been there. I'll be shaking hands afterwards if you want some tips. (Laughter.) And I understand that because it’s an election season, expectations for what we will achieve this year are low. But, Mr. Speaker, I appreciate the constructive approach that you and the other leaders took at the end of last year to pass a budget and make tax cuts permanent for working families. So I hope we can work together this year on some bipartisan priorities like criminal justice reform -- (applause) -- and helping people who are battling prescription drug abuse and heroin abuse. (Applause.) So, who knows, we might surprise the cynics again. But tonight, I want to go easy on the traditional list of proposals for the year ahead. Don’t worry, I’ve got plenty, from helping students learn to write computer code to personalizing medical treatments for patients. And I will keep pushing for progress on the work that I believe still needs to be done. Fixing a broken immigration system. (Applause.) Protecting our kids from gun violence. (Applause.) Equal pay for equal work. (Applause.) Paid leave. (Applause.) Raising the minimum wage. (Applause.) All these things still matter to hardworking families. They’re still the right thing to do. And I won't let up until they get done. But for my final address to this chamber, I don’t want to just talk about next year. I want to focus on the next five years, the next 10 years, and beyond. I want to focus on our future. We live in a time of extraordinary change -- change that’s reshaping the way we live, the way we work, our planet, our place in the world. It’s change that promises amazing medical breakthroughs, but also economic disruptions that strain working families. It promises education for girls in the most remote villages, but also connects terrorists plotting an ocean away. It’s change that can broaden opportunity, or widen inequality. And whether we like it or not, the pace of this change will only accelerate. America has been through big changes before -- wars and depression, the influx of new immigrants, workers fighting for a fair deal, movements to expand civil rights. Each time, there have been those who told us to fear the future; who claimed we could slam the brakes on change; who promised to restore past glory if we just got some group or idea that was threatening America under control. And each time, we overcame those fears. We did not, in the words of Lincoln, adhere to the “dogmas of the quiet past.” Instead we thought anew, and acted anew. We made change work for us, always extending America’s promise outward, to the next frontier, to more people. And because we did -- because we saw opportunity where others saw only peril -- we emerged stronger and better than before. What was true then can be true now. Our unique strengths as a nation -- our optimism and work ethic, our spirit of discovery, our diversity, our commitment to rule of law -- these things give us everything we need to ensure prosperity and security for generations to come. In fact, it’s that spirit that made the progress of these past seven years possible. It’s how we recovered from the worst economic crisis in generations. It’s how we reformed our health care system, and reinvented our energy sector; how we delivered more care and benefits to our troops and veterans, and how we secured the freedom in every state to marry the person we love. But such progress is not inevitable. It’s the result of choices we make together. And we face such choices right now. Will we respond to the changes of our time with fear, turning inward as a nation, turning against each other as a people? Or will we face the future with confidence in who we are, in what we stand for, in the incredible things that we can do together? So let’s talk about the future, and four big questions that I believe we as a country have to answer -- regardless of who the next President is, or who controls the next Congress. First, how do we give everyone a fair shot at opportunity and security in this new economy? (Applause.) Second, how do we make technology work for us, and not against us -- especially when it comes to solving urgent challenges like climate change? (Applause.) Third, how do we keep America safe and lead the world without becoming its policeman? (Applause.) And finally, how can we make our politics reflect what’s best in us, and not what’s worst? Let me start with the economy, and a basic fact: The United States of America, right now, has the strongest, most durable economy in the world. (Applause.) We’re in the middle of the longest streak of private sector job creation in history. (Applause.) More than 14 million new jobs, the strongest two years of job growth since the ‘90s, an unemployment rate cut in half. Our auto industry just had its best year ever. (Applause.) That's just part of a manufacturing surge that's created nearly 900,000 new jobs in the past six years. And we’ve done all this while cutting our deficits by almost three-quarters. (Applause.) Anyone claiming that America’s economy is in decline is peddling fiction. (Applause.) Now, what is true -- and the reason that a lot of Americans feel anxious -- is that the economy has been changing in profound ways, changes that started long before the Great Recession hit; changes that have not let up. Today, technology doesn’t just replace jobs on the assembly line, but any job where work can be automated. Companies in a global economy can locate anywhere, and they face tougher competition. As a result, workers have less leverage for a raise. Companies have less loyalty to their communities. And more and more wealth and income is concentrated at the very top. All these trends have squeezed workers, even when they have jobs; even when the economy is growing. It’s made it harder for a hardworking family to pull itself out of poverty, harder for young people to start their careers, tougher for workers to retire when they want to. And although none of these trends are unique to America, they do offend our uniquely American belief that everybody who works hard should get a fair shot. For the past seven years, our goal has been a growing economy that works also better for everybody. We’ve made progress. But we need to make more. And despite all the political arguments that we’ve had these past few years, there are actually some areas where Americans broadly agree. We agree that real opportunity requires every American to get the education and training they need to land a good-paying job. The bipartisan reform of No Child Left Behind was an important start, and together, we’ve increased early childhood education, lifted high school graduation rates to new highs, boosted graduates in fields like engineering. In the coming years, we should build on that progress, by providing Pre-K for all and -- (applause) -- offering every student the hands-on computer science and math classes that make them job-ready on day one. We should recruit and support more great teachers for our kids. (Applause.) And we have to make college affordable for every American. (Applause.) No hardworking student should be stuck in the red. We’ve already reduced student loan payments to 10 percent of a borrower’s income. And that's good. But now, we’ve actually got to cut the cost of college. (Applause.) Providing two years of community college at no cost for every responsible student is one of the best ways to do that, and I’m going to keep fighting to get that started this year. (Applause.) It's the right thing to do. (Applause.) But a great education isn’t all we need in this new economy. We also need benefits and protections that provide a basic measure of security. It’s not too much of a stretch to say that some of the only people in America who are going to work the same job, in the same place, with a health and retirement package for 30 years are sitting in this chamber. (Laughter.) For everyone else, especially folks in their 40s and 50s, saving for retirement or bouncing back from job loss has gotten a lot tougher. Americans understand that at some point in their careers, in this new economy, they may have to retool and they may have to retrain. But they shouldn’t lose what they’ve already worked so hard to build in the process. That’s why Social Security and Medicare are more important than ever. We shouldn’t weaken them; we should strengthen them. (Applause.) And for Americans short of retirement, basic benefits should be just as mobile as everything else is today. That, by the way, is what the Affordable Care Act is all about. It’s about filling the gaps in employer-based care so that when you lose a job, or you go back to school, or you strike out and launch that new business, you’ll still have coverage. Nearly 18 million people have gained coverage so far. (Applause.) And in the process, health care inflation has slowed. And our businesses have created jobs every single month since it became law. Now, I’m guessing we won’t agree on health care anytime soon. (Applause.) A little applause right there. (Laughter.) Just a guess. But there should be other ways parties can work together to improve economic security. Say a hardworking American loses his job -- we shouldn’t just make sure that he can get unemployment insurance; we should make sure that program encourages him to retrain for a business that’s ready to hire him. If that new job doesn’t pay as much, there should be a system of wage insurance in place so that he can still pay his bills. And even if he’s going from job to job, he should still be able to save for retirement and take his savings with him. That’s the way we make the new economy work better for everybody. I also know Speaker Ryan has talked about his interest in tackling poverty. America is about giving everybody willing to work a chance, a hand up. And I’d welcome a serious discussion about strategies we can all support, like expanding tax cuts for low-income workers who don't have children. (Applause.) But there are some areas where we just have to be honest -- it has been difficult to find agreement over the last seven years. And a lot of them fall under the category of what role the government should play in making sure the system’s not rigged in favor of the wealthiest and biggest corporations. (Applause.) And it's an honest disagreement, and the American people have a choice to make. I believe a thriving private sector is the lifeblood of our economy. I think there are outdated regulations that need to be changed. There is red tape that needs to be cut. (Applause.) There you go! Yes! (Applause.) But after years now of record corporate profits, working families won’t get more opportunity or bigger paychecks just by letting big banks or big oil or hedge funds make their own rules at everybody else’s expense. (Applause.) Middle-class families are not going to feel more secure because we allowed attacks on collective bargaining to go unanswered. Food Stamp recipients did not cause the financial crisis; recklessness on Wall Street did. (Applause.) Immigrants aren’t the principal reason wages haven’t gone up; those decisions are made in the boardrooms that all too often put quarterly earnings over long-term returns. It’s sure not the average family watching tonight that avoids paying taxes through offshore accounts. (Applause.) The point is, I believe that in this new economy, workers and start-ups and small businesses need more of a voice, not less. The rules should work for them. (Applause.) And I'm not alone in this. This year I plan to lift up the many businesses who’ve figured out that doing right by their workers or their customers or their communities ends up being good for their shareholders. (Applause.) And I want to spread those best practices across America. That's part of a brighter future. (Applause.) In fact, it turns out many of our best corporate citizens are also our most creative. And this brings me to the second big question we as a country have to answer: How do we reignite that spirit of innovation to meet our biggest challenges? Sixty years ago, when the Russians beat us into space, we didn’t deny Sputnik was up there. (Laughter.) We didn’t argue about the science, or shrink our research and development budget. We built a space program almost overnight. And 12 years later, we were walking on the moon. (Applause.) Now, that spirit of discovery is in our DNA. America is Thomas Edison and the Wright Brothers and George Washington Carver. America is Grace Hopper and Katherine Johnson and Sally Ride. America is every immigrant and entrepreneur from Boston to Austin to Silicon Valley, racing to shape a better world. (Applause.) That's who we are. And over the past seven years, we’ve nurtured that spirit. We’ve protected an open Internet, and taken bold new steps to get more students and low-income Americans online. (Applause.) We’ve launched next-generation manufacturing hubs, and online tools that give an entrepreneur everything he or she needs to start a business in a single day. But we can do so much more. Last year, Vice President Biden said that with a new moonshot, America can cure cancer. Last month, he worked with this Congress to give scientists at the National Institutes of Health the strongest resources that they’ve had in over a decade. (Applause.) So tonight, I’m announcing a new national effort to get it done. And because he’s gone to the mat for all of us on so many issues over the past 40 years, I’m putting Joe in charge of Mission Control. (Applause.) For the loved ones we’ve all lost, for the families that we can still save, let’s make America the country that cures cancer once and for all. (Applause.) Medical research is critical. We need the same level of commitment when it comes to developing clean energy sources. (Applause.) Look, if anybody still wants to dispute the science around climate change, have at it. You will be pretty lonely, because you’ll be debating our military, most of America’s business leaders, the majority of the American people, almost the entire scientific community, and 200 nations around the world who agree it’s a problem and intend to solve it. (Applause.) But even if -- even if the planet wasn’t at stake, even if 2014 wasn’t the warmest year on record -- until 2015 turned out to be even hotter -- why would we want to pass up the chance for American businesses to produce and sell the energy of the future? (Applause.) Listen, seven years ago, we made the single biggest investment in clean energy in our history. Here are the results. In fields from Iowa to Texas, wind power is now cheaper than dirtier, conventional power. On rooftops from Arizona to New York, solar is saving Americans tens of millions of dollars a year on their energy bills, and employs more Americans than coal -- in jobs that pay better than average. We’re taking steps to give homeowners the freedom to generate and store their own energy -- something, by the way, that environmentalists and Tea Partiers have teamed up to support. And meanwhile, we’ve cut our imports of foreign oil by nearly 60 percent, and cut carbon pollution more than any other country on Earth. (Applause.) Gas under two bucks a gallon ain’t bad, either. (Applause.) Now we’ve got to accelerate the transition away from old, dirtier energy sources. Rather than subsidize the past, we should invest in the future -- especially in communities that rely on fossil fuels. We do them no favor when we don't show them where the trends are going. That’s why I’m going to push to change the way we manage our oil and coal resources, so that they better reflect the costs they impose on taxpayers and our planet. And that way, we put money back into those communities, and put tens of thousands of Americans to work building a 21st century transportation system. (Applause.) Now, none of this is going to happen overnight. And, yes, there are plenty of entrenched interests who want to protect the status quo. But the jobs we’ll create, the money we’ll save, the planet we’ll preserve -- that is the kind of future our kids and our grandkids deserve. And it's within our grasp. Climate change is just one of many issues where our security is linked to the rest of the world. And that’s why the third big question that we have to answer together is how to keep America safe and strong without either isolating ourselves or trying to nation-build everywhere there’s a problem. I told you earlier all the talk of America’s economic decline is political hot air. Well, so is all the rhetoric you hear about our enemies getting stronger and America getting weaker. Let me tell you something. The United States of America is the most powerful nation on Earth. Period. (Applause.) Period. It’s not even close. It's not even close. (Applause.) It's not even close. We spend more on our military than the next eight nations combined. Our troops are the finest fighting force in the history of the world. (Applause.) No nation attacks us directly, or our allies, because they know that’s the path to ruin. Surveys show our standing around the world is higher than when I was elected to this office, and when it comes to every important international issue, people of the world do not look to Beijing or Moscow to lead -- they call us. (Applause.) I mean, it's useful to level the set here, because when we don't, we don't make good decisions. Now, as someone who begins every day with an intelligence briefing, I know this is a dangerous time. But that’s not primarily because of some looming superpower out there, and certainly not because of diminished American strength. In today’s world, we’re threatened less by evil empires and more by failing states. The Middle East is going through a transformation that will play out for a generation, rooted in conflicts that date back millennia. Economic headwinds are blowing in from a Chinese economy that is in significant transition. Even as their economy severely contracts, Russia is pouring resources in to prop up Ukraine and Syria -- client states that they saw slipping away from their orbit. And the international system we built after World War II is now struggling to keep pace with this new reality. It’s up to us, the United States of America, to help remake that system. And to do that well it means that we’ve got to set priorities. Priority number one is protecting the American people and going after terrorist networks. (Applause.) Both al Qaeda and now ISIL pose a direct threat to our people, because in today’s world, even a handful of terrorists who place no value on human life, including their own, can do a lot of damage. They use the Internet to poison the minds of individuals inside our country. Their actions undermine and destabilize our allies. We have to take them out./p> But as we focus on destroying ISIL, over-the-top claims that this is World War III just play into their hands. Masses of fighters on the back of pickup trucks, twisted souls plotting in apartments or garages -- they pose an enormous danger to civilians; they have to be stopped. But they do not threaten our national existence. (Applause.) That is the story ISIL wants to tell. That’s the kind of propaganda they use to recruit. We don’t need to build them up to show that we’re serious, and we sure don't need to push away vital allies in this fight by echoing the lie that ISIL is somehow representative of one of the world’s largest religions. (Applause.) We just need to call them what they are -- killers and fanatics who have to be rooted out, hunted down, and destroyed. (Applause.) And that’s exactly what we’re doing. For more than a year, America has led a coalition of more than 60 countries to cut off ISIL’s financing, disrupt their plots, stop the flow of terrorist fighters, and stamp out their vicious ideology. With nearly 10,000 air strikes, we’re taking out their leadership, their oil, their training camps, their weapons. We’re training, arming, and supporting forces who are steadily reclaiming territory in Iraq and Syria. If this Congress is serious about winning this war, and wants to send a message to our troops and the world, authorize the use of military force against ISIL. Take a vote. (Applause.) Take a vote. But the American people should know that with or without congressional action, ISIL will learn the same lessons as terrorists before them. If you doubt America’s commitment -- or mine -- to see that justice is done, just ask Osama bin Laden. (Applause.) Ask the leader of al Qaeda in Yemen, who was taken out last year, or the perpetrator of the Benghazi attacks, who sits in a prison cell. When you come after Americans, we go after you. (Applause.) And it may take time, but we have long memories, and our reach has no limits. (Applause.) Our foreign policy hast to be focused on the threat from ISIL and al Qaeda, but it can’t stop there. For even without ISIL, even without al Qaeda, instability will continue for decades in many parts of the world -- in the Middle East, in Afghanistan, parts of Pakistan, in parts of Central America, in Africa, and Asia. Some of these places may become safe havens for new terrorist networks. Others will just fall victim to ethnic conflict, or famine, feeding the next wave of refugees. The world will look to us to help solve these problems, and our answer needs to be more than tough talk or calls to carpet-bomb civilians. That may work as a TV sound bite, but it doesn’t pass muster on the world stage. We also can’t try to take over and rebuild every country that falls into crisis, even if it's done with the best of intentions. (Applause.) That’s not leadership; that’s a recipe for quagmire, spilling American blood and treasure that ultimately will weaken us. It’s the lesson of Vietnam; it's the lesson of Iraq -- and we should have learned it by now. (Applause.) Fortunately, there is a smarter approach, a patient and disciplined strategy that uses every element of our national power. It says America will always act, alone if necessary, to protect our people and our allies; but on issues of global concern, we will mobilize the world to work with us, and make sure other countries pull their own weight. That’s our approach to conflicts like Syria, where we’re partnering with local forces and leading international efforts to help that broken society pursue a lasting peace. That’s why we built a global coalition, with sanctions and principled diplomacy, to prevent a nuclear-armed Iran. And as we speak, Iran has rolled back its nuclear program, shipped out its uranium stockpile, and the world has avoided another war. (Applause.) That’s how we stopped the spread of Ebola in West Africa. (Applause.) Our military, our doctors, our development workers -- they were heroic; they set up the platform that then allowed other countries to join in behind us and stamp out that epidemic. Hundreds of thousands, maybe a couple million lives were saved. That’s how we forged a Trans-Pacific Partnership to open markets, and protect workers and the environment, and advance American leadership in Asia. It cuts 18,000 taxes on products made in America, which will then support more good jobs here in America. With TPP, China does not set the rules in that region; we do. You want to show our strength in this new century? Approve this agreement. Give us the tools to enforce it. It's the right thing to do. (Applause.) Let me give you another example. Fifty years of isolating Cuba had failed to promote democracy, and set us back in Latin America. That’s why we restored diplomatic relations -- (applause) -- opened the door to travel and commerce, positioned ourselves to improve the lives of the Cuban people. (Applause.) So if you want to consolidate our leadership and credibility in the hemisphere, recognize that the Cold War is over -- lift the embargo. (Applause.) The point is American leadership in the 21st century is not a choice between ignoring the rest of the world -- except when we kill terrorists -- or occupying and rebuilding whatever society is unraveling. Leadership means a wise application of military power, and rallying the world behind causes that are right. It means seeing our foreign assistance as a part of our national security, not something separate, not charity. When we lead nearly 200 nations to the most ambitious agreement in history to fight climate change, yes, that helps vulnerable countries, but it also protects our kids. When we help Ukraine defend its democracy, or Colombia resolve a decades-long war, that strengthens the international order we depend on. When we help African countries feed their people and care for the sick -- (applause) -- it's the right thing to do, and it prevents the next pandemic from reaching our shores. Right now, we’re on track to end the scourge of HIV/AIDS. That's within our grasp. (Applause.) And we have the chance to accomplish the same thing with malaria -- something I’ll be pushing this Congress to fund this year. (Applause.) That's American strength. That's American leadership. And that kind of leadership depends on the power of our example. That’s why I will keep working to shut down the prison at Guantanamo. (Applause.) It is expensive, it is unnecessary, and it only serves as a recruitment brochure for our enemies. (Applause.) There’s a better way. (Applause.) And that’s why we need to reject any politics -- any politics -- that targets people because of race or religion. (Applause.) Let me just say this. This is not a matter of political correctness. This is a matter of understanding just what it is that makes us strong. The world respects us not just for our arsenal; it respects us for our diversity, and our openness, and the way we respect every faith. His Holiness, Pope Francis, told this body from the very spot that I'm standing on tonight that “to imitate the hatred and violence of tyrants and murderers is the best way to take their place.” When politicians insult Muslims, whether abroad or our fellow citizens, when a mosque is vandalized, or a kid is called names, that doesn’t make us safer. That’s not telling it like it is. It’s just wrong. (Applause.) It diminishes us in the eyes of the world. It makes it harder to achieve our goals. It betrays who we are as a country. (Applause.) “We the People.” Our Constitution begins with those three simple words, words we’ve come to recognize mean all the people, not just some; words that insist we rise and fall together, and that's how we might perfect our Union. And that brings me to the fourth, and maybe the most important thing that I want to say tonight. The future we want -- all of us want -- opportunity and security for our families, a rising standard of living, a sustainable, peaceful planet for our kids -- all that is within our reach. But it will only happen if we work together. It will only happen if we can have rational, constructive debates. It will only happen if we fix our politics. A better politics doesn’t mean we have to agree on everything. This is a big country -- different regions, different attitudes, different interests. That’s one of our strengths, too. Our Founders distributed power between states and branches of government, and expected us to argue, just as they did, fiercely, over the size and shape of government, over commerce and foreign relations, over the meaning of liberty and the imperatives of security. But democracy does require basic bonds of trust between its citizens. It doesn’t work if we think the people who disagree with us are all motivated by malice. It doesn’t work if we think that our political opponents are unpatriotic or trying to weaken America. Democracy grinds to a halt without a willingness to compromise, or when even basic facts are contested, or when we listen only to those who agree with us. Our public life withers when only the most extreme voices get all the attention. And most of all, democracy breaks down when the average person feels their voice doesn’t matter; that the system is rigged in favor of the rich or the powerful or some special interest. Too many Americans feel that way right now. It’s one of the few regrets of my presidency -- that the rancor and suspicion between the parties has gotten worse instead of better. I have no doubt a president with the gifts of Lincoln or Roosevelt might have better bridged the divide, and I guarantee I’ll keep trying to be better so long as I hold this office. But, my fellow Americans, this cannot be my task -- or any President’s -- alone. There are a whole lot of folks in this chamber, good people who would like to see more cooperation, would like to see a more elevated debate in Washington, but feel trapped by the imperatives of getting elected, by the noise coming out of your base. I know; you’ve told me. It's the worst-kept secret in Washington. And a lot of you aren't enjoying being trapped in that kind of rancor. But that means if we want a better politics -- and I'm addressing the American people now -- if we want a better politics, it’s not enough just to change a congressman or change a senator or even change a President. We have to change the system to reflect our better selves. I think we've got to end the practice of drawing our congressional districts so that politicians can pick their voters, and not the other way around. (Applause.) Let a bipartisan group do it. (Applause.) We have to reduce the influence of money in our politics, so that a handful of families or hidden interests can’t bankroll our elections. (Applause.) And if our existing approach to campaign finance reform can’t pass muster in the courts, we need to work together to find a real solution -- because it's a problem. And most of you don't like raising money. I know; I've done it. (Applause.) We’ve got to make it easier to vote, not harder. (Applause.) We need to modernize it for the way we live now. (Applause.) This is America: We want to make it easier for people to participate. And over the course of this year, I intend to travel the country to push for reforms that do just that. But I can’t do these things on my own. (Applause.) Changes in our political process -- in not just who gets elected, but how they get elected -- that will only happen when the American people demand it. It depends on you. That’s what’s meant by a government of, by, and for the people. What I’m suggesting is hard. It’s a lot easier to be cynical; to accept that change is not possible, and politics is hopeless, and the problem is all the folks who are elected don't care, and to believe that our voices and actions don’t matter. But if we give up now, then we forsake a better future. Those with money and power will gain greater control over the decisions that could send a young soldier to war, or allow another economic disaster, or roll back the equal rights and voting rights that generations of Americans have fought, even died, to secure. And then, as frustration grows, there will be voices urging us to fall back into our respective tribes, to scapegoat fellow citizens who don’t look like us, or pray like us, or vote like we do, or share the same background. We can’t afford to go down that path. It won’t deliver the economy we want. It will not produce the security we want. But most of all, it contradicts everything that makes us the envy of the world. So, my fellow Americans, whatever you may believe, whether you prefer one party or no party, whether you supported my agenda or fought as hard as you could against it -- our collective futures depends on your willingness to uphold your duties as a citizen. To vote. To speak out. To stand up for others, especially the weak, especially the vulnerable, knowing that each of us is only here because somebody, somewhere, stood up for us. (Applause.) We need every American to stay active in our public life -- and not just during election time -- so that our public life reflects the goodness and the decency that I see in the American people every single day. It is not easy. Our brand of democracy is hard. But I can promise that a little over a year from now, when I no longer hold this office, I will be right there with you as a citizen, inspired by those voices of fairness and vision, of grit and good humor and kindness that helped America travel so far. Voices that help us see ourselves not, first and foremost, as black or white, or Asian or Latino, not as gay or straight, immigrant or native born, not as Democrat or Republican, but as Americans first, bound by a common creed. Voices Dr. King believed would have the final word -- voices of unarmed truth and unconditional love. And they’re out there, those voices. They don’t get a lot of attention; they don't seek a lot of fanfare; but they’re busy doing the work this country needs doing. I see them everywhere I travel in this incredible country of ours. I see you, the American people. And in your daily acts of citizenship, I see our future unfolding. I see it in the worker on the assembly line who clocked extra shifts to keep his company open, and the boss who pays him higher wages instead of laying him off. I see it in the Dreamer who stays up late to finish her science project, and the teacher who comes in early because he knows she might someday cure a disease. I see it in the American who served his time, and made mistakes as a child but now is dreaming of starting over -- and I see it in the business owner who gives him that second chance. The protester determined to prove that justice matters -- and the young cop walking the beat, treating everybody with respect, doing the brave, quiet work of keeping us safe. (Applause.) I see it in the soldier who gives almost everything to save his brothers, the nurse who tends to him till he can run a marathon, the community that lines up to cheer him on. It’s the son who finds the courage to come out as who he is, and the father whose love for that son overrides everything he’s been taught. (Applause.) I see it in the elderly woman who will wait in line to cast her vote as long as she has to; the new citizen who casts his vote for the first time; the volunteers at the polls who believe every vote should count -- because each of them in different ways know how much that precious right is worth. That's the America I know. That’s the country we love. Clear-eyed. Big-hearted. Undaunted by challenge. Optimistic that unarmed truth and unconditional love will have the final word. (Applause.) That’s what makes me so hopeful about our future. I believe in change because I believe in you, the American people. And that’s why I stand here confident as I have ever been that the State of our Union is strong. (Applause.) Thank you, God bless you. God bless the United States of America.

US

Madam Speaker, Mr. Vice President, Members of Congress, the First Lady of the United States, and my fellow Americans: We meet tonight at a moment of unlimited potential. As we begin a new Congress, I stand here ready to work with you to achieve historic breakthroughs for all Americans. Millions of our fellow citizens are watching us now, gathered in this great chamber, hoping that we will govern not as two parties but as one Nation. The agenda I will lay out this evening is not a Republican agenda or a Democrat agenda. It is the agenda of the American people. Many of us campaigned on the same core promises: to defend American jobs and demand fair trade for American workers; to rebuild and revitalize our Nation’s infrastructure; to reduce the price of healthcare and prescription drugs; to create an immigration system that is safe, lawful, modern and secure; and to pursue a foreign policy that puts America’s interests first. There is a new opportunity in American politics, if only we have the courage to seize it. Victory is not winning for our party. Victory is winning for our country. This year, America will recognize two important anniversaries that show us the majesty of America’s mission, and the power of American pride. In June, we mark 75 years since the start of what General Dwight D. Eisenhower called the Great Crusade — the Allied liberation of Europe in World War II. On D-Day, June 6, 1944, 15,000 young American men jumped from the sky, and 60,000 more stormed in from the sea, to save our civilization from tyranny. Here with us tonight are three of those heroes: Private First Class Joseph Reilly, Staff Sergeant Irving Locker, and Sergeant Herman Zeitchik. Gentlemen, we salute you. In 2019, we also celebrate 50 years since brave young pilots flew a quarter of a million miles through space to plant the American flag on the face of the moon. Half a century later, we are joined by one of the Apollo 11 astronauts who planted that flag: Buzz Aldrin. This year, American astronauts will go back to space on American rockets. In the 20th century, America saved freedom, transformed science, and redefined the middle class standard of living for the entire world to see. Now, we must step boldly and bravely into the next chapter of this great American adventure, and we must create a new standard of living for the 21st century. An amazing quality of life for all of our citizens is within our reach. We can make our communities safer, our families stronger, our culture richer, our faith deeper, and our middle class bigger and more prosperous than ever before. But we must reject the politics of revenge, resistance, and retribution — and embrace the boundless potential of cooperation, compromise, and the common good. Together, we can break decades of political stalemate. We can bridge old divisions, heal old wounds, build new coalitions, forge new solutions, and unlock the extraordinary promise of America’s future. The decision is ours to make. We must choose between greatness or gridlock, results or resistance, vision or vengeance, incredible progress or pointless destruction. Tonight, I ask you to choose greatness. Over the last 2 years, my Administration has moved with urgency and historic speed to confront problems neglected by leaders of both parties over many decades. In just over 2 years since the election, we have launched an unprecedented economic boom — a boom that has rarely been seen before. We have created 5.3 million new jobs and importantly added 600,000 new manufacturing jobs — something which almost everyone said was impossible to do, but the fact is, we are just getting started. Wages are rising at the fastest pace in decades, and growing for blue collar workers, who I promised to fight for, faster than anyone else. Nearly 5 million Americans have been lifted off food stamps. The United States economy is growing almost twice as fast today as when I took office, and we are considered far and away the hottest economy anywhere in the world. Unemployment has reached the lowest rate in half a century. African-American, Hispanic-American and Asian-American unemployment have all reached their lowest levels ever recorded. Unemployment for Americans with disabilities has also reached an all-time low. More people are working now than at any time in our history –- 157 million. We passed a massive tax cut for working families and doubled the child tax credit. We virtually ended the estate, or death, tax on small businesses, ranches, and family farms. We eliminated the very unpopular Obamacare individual mandate penalty — and to give critically ill patients access to life-saving cures, we passed right to try. My Administration has cut more regulations in a short time than any other administration during its entire tenure. Companies are coming back to our country in large numbers thanks to historic reductions in taxes and regulations. We have unleashed a revolution in American energy — the United States is now the number one producer of oil and natural gas in the world. And now, for the first time in 65 years, we are a net exporter of energy. After 24 months of rapid progress, our economy is the envy of the world, our military is the most powerful on earth, and America is winning each and every day. Members of Congress: the State of our Union is strong. Our country is vibrant and our economy is thriving like never before. On Friday, it was announced that we added another 304,000 jobs last month alone — almost double what was expected. An economic miracle is taking place in the United States — and the only thing that can stop it are foolish wars, politics, or ridiculous partisan investigations. If there is going to be peace and legislation, there cannot be war and investigation. It just doesn’t work that way! We must be united at home to defeat our adversaries abroad. This new era of cooperation can start with finally confirming the more than 300 highly qualified nominees who are still stuck in the Senate – some after years of waiting. The Senate has failed to act on these nominations, which is unfair to the nominees and to our country. Now is the time for bipartisan action. Believe it or not, we have already proven that it is possible. In the last Congress, both parties came together to pass unprecedented legislation to confront the opioid crisis, a sweeping new Farm Bill, historic VA reforms, and after four decades of rejection, we passed VA Accountability so we can finally terminate those who mistreat our wonderful veterans. And just weeks ago, both parties united for groundbreaking criminal justice reform. Last year, I heard through friends the story of Alice Johnson. I was deeply moved. In 1997, Alice was sentenced to life in prison as a first-time non-violent drug offender. Over the next two decades, she became a prison minister, inspiring others to choose a better path. She had a big impact on that prison population — and far beyond. Alice’s story underscores the disparities and unfairness that can exist in criminal sentencing — and the need to remedy this injustice. She served almost 22 years and had expected to be in prison for the rest of her life. In June, I commuted Alice’s sentence — and she is here with us tonight. Alice, thank you for reminding us that we always have the power to shape our own destiny. When I saw Alice’s beautiful family greet her at the prison gates, hugging and kissing and crying and laughing, I knew I did the right thing. Inspired by stories like Alice’s, my Administration worked closely with members of both parties to sign the First Step Act into law. This legislation reformed sentencing laws that have wrongly and disproportionately harmed the African-American community. The First Step Act gives non-violent offenders the chance to re-enter society as productive, law-abiding citizens. Now, States across the country are following our lead. America is a Nation that believes in redemption. We are also joined tonight by Matthew Charles from Tennessee. In 1996, at age 30, Matthew was sentenced to 35 years for selling drugs and related offenses. Over the next two decades, he completed more than 30 Bible studies, became a law clerk, and mentored fellow inmates. Now, Matthew is the very first person to be released from prison under the First Step Act. Matthew, on behalf of all Americans: welcome home. As we have seen, when we are united, we can make astonishing strides for our country. Now, Republicans and Democrats must join forces again to confront an urgent national crisis. The Congress has 10 days left to pass a bill that will fund our Government, protect our homeland, and secure our southern border. Now is the time for the Congress to show the world that America is committed to ending illegal immigration and putting the ruthless coyotes, cartels, drug dealers, and human traffickers out of business. As we speak, large, organized caravans are on the march to the United States. We have just heard that Mexican cities, in order to remove the illegal immigrants from their communities, are getting trucks and buses to bring them up to our country in areas where there is little border protection. I have ordered another 3,750 troops to our southern border to prepare for the tremendous onslaught. This is a moral issue. The lawless state of our southern border is a threat to the safety, security, and financial well‑being of all Americans. We have a moral duty to create an immigration system that protects the lives and jobs of our citizens. This includes our obligation to the millions of immigrants living here today, who followed the rules and respected our laws. Legal immigrants enrich our Nation and strengthen our society in countless ways. I want people to come into our country, but they have to come in legally. Tonight, I am asking you to defend our very dangerous southern border out of love and devotion to our fellow citizens and to our country. No issue better illustrates the divide between America’s working class and America’s political class than illegal immigration. Wealthy politicians and donors push for open borders while living their lives behind walls and gates and guards. Meanwhile, working class Americans are left to pay the price for mass illegal migration — reduced jobs, lower wages, overburdened schools and hospitals, increased crime, and a depleted social safety net. Tolerance for illegal immigration is not compassionate — it is cruel. One in three women is sexually assaulted on the long journey north. Smugglers use migrant children as human pawns to exploit our laws and gain access to our country. Human traffickers and sex traffickers take advantage of the wide open areas between our ports of entry to smuggle thousands of young girls and women into the United States and to sell them into prostitution and modern-day slavery. Tens of thousands of innocent Americans are killed by lethal drugs that cross our border and flood into our cities — including meth, heroin, cocaine, and fentanyl. The savage gang, MS-13, now operates in 20 different American States, and they almost all come through our southern border. Just yesterday, an MS-13 gang member was taken into custody for a fatal shooting on a subway platform in New York City. We are removing these gang members by the thousands, but until we secure our border they’re going to keep streaming back in. Year after year, countless Americans are murdered by criminal illegal aliens. I’ve gotten to know many wonderful Angel Moms, Dads, and families – no one should ever have to suffer the horrible heartache they have endured. Here tonight is Debra Bissell. Just three weeks ago, Debra’s parents, Gerald and Sharon, were burglarized and shot to death in their Reno, Nevada, home by an illegal alien. They were in their eighties and are survived by four children, 11 grandchildren, and 20 great-grandchildren. Also here tonight are Gerald and Sharon’s granddaughter, Heather, and great‑granddaughter, Madison. To Debra, Heather, Madison, please stand: few can understand your pain. But I will never forget, and I will fight for the memory of Gerald and Sharon, that it should never happen again. Not one more American life should be lost because our Nation failed to control its very dangerous border. In the last 2 years, our brave ICE officers made 266,000 arrests of criminal aliens, including those charged or convicted of nearly 100,000 assaults, 30,000 sex crimes, and 4,000 killings. We are joined tonight by one of those law enforcement heroes: ICE Special Agent Elvin Hernandez. When Elvin was a boy, he and his family legally immigrated to the United States from the Dominican Republic. At the age of eight, Elvin told his dad he wanted to become a Special Agent. Today, he leads investigations into the scourge of international sex trafficking. Elvin says: “If I can make sure these young girls get their justice, I’ve done my job.” Thanks to his work and that of his colleagues, more than 300 women and girls have been rescued from horror and more than 1,500 sadistic traffickers have been put behind bars in the last year. Special Agent Hernandez, please stand: We will always support the brave men and women of Law Enforcement — and I pledge to you tonight that we will never abolish our heroes from ICE. My Administration has sent to the Congress a commonsense proposal to end the crisis on our southern border. It includes humanitarian assistance, more law enforcement, drug detection at our ports, closing loopholes that enable child smuggling, and plans for a new physical barrier, or wall, to secure the vast areas between our ports of entry. In the past, most of the people in this room voted for a wall — but the proper wall never got built. I’ll get it built. This is a smart, strategic, see-through steel barrier — not just a simple concrete wall. It will be deployed in the areas identified by border agents as having the greatest need, and as these agents will tell you, where walls go up, illegal crossings go way down. San Diego used to have the most illegal border crossings in the country. In response, and at the request of San Diego residents and political leaders, a strong security wall was put in place. This powerful barrier almost completely ended illegal crossings. The border city of El Paso, Texas, used to have extremely high rates of violent crime — one of the highest in the country, and considered one of our Nation’s most dangerous cities. Now, with a powerful barrier in place, El Paso is one of our safest cities. Simply put, walls work and walls save lives. So let’s work together, compromise, and reach a deal that will truly make America safe. As we work to defend our people’s safety, we must also ensure our economic resurgence continues at a rapid pace. No one has benefitted more from our thriving economy than women, who have filled 58 percent of the new jobs created in the last year. All Americans can be proud that we have more women in the workforce than ever before — and exactly one century after the Congress passed the Constitutional amendment giving women the right to vote, we also have more women serving in the Congress than ever before. As part of our commitment to improving opportunity for women everywhere, this Thursday we are launching the first ever Government-wide initiative focused on economic empowerment for women in developing countries. To build on our incredible economic success, one priority is paramount — reversing decades of calamitous trade policies. We are now making it clear to China that after years of targeting our industries, and stealing our intellectual property, the theft of American jobs and wealth has come to an end. Therefore, we recently imposed tariffs on $250 billion of Chinese goods — and now our Treasury is receiving billions of dollars a month from a country that never gave us a dime. But I don’t blame China for taking advantage of us — I blame our leaders and representatives for allowing this travesty to happen. I have great respect for President Xi, and we are now working on a new trade deal with China. But it must include real, structural change to end unfair trade practices, reduce our chronic trade deficit, and protect American jobs. Another historic trade blunder was the catastrophe known as NAFTA. I have met the men and women of Michigan, Ohio, Pennsylvania, Indiana, New Hampshire, and many other States whose dreams were shattered by NAFTA. For years, politicians promised them they would negotiate for a better deal. But no one ever tried — until now. Our new U.S.-Mexico-Canada Agreement — or USMCA — will replace NAFTA and deliver for American workers: bringing back our manufacturing jobs, expanding American agriculture, protecting intellectual property, and ensuring that more cars are proudly stamped with four beautiful words: made in the USA. Tonight, I am also asking you to pass the United States Reciprocal Trade Act, so that if another country places an unfair tariff on an American product, we can charge them the exact same tariff on the same product that they sell to us. Both parties should be able to unite for a great rebuilding of America’s crumbling infrastructure. I know that the Congress is eager to pass an infrastructure bill — and I am eager to work with you on legislation to deliver new and important infrastructure investment, including investments in the cutting edge industries of the future. This is not an option. This is a necessity. The next major priority for me, and for all of us, should be to lower the cost of healthcare and prescription drugs — and to protect patients with pre-existing conditions. Already, as a result of my Administration’s efforts, in 2018 drug prices experienced their single largest decline in 46 years. But we must do more. It is unacceptable that Americans pay vastly more than people in other countries for the exact same drugs, often made in the exact same place. This is wrong, unfair, and together we can stop it. I am asking the Congress to pass legislation that finally takes on the problem of global freeloading and delivers fairness and price transparency for American patients. We should also require drug companies, insurance companies, and hospitals to disclose real prices to foster competition and bring costs down. No force in history has done more to advance the human condition than American freedom. In recent years we have made remarkable progress in the fight against HIV and AIDS. Scientific breakthroughs have brought a once-distant dream within reach. My budget will ask Democrats and Republicans to make the needed commitment to eliminate the HIV epidemic in the United States within 10 years. Together, we will defeat AIDS in America. Tonight, I am also asking you to join me in another fight that all Americans can get behind: the fight against childhood cancer. Joining Melania in the gallery this evening is a very brave 10-year-old girl, Grace Eline. Every birthday since she was 4, Grace asked her friends to donate to St. Jude Children’s Research Hospital. She did not know that one day she might be a patient herself. Last year, Grace was diagnosed with brain cancer. Immediately, she began radiation treatment. At the same time, she rallied her community and raised more than $40,000 for the fight against cancer. When Grace completed treatment last fall, her doctors and nurses cheered with tears in their eyes as she hung up a poster that read: “Last Day of Chemo.” Grace — you are an inspiration to us all. Many childhood cancers have not seen new therapies in decades. My budget will ask the Congress for $500 million over the next 10 years to fund this critical life-saving research. To help support working parents, the time has come to pass school choice for America’s children. I am also proud to be the first President to include in my budget a plan for nationwide paid family leave — so that every new parent has the chance to bond with their newborn child. There could be no greater contrast to the beautiful image of a mother holding her infant child than the chilling displays our Nation saw in recent days. Lawmakers in New York cheered with delight upon the passage of legislation that would allow a baby to be ripped from the mother’s womb moments before birth. These are living, feeling, beautiful babies who will never get the chance to share their love and dreams with the world. And then, we had the case of the Governor of Virginia where he basically stated he would execute a baby after birth. To defend the dignity of every person, I am asking the Congress to pass legislation to prohibit the late-term abortion of children who can feel pain in the mother’s womb. Let us work together to build a culture that cherishes innocent life. And let us reaffirm a fundamental truth: all children — born and unborn — are made in the holy image of God. The final part of my agenda is to protect America’s National Security. Over the last 2 years, we have begun to fully rebuild the United States Military — with $700 billion last year and $716 billion this year. We are also getting other nations to pay their fair share. For years, the United States was being treated very unfairly by NATO — but now we have secured a $100 billion increase in defense spending from NATO allies. As part of our military build-up, the United States is developing a state-of-the-art Missile Defense System. Under my Administration, we will never apologize for advancing America’s interests. For example, decades ago the United States entered into a treaty with Russia in which we agreed to limit and reduce our missile capabilities. While we followed the agreement to the letter, Russia repeatedly violated its terms. That is why I announced that the United States is officially withdrawing from the Intermediate-Range Nuclear Forces Treaty, or INF Treaty. Perhaps we can negotiate a different agreement, adding China and others, or perhaps we can’t –- in which case, we will outspend and out-innovate all others by far. As part of a bold new diplomacy, we continue our historic push for peace on the Korean Peninsula. Our hostages have come home, nuclear testing has stopped, and there has not been a missile launch in 15 months. If I had not been elected President of the United States, we would right now, in my opinion, be in a major war with North Korea with potentially millions of people killed. Much work remains to be done, but my relationship with Kim Jong Un is a good one. And Chairman Kim and I will meet again on February 27 and 28 in Vietnam. Two weeks ago, the United States officially recognized the legitimate government of Venezuela, and its new interim President, Juan Guaido. We stand with the Venezuelan people in their noble quest for freedom — and we condemn the brutality of the Maduro regime, whose socialist policies have turned that nation from being the wealthiest in South America into a state of abject poverty and despair. Here, in the United States, we are alarmed by new calls to adopt socialism in our country. America was founded on liberty and independence –- not government coercion, domination, and control. We are born free, and we will stay free. Tonight, we renew our resolve that America will never be a socialist country. One of the most complex set of challenges we face is in the Middle East. Our approach is based on principled realism — not discredited theories that have failed for decades to yield progress. For this reason, my Administration recognized the true capital of Israel — and proudly opened the American Embassy in Jerusalem. Our brave troops have now been fighting in the Middle East for almost 19 years. In Afghanistan and Iraq, nearly 7,000 American heroes have given their lives. More than 52,000 Americans have been badly wounded. We have spent more than $7 trillion in the Middle East. As a candidate for President, I pledged a new approach. Great nations do not fight endless wars. When I took office, ISIS controlled more than 20,000 square miles in Iraq and Syria. Today, we have liberated virtually all of that territory from the grip of these bloodthirsty killers. Now, as we work with our allies to destroy the remnants of ISIS, it is time to give our brave warriors in Syria a warm welcome home. I have also accelerated our negotiations to reach a political settlement in Afghanistan. Our troops have fought with unmatched valor — and thanks to their bravery, we are now able to pursue a political solution to this long and bloody conflict. In Afghanistan, my Administration is holding constructive talks with a number of Afghan groups, including the Taliban. As we make progress in these negotiations, we will be able to reduce our troop presence and focus on counter-terrorism. We do not know whether we will achieve an agreement — but we do know that after two decades of war, the hour has come to at least try for peace. Above all, friend and foe alike must never doubt this Nation’s power and will to defend our people. Eighteen years ago, terrorists attacked the USS Cole — and last month American forces killed one of the leaders of the attack. We are honored to be joined tonight by Tom Wibberley, whose son, Navy Seaman Craig Wibberley, was one of the 17 sailors we tragically lost. Tom: we vow to always remember the heroes of the USS Cole. My Administration has acted decisively to confront the world’s leading state sponsor of terror: the radical regime in Iran. To ensure this corrupt dictatorship never acquires nuclear weapons, I withdrew the United States from the disastrous Iran nuclear deal. And last fall, we put in place the toughest sanctions ever imposed on a country. We will not avert our eyes from a regime that chants death to America and threatens genocide against the Jewish people. We must never ignore the vile poison of anti-Semitism, or those who spread its venomous creed. With one voice, we must confront this hatred anywhere and everywhere it occurs. Just months ago, 11 Jewish-Americans were viciously murdered in an anti-semitic attack on the Tree of Life Synagogue in Pittsburgh. SWAT Officer Timothy Matson raced into the gunfire and was shot seven times chasing down the killer. Timothy has just had his 12th surgery — but he made the trip to be here with us tonight. Officer Matson: we are forever grateful for your courage in the face of evil. Tonight, we are also joined by Pittsburgh survivor Judah Samet. He arrived at the synagogue as the massacre began. But not only did Judah narrowly escape death last fall — more than seven decades ago, he narrowly survived the Nazi concentration camps. Today is Judah’s 81st birthday. Judah says he can still remember the exact moment, nearly 75 years ago, after 10 months in a concentration camp, when he and his family were put on a train, and told they were going to another camp. Suddenly the train screeched to a halt. A soldier appeared. Judah’s family braced for the worst. Then, his father cried out with joy: “It’s the Americans.” A second Holocaust survivor who is here tonight, Joshua Kaufman, was a prisoner at Dachau Concentration Camp. He remembers watching through a hole in the wall of a cattle car as American soldiers rolled in with tanks. “To me,” Joshua recalls, “the American soldiers were proof that God exists, and they came down from the sky.” I began this evening by honoring three soldiers who fought on D-Day in the Second World War. One of them was Herman Zeitchik. But there is more to Herman’s story. A year after he stormed the beaches of Normandy, Herman was one of those American soldiers who helped liberate Dachau. He was one of the Americans who helped rescue Joshua from that hell on earth. Almost 75 years later, Herman and Joshua are both together in the gallery tonight — seated side-by-side, here in the home of American freedom. Herman and Joshua: your presence this evening honors and uplifts our entire Nation. When American soldiers set out beneath the dark skies over the English Channel in the early hours of D-Day, 1944, they were just young men of 18 and 19, hurtling on fragile landing craft toward the most momentous battle in the history of war. They did not know if they would survive the hour. They did not know if they would grow old. But they knew that America had to prevail. Their cause was this Nation, and generations yet unborn. Why did they do it? They did it for America — they did it for us. Everything that has come since — our triumph over communism, our giant leaps of science and discovery, our unrivaled progress toward equality and justice — all of it is possible thanks to the blood and tears and courage and vision of the Americans who came before. Think of this Capitol — think of this very chamber, where lawmakers before you voted to end slavery, to build the railroads and the highways, to defeat fascism, to secure civil rights, to face down an evil empire. Here tonight, we have legislators from across this magnificent republic. You have come from the rocky shores of Maine and the volcanic peaks of Hawaii; from the snowy woods of Wisconsin and the red deserts of Arizona; from the green farms of Kentucky and the golden beaches of California. Together, we represent the most extraordinary Nation in all of history. What will we do with this moment? How will we be remembered? I ask the men and women of this Congress: Look at the opportunities before us! Our most thrilling achievements are still ahead. Our most exciting journeys still await. Our biggest victories are still to come. We have not yet begun to dream. We must choose whether we are defined by our differences — or whether we dare to transcend them. We must choose whether we will squander our inheritance — or whether we will proudly declare that we are Americans. We do the incredible. We defy the impossible. We conquer the unknown. This is the time to re-ignite the American imagination. This is the time to search for the tallest summit, and set our sights on the brightest star. This is the time to rekindle the bonds of love and loyalty and memory that link us together as citizens, as neighbors, as patriots. This is our future — our fate — and our choice to make. I am asking you to choose greatness. No matter the trials we face, no matter the challenges to come, we must go forward together. We must keep America first in our hearts. We must keep freedom alive in our souls. And we must always keep faith in America’s destiny — that one Nation, under God, must be the hope and the promise and the light and the glory among all the nations of the world! Thank you. God Bless You, God Bless America, and good night!

US

Mr. Speaker, Mr. Vice President, Members of Congress, the First Lady of the United States, and my fellow Americans: Less than one year has passed since I first stood at this podium, in this majestic chamber, to speak on behalf of the American people and to address their concerns, their hopes, and their dreams. That night, our new administration had already taken very swift action. A new tide of optimism was already sweeping across our land. Each day since, we have gone forward with a clear vision and a righteous mission — to make America great again for all Americans. (Applause.) Over the last year, we have made incredible progress and achieved extraordinary success. We have faced challenges we expected, and others we could never have imagined. We have shared in the heights of victory and the pains of hardship. We have endured floods and fires and storms. But through it all, we have seen the beauty of America’s soul, and the steel in America’s spine. Each test has forged new American heroes to remind us who we are, and show us what we can be. We saw the volunteers of the Cajun Navy, racing to the rescue with their fishing boats to save people in the aftermath of a totally devastating hurricane. We saw strangers shielding strangers from a hail of gunfire on the Las Vegas strip. We heard tales of Americans like Coast Guard Petty Officer Ashlee Leppert, who is here tonight in the gallery with Melania. (Applause.) Ashlee was aboard one of the first helicopters on the scene in Houston during the Hurricane Harvey. Through 18 hours of wind and rain, Ashlee braved live power lines and deep water to help save more than 40 lives. Ashlee, we all thank you. Thank you very much. (Applause.) We heard about Americans like firefighter David Dahlberg. He’s here with us also. David faced down walls of flame to rescue almost 60 children trapped at a California summer camp threatened by those devastating wildfires. To everyone still recovering in Texas, Florida, Louisiana, Puerto Rico, and the Virgin Islands — everywhere — we are with you, we love you, and we always will pull through together, always. (Applause.) Thank you to David and the brave people of California. Thank you very much, David. Great job. Some trials over the past year touched this chamber very personally. With us tonight is one of the toughest people ever to serve in this House — a guy who took a bullet, almost died, and was back to work three and a half months later: the legend from Louisiana, Congressman Steve Scalise. (Applause.) I think they like you, Steve. (Laughter.) We are incredibly grateful for the heroic efforts of the Capitol Police officers, the Alexandria Police, and the doctors, nurses, and paramedics who saved his life and the lives of many others; some in this room. In the aftermath — (applause) — yes. Yes. In the aftermath of that terrible shooting, we came together, not as Republicans or Democrats, but as representatives of the people. But it is not enough to come together only in times of tragedy. Tonight, I call upon all of us to set aside our differences, to seek out common ground, and to summon the unity we need to deliver for the people. This is really the key. These are the people we were elected to serve. (Applause.) Over the last year, the world has seen what we always knew: that no people on Earth are so fearless, or daring, or determined as Americans. If there is a mountain, we climb it. If there is a frontier, we cross it. If there’s a challenge, we tame it. If there’s an opportunity, we seize it. So let’s begin tonight by recognizing that the state of our Union is strong because our people are strong. (Applause.) And together, we are building a safe, strong, and proud America. Since the election, we have created 2.4 million new jobs, including — (applause) — including 200,000 new jobs in manufacturing alone. Tremendous numbers. (Applause.) After years and years of wage stagnation, we are finally seeing rising wages. (Applause.) Unemployment claims have hit a 45-year low. (Applause.) It’s something I’m very proud of. African American unemployment stands at the lowest rate ever recorded. (Applause.) And Hispanic American unemployment has also reached the lowest levels in history. (Applause.) Small-business confidence is at an all-time high. The stock market has smashed one record after another, gaining $8 trillion, and more, in value in just this short period of time. The great news — (applause) — the great news for Americans’ 401(k), retirement, pension, and college savings accounts have gone through the roof. And just as I promised the American people from this podium 11 months ago, we enacted the biggest tax cuts and reforms in American history. (Applause.) Our massive tax cuts provide tremendous relief for the middle class and small business. To lower tax rates for hardworking Americans, we nearly doubled the standard deduction for everyone. (Applause.) Now, the first $24,000 earned by a married couple is completely tax-free. (Applause.) We also doubled the child tax credit. (Applause.) A typical family of four making $75,000 will see their tax bill reduced by $2,000, slashing their tax bill in half. (Applause.) In April, this will be the last time you will ever file under the old and very broken system, and millions of Americans will have more take-home pay starting next month — a lot more. (Applause.) We eliminated an especially cruel tax that fell mostly on Americans making less than $50,000 a year, forcing them to pay tremendous penalties simply because they couldn’t afford government-ordered health plans. (Applause.) We repealed the core of the disastrous Obamacare. The individual mandate is now gone. Thank heaven. (Applause.) We slashed the business tax rate from 35 percent all the way down to 21 percent, so American companies can compete and win against anyone else anywhere in the world. (Applause.) These changes alone are estimated to increase average family income by more than $4,000. A lot of money. (Applause.) Small businesses have also received a massive tax cut, and can now deduct 20 percent of their business income. Here tonight are Steve Staub and Sandy Keplinger of Staub Manufacturing, a small, beautiful business in Ohio. They’ve just finished the best year in their 20-year history. (Applause.) Because of tax reform, they are handing out raises, hiring an additional 14 people, and expanding into the building next door. Good feeling. (Applause.) One of Staub’s employees, Corey Adams, is also with us tonight. Corey is an all-American worker. He supported himself through high school, lost his job during the 2008 recession, and was later hired by Staub, where he trained to become a welder. Like many hardworking Americans, Corey plans to invest his tax cut raise into his new home and his two daughters’ education. Corey, please stand. (Applause.) And he’s a great welder. (Laughter.) I was told that by the man that owns that company that’s doing so well. So congratulations, Corey. Since we passed tax cuts, roughly 3 million workers have already gotten tax cut bonuses — many of them thousands and thousands of dollars per worker. And it’s getting more every month, every week. Apple has just announced it plans to invest a total of $350 billion in America, and hire another 20,000 workers. (Applause.) And just a little while ago, ExxonMobil announced a $50 billion investment in the United States, just a little while ago. (Applause.) This, in fact, is our new American moment. There has never been a better time to start living the American Dream. So to every citizen watching at home tonight, no matter where you’ve been, or where you’ve come from, this is your time. If you work hard, if you believe in yourself, if you believe in America, then you can dream anything, you can be anything, and together, we can achieve absolutely anything. (Applause.) Tonight, I want to talk about what kind of future we are going to have, and what kind of a nation we are going to be. All of us, together, as one team, one people, and one American family can do anything. We all share the same home, the same heart, the same destiny, and the same great American flag. (Applause.) Together, we are rediscovering the American way. In America, we know that faith and family, not government and bureaucracy, are the center of American life. The motto is, “In God We Trust.” (Applause.) And we celebrate our police, our military, and our amazing veterans as heroes who deserve our total and unwavering support. (Applause.) Here tonight is Preston Sharp, a 12-year-old boy from Redding, California, who noticed that veterans’ graves were not marked with flags on Veterans Day. He decided all by himself to change that, and started a movement that has now placed 40,000 flags at the graves of our great heroes. (Applause.) Preston, a job well done. (Applause.) Young patriots, like Preston, teach all of us about our civic duty as Americans. And I met Preston a little while ago, and he is something very special — that I can tell you. Great future. Thank you very much for all you’ve done, Preston. Thank you very much. (Applause.) Preston’s reverence for those who have served our nation reminds us of why we salute our flag, why we put our hands on our hearts for the Pledge of Allegiance, and why we proudly stand for the National Anthem. (Applause.) Americans love their country, and they deserve a government that shows them the same love and loyalty in return. For the last year, we have sought to restore the bonds of trust between our citizens and their government. Working with the Senate, we are appointing judges who will interpret the Constitution as written, including a great new Supreme Court justice, and more circuit court judges than any new administration in the history of our country. (Applause.) We are totally defending our Second Amendment, and have taken historic actions to protect religious liberty. (Applause.) And we are serving our brave veterans, including giving our veterans choice in their healthcare decisions. (Applause.) Last year, Congress also passed, and I signed, the landmark VA Accountability Act. (Applause.) Since its passage, my administration has already removed more than 1,500 VA employees who failed to give our veterans the care they deserve. And we are hiring talented people who love our vets as much as we do. (Applause.) And I will not stop until our veterans are properly taken care of, which has been my promise to them from the very beginning of this great journey. (Applause.) All Americans deserve accountability and respect, and that’s what we are giving to our wonderful heroes, our veterans. Thank you. (Applause.) So, tonight, I call on Congress to empower every Cabinet Secretary with the authority to reward good workers and to remove federal employees who undermine the public trust or fail the American people. (Applause.) In our drive to make Washington accountable, we have eliminated more regulations in our first year than any administration in the history of our country. (Applause.) We have ended the war on American energy, and we have ended the war on beautiful clean coal. (Applause.) We are now very proudly an exporter of energy to the world. (Applause.) In Detroit, I halted government mandates that crippled America’s great, beautiful autoworkers so that we can get Motor City revving its engines again. And that’s what’s happening. (Applause.) Many car companies are now building and expanding plants in the United States — something we haven’t seen for decades. Chrysler is moving a major plant from Mexico to Michigan. Toyota and Mazda are opening up a plant in Alabama — a big one. And we haven’t seen this in a long time. It’s all coming back. (Applause.) Very soon, auto plants and other plants will be opening up all over our country. This is all news Americans are totally unaccustomed to hearing. For many years, companies and jobs were only leaving us. But now they are roaring back. They’re coming back. They want to be where the action is. They want to be in the United States of America. That’s where they want to be. (Applause.) Exciting progress is happening every single day. To speed access to breakthrough cures and affordable generic drugs, last year the FDA approved more new and generic drugs and medical devices than ever before in our country’s history. (Applause.) We also believe that patients with terminal conditions, and terminal illness, should have access to experimental treatment immediately that could potentially save their lives. People who are terminally ill should not have to go from country to country to seek a cure. I want to give them a chance right here at home. It’s time for Congress to give these wonderful, incredible Americans the right to try. (Applause.) One of my greatest priorities is to reduce the price of prescription drugs. (Applause.) In many other countries, these drugs cost far less than what we pay in the United States. And it’s very, very unfair. That is why I have directed my administration to make fixing the injustice of high drug prices one of my top priorities for the year. (Applause.) And prices will come down substantially. Watch. America has also finally turned the page on decades of unfair trade deals that sacrificed our prosperity and shipped away our companies, our jobs, and our wealth. Our nation has lost its wealth, but we’re getting it back so fast. The era of economic surrender is totally over. From now on, we expect trading relationships to be fair and, very importantly, reciprocal. (Applause.) We will work to fix bad trade deals and negotiate new ones. And they’ll be good ones, but they’ll be fair. And we will protect American workers and American intellectual property through strong enforcement of our trade rules. (Applause.) As we rebuild our industries, it is also time to rebuild our crumbling infrastructure. (Applause.) America is a nation of builders. We built the Empire State Building in just one year. Isn’t it a disgrace that it can now take 10 years just to get a minor permit approved for the building of a simple road? (Applause.) I am asking both parties to come together to give us safe, fast, reliable, and modern infrastructure that our economy needs and our people deserve. (Applause.) Tonight, I’m calling on Congress to produce a bill that generates at least $1.5 trillion for the new infrastructure investment that our country so desperately needs. Every federal dollar should be leveraged by partnering with state and local governments and, where appropriate, tapping into private sector investment to permanently fix the infrastructure deficit. And we can do it. (Applause.) Any bill must also streamline the permitting and approval process, getting it down to no more than two years, and perhaps even one. Together, we can reclaim our great building heritage. (Applause.) We will build gleaming new roads, bridges, highways, railways, and waterways all across our land. And we will do it with American heart, and American hands, and American grit. (Applause.) We want every American to know the dignity of a hard day’s work. We want every child to be safe in their home at night. And we want every citizen to be proud of this land that we all love so much. We can lift our citizens from welfare to work, from dependence to independence, and from poverty to prosperity. (Applause.) As tax cuts create new jobs, let’s invest in workforce development and let’s invest in job training, which we need so badly. (Applause.) Let’s open great vocational schools so our future workers can learn a craft and realize their full potential. (Applause.) And let’s support working families by supporting paid family leave. (Applause.) As America regains its strength, opportunity must be extended to all citizens. That is why this year we will embark on reforming our prisons to help former inmates who have served their time get a second chance at life. (Applause.) Struggling communities, especially immigrant communities, will also be helped by immigration policies that focus on the best interests of American workers and American families. For decades, open borders have allowed drugs and gangs to pour into our most vulnerable communities. They’ve allowed millions of low-wage workers to compete for jobs and wages against the poorest Americans. Most tragically, they have caused the loss of many innocent lives. Here tonight are two fathers and two mothers: Evelyn Rodriguez, Freddy Cuevas, Elizabeth Alvarado, and Robert Mickens. Their two teenage daughters — Kayla Cuevas and Nisa Mickens — were close friends on Long Island. But in September 2016, on the eve of Nisa’s 16th Birthday — such a happy time it should have been — neither of them came home. These two precious girls were brutally murdered while walking together in their hometown. Six members of the savage MS-13 gang have been charged with Kayla and Nisa’s murders. Many of these gang members took advantage of glaring loopholes in our laws to enter the country as illegal, unaccompanied alien minors, and wound up in Kayla and Nisa’s high school. Evelyn, Elizabeth, Freddy, and Robert: Tonight, everyone in this chamber is praying for you. Everyone in America is grieving for you. Please stand. Thank you very much. (Applause.) I want you to know that 320 million hearts are right now breaking for you. We love you. Thank you. (Applause.) While we cannot imagine the depths of that kind of sorrow, we can make sure that other families never have to endure this kind of pain. Tonight, I am calling on Congress to finally close the deadly loopholes that have allowed MS-13, and other criminal gangs, to break into our country. We have proposed new legislation that will fix our immigration laws and support our ICE and Border Patrol agents — these are great people; these are great, great people — that work so hard in the midst of such danger so that this can never happen again. (Applause.) The United States is a compassionate nation. We are proud that we do more than any other country anywhere in the world to help the needy, the struggling, and the underprivileged all over the world. But as President of the United States, my highest loyalty, my greatest compassion, my constant concern is for America’s children, America’s struggling workers, and America’s forgotten communities. I want our youth to grow up to achieve great things. I want our poor to have their chance to rise. So, tonight, I am extending an open hand to work with members of both parties, Democrats and Republicans, to protect our citizens of every background, color, religion, and creed. (Applause.) My duty, and the sacred duty of every elected official in this chamber, is to defend Americans, to protect their safety, their families, their communities, and their right to the American Dream. Because Americans are dreamers too. (Applause.) Here tonight is one leader in the effort to defend our country, Homeland Security Investigations Special Agent Celestino Martinez. He goes by “DJ” and “CJ.” He said, “Call me either one.” So we’ll call you “CJ.” Served 15 years in the Air Force before becoming an ICE agent and spending the last 15 years fighting gang violence and getting dangerous criminals off of our streets. Tough job. At one point, MS-13 leaders ordered CJ’s murder. And they wanted it to happen quickly. But he did not cave to threats or to fear. Last May, he commanded an operation to track down gang members on Long Island. His team has arrested nearly 400, including more than 220 MS-13 gang members. And I have to tell you, what the Border Patrol and ICE have done — we have sent thousands and thousands and thousands of MS-13 horrible people out of this country or into our prisons. So I just want to congratulate you, CJ. You’re a brave guy. Thank you very much. (Applause.) And I asked CJ, “What’s the secret?” He said, “We’re just tougher than they are.” And I like that answer. (Laughter and applause.) Now let’s get Congress to send you — and all of the people in this great chamber have to do it; we have no choice. CJ, we’re going to send you reinforcements, and we’re going to send them to you quickly. It’s what you need. (Applause.) Over the next few weeks, the House and Senate will be voting on an immigration reform package. In recent months, my administration has met extensively with both Democrats and Republicans to craft a bipartisan approach to immigration reform. Based on these discussions, we presented Congress with a detailed proposal that should be supported by both parties as a fair compromise, one where nobody gets everything they want, but where our country gets the critical reforms it needs and must have. (Applause.) Here are the four pillars of our plan: The first pillar of our framework generously offers a path to citizenship for 1.8 million illegal immigrants who were brought here by their parents at a young age. That covers almost three times more people than the previous administration covered. (Applause.) Under our plan, those who meet education and work requirements, and show good moral character, will be able to become full citizens of the United States over a 12-year period. (Applause.) The second pillar fully secures the border. (Applause.) That means building a great wall on the southern border, and it means hiring more heroes, like CJ, to keep our communities safe. (Applause.) Crucially, our plan closes the terrible loopholes exploited by criminals and terrorists to enter our country, and it finally ends the horrible and dangerous practice of catch and release. (Applause.) The third pillar ends the visa lottery, a program that randomly hands out green cards without any regard for skill, merit, or the safety of American people. (Applause.) It’s time to begin moving towards a merit-based immigration system, one that admits people who are skilled, who want to work, who will contribute to our society, and who will love and respect our country. (Applause.) The fourth and final pillar protects the nuclear family by ending chain migration. (Applause.) Under the current broken system, a single immigrant can bring in virtually unlimited numbers of distant relatives. Under our plan, we focus on the immediate family by limiting sponsorships to spouses and minor children. (Applause.) This vital reform is necessary, not just for our economy, but for our security and for the future of America. In recent weeks, two terrorist attacks in New York were made possible by the visa lottery and chain migration. In the age of terrorism, these programs present risks we can just no longer afford. (Applause.) It’s time to reform these outdated immigration rules, and finally bring our immigration system into the 21st century. (Applause.) These four pillars represent a down-the-middle compromise, and one that will create a safe, modern, and lawful immigration system. For over 30 years, Washington has tried and failed to solve this problem. This Congress can be the one that finally makes it happen. Most importantly, these four pillars will produce legislation that fulfills my ironclad pledge to sign a bill that puts America first. (Applause.) So let’s come together, set politics aside, and finally get the job done. (Applause.) These reforms will also support our response to the terrible crisis of opioid and drug addiction. Never before has it been like it is now. It is terrible. We have to do something about it. In 2016, we lost 64,000 Americans to drug overdoses — 174 deaths per day; 7 per hour. We must get much tougher on drug dealers and pushers if we are going to succeed in stopping this scourge. (Applause.) My administration is committed to fighting the drug epidemic and helping get treatment for those in need, for those who have been so terribly hurt. The struggle will be long and it will be difficult, but as Americans always do — in the end, we will succeed. We will prevail. (Applause.) As we have seen tonight, the most difficult challenges bring out the best in America. We see a vivid expression of this truth in the story of the Holets family of New Mexico. Ryan Holets is 27 years old, an officer with the Albuquerque Police Department. He’s here tonight with his wife Rebecca. (Applause.) Thank you, Ryan. Last year, Ryan was on duty when he saw a pregnant, homeless woman preparing to inject heroin. When Ryan told her she was going to harm her unborn child, she began to weep. She told him she didn’t know where to turn, but badly wanted a safe home for her baby. In that moment, Ryan said he felt God speak to him: “You will do it, because you can.” He heard those words. He took out a picture of his wife and their four kids. Then, he went home to tell his wife Rebecca. In an instant, she agreed to adopt. The Holets named their new daughter Hope. Ryan and Rebecca, you embody the goodness of our nation. Thank you. (Applause.) Thank you, Ryan and Rebecca. As we rebuild America’s strength and confidence at home, we are also restoring our strength and standing abroad. Around the world, we face rogue regimes, terrorist groups, and rivals like China and Russia that challenge our interests, our economy, and our values. In confronting these horrible dangers, we know that weakness is the surest path to conflict, and unmatched power is the surest means to our true and great defense. For this reason, I am asking Congress to end the dangerous defense sequester and fully fund our great military. (Applause.) As part of our defense, we must modernize and rebuild our nuclear arsenal, hopefully never having to use it, but making it so strong and so powerful that it will deter any acts of aggression by any other nation or anyone else. (Applause.) Perhaps someday in the future, there will be a magical moment when the countries of the world will get together to eliminate their nuclear weapons. Unfortunately, we are not there yet, sadly. Last year, I also pledged that we would work with our allies to extinguish ISIS from the face of the Earth. One year later, I am proud to report that the coalition to defeat ISIS has liberated very close to 100 percent of the territory just recently held by these killers in Iraq and in Syria and in other locations, as well. (Applause.) But there is much more work to be done. We will continue our fight until ISIS is defeated. Army Staff Sergeant Justin Peck is here tonight. Near Raqqa, last November, Justin and his comrade, Chief Petty Officer Kenton Stacy, were on a mission to clear buildings that ISIS had rigged with explosive so that civilians could return to that city hopefully soon, and hopefully safely. Clearing the second floor of a vital hospital, Kenton Stacy was severely wounded by an explosion. Immediately, Justin bounded into the booby-trapped and unbelievably dangerous and unsafe building, and found Kenton, but in very, very bad shape. He applied pressure to the wound and inserted a tube to reopen an airway. He then performed CPR for 20 straight minutes during the ground transport, and maintained artificial respiration through two and a half hours and through emergency surgery. Kenton Stacy would have died if it were not for Justin’s selfless love for his fellow warrior. Tonight, Kenton is recovering in Texas. Raqqa is liberated. And Justin is wearing his new Bronze Star, with a “V” for “valor.” Staff Sergeant Peck, all of America salutes you. (Applause.) Terrorists who do things like place bombs in civilian hospitals are evil. When possible, we have no choice but to annihilate them. When necessary, we must be able to detain and question them. But we must be clear: Terrorists are not merely criminals. They are unlawful enemy combatants. (Applause.) And when captured overseas, they should be treated like the terrorists they are. In the past, we have foolishly released hundreds and hundreds of dangerous terrorists, only to meet them again on the battlefield — including the ISIS leader, al-Baghdadi, who we captured, who we had, who we released. So today, I’m keeping another promise. I just signed, prior to walking in, an order directing Secretary Mattis, who is doing a great job, thank you — (applause) — to reexamine our military detention policy and to keep open the detention facilities in Guantanamo Bay. (Applause.) I am asking Congress to ensure that, in the fight against ISIS and al Qaeda, we continue to have all necessary power to detain terrorists, wherever we chase them down, wherever we find them. And in many cases, for them, it will now be Guantanamo Bay. (Applause.) At the same time, as of a few months ago, our warriors in Afghanistan have new rules of engagement. (Applause.) Along with their heroic Afghan partners, our military is no longer undermined by artificial timelines, and we no longer tell our enemies our plans. (Applause.) Last month, I also took an action endorsed unanimously by the U.S. Senate just months before. I recognized Jerusalem as the capital of Israel. (Applause.) Shortly afterwards, dozens of countries voted in the United Nations General Assembly against America’s sovereign right to make this decision. In 2016, American taxpayers generously sent those same countries more than $20 billion in aid. That is why, tonight, I am asking Congress to pass legislation to help ensure American foreign-assistance dollars always serve American interests, and only go to friends of America, not enemies of America. (Applause.) As we strengthen friendships all around the world, we are also restoring clarity about our adversaries. When the people of Iran rose up against the crimes of their corrupt dictatorship, I did not stay silent. America stands with the people of Iran in their courageous struggle for freedom. (Applause.) I am asking Congress to address the fundamental flaws in the terrible Iran nuclear deal. My administration has also imposed tough sanctions on the communist and socialist dictatorships in Cuba and Venezuela. (Applause.) But no regime has oppressed its own citizens more totally or brutally than the cruel dictatorship in North Korea. North Korea’s reckless pursuit of nuclear missiles could very soon threaten our homeland. We are waging a campaign of maximum pressure to prevent that from ever happening. Past experience has taught us that complacency and concessions only invite aggression and provocation. I will not repeat the mistakes of past administrations that got us into this very dangerous position. We need only look at the depraved character of the North Korean regime to understand the nature of the nuclear threat it could pose to America and to our allies. Otto Warmbier was a hardworking student at the University of Virginia — and a great student he was. On his way to study abroad in Asia, Otto joined a tour to North Korea. At its conclusion, this wonderful young man was arrested and charged with crimes against the state. After a shameful trial, the dictatorship sentenced Otto to 15 years of hard labor, before returning him to America last June, horribly injured and on the verge of death. He passed away just days after his return. Otto’s wonderful parents, Fred and Cindy Warmbier, are here with us tonight, along with Otto’s brother and sister, Austin and Greta. Please. (Applause.) Incredible people. You are powerful witnesses to a menace that threatens our world, and your strength truly inspires us all. Thank you very much. Thank you. (Applause.) Tonight, we pledge to honor Otto’s memory with total American resolve. Thank you. (Applause.) Finally, we are joined by one more witness to the ominous nature of this regime. His name is Mr. Ji Seong-ho. In 1996, Seong-ho was a starving boy in North Korea. One day, he tried to steal coal from a railroad car to barter for a few scraps of food, which were very hard to get. In the process, he passed out on the train tracks, exhausted from hunger. He woke up as a train ran over his limbs. He then endured multiple amputations without anything to dull the pain or the hurt. His brother and sister gave what little food they had to help him recover and ate dirt themselves, permanently stunting their own growth. Later, he was tortured by North Korean authorities after returning from a brief visit to China. His tormentors wanted to know if he’d met any Christians. He had — and he resolved, after that, to be free. Seong-ho traveled thousands of miles on crutches all across China and Southeast Asia to freedom. Most of his family followed. His father was caught trying to escape and was tortured to death. Today he lives in Seoul, where he rescues other defectors, and broadcasts into North Korea what the regime fears most: the truth. Today, he has a new leg. But, Seong-ho, I understand you still keep those old crutches as a reminder of how far you’ve come. Your great sacrifice is an inspiration to us all. Please. Thank you. (Applause.) Seong-ho’s story is a testament to the yearning of every human soul to live in freedom. It was that same yearning for freedom that nearly 250 years ago gave birth to a special place called America. It was a small cluster of colonies caught between a great ocean and a vast wilderness. It was home to an incredible people with a revolutionary idea: that they could rule themselves; that they could chart their own destiny; and that, together, they could light up the entire world. That is what our country has always been about. That is what Americans have always stood for, always strived for, and always done. Atop the dome of this Capitol stands the Statue of Freedom. She stands tall and dignified among the monuments to our ancestors who fought, and lived, and died to protect her. Monuments to Washington, and Jefferson, and Lincoln, and King. Memorials to the heroes of Yorktown and Saratoga; to young Americans who shed their blood on the shores of Normandy and the fields beyond; and others, who went down in the waters of the Pacific and the skies all over Asia. And freedom stands tall over one more monument: this one. This Capitol — this living monument — this is the moment to the American people. (Applause.) AUDIENCE: USA! USA! USA! THE PRESIDENT: We’re a people whose heroes live not only in the past, but all around us, defending hope, pride, and defending the American way. They work in every trade. They sacrifice to raise a family. They care for our children at home. They defend our flag abroad. And they are strong moms and brave kids. They are firefighters, and police officers, and border agents, medics, and Marines. But above all else, they are Americans. And this Capitol, this city, this nation, belongs entirely to them. (Applause.) Our task is to respect them, to listen to them, to serve them, to protect them, and to always be worthy of them. Americans fill the world with art and music. They push the bounds of science and discovery. And they forever remind us of what we should never, ever forget: The people dreamed this country. The people built this country. And it’s the people who are making America great again. (Applause.) As long as we are proud of who we are and what we are fighting for, there is nothing we cannot achieve. As long as we have confidence in our values, faith in our citizens, and trust in our God, we will never fail. Our families will thrive. Our people will prosper. And our nation will forever be safe and strong and proud and mighty and free. Thank you. And God bless America. Goodnight. (Applause.)

US

Madam Speaker, Mr. Vice President, Members of Congress, the First Lady of the United States — (applause) — and my fellow Americans: We meet tonight at a moment of unlimited potential. As we begin a new Congress, I stand here ready to work with you to achieve historic breakthroughs for all Americans. Millions of our fellow citizens are watching us now, gathered in this great chamber, hoping that we will govern not as two parties but as one nation. (Applause.) The agenda I will lay out this evening is not a Republican agenda or a Democrat agenda. It’s the agenda of the American people. Many of us have campaigned on the same core promises: to defend American jobs and demand fair trade for American workers; to rebuild and revitalize our nation’s infrastructure; to reduce the price of healthcare and prescription drugs; to create an immigration system that is safe, lawful, modern, and secure; and to pursue a foreign policy that puts America’s interests first. There is a new opportunity in American politics, if only we have the courage, together, to seize it. (Applause.) Victory is not winning for our party. Victory is winning for our country. (Applause.) This year, America will recognize two important anniversaries that show us the majesty of America’s mission and the power of American pride. In June, we mark 75 years since the start of what General Dwight D. Eisenhower called the “Great Crusade” — the Allied liberation of Europe in World War II. (Applause.) On D-Day, June 6th, 1944, 15,000 young American men jumped from the sky, and 60,000 more stormed in from the sea, to save our civilization from tyranny. Here with us tonight are three of those incredible heroes: Private First Class Joseph Reilly, Staff Sergeant Irving Locker, and Sergeant Herman Zeitchik. (Applause.) Please. Gentlemen, we salute you. In 2019, we also celebrate 50 years since brave young pilots flew a quarter of a million miles through space to plant the American flag on the face of the moon. Half a century later, we are joined by one of the Apollo 11 astronauts who planted that flag: Buzz Aldrin. (Applause.) Thank you, Buzz. This year, American astronauts will go back to space on American rockets. (Applause.) In the 20th century, America saved freedom, transformed science, redefined the middle class, and, when you get down to it, there’s nothing anywhere in the world that can compete with America. (Applause.) Now we must step boldly and bravely into the next chapter of this great American adventure, and we must create a new standard of living for the 21st century. An amazing quality of life for all of our citizens is within reach. We can make our communities safer, our families stronger, our culture richer, our faith deeper, and our middle class bigger and more prosperous than ever before. (Applause.) But we must reject the politics of revenge, resistance, and retribution, and embrace the boundless potential of cooperation, compromise, and the common good. (Applause.) Together, we can break decades of political stalemate. We can bridge old divisions, heal old wounds, build new coalitions, forge new solutions, and unlock the extraordinary promise of America’s future. The decision is ours to make. We must choose between greatness or gridlock, results or resistance, vision or vengeance, incredible progress or pointless destruction. Tonight, I ask you to choose greatness. (Applause.) Over the last two years, my administration has moved with urgency and historic speed to confront problems neglected by leaders of both parties over many decades. In just over two years since the election, we have launched an unprecedented economic boom — a boom that has rarely been seen before. There’s been nothing like it. We have created 5.3 million new jobs and, importantly, added 600,000 new manufacturing jobs — something which almost everyone said was impossible to do. But the fact is, we are just getting started. (Applause.) Wages are rising at the fastest pace in decades and growing for blue-collar workers, who I promised to fight for. They’re growing faster than anyone else thought possible. Nearly 5 million Americans have been lifted off food stamps. (Applause.) The U.S. economy is growing almost twice as fast today as when I took office. And we are considered, far and away, the hottest economy anywhere in the world. Not even close. (Applause.) Unemployment has reached the lowest rate in over half a century. (Applause.) African American, Hispanic American, and Asian American unemployment have all reached their lowest levels ever recorded. (Applause.) Unemployment for Americans with disabilities has also reached an all-time low. (Applause.) More people are working now than at any time in the history of our country — 157 million people at work. (Applause.) We passed a massive tax cut for working families and doubled the child tax credit. (Applause.) We virtually ended the estate tax — or death tax, as it is often called — on small businesses for ranchers and also for family farms. (Applause.) We eliminated the very unpopular Obamacare individual mandate penalty. (Applause.) And to give critically ill patients access to lifesaving cures, we passed, very importantly, Right to Try. (Applause.) My administration has cut more regulations in a short period of time than any other administration during its entire tenure. (Applause.) Companies are coming back to our country in large numbers thanks to our historic reductions in taxes and regulations. (Applause.) And we have unleashed a revolution in American energy. The United States is now the number-one producer of oil and natural gas anywhere in the world. (Applause.) And now, for the first time in 65 years, we are a net exporter of energy. (Applause.) After 24 months of rapid progress, our economy is the envy of the world, our military is the most powerful on Earth, by far, and America — (applause) — America is again winning each and every day. (Applause.) Members of Congress: The state of our union is strong. (Applause.) AUDIENCE: USA! USA! USA! THE PRESIDENT: That sounds so good. (Laughter.) Our country is vibrant and our economy is thriving like never before. On Friday, it was announced that we added another 304,000 jobs last month alone — almost double the number expected. (Applause.) An economic miracle is taking place in the United States, and the only thing that can stop it are foolish wars, politics, or ridiculous partisan investigations. (Applause.) If there is going to be peace and legislation, there cannot be war and investigation. It just doesn’t work that way. We must be united at home to defeat our adversaries abroad. This new era of cooperation can start with finally confirming the more than 300 highly qualified nominees who are still stuck in the Senate. In some cases, years and years waiting. Not right. (Applause.) The Senate has failed to act on these nominations, which is unfair to the nominees and very unfair to our country. Now is the time for bipartisan action. Believe it or not, we have already proven that that’s possible. In the last Congress, both parties came together to pass unprecedented legislation to confront the opioid crisis, a sweeping new farm bill, historic VA reforms. And after four decades of rejection, we passed VA Accountability so that we can finally terminate those who mistreat our wonderful veterans. (Applause.) And just weeks ago, both parties united for groundbreaking criminal justice reform. They said it couldn’t be done. (Applause.) Last year, I heard, through friends, the story of Alice Johnson. I was deeply moved. In 1997, Alice was sentenced to life in prison as a first-time non-violent drug offender. Over the next 22 years, she became a prison minister, inspiring others to choose a better path. She had a big impact on that prison population, and far beyond. Alice’s story underscores the disparities and unfairness that can exist in criminal sentencing, and the need to remedy this total injustice. She served almost that 22 years and had expected to be in prison for the remainder of her life. In June, I commuted Alice’s sentence. When I saw Alice’s beautiful family greet her at the prison gates, hugging and kissing and crying and laughing, I knew I did something right. Alice is with us tonight, and she is a terrific woman. Terrific. Alice, please. (Applause.) Alice, thank you for reminding us that we always have the power to shape our own destiny. Thank you very much, Alice. Thank you very much. (Applause.) Inspired by stories like Alice’s, my administration worked closely with members of both parties to sign the FIRST STEP Act into law. Big deal. (Applause.) It’s a big deal. This legislation reformed sentencing laws that have wrongly and disproportionately harmed the African American community. The FIRST STEP Act gives non-violent offenders the chance to reenter society as productive, law-abiding citizens. Now states across the country are following our lead. America is a nation that believes in redemption. We are also joined tonight by Matthew Charles from Tennessee. In 1996, at the age of 30, Matthew was sentenced to 35 years for selling drugs and related offenses. Over the next two decades, he completed more than 30 Bible studies, became a law clerk, and mentored many of his fellow inmates. Now, Matthew is the very first person to be released from prison under the FIRST STEP Act. (Applause.) Matthew, please. Thank you, Matthew. Welcome home. (Applause.) Now, Republicans and Democrats must join forces again to confront an urgent national crisis. Congress has 10 days left to pass a bill that will fund our government, protect our homeland, and secure our very dangerous southern border. Now is the time for Congress to show the world that America is committed to ending illegal immigration and putting the ruthless coyotes, cartels, drug dealers, and human traffickers out of business. (Applause.) As we speak, large, organized caravans are on the march to the United States. We have just heard that Mexican cities, in order to remove the illegal immigrants from their communities, are getting trucks and buses to bring them up to our country in areas where there is little border protection. I have ordered another 3,750 troops to our southern border to prepare for this tremendous onslaught. This is a moral issue. The lawless state of our southern border is a threat to the safety, security, and financial wellbeing of all America. We have a moral duty to create an immigration system that protects the lives and jobs of our citizens. This includes our obligation to the millions of immigrants living here today who followed the rules and respected our laws. Legal immigrants enrich our nation and strengthen our society in countless ways. (Applause.) I want people to come into our country in the largest numbers ever, but they have to come in legally. (Applause.) Tonight, I am asking you to defend our very dangerous southern border out of love and devotion to our fellow citizens and to our country. No issue better illustrates the divide between America’s working class and America’s political class than illegal immigration. Wealthy politicians and donors push for open borders while living their lives behind walls, and gates, and guards. (Applause.) Meanwhile, working-class Americans are left to pay the price for mass illegal migration: reduced jobs, lower wages, overburdened schools, hospitals that are so crowded you can’t get in, increased crime, and a depleted social safety net. Tolerance for illegal immigration is not compassionate; it is actually very cruel. (Applause.) One in three women is sexually assaulted on the long journey north. Smugglers use migrant children as human pawns to exploit our laws and gain access to our country. Human traffickers and sex traffickers take advantage of the wide-open areas between our ports of entry to smuggle thousands of young girls and women into the United States and to sell them into prostitution and modern-day slavery. Tens of thousands of innocent Americans are killed by lethal drugs that cross our border and flood into our cities, including meth, heroin, cocaine, and fentanyl. The savage gang, MS-13, now operates in at least 20 different American states, and they almost all come through our southern border. Just yesterday, an MS-13 gang member was taken into custody for a fatal shooting on a subway platform in New York City. We are removing these gang members by the thousands. But until we secure our border, they’re going to keep streaming right back in. Year after year, countless Americans are murdered by criminal illegal aliens. I’ve gotten to know many wonderful Angel moms and dads, and families. No one should ever have to suffer the horrible heartache that they have had to endure. Here tonight is Debra Bissell. Just three weeks ago, Debra’s parents, Gerald and Sharon, were burglarized and shot to death in their Reno, Nevada home by an illegal alien. They were in their eighties, and are survived by 4 children, 11 grandchildren, and 20 great-grandchildren. Also here tonight are Gerald and Sharon’s granddaughter Heather, and great-granddaughter Madison. To Debra, Heather, Madison, please stand. Few can understand your pain. Thank you. And thank you for being here. Thank you very much. (Applause.) I will never forget, and I will fight for the memory of Gerald and Sharon that it should never happen again. Not one more American life should be lost because our nation failed to control its very dangerous border. In the last two years, our brave ICE officers made 266,000 arrests of criminal aliens, including those charged or convicted of nearly 100,000 assaults, 30,000 sex crimes, and 4,000 killings or murders. We are joined tonight by one of those law enforcement heroes: ICE Special Agent Elvin Hernandez. When Elvin — (applause) — thank you. When Elvin was a boy, he and his family legally immigrated to the United States from the Dominican Republic. At the age of eight, Elvin told his dad he wanted to become a Special Agent. Today, he leads investigations into the scourge of international sex trafficking. Elvin says that, “If I can make sure these young girls get their justice, I’ve [really] done my job.” Thanks to his work, and that of his incredible colleagues, more than 300 women and girls have been rescued from the horror of this terrible situation, and more than 1,500 sadistic traffickers have been put behind bars. (Applause.) Thank you, Elvin. We will always support the brave men and women of law enforcement, and I pledge to you tonight that I will never abolish our heroes from ICE. Thank you. (Applause.) My administration has sent to Congress a commonsense proposal to end the crisis on the southern border. It includes humanitarian assistance, more law enforcement, drug detection at our ports, closing loopholes that enable child smuggling, and plans for a new physical barrier, or wall, to secure the vast areas between our ports of entry. In the past, most of the people in this room voted for a wall, but the proper wall never got built. I will get it built. (Applause.) This is a smart, strategic, see-through steel barrier — not just a simple concrete wall. It will be deployed in the areas identified by the border agents as having the greatest need. And these agents will tell you: Where walls go up, illegal crossings go way, way down. (Applause.) San Diego used to have the most illegal border crossings in our country. In response, a strong security wall was put in place. This powerful barrier almost completely ended illegal crossings. The border city of El Paso, Texas used to have extremely high rates of violent crime — one of the highest in the entire country, and considered one of our nation’s most dangerous cities. Now, immediately upon its building, with a powerful barrier in place, El Paso is one of the safest cities in our country. Simply put: Walls work, and walls save lives. (Applause.) So let’s work together, compromise, and reach a deal that will truly make America safe. As we work to defend our people’s safety, we must also ensure our economic resurgence continues at a rapid pace. No one has benefitted more from our thriving economy than women, who have filled 58 percent of the newly created jobs last year. (Applause.) You weren’t supposed to do that. Thank you very much. Thank you very much. All Americans can be proud that we have more women in the workforce than ever before. (Applause.) Don’t sit yet. You’re going to like this. (Laughter.) And exactly one century after Congress passed the constitutional amendment giving women the right to vote, we also have more women serving in Congress than at any time before. (Applause.) AUDIENCE: USA! USA! USA! THE PRESIDENT: That’s great. Really great. And congratulations. That’s great. As part of our commitment to improving opportunity for women everywhere, this Thursday we are launching the first-ever government-wide initiative focused on economic empowerment for women in developing countries. To build on — (applause) — thank you. To build on our incredible economic success, one priority is paramount: reversing decades of calamitous trade policies. So bad. We are now making it clear to China that, after years of targeting our industries and stealing our intellectual property, the theft of American jobs and wealth has come to an end. (Applause.) Therefore, we recently imposed tariffs on $250 billion of Chinese goods, and now our Treasury is receiving billions and billions of dollars. But I don’t blame China for taking advantage of us; I blame our leaders and representatives for allowing this travesty to happen. I have great respect for President Xi, and we are now working on a new trade deal with China. But it must include real, structural change to end unfair trade practices, reduce our chronic trade deficit, and protect American jobs. (Applause.) Thank you. Another historic trade blunder was the catastrophe known as NAFTA. I have met the men and women of Michigan, Ohio, Pennsylvania, Indiana, New Hampshire, and many other states whose dreams were shattered by the signing of NAFTA. For years, politicians promised them they would renegotiate for a better deal, but no one ever tried, until now. Our new U.S.-Mexico-Canada Agreement, the USMCA, will replace NAFTA and deliver for American workers like they haven’t had delivered to for a long time. I hope you can pass the USMCA into law so that we can bring back our manufacturing jobs in even greater numbers, expand American agriculture, protect intellectual property, and ensure that more cars are proudly stamped with our four beautiful words: “Made in the USA.” (Applause.) Tonight, I am also asking you to pass the United States Reciprocal Trade Act, so that if another country places an unfair tariff on an American product, we can charge them the exact same tariff on the exact same product that they sell to us. (Applause.) Both parties should be able to unite for a great rebuilding of America’s crumbling infrastructure. (Applause.) I know that Congress is eager to pass an infrastructure bill, and I am eager to work with you on legislation to deliver new and important infrastructure investment, including investments in the cutting-edge industries of the future. This is not an option. This is a necessity. The next major priority for me, and for all of us, should be to lower the cost of healthcare and prescription drugs, and to protect patients with preexisting conditions. (Applause.) Already, as a result of my administration’s efforts, in 2018, drug prices experienced their single largest decline in 46 years. (Applause.) But we must do more. It’s unacceptable that Americans pay vastly more than people in other countries for the exact same drugs, often made in the exact same place. This is wrong, this is unfair, and together we will stop it — and we’ll stop it fast. (Applause.) I am asking Congress to pass legislation that finally takes on the problem of global freeloading and delivers fairness and price transparency for American patients, finally. (Applause.) We should also require drug companies, insurance companies, and hospitals to disclose real prices to foster competition and bring costs way down. (Applause.) No force in history has done more to advance the human condition than American freedom. In recent years — (applause) — in recent years, we have made remarkable progress in the fight against HIV and AIDS. Scientific breakthroughs have brought a once-distant dream within reach. My budget will ask Democrats and Republicans to make the needed commitment to eliminate the HIV epidemic in the United States within 10 years. We have made incredible strides. Incredible. (Applause.) Together, we will defeat AIDS in America and beyond. (Applause.) Tonight, I am also asking you to join me in another fight that all Americans can get behind: the fight against childhood cancer. (Applause.) Joining Melania in the gallery this evening is a very brave 10-year-old girl, Grace Eline. Every birthday — (applause) — hi, Grace. (Laughter.) Every birthday since she was four, Grace asked her friends to donate to St. Jude’s Children’s Hospital. She did not know that one day she might be a patient herself. That’s what happened. Last year, Grace was diagnosed with brain cancer. Immediately, she began radiation treatment. At the same time, she rallied her community and raised more than $40,000 for the fight against cancer. (Applause.) When Grace completed treatment last fall, her doctors and nurses cheered — they loved her; they still love her — with tears in their eyes as she hung up a poster that read: “Last day of chemo.” (Applause.) Thank you very much, Grace. You are a great inspiration to everyone in this room. Thank you very much. Many childhood cancers have not seen new therapies in decades. My budget will ask Congress for $500 million over the next 10 years to fund this critical lifesaving research. To help support working parents, the time has come to pass School Choice for Americans’ children. (Applause.) I am also proud to be the first President to include in my budget a plan for nationwide paid family leave, so that every new parent has the chance to bond with their newborn child. (Applause.) There could be no greater contrast to the beautiful image of a mother holding her infant child than the chilling displays our nation saw in recent days. Lawmakers in New York cheered with delight upon the passage of legislation that would allow a baby to be ripped from the mother’s womb moments from birth. These are living, feeling, beautiful babies who will never get the chance to share their love and their dreams with the world. And then, we had the case of the Governor of Virginia where he stated he would execute a baby after birth. To defend the dignity of every person, I am asking Congress to pass legislation to prohibit the late-term abortion of children who can feel pain in the mother’s womb. (Applause.) Let us work together to build a culture that cherishes innocent life. (Applause.) And let us reaffirm a fundamental truth: All children — born and unborn — are made in the holy image of God. The final part of my agenda is to protect American security. Over the last two years, we have begun to fully rebuild the United States military, with $700 billion last year and $716 billion this year. We are also getting other nations to pay their fair share. (Applause.) Finally. Finally. For years, the United States was being treated very unfairly by friends of ours, members of NATO. But now we have secured, over the last couple of years, more than $100 billion of increase in defense spending from our NATO Allies. (Applause.) They said it couldn’t be done. As part of our military build-up, the United States is developing a state-of-the-art missile defense system. Under my administration, we will never apologize for advancing America’s interests. For example, decades ago, the United States entered into a treaty with Russia in which we agreed to limit and reduce our missile capability. While we followed the agreement and the rules to the letter, Russia repeatedly violated its terms. It’s been going on for many years. That is why I announced that the United States is officially withdrawing from the Intermediate-Range Nuclear Forces Treaty, or INF Treaty. Perhaps — (applause) — we really have no choice. Perhaps we can negotiate a different agreement, adding China and others, or perhaps we can’t — in which case, we will outspend and out-innovate all others by far. (Applause.) As part of a bold new diplomacy, we continue our historic push for peace on the Korean Peninsula. Our hostages have come home, nuclear testing has stopped, and there has not been a missile launch in more than 15 months. If I had not been elected President of the United States, we would right now, in my opinion, be in a major war with North Korea. (Applause.) Much work remains to be done, but my relationship with Kim Jong Un is a good one. Chairman Kim and I will meet again on February 27th and 28th in Vietnam. (Applause.) Two weeks ago, the United States officially recognized the legitimate government of Venezuela — (applause) — and its new President, Juan Guaidó. (Applause.) We stand with the Venezuelan people in their noble quest for freedom, and we condemn the brutality of the Maduro regime, whose socialist policies have turned that nation from being the wealthiest in South America into a state of abject poverty and despair. (Applause.) Here in the United States, we are alarmed by the new calls to adopt socialism in our country. AUDIENCE: Booo — THE PRESIDENT: America was founded on liberty and independence, and not government coercion, domination, and control. (Applause.) We are born free and we will stay free. (Applause.) AUDIENCE: USA! USA! USA! THE PRESIDENT: Tonight, we renew our resolve that America will never be a socialist country. (Applause.) AUDIENCE: USA! USA! USA! THE PRESIDENT: One of the most complex set of challenges we face, and have for many years, is in the Middle East. Our approach is based on principled realism, not discredited theories that have failed for decades to yield progress. For this reason, my administration recognized the true capital of Israel, and proudly opened the American Embassy in Jerusalem. (Applause.) Our brave troops have now been fighting in the Middle East for almost 19 years. In Afghanistan and Iraq, nearly 7,000 American heroes have given their lives. More than 52,000 Americans have been badly wounded. We have spent more than $7 trillion in fighting wars in the Middle East. As a candidate for President, I loudly pledged a new approach. Great nations do not fight endless wars. (Applause.) When I took office, ISIS controlled more than 20,000 square miles in Iraq and Syria — just two years ago. Today, we have liberated virtually all of the territory from the grip of these bloodthirsty monsters. Now, as we work with our allies to destroy the remnants of ISIS, it is time to give our brave warriors in Syria a warm welcome home. I have also accelerated our negotiations to reach — if possible — a political settlement in Afghanistan. The opposing side is also very happy to be negotiating. Our troops have fought with unmatched valor. And thanks to their bravery, we are now able to pursue a possible political solution to this long and bloody conflict. (Applause.) In Afghanistan, my administration is holding constructive talks with a number of Afghan groups, including the Taliban. As we make progress in these negotiations, we will be able to reduce our troop’s presence and focus on counterterrorism. And we will indeed focus on counterterrorism. We do not know whether we will achieve an agreement, but we do know that, after two decades of war, the hour has come to at least try for peace. And the other side would like to do the same thing. It’s time. (Applause.) Above all, friend and foe alike must never doubt this nation’s power and will to defend our people. Eighteen years ago, violent terrorists attacked the USS Cole. And last month, American forces killed one of the leaders of that attack. (Applause.) We are honored to be joined tonight by Tom Wibberley, whose son, Navy Seaman Craig Wibberley, was one of the 17 sailors we tragically lost. Tom, we vow to always remember the heroes of the USS Cole. (Applause.) Thank you, Tom. My administration has acted decisively to confront the world’s leading state sponsor of terror: the radical regime in Iran. It is a radical regime. They do bad, bad things. To ensure this corrupt dictatorship never acquires nuclear weapons, I withdrew the United States from the disastrous Iran nuclear deal. (Applause.) And last fall, we put in place the toughest sanctions ever imposed by us on a country. We will not avert our eyes from a regime that chants “Death to America” and threatens genocide against the Jewish people. (Applause.) We must never ignore the vile poison of anti-Semitism, or those who spread its venomous creed. With one voice, we must confront this hatred anywhere and everywhere it occurs. Just months ago, 11 Jewish-Americans were viciously murdered in an anti-Semitic attack on the Tree of Life synagogue in Pittsburgh. SWAT Officer Timothy Matson raced into the gunfire and was shot seven times chasing down the killer. And he was very successful. Timothy has just had his 12th surgery, and he is going in for many more. But he made the trip to be here with us tonight. Officer Matson, please. (Applause.) Thank you. We are forever grateful. Thank you very much. Tonight, we are also joined by Pittsburgh survivor, Judah Samet. He arrived at the synagogue as the massacre began. But not only did Judah narrowly escape death last fall, more than seven decades ago, he narrowly survived the Nazi concentration camps. Today is Judah’s 81st birthday. (Applause.) AUDIENCE: (Sings “Happy Birthday.”) (Applause.) MR. SAMET: Thank you! THE PRESIDENT: They wouldn’t do that for me, Judah. (Laughter.) Judah says he can still remember the exact moment, nearly 75 years ago, after 10 months in a concentration camp, when he and his family were put on a train and told they were going to another camp. Suddenly, the train screeched to a very strong halt. A soldier appeared. Judah’s family braced for the absolute worst. Then, his father cried out with joy, “It’s the Americans! It’s the Americans!” (Applause.) Thank you. A second Holocaust survivor who is here tonight, Joshua Kaufman, was a prisoner at Dachau. He remembers watching through a hole in the wall of a cattle car as American soldiers rolled in with tanks. “To me,” Joshua recalls, “the American soldiers were proof that God exists, and they came down from the sky.” They came down from Heaven. I began this evening by honoring three soldiers who fought on D-Day in the Second World War. One of them was Herman Zeitchik. But there is more to Herman’s story. A year after he stormed the beaches of Normandy, Herman was one of the American soldiers who helped liberate Dachau. (Applause.) He was one of the Americans who helped rescue Joshua from that hell on Earth. Almost 75 years later, Herman and Joshua are both together in the gallery tonight, seated side-by-side, here in the home of American freedom. Herman and Joshua, your presence this evening is very much appreciated. Thank you very much. (Applause.) Thank you. When American soldiers set out beneath the dark skies over the English Channel in the early hours of D-Day, 1944, they were just young men of 18 and 19, hurtling on fragile landing craft toward the most momentous battle in the history of war. They did not know if they would survive the hour. They did not know if they would grow old. But they knew that America had to prevail. Their cause was this nation and generations yet unborn. Why did they do it? They did it for America. They did it for us. Everything that has come since — our triumph over communism, our giant leaps of science and discovery, our unrivaled progress towards equality and justice — all of it is possible thanks to the blood and tears and courage and vision of the Americans who came before. Think of this Capitol. Think of this very Chamber, where lawmakers before you voted to end slavery, to build the railroads and the highways, and defeat fascism, to secure civil rights, and to face down evil empires. Here tonight, we have legislators from across this magnificent republic. You have come from the rocky shores of Maine and the volcanic peaks of Hawaii; from the snowy woods of Wisconsin and the red deserts of Arizona; from the green farms of Kentucky and the golden beaches of California. Together, we represent the most extraordinary nation in all of history. What will we do with this moment? How will we be remembered? I ask the men and women of this Congress: Look at the opportunities before us. Our most thrilling achievements are still ahead. Our most exciting journeys still await. Our biggest victories are still to come. We have not yet begun to dream. We must choose whether we are defined by our differences or whether we dare to transcend them. We must choose whether we squander our great inheritance or whether we proudly declare that we are Americans. We do the incredible. We defy the impossible. We conquer the unknown. This is the time to reignite the American imagination. This is the time to search for the tallest summit and set our sights on the brightest star. This is the time to rekindle the bonds of love and loyalty and memory that link us together as citizens, as neighbors, as patriots. This is our future, our fate, and our choice to make. I am asking you to choose greatness. No matter the trials we face, no matter the challenges to come, we must go forward together. We must keep America first in our hearts. We must keep freedom alive in our souls. And we must always keep faith in America’s destiny that one nation, under God, must be the hope and the promise, and the light and the glory, among all the nations of the world. Thank you. God bless you. And God bless America. Thank you very much. Thank you. (Applause.)

US

Thank you very much. Thank you. Thank you very much. Madam Speaker, Mr. Vice President, members of Congress, the First Lady of the United States — (applause) — and my fellow citizens: Three years ago, we launched the great American comeback. Tonight, I stand before you to share the incredible results. Jobs are booming, incomes are soaring, poverty is plummeting, crime is falling, confidence is surging, and our country is thriving and highly respected again. (Applause.) America’s enemies are on the run, America’s fortunes are on the rise, and America’s future is blazing bright. The years of economic decay are over. (Applause.) The days of our country being used, taken advantage of, and even scorned by other nations are long behind us. (Applause.) Gone too are the broken promises, jobless recoveries, tired platitudes, and constant excuses for the depletion of American wealth, power, and prestige. In just three short years, we have shattered the mentality of American decline, and we have rejected the downsizing of America’s destiny. We have totally rejected the downsizing. We are moving forward at a pace that was unimaginable just a short time ago, and we are never, ever going back. (Applause.) I am thrilled to report to you tonight that our economy is the best it has ever been. Our military is completely rebuilt, with its power being unmatched anywhere in the world — and it’s not even close. Our borders are secure. Our families are flourishing. Our values are renewed. Our pride is restored. And for all of these reasons, I say to the people of our great country and to the members of Congress: The state of our Union is stronger than ever before. (Applause.) The vision I will lay out this evening demonstrates how we are building the world’s most prosperous and inclusive society — one where every citizen can join in America’s unparalleled success and where every community can take part in America’s extraordinary rise. From the instant I took office, I moved rapidly to revive the U.S. economy — slashing a record number of job-killing regulations, enacting historic and record-setting tax cuts, and fighting for fair and reciprocal trade agreements. (Applause.) Our agenda is relentlessly pro-worker, pro-family, pro-growth, and, most of all, pro-American. (Applause.) Thank you. We are advancing with unbridled optimism and lifting our citizens of every race, color, religion, and creed very, very high. Since my election, we have created 7 million new jobs — 5 million more than government experts projected during the previous administration. (Applause.) The unemployment rate is the lowest in over half a century. (Applause.) And very incredibly, the average unemployment rate under my administration is lower than any administration in the history of our country. (Applause.) True. If we hadn’t reversed the failed economic policies of the previous administration, the world would not now be witnessing this great economic success. (Applause.) The unemployment rate for African Americans, Hispanic Americans, and Asian Americans has reached the lowest levels in history. (Applause.) African American youth unemployment has reached an all-time low. (Applause.) African American poverty has declined to the lowest rate ever recorded. (Applause.) The unemployment rate for women reached the lowest level in almost 70 years. And, last year, women filled 72 percent of all new jobs added. (Applause.) The veterans unemployment rate dropped to a record low. (Applause.) The unemployment rate for disabled Americans has reached an all-time low. (Applause.) Workers without a high school diploma have achieved the lowest unemployment rate recorded in U.S. history. (Applause.) A record number of young Americans are now employed. (Applause.) Under the last administration, more than 10 million people were added to the food stamp rolls. Under my administration, 7 million Americans have come off food stamps, and 10 million people have been lifted off of welfare. (Applause.) In eight years under the last administration, over 300,000 working-age people dropped out of the workforce. In just three years of my administration, 3.5 million people — working-age people — have joined the workforce. (Applause.) Since my election, the net worth of the bottom half of wage earners has increased by 47 percent — three times faster than the increase for the top 1 percent. (Applause.) After decades of flat and falling incomes, wages are rising fast — and, wonderfully, they are rising fastest for low-income workers, who have seen a 16 percent pay increase since my election. (Applause.) This is a blue-collar boom. (Applause.) Real median household income is now at the highest level ever recorded. (Applause.) Since my election, U.S. stock markets have soared 70 percent, adding more than $12 trillion to our nation’s wealth, transcending anything anyone believed was possible. This is a record. It is something that every country in the world is looking up to. They admire. (Applause.) Consumer confidence has just reached amazing new highs. All of those millions of people with 401(k)s and pensions are doing far better than they have ever done before with increases of 60, 70, 80, 90, and 100 percent, and even more. Jobs and investments are pouring into 9,000 previously neglected neighborhoods thanks to Opportunity Zones, a plan spearheaded by Senator Tim Scott as part of our great Republican tax cuts. (Applause.) In other words, wealthy people and companies are pouring money into poor neighborhoods or areas that haven’t seen investment in many decades, creating jobs, energy, and excitement. (Applause.) This is the first time that these deserving communities have seen anything like this. It’s all working. Opportunity Zones are helping Americans like Army veteran Tony Rankins from Cincinnati, Ohio. After struggling with drug addiction, Tony lost his job, his house, and his family. He was homeless. But then Tony found a construction company that invests in Opportunity Zones. He is now a top tradesman, drug-free, reunited with his family, and he is here tonight. Tony, keep up the great work. Tony. (Applause.) Thank you, Tony. Our roaring economy has, for the first time ever, given many former prisoners the ability to get a great job and a fresh start. This second chance at life is made possible because we passed landmark criminal justice reform into law. Everybody said that criminal justice reform couldn’t be done, but I got it done, and the people in this room got it done. (Applause.) Thanks to our bold regulatory reduction campaign, the United States has become the number one producer of oil and natural gas anywhere in the world, by far. (Applause.) With the tremendous progress we have made over the past three years, America is now energy independent, and energy jobs, like so many other elements of our country, are at a record high. (Applause.) We are doing numbers that no one would have thought possible just three years ago. Likewise, we are restoring our nation’s manufacturing might, even though predictions were, as you all know, that this could never, ever be done. After losing 60,000 factories under the previous two administrations, America has now gained 12,000 new factories under my administration, with thousands upon thousands of plants and factories being planned or being built. (Applause.) Companies are not leaving; they are coming back to the USA. (Applause.) The fact is that everybody wants to be where the action is, and the United States of America is indeed the place where the action is. (Applause.) One of the biggest promises I made to the American people was to replace the disastrous NAFTA trade deal. (Applause.) In fact, unfair trade is perhaps the single biggest reason that I decided to run for President. Following NAFTA’s adoption, our nation lost one in four manufacturing jobs. Many politicians came and went, pledging to change or replace NAFTA, only to do so, and then absolutely nothing happened. But unlike so many who came before me, I keep my promises. We did our job. (Applause.) Six days ago, I replaced NAFTA and signed the brand-new U.S.-Mexico-Canada Agreement into law. The USMCA will create nearly 100,000 new high-paying American auto jobs, and massively boost exports for our farmers, ranchers, and factory workers. (Applause.) It will also bring trade with Mexico and Canada to a much higher level, but also to be a much greater degree of fairness and reciprocity. We will have that: fairness and reciprocity. And I say that, finally, because it’s been many, many years that we were treated fairly on trade. (Applause.) This is the first major trade deal in many years to earn the strong backing of America’s labor unions. (Applause.) I also promised our citizens that I would impose tariffs to confront China’s massive theft of America’s jobs. Our strategy has worked. Days ago, we signed the groundbreaking new agreement with China that will defend our workers, protect our intellectual property, bring billions and billions of dollars into our treasury, and open vast new markets for products made and grown right here in the USA. (Applause.) For decades, China has taken advantage of the United States. Now we have changed that, but, at the same time, we have perhaps the best relationship we’ve ever had with China, including with President Xi. They respect what we’ve done because, quite frankly, they could never really believe that they were able to get away with what they were doing year after year, decade after decade, without someone in our country stepping up and saying, “That’s enough.” (Applause.) Now we want to rebuild our country, and that’s exactly what we’re doing. We are rebuilding our country. As we restore — (applause) — American leadership throughout the world, we are once again standing up for freedom in our hemisphere. (Applause.) That’s why my administration reversed the failing policies of the previous administration on Cuba. (Applause.) We are supporting the hopes of Cubans, Nicaraguans, and Venezuelans to restore democracy. The United States is leading a 59-nation diplomatic coalition against the socialist dictator of Venezuela, Nicolás Maduro. (Applause.) Maduro is an illegitimate ruler, a tyrant who brutalizes his people. But Maduro’s grip on tyranny will be smashed and broken. Here this evening is a very brave man who carries with him the hopes, dreams, and aspirations of all Venezuelans. Joining us in the Gallery is the true and legitimate President of Venezuela, Juan Guaidó. (Applause.) Mr. President, please take this message back to your homeland. (Applause.) Thank you, Mr. President. Great honor. Thank you very much. Please take this message back that all Americans are united with the Venezuelan people in their righteous struggle for freedom. Thank you very much, Mr. President. (Applause.) Thank you very much. Socialism destroys nations. But always remember: Freedom unifies the soul. (Applause.) To safeguard American liberty, we have invested a record-breaking $2.2 trillion in the United States military. (Applause.) We have purchased the finest planes, missiles, rockets, ships, and every other form of military equipment, and it’s all made right here in the USA. (Applause.) We are also getting our allies, finally, to help pay their fair share. (Applause.) I have raised contributions from the other NATO members by more than $400 billion, and the number of Allies meeting their minimum obligations has more than doubled. And just weeks ago, for the first time since President Truman established the Air Force more than 70 years earlier, we created a brand-new branch of the United States Armed Forces. It’s called the Space Force. (Applause.) Very important. In the Gallery tonight, we have a young gentleman. And what he wants so badly — 13 years old — Iain Lanphier. He’s an eighth grader from Arizona. Iain, please stand up. Iain has always dreamed of going to space. He was the first in his class and among the youngest at an aviation academy. He aspires to go to the Air Force Academy, and then he has his eye on the Space Force. As Iain says, “Most people look up at space. I want to look down on the world.” (Laughter and applause.) But sitting behind Iain tonight is his greatest hero of them all. Charles McGee was born in Cleveland, Ohio, one century ago. Charles is one of the last surviving Tuskegee Airmen — the first black fighter pilots — and he also happens to be Iain’s great-grandfather. (Applause.) Incredible story. After more than 130 combat missions in World War Two, he came back home to a country still struggling for civil rights and went on to serve America in Korea and Vietnam. On December 7th, Charles celebrated his 100th birthday. (Applause.) A few weeks ago, I signed a bill promoting Charles McGee to Brigadier General. And earlier today, I pinned the stars on his shoulders in the Oval Office. General McGee, our nation salutes you. Thank you, sir. (Applause.) From the pilgrims to the Founders, from the soldiers at Valley Forge to the marchers at Selma, and from President Lincoln to the Reverend Martin Luther King, Americans have always rejected limits on our children’s future. Members of Congress, we must never forget that the only victories that matter in Washington are victories that deliver for the American people. (Applause.) The people are the heart of our country, their dreams are the soul of our country, and their love is what powers and sustains our country. We must always remember that our job is to put America first. (Applause.) The next step forward in building an inclusive society is making sure that every young American gets a great education and the opportunity to achieve the American Dream. Yet, for too long, countless American children have been trapped in failing government schools. To rescue these students, 18 states have created school choice in the form of Opportunity Scholarships. The programs are so popular that tens of thousands of students remain on a waiting list. One of those students is Janiyah Davis, a fourth grader from Philadelphia. Janiyah. (Applause.) Janiyah’s mom, Stephanie, is a single parent. She would do anything to give her daughter a better future. But last year, that future was put further out of reach when Pennsylvania’s governor vetoed legislation to expand school choice to 50,000 children. Janiyah and Stephanie are in the Gallery. Stephanie, thank you so much for being here with your beautiful daughter. Thank you very much. (Applause.) But, Janiyah, I have some good news for you, because I am pleased to inform you that your long wait is over. I can proudly announce tonight that an Opportunity Scholarship has become available, it’s going to you, and you will soon be heading to the school of your choice. (Applause.) Now I call on Congress to give one million American children the same opportunity Janiyah has just received. Pass the Education Freedom Scholarships and Opportunities Act — because no parent should be forced to send their child to a failing government school. (Applause.) Every young person should have a safe and secure environment in which to learn and to grow. For this reason, our magnificent First Lady has launched the BE BEST initiative to advance a safe, healthy, supportive, and drug-free life for the next generation — online, in school, and in our communities. Thank you, Melania, for your extraordinary love and profound care for America’s children. Thank you very much. (Applause.) My administration is determined to give our citizens the opportunities they need regardless of age or background. Through our Pledge to American Workers, over 400 companies will also provide new jobs and education opportunities to almost 15 million Americans. My budget also contains an exciting vision for our nation’s high schools. Tonight, I ask Congress to support our students and back my plan to offer vocational and technical education in every single high school in America. (Applause.) To expand equal opportunity, I am also proud that we achieved record and permanent funding for our nation’s historically black colleges and universities. (Applause.) A good life for American families also requires the most affordable, innovative, and high-quality healthcare system on Earth. Before I took office, health insurance premiums had more than doubled in just five years. I moved quickly to provide affordable alternatives. Our new plans are up to 60 percent less expensive — and better. (Applause.) I’ve also made an ironclad pledge to American families: We will always protect patients with pre-existing conditions. (Applause). And we will always protect your Medicare and we will always protect your Social Security. Always. (Applause.) The American patient should never be blindsided by medical bills. That is why I signed an executive order requiring price transparency. (Applause.) Many experts believe that transparency, which will go into full effect at the beginning of next year, will be even bigger than healthcare reform. (Applause.) It will save families massive amounts of money for substantially better care. But as we work to improve Americans’ healthcare, there are those who want to take away your healthcare, take away your doctor, and abolish private insurance entirely. AUDIENCE: Booo — THE PRESIDENT: One hundred thirty-two lawmakers in this room have endorsed legislation to impose a socialist takeover of our healthcare system, wiping out the private health insurance plans of 180 million very happy Americans. To those watching at home tonight, I want you to know: We will never let socialism destroy American healthcare. (Applause.) Over 130 legislators in this chamber have endorsed legislation that would bankrupt our nation by providing free taxpayer-funded healthcare to millions of illegal aliens, forcing taxpayers to subsidize free care for anyone in the world who unlawfully crosses our borders. These proposals would raid the Medicare benefits of our seniors and that our seniors depend on, while acting as a powerful lure for illegal immigration. That is what is happening in California and other states. Their systems are totally out of control, costing taxpayers vast and unaffordable amounts of money. If forcing American taxpayers to provide unlimited free healthcare to illegal aliens sounds fair to you, then stand with the radical left. But if you believe that we should defend American patients and American seniors, then stand with me and pass legislation to prohibit free government healthcare for illegal aliens. (Applause.) This will be a tremendous boon to our already very strongly guarded southern border where, as we speak, a long, tall, and very powerful wall is being built. (Applause.) We have now completed over 100 miles and have over 500 miles fully completed in a very short period of time. Early next year, we will have substantially more than 500 miles completed. My administration is also taking on the big pharmaceutical companies. We have approved a record number of affordable generic drugs, and medicines are being approved by the FDA at a faster clip than ever before. (Applause.) And I was pleased to announce last year that, for the first time in 51 years, the cost of prescription drugs actually went down. (Applause.) And working together, Congress can reduce drug prices substantially from current levels. I’ve been speaking to Senator Chuck Grassley of Iowa and others in Congress in order to get something on drug pricing done, and done quickly and properly. I’m calling for bipartisan legislation that achieves the goal of dramatically lowering prescription drug prices. Get a bill on my desk, and I will sign it into law immediately. (Applause.) AUDIENCE: H.R.3! H.R.3! H.R.3! With unyielding commitment, we are curbing the opioid epidemic. Drug overdose deaths declined for the first time in nearly 30 years. (Applause.) Among the states hardest hit, Ohio is down 22 percent, Pennsylvania is down 18 percent, Wisconsin is down 10 percent — and we will not quit until we have beaten the opioid epidemic once and for all. (Applause.) Protecting Americans’ health also means fighting infectious diseases. We are coordinating with the Chinese government and working closely together on the coronavirus outbreak in China. My administration will take all necessary steps to safeguard our citizens from this threat. We have launched ambitious new initiatives to substantially improve care for Americans with kidney disease, Alzheimer’s, and those struggling with mental health. And because Congress was so good as to fund my request, new cures for childhood cancer, and we will eradicate the AIDS epidemic in America by the end of this decade. (Applause.) Almost every American family knows the pain when a loved one is diagnosed with a serious illness. Here tonight is a special man, beloved by millions of Americans who just received a Stage 4 advanced cancer diagnosis. This is not good news, but what is good news is that he is the greatest fighter and winner that you will ever meet. Rush Limbaugh, thank you for your decades of tireless devotion to our country. (Applause.) And, Rush, in recognition of all that you have done for our nation, the millions of people a day that you speak to and that you inspire, and all of the incredible work that you have done for charity, I am proud to announce tonight that you will be receiving our country’s highest civilian honor, the Presidential Medal of Freedom. (Applause.) I will now ask the First Lady of the United States to present you with the honor. Please. (Applause.) (The Medal of Freedom is presented.) (Applause.) Rush and Kathryn, congratulations. Thank you, Kathryn. As we pray for all who are sick, we know that America is constantly achieving new medical breakthroughs. In 2017, doctors at St. Luke’s Hospital in Kansas City delivered one of the earliest premature babies ever to survive. Born at just 21 weeks and 6 days, and weighing less than a pound, Ellie Schneider was a born fighter. Through the skill of her doctors and the prayers of her parents, little Ellie kept on winning the battle of life. Today, Ellie is a strong, healthy two-year-old girl sitting with her amazing mother Robin in the Gallery. Ellie and Robin, we are glad to have you with us tonight. (Applause.) Ellie reminds us that every child is a miracle of life. And thanks to modern medical wonders, 50 percent of very premature babies delivered at the hospital where Ellie was born now survive. It’s an incredible thing. Thank you very much. (Applause.) Our goal should be to ensure that every baby has the best chance to thrive and grow just like Ellie. That is why I’m asking Congress to provide an additional $50 million to fund neonatal research for America’s youngest patients. (Applause.) That is why I’m also calling upon members of Congress here tonight to pass legislation finally banning the late-term abortion of babies. (Applause.) Whether we are Republican, Democrat, or independent, surely we must all agree that every human life is a sacred gift from God. As we support America’s moms and dads, I was recently proud to sign the law providing new parents in the federal workforce paid family leave, serving as a model for the rest of the country. (Applause.) Now I call on the Congress to pass the bipartisan Advancing Support for Working Families Act, extending family leave to mothers and fathers all across our nation. (Applause.) Forty million American families have an average $2,200 extra thanks to our child tax credit. (Applause.) I’ve also overseen historic funding increases for high-quality child care, enabling 17 states to help more children, many of which have reduced or eliminated their waitlists altogether. (Applause.) And I sent Congress a plan with a vision to further expand access to high-quality child care, and urge you to act immediately. (Applause.) To protect the environment, days ago I announced that the United States will join the One Trillion Trees Initiative, an ambitious effort to bring together government and private sector to plant new trees in America and all around the world. (Applause.) We must also rebuild America’s infrastructure. (Applause.) I ask you to pass Senator John Barrasso’s highway bill to invest in new roads, bridges, and tunnels all across our land. I’m also committed to ensuring that every citizen can have access to high-speed Internet, including and especially in rural America. (Applause.) A better tomorrow for all Americans also requires us to keep America safe. That means supporting the men and women of law enforcement at every level, including our nation’s heroic ICE officers. (Applause.) Last year, our brave ICE officers arrested more than 120,000 criminal aliens charged with nearly 10,000 burglaries, 5,000 sexual assaults, 45,000 violent assaults, and 2,000 murders. Tragically, there are many cities in America where radical politicians have chosen to provide sanctuary for these criminal illegal aliens. AUDIENCE: Booo — THE PRESIDENT: In sanctuary cities, local officials order police to release dangerous criminal aliens to prey upon the public, instead of handing them over to ICE to be safely removed. Just 29 days ago, a criminal alien freed by the sanctuary city of New York was charged with the brutal rape and murder of a 92-year-old woman. The killer had been previously arrested for assault, but under New York’s sanctuary policies, he was set free. If the city had honored ICE’s detainer request, his victim would still be alive today. The state of California passed an outrageous law declaring their whole state to be a sanctuary for criminal illegal immigrants — a very terrible sanctuary — with catastrophic results. Here is just one tragic example. In December 2018, California police detained an illegal alien with five prior arrests, including convictions for robbery and assault. But as required by California’s Sanctuary Law, local authorities released him. Days later, the criminal alien went on a gruesome spree of deadly violence. He viciously shot one man going about his daily work. He approached a woman sitting in her car and shot her in the arm and in the chest. He walked into a convenience store and wildly fired his weapon. He hijacked a truck and smashed into vehicles, critically injuring innocent victims. One of the victims is — a terrible, terrible situation; died — 51-year-old American named Rocky Jones. Rocky was at a gas station when this vile criminal fired eight bullets at him from close range, murdering him in cold blood. Rocky left behind a devoted family, including his brothers, who loved him more than anything else in the world. One of his grieving brothers is here with us tonight. Jody, would you please stand? Jody, thank you. (Applause.) Jody our hearts weep for your loss, and we will not rest until you have justice. Senator Thom Tillis has introduced legislation to allow Americans like Jody to sue sanctuary cities and states when a loved one is hurt or killed as a result of these deadly practices. (Applause.) I ask Congress to pass the Justice for Victims of Sanctuary Cities Act immediately. The United States of America should be a sanctuary for law-abiding Americans, not criminal aliens. (Applause.) In the last three years, ICE has arrested over 5,000 wicked human traffickers. And I have signed nine pieces of legislation to stamp out the menace of human trafficking, domestically and all around the globe. My administration has undertaken an unprecedented effort to secure the southern border of the United States. (Applause.) Before I came into office, if you showed up illegally on our southern border and were arrested, you were simply released and allowed into our country, never to be seen again. My administration has ended catch and release. (Applause.) If you come illegally, you will now be promptly removed from our country. (Applause.) Very importantly, we entered into historic cooperation agreements with the governments of Mexico, Honduras, El Salvador, and Guatemala. As a result of our unprecedented efforts, illegal crossings are down 75 percent since May, dropping eight straight months in a row. (Applause.) And as the wall rapidly goes up, drug seizures rise, and the border crossings are down, and going down very rapidly. Last year, I traveled to the border in Texas and met Chief Patrol Agent Raul Ortiz. Over the last 24 months, Agent Ortiz and his team have seized more than 200,000 pounds of poisonous narcotics, arrested more than 3,000 human smugglers, and rescued more than 2,000 migrants. Days ago, Agent Ortiz was promoted to Deputy Chief of Border Patrol, and he joins us tonight. Chief Ortiz, please stand. (Applause.) A grateful nation thanks you and all of the heroes of Border Patrol and ICE. Thank you very much. Thank you. (Applause.) To build on these historic gains, we are working on legislation to replace our outdated and randomized immigration system with one based on merit, welcoming those who follow the rules, contribute to our economy, support themselves financially, and uphold our values. (Applause.) With every action, my administration is restoring the rule of law and reasserting the culture of American freedom. (Applause.) Working with Senate Majority Leader Mitch McConnell — thank you, Mitch — (applause) — and his colleagues in the Senate, we have confirmed a record number of 187 new federal judges to uphold our Constitution as written. This includes two brilliant new Supreme Court justices, Neil Gorsuch and Brett Kavanaugh. Thank you. (Applause.) And we have many in the pipeline. (Laughter and applause.) My administration is also defending religious liberty, and that includes the constitutional right to pray in public schools. (Applause.) In America, we don’t punish prayer. We don’t tear down crosses. We don’t ban symbols of faith. We don’t muzzle preachers and pastors. In America, we celebrate faith, we cherish religion, we lift our voices in prayer, and we raise our sights to the Glory of God. Just as we believe in the First Amendment, we also believe in another constitutional right that is under siege all across our country. So long as I am President, I will always protect your Second Amendment right to keep and bear arms. (Applause.) In reaffirming our heritage as a free nation, we must remember that America has always been a frontier nation. Now we must embrace the next frontier, America’s manifest destiny in the stars. I am asking Congress to fully fund the Artemis program to ensure that the next man and the first woman on the Moon will be American astronauts — (applause) — using this as a launching pad to ensure that America is the first nation to plant its flag on Mars. (Applause.) My administration is also strongly defending our national security and combating radical Islamic terrorism. (Applause.) Last week, I announced a groundbreaking plan for peace between Israel and the Palestinians. Recognizing that all past attempts have failed, we must be determined and creative in order to stabilize the region and give millions of young people the chance to realize a better future. Three years ago, the barbarians of ISIS held over 20,000 square miles of territory in Iraq and Syria. Today, the ISIS territorial caliphate has been 100 percent destroyed, and the founder and leader of ISIS — the bloodthirsty killer known as al-Baghdadi — is dead. (Applause.) We are joined this evening by Carl and Marsha Mueller. After graduating from college, their beautiful daughter Kayla became a humanitarian aid worker. She once wrote, “Some people find God in church. Some people find God in nature. Some people find God in love. I find God in suffering. I’ve known for some time what my life’s work is, using my hands as tools to relieve suffering.” In 2013, while caring for suffering civilians in Syria, Kayla was kidnapped, tortured, and enslaved by ISIS, and kept as a prisoner of al-Baghdadi himself. After more than 500 horrifying days of captivity, al-Baghdadi murdered young, beautiful Kayla. She was just 26 years old. On the night that U.S. Special Forces Operations ended al-Baghdadi’s miserable life, the Chairman of the Joint Chiefs of Staff, General Mark Milley, received a call in the Situation Room. He was told that the brave men of the elite Special Forces team that so perfectly carried out the operation had given their mission a name: “Task Force 8-14.” It was a reference to a special day: August 14th — Kayla’s birthday. Carl and Marsha, America’s warriors never forgot Kayla — and neither will we. Thank you. (Applause.) Every day, America’s men and women in uniform demonstrate the infinite depth of love that dwells in the human heart. One of these American heroes was Army Staff Sergeant Christopher Hake. On his second deployment to Iraq in 2008, Sergeant Hake wrote a letter to his one-year-old son, Gage: “I will be with you again,” he wrote to Gage. “I will teach you to ride your first bike, build your first sand box, watch you play sports, and see you have kids also. I love you son. Take care of your mother. I am always with you. Daddy.” On Easter Sunday of 2008, Chris was out on patrol in Baghdad when his Bradley Fighting Vehicle was hit by a roadside bomb. That night, he made the ultimate sacrifice for our country. Sergeant Hake now rests in eternal glory in Arlington, and his wife Kelli is in the Gallery tonight, joined by their son, who is now a 13-year-old and doing very, very well. To Kelli and Gage: Chris will live in our hearts forever. He is looking down on you now. Thank you. (Applause.) Thank you very much. Thank you both very much. The terrorist responsible for killing Sergeant Hake was Qasem Soleimani, who provided the deadly roadside bomb that took Chris’s life. Soleimani was the Iranian regime’s most ruthless butcher, a monster who murdered or wounded thousands of American service members in Iraq. As the world’s top terrorist, Soleimani orchestrated the deaths of countless men, women, and children. He directed the December assault and went on to assault U.S. forces in Iraq. Was actively planning new attacks when we hit him very hard. And that’s why, last month, at my direction, the U.S. military executed a flawless precision strike that killed Soleimani and terminated his evil reign of terror forever. (Applause.) Our message to the terrorists is clear: You will never escape American justice. If you attack our citizens, you forfeit your life. (Applause.) In recent months, we have seen proud Iranians raise their voices against their oppressive rulers. The Iranian regime must abandon its pursuit of nuclear weapons; stop spreading terror, death, and destruction; and start working for the good of its own people. Because of our powerful sanctions, the Iranian economy is doing very, very poorly. We can help them make a very good and short-time recovery. It can all go very quickly, but perhaps they are too proud or too foolish to ask for that help. We are here. Let’s see which road they choose. It is totally up to them. (Applause.) As we defend American lives, we are working to end America’s wars in the Middle East. In Afghanistan, the determination and valor of our warfighters has allowed us to make tremendous progress, and peace talks are now underway. I am not looking to kill hundreds of thousands of people in Afghanistan, many of them totally innocent. It is also not our function to serve other nations as law enforcement agencies. These are warfighters that we have — the best in the world — and they either want to fight to win or not fight at all. We are working to finally end America’s longest war and bring our troops back home. (Applause.) War places a heavy burden on our nation’s extraordinary military families, especially spouses like Amy Williams from Fort Bragg, North Carolina, and her two children — six-year-old Elliana and three-year-old Rowan. Amy works full-time and volunteers countless hours helping other military families. For the past seven months, she has done it all while her husband, Sergeant First Class Townsend Williams, is in Afghanistan on his fourth deployment in the Middle East. Amy’s kids haven’t seen their father’s face in many months. Amy, your family’s sacrifice makes it possible for all of our families to live in safety and in peace, and we want to thank you. Thank you, Amy. (Applause.) But, Amy, there is one more thing. Tonight, we have a very special surprise. I am thrilled to inform you that your husband is back from deployment. He is here with us tonight, and we couldn’t keep him waiting any longer. (Applause.) AUDIENCE: USA! USA! USA! THE PRESIDENT: Welcome home, Sergeant Williams. Thank you very much. As the world bears witness tonight, America is a land of heroes. This is a place where greatness is born, where destinies are forged, and where legends come to life. This is the home of Thomas Edison and Teddy Roosevelt, of many great generals including Washington, Pershing, Patton, and MacArthur. This is the home of Abraham Lincoln, Frederick Douglass, Amelia Earhart, Harriet Tubman, the Wright Brothers, Neil Armstrong, and so many more. This is the country where children learn names like Wyatt Earp, Davy Crockett, and Annie Oakley. This is the place where the pilgrims landed at Plymouth and where Texas patriots made their last stand at the Alamo — (applause) — the beautiful, beautiful Alamo. The American nation was carved out of the vast frontier by the toughest, strongest, fiercest, and most determined men and women ever to walk on the face of the Earth. Our ancestors braved the unknown; tamed the wilderness; settled the Wild West; lifted millions from poverty, disease, and hunger; vanquished tyranny and fascism; ushered the world to new heights of science and medicine; laid down the railroads, dug out the canals, raised up the skyscrapers. And, ladies and gentlemen, our ancestors built the most exceptional republic ever to exist in all of human history, and we are making it greater than ever before. (Applause.) This is our glorious and magnificent inheritance. We are Americans. We are pioneers. We are the pathfinders. We settled the New World, we built the modern world, and we changed history forever by embracing the eternal truth that everyone is made equal by the hand of Almighty God. (Applause.) America is the place where anything can happen. America is the place where anyone can rise. And here, on this land, on this soil, on this continent, the most incredible dreams come true. This nation is our canvas, and this country is our masterpiece. We look at tomorrow and see unlimited frontiers just waiting to be explored. Our brightest discoveries are not yet known. Our most thrilling stories are not yet told. Our grandest journeys are not yet made. The American Age, the American Epic, the American adventure has only just begun. Our spirit is still young, the sun is still rising, God’s grace is still shining, and, my fellow Americans, the best is yet to come. (Applause.) Thank you. God Bless You. And God Bless America. Thank you very much. (Applause.)

US

Thank you. (Applause.) Thank you. Thank you. Good to be back. And Mitch and Chuck will understand it’s good to be almost home, down the hall. Anyway, thank you all. Madam Speaker, Madam Vice President — (applause) — no President has ever said those words from this podium. No President has ever said those words, and it’s about time. (Applause.) First Lady — (applause) — I’m her husband; Second Gentleman; Chief Justice; members of the United States Congress and the Cabinet; distinguished guests; my fellow Americans: While the setting tonight is familiar, this gathering is just a little bit different — a reminder of the extraordinary times we’re in. Throughout our history, Presidents have come to this chamber to speak to Congress, to the nation, and to the world to declare war, to celebrate peace, to announce new plans and possibilities. Tonight, I come to talk about crisis and opportunity, about rebuilding the nation, revitalizing our democracy, and winning the future for America. I stand here tonight, one day shy of the 100th day of my administration — 100 days since I took the oath of office and lifted my hand off our family Bible and inherited a nation — we all did — that was in crisis. The worst pandemic in a century. The worst economic crisis since the Great Depression. The worst attack on our democracy since the Civil War. Now, after just 100 days, I can report to the nation: America is on the move again — (applause) — turning peril into possibility, crisis to opportunity, setbacks into strength. We all know life can knock us down. But in America, we never, ever, ever stay down. Americans always get up. Today, that’s what we’re doing: America is rising anew, choosing hope over fear, truth over lies, and light over darkness. After 100 days of rescue and renewal, America is ready for takeoff, in my view. We’re working again, dreaming again, discovering again, and leading the world again. We have shown each other and the world that there’s no quit in America — none. One hundred days ago, America’s house was on fire. We had to act. And thanks to the extraordinary leadership of Speaker Pelosi; Malor- — Majority Leader Schumer; and the overwhelming support of the American people — Democrats, independents, and Republicans — we did act. Together we passed the American Rescue Plan — one of the most consequential rescue packages in American history. We’re already seeing the results. (Applause.) We’re already seeing the results. After I promised we’d get 100 million COVID-19 vaccine shots into people’s arms in 100 days, we will have provided over 220 million COVID shots in those 100 days. (Applause.) Thanks to all the help of all of you, we’re marshalling — with your help, everyone’s help — we’re marshalling every federal resource. We’ve gotten vaccines to nearly 40,000 pharmacies and over 700 Community Health Centers where the poorest of the poor can be reached. We’re setting up community vaccination sites, developing mobile units to get to hard-to-reach communities. Today, 90 percent of Americans now live within five miles of a vaccination site. Everyone over the age of 16 — everyone is now eligible to get vaccinated right now, right away. (Applause.) Go get vaccinated, America. Go and get the vaccination. They’re available. You’re eligible now. When I was sworn in on January 20th, less than 1 percent of the seniors in America were fully vaccinated against COVID-19. One hundred days later, 70 percent of seniors in America over 65 are protected — fully protected. Senior deaths from COVID-19 are down 80 percent since January — down 80 percent because of all of you. And more than half of all the adults in America have gotten at least one shot. At a mass vaccination center in Glendale, Arizona, I asked a nurse — I said, “What’s it like?” She looked at me and she said, “It’s like every shot is giving a dose of hope” — was the phrase. “A dose of hope.” A dose of hope for an educator in Florida who has a child suffering from an autoimmune disease — wrote to me, said she’s worried — that she was worrying about bringing the virus home. She said she then got vaccinated at a — at a large site, in her car. She said she sat in her car, when she got vaccinated, and just cried — cried out of joy and cried out of relief. Parents see the smiles on their kids’ faces, for those who are able to go back to school because the teachers and school bus drivers and cafeteria workers have been vaccinated. Grandparents hugging their children and grandchildren instead of pressing hands against a window to say goodbye. It means everything. Those things mean everything. You know, there’s still — you all know it; you know it better than any group of Americans — there’s still more work to do to beat this virus. We can’t let our guard down. But tonight I can say it: Because of you, the American people, our progress these past 100 days against one of the worst pandemics in history has been one of the greatest logistical achievements — logistical achievements this country has ever seen. What else have we done in those first 100 days? We kept our commitment — Democrats and Republicans — of sending $1,400 rescue checks to 85 percent of American households. We’ve already sent more than one — 160 million checks out the door. It’s making the difference. You all know it when you go home. For many people, it’s making all the difference in the world. A single mom in Texas who wrote to me, she said she couldn’t work, but she said the relief check put food on the table and saved her and her son from eviction from their apartment. A grandmother in Virginia who told me she immediately took her granddaughter to the eye doctor — something she said she put off for months because she didn’t have the money. One of the defining images, at least from my perspective, of this crisis has been cars lined up — cars lined up for miles. And not — not people who just barely ever start those cars — nice cars lined up for miles, waiting for a box of food to be put in their trunk. I don’t know about you, but I didn’t ever think I’d see that in America. And all of this is through no fault of their own. No fault of their own these people are in this position. That’s why the Rescue Plan is delivering food and nutrition assistance to millions of Americans facing hunger, and hunger is down sharply already. We’re also providing rental assistance — you all know this, but the American people, I want to make sure they understand — keeping people from being evicted from their homes, providing loans to small businesses to reopen and keep their employees on the job. During these 100 days, an additional 800,000 Americans enrolled in the Affordable Care Act when I established the special sign-up period to do that — 800,000 in that period. We’re making one of the largest one-time ever investments — ever — in improving healthcare for veterans. Critical investments to address the opioid crisis. And, maybe most importantly, thanks to the American Rescue Plan, we’re on track to cut child poverty in America in half this year. (Applause.) And in the process, while this was all going on, the economy created more than 1,300,000 new jobs in 100 days — more jobs in the first — (applause) — more jobs in the first 100 days than any President on record. The International Monetary Fund — (applause) — the International Monetary Fund is now estimating our economy will grow at a rate of more than 6 percent this year. That will be the fastest pace of economic growth in this country in nearly four decades. America is moving — moving forward — but we can’t stop now. We’re in competition with China and other countries to win the 21st Century. We’re at a great inflection point in history. We have to do more than just build back better — I mean “build back.” We have to build back better. We have to compete more strenuously than we have. Throughout our history, if you think about it, public investment and infrastructure has literally transformed America — our attitudes, as well as our opportunities. The transcontinental railroad, the interstate highways united two oceans and brought a totally new age of progress to the United States of America. Universal public schools and college aid opened wide the doors of opportunity. Scientific breakthroughs took us to the Moon — now we’re on Mars; discovering vaccines; gave us the Internet and so much more. These are the investments we made together as one country, and investments that only the government was in a position to make. Time and again, they propel us into the future. That’s why I proposed the American Jobs Plan — a once-in-a-generation investment in America itself. This is the largest jobs plan since World War Two. It creates jobs to upgrade our transportation infrastructure; jobs modernizing our roads, bridges, highways; jobs building ports and airports, rail corridors, transit lines. It’s clean water. And, today, up to 10 million homes in America and more than 400,000 schools and childcare centers have pipes with lead in them, including in drinking water — a clear and present danger to our children’s health. The American Jobs Plan creates jobs replacing 100 percent of the nation’s lead pipes and service lines so every American can drink clean water. (Applause.) And in the process, it will create thousands and thousands of good-paying jobs. It creates jobs connecting every American with high-speed Internet, including 35 percent of the rural America that still doesn’t have it. This is going to help our kids and our businesses succeed in the 21st-century economy. And I am asking the Vice President to lead this effort, if she would — THE VICE PRESIDENT: Of course. THE PRESIDENT: — because I know it will get done. (Applause.) It creates jobs, building a modern power grid. Our grids are vulnerable to storms, hacks, catastrophic failures — with tragic results, as we saw in Texas and elsewhere during the winter storms. The American Jobs Plan will create jobs that will lay thousands of miles of transmission lines needed to build a resilient and fully clean grid. We can do that. (Applause.) Look, the American Jobs Plan will help millions of people get back to their jobs and back to their careers. Two million women have dropped out of the workforce during this pandemic — two million. And too often because they couldn’t get the care they needed to care for their child or care for an elderly parent who needs help. Eight hundred thousand families are on a Medicare waiting list right now to get homecare for their aging parent or loved one with a disability. If you think it’s not important, check out in your own district. Democrat or Republican — Democrat or Republican voters, their great concern — almost as much as their children — is taking care of an elderly loved one who can’t be left alone. Medicaid contemplated it, but this plan is going to help those families and create jobs for our caregivers with better wages and better benefits, continuing a cycle of growth. For too long, we’ve failed to use the most important word when it comes to meeting the climate crisis: “jobs.” Jobs. Jobs. (Applause.) For me, when I think “climate change,” I think “jobs.” The American Jobs Plan will put engineers and construction workers to work building more energy-efficient buildings and homes. Electrical workers — IBEW members — installing 500,000 charging stations along our highways so we can own — (applause) — so we can own the electric car market. (Applause.) Farmers — farmers planting cover crops so they can reduce the carbon dioxide in the air and get paid for doing it. (Applause.) Look, but think about it: There is simply no reason why the blades for wind turbines can’t be built in Pittsburgh instead of Beijing. No reason. None. No reason. (Applause.) So, folks, there’s no reason why American — American workers can’t lead the world in the production of electric vehicles and batteries. I mean, there is no reason. We have this capacity. (Applause.) We have the brightest, best-trained people in the world. The American Jobs Plan is going to create millions of good-paying jobs — jobs Americans can raise a family on — as my dad would then say, “with a little breathing room.” And all the investments in the American Jobs Plan will be guided by one principle: Buy American. (Applause.) Buy American. And I might note, parenthetically — (applause) — that does not — that does not violate any trade agreement. It’s been the law since the ’30s: Buy American. American tax dollars are going to be used to buy American products made in America to create American jobs. That’s the way it’s supposed to be and it will be in this administration. (Applause.) And I made it clear to all my Cabinet people. Their ability to give exemptions has been exstrenuously [sic] limited. It will be American products. Now I know some of you at home are wondering whether these jobs are for you. So many of you — so many of the folks I grew up with feel left behind, forgotten in an economy that’s so rapidly changing. It’s frightening. I want to speak directly to you. Because if you think about it, that’s what people are most worried about: “Can I fit in?” Independent experts estimate the American Jobs Plan will add millions of jobs and trillions of dollars to economic growth in the years to come. It is a — it is an eight-year program. These are good-paying jobs that can’t be outsourced. Nearly 90 percent of the infrastructure jobs created in the American Jobs Plan do not require a college degree; 75 percent don’t require an associate’s degree. The American Jobs Plan is a blue-collar blueprint to build America. That’s what it is. (Applause.) And it recognizes something I’ve always said in this chamber and the other. Good guys and women on Wall Street, but Wall Street didn’t build this country. The middle class built the country, and unions built the middle class. (Applause.) So that’s why I’m calling on Congress to pass the Protect the Right to Organize Act — the PRO Act — and send it to my desk so we can support the right to unionize. (Applause.) And, by the way, while you’re thinking about sending things to my desk — (laughs) — let’s raise the minimum wage to $15. (Applause.) No one — no one working 40 hours a week — no one working 40 hours a week should live below the poverty line. We need to ensure greater equity and opportunity for women. And while we’re doing this, let’s get the Paycheck Fairness Act to my desk as well — equal pay. It’s been much too long. And if you’re wondering whether it’s too long, look behind me. (Applause.) And finally, the American Jobs Plan will be the biggest increase in nondefense research and development on record. We will see more technological change — and some of you know more about this than I do — we’ll see more technological change in the next 10 years than we saw in the last 50. That’s how rapidly artificial intelligence and so much more is changing. And we’re falling behind the competition with the rest of the world. Decades ago, we used to invest 2 percent of our gross domestic product in America — 2 percent of our gross domestic product — in research and development. Today, Mr. Secretary, that’s less than 1 percent. China and other countries are closing in fast. We have to develop and dominate the products and technologies of the future: advanced batteries, biotechnology, computer chips, clean energy. The Secretary of Defense can tell you — and those of you on — who work on national security issues know — the Defense Department has an agency called DARPA — the Defense Advanced Research Project Agency. The people who set up before I came here — and that’s been a long time ago — to develop breakthroughs that enhance our national security -– that’s their only job. And it’s a semi-separate agency; it’s under the Defense Department. It’s led to everything from the discovery of the Internet to GPS and so much more that has enhanced our security. The National Institute of Health — the NIH –- I believe, should create a similar Advanced Research Projects Agency for Health. (Applause.) And that would — here’s what it would do. It would have a singular purpose: to develop breakthroughs to prevent, detect, and treat diseases like Alzheimer’s, diabetes, and cancer. I’ll still never forget when we passed the cancer proposal the last year I was Vice President — almost $9 million going to NIH. And if you excuse the point of personal privilege, I’ll never forget you standing and mentioning — saying you’d name it after my deceased son. It meant a lot. But so many of us have deceased sons, daughters, and relatives who died of cancer. I can think of no more worthy investment. I know of nothing that is more bipartisan. So, let’s end cancer as we know it. (Applause.) It’s within our power. (Applause.) It’s within our power to do it. (Applause.) Investments in jobs and infrastructure, like the ones we’re talking about, have often had bipartisan support in the past. Vice President Harris and I met regularly in the Oval Office with Democrats and Republicans to discuss the Jobs Plan. And I applaud a group of Republican senators who just put forward their own proposal. So, let’s get to work. I wanted to lay out, before the Congress, my plan before we got into the deep discussions. I’d like to meet with those who have ideas that are different — they think are better. I welcome those ideas. But the rest of the world is not waiting for us. I just want to be clear: From my perspective, doing nothing is not an option. (Applause.) Look, we can’t be so busy competing with one another that we forget the competition that we have with the rest of the world to win the 21st century. Secretary Blinken can tell you, I spent a lot of time with President Xi — traveled over 17,000 miles with him; spent, they tell me, over 24 hours in private discussions with him. When he called to congratulate me, we had a two-hour discussion. He’s deadly earnest about becoming the most significant, consequential nation in the world. He and others — autocrats — think that democracy can’t compete in the 21st century with autocracies because it takes too long to get consensus. To win that competition for the future, in my view, we also need to make a once-in-a-generation investment in our families and our children. That’s why I’ve introduced the American Families Plan tonight, which addresses four of the biggest challenges facing American families and, in turn, America. First is access to a good education. When this nation made 12 years of public education universal in the last century, it made us the best-educated, best-prepared nation in the world. It’s, I believe, the overwhelming reason that propelled us to where we got in the 21st — in the 20th century. But the world has caught up, or catching up. They are not waiting. I would say, parenthetically: If we were sitting down, put a bipartisan committee together and said, “Okay, we’re going to decide what we do in terms of government providing for free education,” I wonder whether we’d think, as we did in the 20th century, that 12 years is enough in the 21st century. I doubt it. Twelve years is no longer enough today to compete with the rest of the world in the 21st Century. That’s why my American Families Plan guarantees four additional years of public education for every person in America, starting as early as we can. The great universities of this country have conducted studies over the last 10 years. It shows that adding two years of universal high-quality preschool for every three-year-old and four-year-old, no matter what background they come from, it puts them in the position to be able to compete all the way through 12 years. It increases exponentially their prospect of graduating and going on beyond graduation. The research shows when a young child goes to school — not daycare — they are far more likely to graduate from high school and go to college or something after high school. When you add two years of free community college on top of that, you begin to change the dynamic. (Applause.) We can do that. (Applause.) And we’ll increase Pell Grants and invest in Historical Black Colleges and Universities, Tribal Colleges, Minority-Serving Institutions. The reason is: They don’t have the endowments, but their students are just as capable of learning about cybersecurity, just as capable of learning about metallurgy — all the things that are going on that provide those jobs of the future. Jill was a community college professor who teaches today as First Lady. She has long said — (applause). She has long — (applause). If I’ve heard it once, I’ve heard it a thousand times: “Joe, any country that out-educates us is going to outcompete us.” She’ll be deeply involved in leading this effort. Thank you, Jill. Second thing we need: American Families Plan will provide access to quality, affordable childcare. We guarantee — (applause). And I’m proposing a legislation to guarantee that low- and middle-income families will pay no more than 7 percent of their income for high-quality care for children up to the age of 5. The most hard-pressed working families won’t have to spend a dime. Third, the American Families Plan will finally provide up to 12 weeks of paid leave and medical leave — family and medical leave. We’re one of the few industrial countries in the world — (applause). No one should have to choose between a job and paycheck or taking care of themselves and their loved ones –- a parent, a spouse, or child. And fourth, the American Family Plan puts directly into the pockets of millions of Americans. In March, we expanded a tax credit for every child in a family. Up to a $3,000 per child if they’re under [over]* six years of age — I mean, excuse me — under — over six years of age, and $3,600 for children over [under]* six years of age. With two parents, two kids, that’s $7,200 in the pockets that’s going to help to take care of your family. And that will help more than 65 million children and help cut childcare [child] poverty in half. (Applause.) And we can afford it. So we did that in the rec- — in the — in the last piece of legislation we passed. But let’s extend that Child Care Tax Credit at least through the end of 2025. (Applause.) The American Rescue Plan lowered healthcare premiums for 9 million Americans who buy their coverage under the Affordable Care Act. I know that’s really popular on this side of the aisle. (Laughter.) But let’s make that provision permanent so their premiums don’t go back up. (Applause.) In addition to my Families Plan, I’m going to work with Congress to address, this year, other critical priorities for American families. The Affordable Care Act has been a lifeline for millions of Americans, protecting people with preexisting conditions, protecting women’s health. And the pandemic has demonstrated how badly — how badly it’s needed. Let’s lower deductibles for working families on the Affordable Care — in the Affordable Care Act. (Applause.) And let’s lower prescription drug costs. (Applause.) We know how to do this. The last President had that as an objective. We all know how outrageously expensive drugs are in America. In fact, we pay the highest prescription drug prices of anywhere in the world right here in America — nearly three times — for the same drug, nearly three times what other countries pay. We have to change that, and we can. Let’s do what we’ve always talked about for all the years I was down here in this — in this body — in Congress. Let’s give Medicare the power to save hundreds of billions of dollars by negotiating lower drug prescription prices. (Applause.) And, by the way, that won’t just — that won’t just help people on Medicare; it will lower prescription drug costs for everyone. And the money we save, which is billions of dollars, can go to strengthen the Affordable Care Act and expand Medicare coverage benefits without costing taxpayers an additional penny. It’s within our power to do it; let’s do it now. (Applause.) We’ve talked about it long enough. Democrats and Republicans, let’s get it done this year. This is all about a simple premise: Healthcare should be a right, not a privilege in America. (Applause.) So, how do we pay for my Jobs and Family Plan? I made it clear, we can do it without increasing the deficits. Let’s start with what I will not do: I will not impose any tax increase on people making less than $400,000. It’s — but it’s time for corporate America and the wealthiest 1 percent of Americans to just begin to pay their fair share. (Applause.) Just their fair share. Sometimes I have arguments with my friends in the Democratic Party. I think you should be able to become a billionaire and a millionaire, but pay your fair share. A recent study shows that 55 of the nation’s biggest corporations paid zero federal tax last year. Those 55 corporations made in excess of $40 billion in profit. A lot of companies also evade taxes through tax havens in Switzerland and Bermuda and the Cayman Islands. And they benefit from tax loopholes and deductions for offshoring jobs and shifting profits overseas. It’s not right. We’re going to reform corporate taxes so they pay their fair share and help pay for the public investments their businesses will benefit from as well. (Applause.) We’re going to reward work, not just wealth. We take the top tax bracket for the wealthiest 1 percent of Americans — those making over $400,000 or more — back up to where it was when George W. Bush was President when he started: 39.6 percent. That’s where it was when George W. was President. We’re going to get rid of the loopholes that allow Americans who make more than a million dollars a year and pay a lower tax rate on their capital gains than Americans who receive a paycheck. We’re only going to affect three tenths of 1 percent of all Americans by that action. Three tenths of 1 percent. And the IRS is going to crack down on millionaires and billionaires who cheat on their taxes. It’s estimated to be billions of dollars by think tanks that are left, right, and center. I’m not looking to punish anybody. But I will not add a tax burden — an additional tax burden to the middle class in this country. They’re already paying enough. I believe what I propose is fair — (applause) — fiscally responsible, and it raises revenue to pay for the plans I have proposed, and will create millions of jobs that will grow the economy and enhance our financial standing in the country. When you hear someone say that they don’t want to raise taxes on the wealthiest 1 percent or corporate America, ask them: “Whose taxes you want to raise instead? Whose are you going to cut?” Look, the big tax cut of 2017 — remember, it was supposed to pay for itself — that was how it was sold — and generate vast economic growth. Instead, it added $2 trillion to the deficit. It was a huge windfall for corporate America and those at the very top. Instead of using the tax saving to raise wages and invest in research and development, it poured billions of dollars into the pockets of CEOs. In fact, the pay gap between CEOs and their workers is now among the largest in history. According to one study, CEOs make 320 times what the average worker in their corporation makes. It used to be in the — below a hundred. The pandemic has only made things worse. Twenty million Americans lost their job in the pandemic — working- and middle-class Americans. At the same time, roughly 650 billionaires in America saw their net worth increase by more than $1 trillion — in the same exact period. Let me say it again: 650 people increased their wealth by more than $1 trillion during this pandemic. And they’re now worth more than $4 trillion. My fellow Americans, trickle-down — trickle-down economics has never worked and it’s time to grow the economy from the bottom and the middle out. (Applause.) You know, there’s a broad consensus of economists — left, right, center — and they agree what I’m proposing will help create millions of jobs and generate historic economic growth. These are among the highest-value investments we can make as a nation. I’ve often said: Our greatest strength is the power of our example, not just the example of our power. In my conversations with world leaders — and I’ve spoken to over 38, 40 of them now — I’ve made it known — I’ve made it known that America is back. And you know what they say? The comment that I hear most of all from them is they say, “We see America is back but for how long? But for how long?” My fellow Americans, we have to show not just that we’re back, but that we’re back to stay and that we aren’t going to go it alone. (Applause.) We’re going to do it by leading with our allies. (Applause.) No one nation can deal with all the crises of our time — from terrorism, to nuclear proliferation, mass migration, cybersecurity, climate change, as well as experi- — what we’re experiencing now with pandemics. There’s no wall high enough to keep any virus out. And our own vaccine supply — as it grows to meet our needs; and we’re meeting them — will become an arsenal of vaccines for other countries, just as America was the arsenal of democracy for the world — (applause) — and in consequence, influenced the world. (Applause.) But every American will have access before that occur- — every American will have access to be fully covered by COVID-19 — from the vaccines we have. Look, the climate crisis is not our fight alone; it’s a global fight. The United States accounts, as all of you know, less than 15 percent of carbon emissions. The rest of the world accounts for 85 percent. That’s why I kept my commitment to rejoin the Paris Accord — because if we do everything perfectly, it’s not going to ultimately matter. I kept my commitment to convene a climate summit right here in America with all of the major economies of the world — China, Russia, India, the European Union — and I said I’d do it in my first 100 days. I want to be very blunt about it: I had — my attempt was to make sure that the world could see there was a consensus, that we are at an inflection point in history. And consensus — the consensus is: If we act to save the planet, we can create millions of jobs and economic growth and opportunity to raise the standard of living to almost everyone around the world. If you’ve watched any of it — and you were all busy; I’m sure you didn’t have much time — that’s what virtually every nation said, even the ones that aren’t doing their fair share. The investments I’ve proposed tonight also advance the foreign policy, in my view, that benefits the middle class. That means making sure every nation plays by the same rules in the global economy, including China. In my discussions — in my discussions with President Xi, I told him, “We welcome the competition. We’re not looking for conflict.” But I made absolutely clear that we will defend America’s interests across the board. America will stand up to unfair trade practices that undercut American workers and American industries, like subsidies from state — to state-owned operations and enterprises and the theft of American technology and intellectual property. I also told President Xi that we’ll maintain a strong military presence in the Indo-Pacific, just as we do with NATO in Europe — not to start a conflict, but to prevent one. (Applause.) I told him what I’ve said to many world leaders: that America will not back away from our commitments — our commitment to human rights and fundamental freedoms and to our alliances. And I pointed out to him: No responsible American President could remain silent when basic human rights are being so blatantly violated. An American President — President has to represent the essence of what our country stands for. America is an idea — the most unique idea in history: We are created, all of us, equal. It’s who we are, and we cannot walk away from that principle and, in fact, say we’re dealing with the American idea. With regard to Russia, I know it concerns some of you, but I made very clear to Putin that we’re not going to seek esca- — ecala- — exc- — excuse me — escalation, but their actions will have consequence if they turn out to be true. And they turned out to be true, so I responded directly and proportionally to Russia’s interference in our elections and the cyberattacks on our government and our business. They did both of these things, and I told them we would respond, and we have. But we can also cooperate when it’s in our mutual interest. We did it when we extended the New START Treaty on nuclear arms, and we’re working to do it on climate change. But he understands we will respond. On Iran and North Korea — nuclear programs that present serious threats to American security and the security of the world — we’re going to be working closely with our allies to address the threats posed by both of these countries through di- — through diplomacy, as well as stern deterrence. And American leadership means ending the forever war in Afghanistan. (Applause.) We have — (applause) — we have, without hyperbole, the greatest fighting force in the history of the world. I’m the first President in 40 years who knows what it means to have a son serving in a warzone. Today we have servicemembers serving in the same warzone as their parents did. We have servicemembers in Afghanistan who were not yet born on 9/11. The War in Afghanistan, as we remember the debates here, were never meant to be multi-generational undertakings of nation-building. We went to Afghanistan to get terrorists — the terrorists who attacked us on 9/11 — and we said we would follow Osama bin Laden to the gates of hell to do it. If you’ve been to the upper Kunar Valley, you’ve kind of seen the gates of hell. And we delivered justice to bin Laden. We degraded the terrorist threat of al Qaeda in Afghanistan. And after 20 years of value — valor and sacrifice, it’s time to bring those troops home. (Applause.) Look, even as we do, we will maintain an over-the-horizon capacity to suppress future threats to the homeland. And make no mistake: In 20 years, terrorists has — terrorism has metastasized. The threat has evolved way beyond Afghanistan. And those of you in the intelligence committees, the foreign relations committee, the defense committees, you know well: We have to remain vigilant against the threats to the United States wherever they come from. Al Qaeda and ISIS are in Yemen, Syria, Somalia, other places in Africa, the Middle East, and beyond. And we won’t ignore what our intelligence agencies have determined to be the most lethal terrorist threat to the homeland today: White supremacy is terrorism. We’re not going to ignore that either. My fellow Americans, look, we have to come together to heal the soul of this nation. It was nearly a year ago, before her father’s funeral, when I spoke with Gianna Floyd, George Floyd’s young daughter. She’s a little tyke, so I was kneeling down to talk to her so I could look her in the eye. And she looked at me and she said, “My daddy changed the world.” Well, after the conviction of George Floyd’s murderer, we can see how right she was if — if we have the courage to act as a Congress. We’ve all seen the knee of injustice on the neck of Black Americans. Now is our opportunity to make some real progress. The vast majority of men and women wearing the uniform and a badge serve our communities, and they serve them honorably. I know them. I know they want — (applause) — I know they want to help meet this moment as well. My fellow Americans, we have to come together to rebuild trust between law enforcement and the people they serve, to root out systemic racism in our criminal justice system, and to enact police reform in George Floyd’s name that passed the House already. I know Republicans have their own ideas and are engaged in the very productive discussions with Democrats in the Senate. We need to work together to find a consensus. But let’s get it done next month, by the first anniversary of George Floyd’s death. (Applause.) The country supports this reform, and Congress should act — should act. We have a giant opportunity to bend to the arc of the moral universe towards justice — real justice. And with the plans outlined tonight, we have a real chance to root out systemic racism that plagues America and American lives in other ways; a chance to deliver real equity — good jobs, good schools, affordable housing, clean air, clean water, being able to generate wealth and pass it down two generations because you have an access to purchase a house. Real opportunities in the lives of more Americans — Black, white, Latino, Asian Americans, Native Americans. Look, I also want to thank the United States Senate for voting 94 to 1 to pass the COVID-19 Hate Crimes Act to protect Asian Americans and Pacific Islanders. (Applause.) You acted decisively. (Applause.) And you can see on television the viciousness of the hate crimes we’ve seen over the past year — this past year and for too long. I urge the House to do the same and send that legislation to my desk, which I will gladly, anxiously sign. I also hope Congress can get to my desk the Equality Act to protect LGBTQ Americans. (Applause.) To all transgender Americans watching at home, especially young people who are so brave, I want you to know your President has your back. Another thing: Let’s authorize the Violence Against Women Act, which has been law for 27 years. (Applause.) Twenty-seven years ago, I wrote it. It’ll close the — the act that has to be authorized now will close the “boyfriend” loophole to keep guns out of the hands of abusers. The court order said, “This is an abuser. You can’t own a gun.” It’s to close that loophole that existed. You know, it’s estimated that 50 women are shot and killed by an intimate partner every month in America — 50 a month. Let’s pass it and save some lives. (Applause.) And I need not — I need not tell anyone this, but gun violence is becoming an epidemic in America. The flag at the White House was still flying at half-mast for the 8 victims in the mass shooting in Georgia when 10 more lives were taken in a mass shooting in Colorado. And in the week in between those two events, 250 other Americans were shot dead in the streets of America — 250 shot dead. I know how hard it is to make progress on this issue. In the ’90s, we passed universal background checks, a ban on assault weapons and high-capacity magazines that hold 100 rounds that can be fired off in seconds. We beat the NRA. Mass shootings and gun violence declined. Check out the report in over 10 years. But in the early twe- — 2000s, the law expired, and we’ve seen daily bloodshed since. I’m not saying if the law continued, we wouldn’t see bloodshed. More than two weeks ago in the Rose Garden, surrounded by some of the bravest people I know — the survivors and families who lost loved ones to gun violence — I laid out several of the Department of Justice a- — actions that are being taken to — impact on this epidemic. One of them is banning so-called “ghost guns.” These are homemade guns built from a kit that includes directions on how to finish the firearm. The parts have no serial numbers, so they show up at crime scenes and they can’t be traced. The buyers of these ghost gun kits aren’t required to pass any background check. Anyone, from a criminal or terrorist, could buy this kit and within 30 minutes have a weapon that’s lethal. But no more. And I will do everything in my power to protect the American people from this epidemic of gun violence, but it’s time for Congress to act as well. (Applause.) Look, I don’t want to become confrontational but we need more Senate Republicans to join the overwhelming majority of Democrat colleagues and close the loopholes requiring a background check on purchases of guns. We need a ban on assault weapons and high-capacity magazines. And don’t tell me it can’t be done. We did it before, and it worked. Talk to most responsible gun owners and hunters. They’ll tell you there’s no possible justification for having 100 rounds in a weapon. What do you think — deer are wearing Kevlar vests? (Laughter.) They’ll tell you that there are too many people today who are able to buy a gun but shouldn’t be able to buy a gun. These kinds of reasonable reforms have overwhelming support from the American people, including many gun owners. The country supports reform and is — and Congress should act. This shouldn’t be a red or blue issue. And no amendment to the Constitution is absolute. You can’t yell “Fire!” in a crowded theater. From the very beginning, there were certain guns, weapons, that could not be owned by Americans. Certain people could not own those weapons ever. We’re not changing the Constitution; we’re being reasonable. I think this is not a Democrat or Republican issue; I think it’s an American issue. And here’s what else we can do: Immigration has always been essential to America. Let’s end our exhausting war over immigration. For more than 30 years, politicians have talked about immigration reform, and we’ve done nothing about it. It’s time to fix it. On day one of my presidency, I kept my commitment and sent a comprehensive immigration bill to the United States Congress. If you believe we need to secure the border, pass it, because it has a lot of money for high-tech border security. If you believe in a pathway to citizenship, pass it so over 11 million undocumented folks — the vast majority are here overstaying visas. Pass it. We can actually — if you actually want to solve a problem, I’ve sent a bill to take a close look at it. We have to — also have to get at the root problem of why people are fleeing, particularly to — to our southern border from Guatemala, Honduras, and El Salvador: the violence, the corruption, the gangs, and the political instability, hunger, hurricanes, earthquakes, natural disasters. When I was President, my President — when I was Vice President, the President asked me to focus on providing the help needed to address the root causes of migration. And it helped keep people in their own countries instead of being forced to leave. The plan was working, but the last administration decided it was not worth it. I’m restoring the program and asked Vice President Harris to lead our diplomatic effort to take care of this. I have absolute confidence she’ll get the job done. (Applause.) Now, look, if you don’t like my plan, let’s at least pass what we all agree on. Congress needs to pass legislation this year to finally secure protection for DREAMers — the young people who have only known America as their home. (Applause.) And permanent protection for immigrants who are here on temporary protected status who came from countries beset by manmade and natural-made violence and disaster. (Applause.) As well as a pathway to citizenship for farmworkers who put food on our tables. (Applause.) Look, immigrants have done so much for America during this pandemic and throughout our history. The country supports immigration reform. We should act. Let’s argue over it, let’s debate it, but let’s act. (Applause.) And if we truly want to restore the soul of America, we need to protect the sacred right to vote. Most people — (applause). More people voted in the last presidential election than any time in American history, in the middle of the worst pandemic ever. It should be celebrated. Instead, it’s being attacked. Congress should pass H.R. 1 and the John Lewis Voting Rights Act and send it to my desk right away. (Applause.) The country supports it. The Congress should act now. (Applause.) Look, in closing, as we gather here tonight, the images of a violent mob assaulting this Capitol, desecrating our democracy, remain vivid in all our minds. Lives were put at risk — many of your lives. Lives were lost. Extraordinary courage was summoned. The insurrection was an existential crisis –- a test of whether our democracy could survive. And it did. But the struggle is far from over. The question of whether our democracy will long endure is both ancient and urgent, as old as our Republic — still vital today. Can our democracy deliver on its promise that all of us, created equal in the image of God, have a chance to lead lives of dignity, respect, and possibility? Can our democracy deliver the most — to the most pressing needs of our people? Can our democracy overcome the lies, anger, hate, and fears that have pulled us apart? America’s adversaries –- the autocrats of the world –- are betting we can’t. And I promise you, they’re betting we can’t. They believe we’re too full of anger and division and rage. They look at the images of the mob that assaulted the Capitol as proof that the sun is setting on American democracy. But they are wrong. You know it; I know it. But we have to prove them wrong. We have to prove democracy still works — that our government still works and we can deliver for our people. In our first 100 days together, we have acted to restore the people’s faith in democracy to deliver. We’re vaccinating the nation. We’re creating hundreds of thousands of new jobs. We’re delivering real results to people; they can see it and feel it in their own lives. Opening doors of opportunity, guaranteeing some more fairness and justice — that’s the essence of America. That’s democracy in action. Our Constitution opens with the words — as trite as it sounds — “We the People”. Well, it’s time to remember that “We the People” are the government — you and I. Not some force in a distant capital. Not some powerful force that we have no control over. It’s us. It’s “We the People.” In another era when our democracy was tested, Franklin Roosevelt reminded us, “In America, we do our part.” We all do our part. That’s all I’m asking: that we do our part, all of us. If we do that, we will meet the center challenge of the age by proving that democracy is durable and strong. Autocrats will not win the future. We will. America will. And the future belongs to America. As I stand here tonight before you, in a new and vital hour of life and democracy of our nation, and I can say with absolute confidence: I have never been more confident or optimistic about America — not because I’m President, because what’s happening with the American people. We have stared into the abyss of insurrection and autocracy, pandemic and pain, and “We the People” did not flinch. At the very moment our adversaries were certain we would pull apart and fail, we came together. We united. With light and hope, we summoned a new strength, new resolve to position us to win the competition of the 21st century, on our way to a union more perfect, more prosperous, and more just, as one people, one nation, and one America. Folks, as I told every world leader I’ve ever met with over the years, it’s never ever, ever been a good bet to bet against America, and it still isn’t. (Applause.) We are the United States of America. (Applause.) There is not a single thing — nothing — nothing beyond our capacity. We can do whatever we set our mind to do if we do it together. (Applause.) So let’s begin to get together. (Applause.) God bless you all, and may God protect our troops. Thank you for your patience. (Applause.)

US

Madam Speaker, Madam Vice President, our First Lady and Second Gentleman. Members of Congress and the Cabinet. Justices of the Supreme Court. My fellow Americans. Last year COVID-19 kept us apart. This year we are finally together again. Tonight, we meet as Democrats Republicans and Independents. But most importantly as Americans. With a duty to one another to the American people to the Constitution. And with an unwavering resolve that freedom will always triumph over tyranny. Six days ago, Russia’s Vladimir Putin sought to shake the foundations of the free world thinking he could make it bend to his menacing ways. But he badly miscalculated. He thought he could roll into Ukraine and the world would roll over. Instead he met a wall of strength he never imagined. He met the Ukrainian people. From President Zelenskyy to every Ukrainian, their fearlessness, their courage, their determination, inspires the world. Groups of citizens blocking tanks with their bodies. Everyone from students to retirees teachers turned soldiers defending their homeland. In this struggle as President Zelenskyy said in his speech to the European Parliament “Light will win over darkness.” The Ukrainian Ambassador to the United States is here tonight. Let each of us here tonight in this Chamber send an unmistakable signal to Ukraine and to the world. Please rise if you are able and show that, Yes, we the United States of America stand with the Ukrainian people. Throughout our history we’ve learned this lesson when dictators do not pay a price for their aggression they cause more chaos. They keep moving. And the costs and the threats to America and the world keep rising. That’s why the NATO Alliance was created to secure peace and stability in Europe after World War 2. The United States is a member along with 29 other nations. It matters. American diplomacy matters. American resolve matters. Putin’s latest attack on Ukraine was premeditated and unprovoked. He rejected repeated efforts at diplomacy. He thought the West and NATO wouldn’t respond. And he thought he could divide us at home. Putin was wrong. We were ready. Here is what we did. We prepared extensively and carefully. We spent months building a coalition of other freedom-loving nations from Europe and the Americas to Asia and Africa to confront Putin. I spent countless hours unifying our European allies. We shared with the world in advance what we knew Putin was planning and precisely how he would try to falsely justify his aggression. We countered Russia’s lies with truth. And now that he has acted the free world is holding him accountable. Along with twenty-seven members of the European Union including France, Germany, Italy, as well as countries like the United Kingdom, Canada, Japan, Korea, Australia, New Zealand, and many others, even Switzerland. We are inflicting pain on Russia and supporting the people of Ukraine. Putin is now isolated from the world more than ever. Together with our allies –we are right now enforcing powerful economic sanctions. We are cutting off Russia’s largest banks from the international financial system. Preventing Russia’s central bank from defending the Russian Ruble making Putin’s $630 Billion “war fund” worthless. We are choking off Russia’s access to technology that will sap its economic strength and weaken its military for years to come. Tonight I say to the Russian oligarchs and corrupt leaders who have bilked billions of dollars off this violent regime no more. The U.S. Department of Justice is assembling a dedicated task force to go after the crimes of Russian oligarchs. We are joining with our European allies to find and seize your yachts your luxury apartments your private jets. We are coming for your ill-begotten gains. And tonight I am announcing that we will join our allies in closing off American air space to all Russian flights – further isolating Russia – and adding an additional squeeze –on their economy. The Ruble has lost 30% of its value. The Russian stock market has lost 40% of its value and trading remains suspended. Russia’s economy is reeling and Putin alone is to blame. Together with our allies we are providing support to the Ukrainians in their fight for freedom. Military assistance. Economic assistance. Humanitarian assistance. We are giving more than $1 Billion in direct assistance to Ukraine. And we will continue to aid the Ukrainian people as they defend their country and to help ease their suffering. Let me be clear, our forces are not engaged and will not engage in conflict with Russian forces in Ukraine. Our forces are not going to Europe to fight in Ukraine, but to defend our NATO Allies – in the event that Putin decides to keep moving west. For that purpose we’ve mobilized American ground forces, air squadrons, and ship deployments to protect NATO countries including Poland, Romania, Latvia, Lithuania, and Estonia. As I have made crystal clear the United States and our Allies will defend every inch of territory of NATO countries with the full force of our collective power. And we remain clear-eyed. The Ukrainians are fighting back with pure courage. But the next few days weeks, months, will be hard on them. Putin has unleashed violence and chaos. But while he may make gains on the battlefield – he will pay a continuing high price over the long run. And a proud Ukrainian people, who have known 30 years of independence, have repeatedly shown that they will not tolerate anyone who tries to take their country backwards. To all Americans, I will be honest with you, as I’ve always promised. A Russian dictator, invading a foreign country, has costs around the world. And I’m taking robust action to make sure the pain of our sanctions is targeted at Russia’s economy. And I will use every tool at our disposal to protect American businesses and consumers. Tonight, I can announce that the United States has worked with 30 other countries to release 60 Million barrels of oil from reserves around the world. America will lead that effort, releasing 30 Million barrels from our own Strategic Petroleum Reserve. And we stand ready to do more if necessary, unified with our allies. These steps will help blunt gas prices here at home. And I know the news about what’s happening can seem alarming. But I want you to know that we are going to be okay. When the history of this era is written Putin’s war on Ukraine will have left Russia weaker and the rest of the world stronger. While it shouldn’t have taken something so terrible for people around the world to see what’s at stake now everyone sees it clearly. We see the unity among leaders of nations and a more unified Europe a more unified West. And we see unity among the people who are gathering in cities in large crowds around the world even in Russia to demonstrate their support for Ukraine. In the battle between democracy and autocracy, democracies are rising to the moment, and the world is clearly choosing the side of peace and security. This is a real test. It’s going to take time. So let us continue to draw inspiration from the iron will of the Ukrainian people. To our fellow Ukrainian Americans who forge a deep bond that connects our two nations we stand with you. Putin may circle Kyiv with tanks, but he will never gain the hearts and souls of the Ukrainian people. He will never extinguish their love of freedom. He will never weaken the resolve of the free world. We meet tonight in an America that has lived through two of the hardest years this nation has ever faced. The pandemic has been punishing. And so many families are living paycheck to paycheck, struggling to keep up with the rising cost of food, gas, housing, and so much more. I understand. I remember when my Dad had to leave our home in Scranton, Pennsylvania to find work. I grew up in a family where if the price of food went up, you felt it. That’s why one of the first things I did as President was fight to pass the American Rescue Plan. Because people were hurting. We needed to act, and we did. Few pieces of legislation have done more in a critical moment in our history to lift us out of crisis. It fueled our efforts to vaccinate the nation and combat COVID-19. It delivered immediate economic relief for tens of millions of Americans. Helped put food on their table, keep a roof over their heads, and cut the cost of health insurance. And as my Dad used to say, it gave people a little breathing room. And unlike the $2 Trillion tax cut passed in the previous administration that benefitted the top 1% of Americans, the American Rescue Plan helped working people—and left no one behind. And it worked. It created jobs. Lots of jobs. In fact—our economy created over 6.5 Million new jobs just last year, more jobs created in one year than ever before in the history of America. Our economy grew at a rate of 5.7% last year, the strongest growth in nearly 40 years, the first step in bringing fundamental change to an economy that hasn’t worked for the working people of this nation for too long. For the past 40 years we were told that if we gave tax breaks to those at the very top, the benefits would trickle down to everyone else. But that trickle-down theory led to weaker economic growth, lower wages, bigger deficits, and the widest gap between those at the top and everyone else in nearly a century. Vice President Harris and I ran for office with a new economic vision for America. Invest in America. Educate Americans. Grow the workforce. Build the economy from the bottom up and the middle out, not from the top down. Because we know that when the middle class grows, the poor have a ladder up and the wealthy do very well. America used to have the best roads, bridges, and airports on Earth. Now our infrastructure is ranked 13th in the world. We won’t be able to compete for the jobs of the 21st Century if we don’t fix that. That’s why it was so important to pass the Bipartisan Infrastructure Law—the most sweeping investment to rebuild America in history. This was a bipartisan effort, and I want to thank the members of both parties who worked to make it happen. We’re done talking about infrastructure weeks. We’re going to have an infrastructure decade. It is going to transform America and put us on a path to win the economic competition of the 21st Century that we face with the rest of the world—particularly with China. As I’ve told Xi Jinping, it is never a good bet to bet against the American people. We’ll create good jobs for millions of Americans, modernizing roads, airports, ports, and waterways all across America. And we’ll do it all to withstand the devastating effects of the climate crisis and promote environmental justice. We’ll build a national network of 500,000 electric vehicle charging stations, begin to replace poisonous lead pipes—so every child—and every American—has clean water to drink at home and at school, provide affordable high-speed internet for every American—urban, suburban, rural, and tribal communities. 4,000 projects have already been announced. And tonight, I’m announcing that this year we will start fixing over 65,000 miles of highway and 1,500 bridges in disrepair. When we use taxpayer dollars to rebuild America – we are going to Buy American: buy American products to support American jobs. The federal government spends about $600 Billion a year to keep the country safe and secure. There’s been a law on the books for almost a century to make sure taxpayers’ dollars support American jobs and businesses. Every Administration says they’ll do it, but we are actually doing it. We will buy American to make sure everything from the deck of an aircraft carrier to the steel on highway guardrails are made in America. But to compete for the best jobs of the future, we also need to level the playing field with China and other competitors. That’s why it is so important to pass the Bipartisan Innovation Act sitting in Congress that will make record investments in emerging technologies and American manufacturing. Let me give you one example of why it’s so important to pass it. If you travel 20 miles east of Columbus, Ohio, you’ll find 1,000 empty acres of land. It won’t look like much, but if you stop and look closely, you’ll see a “Field of dreams,” the ground on which America’s future will be built. This is where Intel, the American company that helped build Silicon Valley, is going to build its $20 billion semiconductor “mega site”. Up to eight state-of-the-art factories in one place. 10,000 new good-paying jobs. Some of the most sophisticated manufacturing in the world to make computer chips the size of a fingertip that power the world and our everyday lives. Smartphones. The Internet. Technology we have yet to invent. But that’s just the beginning. Intel’s CEO, Pat Gelsinger, who is here tonight, told me they are ready to increase their investment from $20 billion to $100 billion. That would be one of the biggest investments in manufacturing in American history. And all they’re waiting for is for you to pass this bill. So let’s not wait any longer. Send it to my desk. I’ll sign it. And we will really take off. And Intel is not alone. There’s something happening in America. Just look around and you’ll see an amazing story. The rebirth of the pride that comes from stamping products “Made In America.” The revitalization of American manufacturing. Companies are choosing to build new factories here, when just a few years ago, they would have built them overseas. That’s what is happening. Ford is investing $11 billion to build electric vehicles, creating 11,000 jobs across the country. GM is making the largest investment in its history—$7 billion to build electric vehicles, creating 4,000 jobs in Michigan. All told, we created 369,000 new manufacturing jobs in America just last year. Powered by people I’ve met like JoJo Burgess, from generations of union steelworkers from Pittsburgh, who’s here with us tonight. As Ohio Senator Sherrod Brown says, “It’s time to bury the label “Rust Belt.” It’s time. But with all the bright spots in our economy, record job growth and higher wages, too many families are struggling to keep up with the bills. Inflation is robbing them of the gains they might otherwise feel. I get it. That’s why my top priority is getting prices under control. Look, our economy roared back faster than most predicted, but the pandemic meant that businesses had a hard time hiring enough workers to keep up production in their factories. The pandemic also disrupted global supply chains. When factories close, it takes longer to make goods and get them from the warehouse to the store, and prices go up. Look at cars. Last year, there weren’t enough semiconductors to make all the cars that people wanted to buy. And guess what, prices of automobiles went up. So—we have a choice. One way to fight inflation is to drive down wages and make Americans poorer. I have a better plan to fight inflation. Lower your costs, not your wages. Make more cars and semiconductors in America. More infrastructure and innovation in America. More goods moving faster and cheaper in America. More jobs where you can earn a good living in America. And instead of relying on foreign supply chains, let’s make it in America. Economists call it “increasing the productive capacity of our economy.” I call it building a better America. My plan to fight inflation will lower your costs and lower the deficit. 17 Nobel laureates in economics say my plan will ease long-term inflationary pressures. Top business leaders and most Americans support my plan. And here’s the plan: First – cut the cost of prescription drugs. Just look at insulin. One in ten Americans has diabetes. In Virginia, I met a 13-year-old boy named Joshua Davis. He and his Dad both have Type 1 diabetes, which means they need insulin every day. Insulin costs about $10 a vial to make. But drug companies charge families like Joshua and his Dad up to 30 times more. I spoke with Joshua’s mom. Imagine what it’s like to look at your child who needs insulin and have no idea how you’re going to pay for it. What it does to your dignity, your ability to look your child in the eye, to be the parent you expect to be. Joshua is here with us tonight. Yesterday was his birthday. Happy birthday, buddy. For Joshua, and for the 200,000 other young people with Type 1 diabetes, let’s cap the cost of insulin at $35 a month so everyone can afford it. Drug companies will still do very well. And while we’re at it let Medicare negotiate lower prices for prescription drugs, like the VA already does. Look, the American Rescue Plan is helping millions of families on Affordable Care Act plans save $2,400 a year on their health care premiums. Let’s close the coverage gap and make those savings permanent. Second – cut energy costs for families an average of $500 a year by combatting climate change. Let’s provide investments and tax credits to weatherize your homes and businesses to be energy efficient and you get a tax credit; double America’s clean energy production in solar, wind, and so much more; lower the price of electric vehicles, saving you another $80 a month because you’ll never have to pay at the gas pump again. Third – cut the cost of child care. Many families pay up to $14,000 a year for child care per child. Middle-class and working families shouldn’t have to pay more than 7% of their income for care of young children. My plan will cut the cost in half for most families and help parents, including millions of women, who left the workforce during the pandemic because they couldn’t afford child care, to be able to get back to work. My plan doesn’t stop there. It also includes home and long-term care. More affordable housing. And Pre-K for every 3- and 4-year-old. All of these will lower costs. And under my plan, nobody earning less than $400,000 a year will pay an additional penny in new taxes. Nobody. The one thing all Americans agree on is that the tax system is not fair. We have to fix it. I’m not looking to punish anyone. But let’s make sure corporations and the wealthiest Americans start paying their fair share. Just last year, 55 Fortune 500 corporations earned $40 billion in profits and paid zero dollars in federal income tax. That’s simply not fair. That’s why I’ve proposed a 15% minimum tax rate for corporations. We got more than 130 countries to agree on a global minimum tax rate so companies can’t get out of paying their taxes at home by shipping jobs and factories overseas. That’s why I’ve proposed closing loopholes so the very wealthy don’t pay a lower tax rate than a teacher or a firefighter. So that’s my plan. It will grow the economy and lower costs for families. So what are we waiting for? Let’s get this done. And while you’re at it, confirm my nominees to the Federal Reserve, which plays a critical role in fighting inflation. My plan will not only lower costs to give families a fair shot, it will lower the deficit. The previous Administration not only ballooned the deficit with tax cuts for the very wealthy and corporations, it undermined the watchdogs whose job was to keep pandemic relief funds from being wasted. But in my administration, the watchdogs have been welcomed back. We’re going after the criminals who stole billions in relief money meant for small businesses and millions of Americans. And tonight, I’m announcing that the Justice Department will name a chief prosecutor for pandemic fraud. By the end of this year, the deficit will be down to less than half what it was before I took office. The only president ever to cut the deficit by more than one trillion dollars in a single year. Lowering your costs also means demanding more competition. I’m a capitalist, but capitalism without competition isn’t capitalism. It’s exploitation—and it drives up prices. When corporations don’t have to compete, their profits go up, your prices go up, and small businesses and family farmers and ranchers go under. We see it happening with ocean carriers moving goods in and out of America. During the pandemic, these foreign-owned companies raised prices by as much as 1,000% and made record profits. Tonight, I’m announcing a crackdown on these companies overcharging American businesses and consumers. And as Wall Street firms take over more nursing homes, quality in those homes has gone down and costs have gone up. That ends on my watch. Medicare is going to set higher standards for nursing homes and make sure your loved ones get the care they deserve and expect. We’ll also cut costs and keep the economy going strong by giving workers a fair shot, provide more training and apprenticeships, hire them based on their skills not degrees. Let’s pass the Paycheck Fairness Act and paid leave. Raise the minimum wage to $15 an hour and extend the Child Tax Credit, so no one has to raise a family in poverty. Let’s increase Pell Grants and increase our historic support of HBCUs, and invest in what Jill—our First Lady who teaches full-time—calls America’s best-kept secret: community colleges. And let’s pass the PRO Act when a majority of workers want to form a union—they shouldn’t be stopped. When we invest in our workers, when we build the economy from the bottom up and the middle out together, we can do something we haven’t done in a long time: build a better America. For more than two years, COVID-19 has impacted every decision in our lives and the life of the nation. And I know you’re tired, frustrated, and exhausted. But I also know this. Because of the progress we’ve made, because of your resilience and the tools we have, tonight I can say we are moving forward safely, back to more normal routines. We’ve reached a new moment in the fight against COVID-19, with severe cases down to a level not seen since last July. Just a few days ago, the Centers for Disease Control and Prevention—the CDC—issued new mask guidelines. Under these new guidelines, most Americans in most of the country can now be mask free. And based on the projections, more of the country will reach that point across the next couple of weeks. Thanks to the progress we have made this past year, COVID-19 need no longer control our lives. I know some are talking about “living with COVID-19”. Tonight – I say that we will never just accept living with COVID-19. We will continue to combat the virus as we do other diseases. And because this is a virus that mutates and spreads, we will stay on guard. Here are four common sense steps as we move forward safely. First, stay protected with vaccines and treatments. We know how incredibly effective vaccines are. If you’re vaccinated and boosted you have the highest degree of protection. We will never give up on vaccinating more Americans. Now, I know parents with kids under 5 are eager to see a vaccine authorized for their children. The scientists are working hard to get that done and we’ll be ready with plenty of vaccines when they do. We’re also ready with anti-viral treatments. If you get COVID-19, the Pfizer pill reduces your chances of ending up in the hospital by 90%. We’ve ordered more of these pills than anyone in the world. And Pfizer is working overtime to get us 1 Million pills this month and more than double that next month. And we’re launching the “Test to Treat” initiative so people can get tested at a pharmacy, and if they’re positive, receive antiviral pills on the spot at no cost. If you’re immunocompromised or have some other vulnerability, we have treatments and free high-quality masks. We’re leaving no one behind or ignoring anyone’s needs as we move forward. And on testing, we have made hundreds of millions of tests available for you to order for free. Even if you already ordered free tests tonight, I am announcing that you can order more from covidtests.gov starting next week. Second – we must prepare for new variants. Over the past year, we’ve gotten much better at detecting new variants. If necessary, we’ll be able to deploy new vaccines within 100 days instead of many more months or years. And, if Congress provides the funds we need, we’ll have new stockpiles of tests, masks, and pills ready if needed. I cannot promise a new variant won’t come. But I can promise you we’ll do everything within our power to be ready if it does. Third – we can end the shutdown of schools and businesses. We have the tools we need. It’s time for Americans to get back to work and fill our great downtowns again. People working from home can feel safe to begin to return to the office. We’re doing that here in the federal government. The vast majority of federal workers will once again work in person. Our schools are open. Let’s keep it that way. Our kids need to be in school. And with 75% of adult Americans fully vaccinated and hospitalizations down by 77%, most Americans can remove their masks, return to work, stay in the classroom, and move forward safely. We achieved this because we provided free vaccines, treatments, tests, and masks. Of course, continuing this costs money. I will soon send Congress a request. The vast majority of Americans have used these tools and may want to again, so I expect Congress to pass it quickly. Fourth, we will continue vaccinating the world. We’ve sent 475 Million vaccine doses to 112 countries, more than any other nation. And we won’t stop. We have lost so much to COVID-19. Time with one another. And worst of all, so much loss of life. Let’s use this moment to reset. Let’s stop looking at COVID-19 as a partisan dividing line and see it for what it is: A God-awful disease. Let’s stop seeing each other as enemies, and start seeing each other for who we really are: Fellow Americans. We can’t change how divided we’ve been. But we can change how we move forward—on COVID-19 and other issues we must face together. I recently visited the New York City Police Department days after the funerals of Officer Wilbert Mora and his partner, Officer Jason Rivera. They were responding to a 9-1-1 call when a man shot and killed them with a stolen gun. Officer Mora was 27 years old. Officer Rivera was 22. Both Dominican Americans who’d grown up on the same streets they later chose to patrol as police officers. I spoke with their families and told them that we are forever in debt for their sacrifice, and we will carry on their mission to restore the trust and safety every community deserves. I’ve worked on these issues a long time. I know what works: Investing in crime preventionand community police officers who’ll walk the beat, who’ll know the neighborhood, and who can restore trust and safety. So let’s not abandon our streets. Or choose between safety and equal justice. Let’s come together to protect our communities, restore trust, and hold law enforcement accountable. That’s why the Justice Department required body cameras, banned chokeholds, and restricted no-knock warrants for its officers. That’s why the American Rescue Plan provided $350 Billion that cities, states, and counties can use to hire more police and invest in proven strategies like community violence interruption—trusted messengers breaking the cycle of violence and trauma and giving young people hope. We should all agree: The answer is not to Defund the police. The answer is to FUND the police with the resources and training they need to protect our communities. I ask Democrats and Republicans alike: Pass my budget and keep our neighborhoods safe. And I will keep doing everything in my power to crack down on gun trafficking and ghost guns you can buy online and make at home—they have no serial numbers and can’t be traced. And I ask Congress to pass proven measures to reduce gun violence. Pass universal background checks. Why should anyone on a terrorist list be able to purchase a weapon? Ban assault weapons and high-capacity magazines. Repeal the liability shield that makes gun manufacturers the only industry in America that can’t be sued. These laws don’t infringe on the Second Amendment. They save lives. The most fundamental right in America is the right to vote – and to have it counted. And it’s under assault. In state after state, new laws have been passed, not only to suppress the vote, but to subvert entire elections. We cannot let this happen. Tonight. I call on the Senate to: Pass the Freedom to Vote Act. Pass the John Lewis Voting Rights Act. And while you’re at it, pass the Disclose Act so Americans can know who is funding our elections. Tonight, I’d like to honor someone who has dedicated his life to serve this country: Justice Stephen Breyer—an Army veteran, Constitutional scholar, and retiring Justice of the United States Supreme Court. Justice Breyer, thank you for your service. One of the most serious constitutional responsibilities a President has is nominating someone to serve on the United States Supreme Court. And I did that 4 days ago, when I nominated Circuit Court of Appeals Judge Ketanji Brown Jackson. One of our nation’s top legal minds, who will continue Justice Breyer’s legacy of excellence. A former top litigator in private practice. A former federal public defender. And from a family of public school educators and police officers. A consensus builder. Since she’s been nominated, she’s received a broad range of support—from the Fraternal Order of Police to former judges appointed by Democrats and Republicans. And if we are to advance liberty and justice, we need to secure the Border and fix the immigration system. We can do both. At our border, we’ve installed new technology like cutting-edge scanners to better detect drug smuggling. We’ve set up joint patrols with Mexico and Guatemala to catch more human traffickers. We’re putting in place dedicated immigration judges so families fleeing persecution and violence can have their cases heard faster. We’re securing commitments and supporting partners in South and Central America to host more refugees and secure their own borders. We can do all this while keeping lit the torch of liberty that has led generations of immigrants to this land—my forefathers and so many of yours. Provide a pathway to citizenship for Dreamers, those on temporary status, farm workers, and essential workers. Revise our laws so businesses have the workers they need and families don’t wait decades to reunite. It’s not only the right thing to do—it’s the economically smart thing to do. That’s why immigration reform is supported by everyone from labor unions to religious leaders to the U.S. Chamber of Commerce. Let’s get it done once and for all. Advancing liberty and justice also requires protecting the rights of women. The constitutional right affirmed in Roe v. Wade—standing precedent for half a century—is under attack as never before. If we want to go forward—not backward—we must protect access to health care. Preserve a woman’s right to choose. And let’s continue to advance maternal health care in America. And for our LGBTQ+ Americans, let’s finally get the bipartisan Equality Act to my desk. The onslaught of state laws targeting transgender Americans and their families is wrong. As I said last year, especially to our younger transgender Americans, I will always have your back as your President, so you can be yourself and reach your God-given potential. While it often appears that we never agree, that isn’t true. I signed 80 bipartisan bills into law last year. From preventing government shutdowns to protecting Asian-Americans from still-too-common hate crimes to reforming military justice. And soon, we’ll strengthen the Violence Against Women Act that I first wrote three decades ago. It is important for us to show the nation that we can come together and do big things. So tonight I’m offering a Unity Agenda for the Nation. Four big things we can do together. First, beat the opioid epidemic. There is so much we can do. Increase funding for prevention, treatment, harm reduction, and recovery. Get rid of outdated rules that stop doctors from prescribing treatments. And stop the flow of illicit drugs by working with state and local law enforcement to go after traffickers. If you’re suffering from addiction, know you are not alone. I believe in recovery, and I celebrate the 23 million Americans in recovery. Second, let’s take on mental health. Especially among our children, whose lives and education have been turned upside down. The American Rescue Plan gave schools money to hire teachers and help students make up for lost learning. I urge every parent to make sure your school does just that. And we can all play a part—sign up to be a tutor or a mentor. Children were also struggling before the pandemic. Bullying, violence, trauma, and the harms of social media. As Frances Haugen, who is here with us tonight, has shown, we must hold social media platforms accountable for the national experiment they’re conducting on our children for profit. It’s time to strengthen privacy protections, ban targeted advertising to children, demand tech companies stop collecting personal data on our children. And let’s get all Americans the mental health services they need. More people they can turn to for help, and full parity between physical and mental health care. Third, support our veterans. Veterans are the best of us. I’ve always believed that we have a sacred obligation to equip all those we send to war and care for them and their families when they come home. My administration is providing assistance with job training and housing, and now helping lower-income veterans get VA care debt-free. Our troops in Iraq and Afghanistan faced many dangers. One was stationed at bases and breathing in toxic smoke from “burn pits” that incinerated wastes of war—medical and hazard material, jet fuel, and more. When they came home, many of the world’s fittest and best trained warriors were never the same. Headaches. Numbness. Dizziness. A cancer that would put them in a flag-draped coffin. I know. One of those soldiers was my son Major Beau Biden. We don’t know for sure if a burn pit was the cause of his brain cancer, or the diseases of so many of our troops. But I’m committed to finding out everything we can. Committed to military families like Danielle Robinson from Ohio. The widow of Sergeant First Class Heath Robinson. He was born a soldier. Army National Guard. Combat medic in Kosovo and Iraq. Stationed near Baghdad, just yards from burn pits the size of football fields. Heath’s widow Danielle is here with us tonight. They loved going to Ohio State football games. He loved building Legos with their daughter. But cancer from prolonged exposure to burn pits ravaged Heath’s lungs and body. Danielle says Heath was a fighter to the very end. He didn’t know how to stop fighting, and neither did she. Through her pain she found purpose to demand we do better. Tonight, Danielle—we are. The VA is pioneering new ways of linking toxic exposures to diseases, already helping more veterans get benefits. And tonight, I’m announcing we’re expanding eligibility to veterans suffering from nine respiratory cancers. I’m also calling on Congress: pass a law to make sure veterans devastated by toxic exposures in Iraq and Afghanistan finally get the benefits and comprehensive health care they deserve. And fourth, let’s end cancer as we know it. This is personal to me and Jill, to Kamala, and to so many of you. Cancer is the #2 cause of death in America–second only to heart disease. Last month, I announced our plan to supercharge the Cancer Moonshot that President Obama asked me to lead six years ago. Our goal is to cut the cancer death rate by at least 50% over the next 25 years, turn more cancers from death sentences into treatable diseases. More support for patients and families. To get there, I call on Congress to fund ARPA-H, the Advanced Research Projects Agency for Health. It’s based on DARPA—the Defense Department project that led to the Internet, GPS, and so much more. ARPA-H will have a singular purpose—to drive breakthroughs in cancer, Alzheimer’s, diabetes, and more. A unity agenda for the nation. We can do this. My fellow Americans—tonight , we have gathered in a sacred space—the citadel of our democracy. In this Capitol, generation after generation, Americans have debated great questions amid great strife, and have done great things. We have fought for freedom, expanded liberty, defeated totalitarianism and terror. And built the strongest, freest, and most prosperous nation the world has ever known. Now is the hour. Our moment of responsibility. Our test of resolve and conscience, of history itself. It is in this moment that our character is formed. Our purpose is found. Our future is forged. Well I know this nation. We will meet the test. To protect freedom and liberty, to expand fairness and opportunity. We will save democracy. As hard as these times have been, I am more optimistic about America today than I have been my whole life. Because I see the future that is within our grasp. Because I know there is simply nothing beyond our capacity. We are the only nation on Earth that has always turned every crisis we have faced into an opportunity. The only nation that can be defined by a single word: possibilities. So on this night, in our 245th year as a nation, I have come to report on the State of the Union. And my report is this: the State of the Union is strong—because you, the American people, are strong. We are stronger today than we were a year ago. And we will be stronger a year from now than we are today. Now is our moment to meet and overcome the challenges of our time. And we will, as one people. One America. The United States of America. May God bless you all. May God protect our troops.

US

Mr. Speaker. Madam Vice President. Our First Lady and Second Gentleman. Members of Congress and the Cabinet. Leaders of our military. Mr. Chief Justice, Associate Justices, and retired Justices of the Supreme Court. And you, my fellow Americans. I start tonight by congratulating the members of the 118th Congress and the new Speaker of the House, Kevin McCarthy. Mr. Speaker, I look forward to working together. I also want to congratulate the new leader of the House Democrats and the first Black House Minority Leader in history, Hakeem Jeffries. Congratulations to the longest serving Senate Leader in history, Mitch McConnell. And congratulations to Chuck Schumer for another term as Senate Majority Leader, this time with an even bigger majority. And I want to give special recognition to someone who I think will be considered the greatest Speaker in the history of this country, Nancy Pelosi. The story of America is a story of progress and resilience. Of always moving forward. Of never giving up. A story that is unique among all nations. We are the only country that has emerged from every crisis stronger than when we entered it. That is what we are doing again. Two years ago, our economy was reeling. As I stand here tonight, we have created a record 12 million new jobs, more jobs created in two years than any president has ever created in four years. Two years ago, COVID had shut down our businesses, closed our schools, and robbed us of so much. Today, COVID no longer controls our lives. And two years ago, our democracy faced its greatest threat since the Civil War. Today, though bruised, our democracy remains unbowed and unbroken. As we gather here tonight, we are writing the next chapter in the great American story, a story of progress and resilience. When world leaders ask me to define America, I define our country in one word: Possibilities. You know, we’re often told that Democrats and Republicans can’t work together. But over these past two years, we proved the cynics and the naysayers wrong. Yes, we disagreed plenty. And yes, there were times when Democrats had to go it alone. But time and again, Democrats and Republicans came together. Came together to defend a stronger and safer Europe. Came together to pass a once-in-a-generation infrastructure law, building bridges to connect our nation and people. Came together to pass one of the most significant laws ever, helping veterans exposed to toxic burn pits. In fact, I signed over 300 bipartisan laws since becoming President. From reauthorizing the Violence Against Women Act, to the Electoral Count Reform Act, to the Respect for Marriage Act that protects the right to marry the person you love. To my Republican friends, if we could work together in the last Congress, there is no reason we can’t work together in this new Congress. The people sent us a clear message. Fighting for the sake of fighting, power for the sake of power, conflict for the sake of conflict, gets us nowhere. And that’s always been my vision for our country. To restore the soul of the nation. To rebuild the backbone of America, the middle class. To unite the country. We’ve been sent here to finish the job. For decades, the middle class was hollowed out. Too many good-paying manufacturing jobs moved overseas. Factories at home closed down. Once-thriving cities and towns became shadows of what they used to be. And along the way, something else was lost. Pride. That sense of self-worth. I ran for President to fundamentally change things, to make sure the economy works for everyone so we can all feel pride in what we do. To build an economy from the bottom up and the middle out, not from the top down. Because when the middle class does well, the poor have a ladder up and the wealthy still do very well. We all do well. As my Dad used to say, a job is about a lot more than a paycheck. It’s about your dignity. It’s about respect. It’s about being able to look your kid in the eye and say, “Honey –it’s going to be OK,” and mean it. So, let’s look at the results. Unemployment rate at 3.4%, a 50-year low. Near record low unemployment for Black and Hispanic workers. We’ve already created 800,000 good-paying manufacturing jobs, the fastest growth in 40 years. Where is it written that America can’t lead the world in manufacturing again? For too many decades, we imported products and exported jobs. Now, thanks to all we’ve done, we’re exporting American products and creating American jobs. Inflation has been a global problem because of the pandemic that disrupted supply chains and Putin’s war that disrupted energy and food supplies. But we’re better positioned than any country on Earth. We have more to do, but here at home, inflation is coming down. Here at home, gas prices are down $1.50 a gallon since their peak. Food inflation is coming down. Inflation has fallen every month for the last six months while take home pay has gone up. Additionally, over the last two years, a record 10 million Americans applied to start a new small business. Every time somebody starts a small business, it’s an act of hope. And the Vice President will continue her work to ensure more small businesses can access capital and the historic laws we enacted. Standing here last year, I shared with you a story of American genius and possibility. Semiconductors, the small computer chips the size of your fingertip that power everything from cellphones to automobiles, and so much more. These chips were invented right here in America. America used to make nearly 40% of the world’s chips. But in the last few decades, we lost our edge and we’re down to producing only 10%. We all saw what happened during the pandemic when chip factories overseas shut down. Today’s automobiles need up to 3,000 chips each, but American automakers couldn’t make enough cars because there weren’t enough chips. Car prices went up. So did everything from refrigerators to cellphones. We can never let that happen again. That’s why we came together to pass the bipartisan CHIPS and Science Act. We’re making sure the supply chain for America begins in America. We’ve already created 800,000 manufacturing jobs even without this law. With this new law, we will create hundreds of thousands of new jobs across the country. That’s going to come from companies that have announced more than $300 billion in investments in American manufacturing in the last two years. Outside of Columbus, Ohio, Intel is building semiconductor factories on a thousand acres – a literal field of dreams. That’ll create 10,000 jobs. 7,000 construction jobs. 3,000 jobs once the factories are finished. Jobs paying $130,000 a year, and many don’t require a college degree. Jobs where people don’t have to leave home in search of opportunity. And it’s just getting started. Think about the new homes, new small businesses, and so much more that will come to life. Talk to mayors and Governors, Democrats and Republicans, and they’ll tell you what this means to their communities. We’re seeing these fields of dreams transform the heartland. But to maintain the strongest economy in the world, we also need the best infrastructure in the world. We used to be #1 in the world in infrastructure, then we fell to #13th. Now we’re coming back because we came together to pass the Bipartisan Infrastructure Law, the largest investment in infrastructure since President Eisenhower’s Interstate Highway System. Already, we’ve funded over 20,000 projects, including at major airports from Boston to Atlanta to Portland. These projects will put hundreds of thousands of people to work rebuilding our highways, bridges, railroads, tunnels, ports and airports, clean water, and high-speed internet across America. Urban. Suburban. Rural. Tribal. And we’re just getting started. I sincerely thank my Republican friends who voted for the law. And to my Republican friends who voted against it but still ask to fund projects in their districts, don’t worry. I promised to be the president for all Americans. We’ll fund your projects. And I’ll see you at the ground-breaking. This law will help further unite all of America. Major projects like the Brent Spence bridge between Kentucky and Ohio over the Ohio River. Built 60 years ago. Badly in need of repairs. One of the nation’s most congested freight routes carrying $2 billion worth of freight every day. Folks have been talking about fixing it for decades, but we’re finally going to get it done. I went there last month with Democrats and Republicans from both states to deliver $1.6 billion for this project. While I was there, I met an ironworker named Sara, who is here tonight. For 30 years, she’s been a proud member of Ironworkers Local 44, known as the “cowboys of the sky” who built the Cincinnati skyline. Sara said she can’t wait to be ten stories above the Ohio River building that new bridge. That’s pride. That’s what we’re also building – Pride. We’re also replacing poisonous lead pipes that go into 10 million homes and 400,000 schools and childcare centers, so every child in America can drink clean water. We’re making sure that every community has access to affordable, high-speed internet. No parent should have to drive to a McDonald’s parking lot so their kid can do their homework online. And when we do these projects, we’re going to Buy American. Buy American has been the law of the land since 1933. But for too long, past administrations have found ways to get around it. Not anymore. Tonight, I’m also announcing new standards to require all construction materials used in federal infrastructure projects to be made in America. American-made lumber, glass, drywall, fiber optic cables. And on my watch, American roads, American bridges, and American highways will be made with American products. My economic plan is about investing in places and people that have been forgotten. Amid the economic upheaval of the past four decades, too many people have been left behind or treated like they’re invisible. Maybe that’s you, watching at home. You remember the jobs that went away. And you wonder whether a path even exists anymore for you and your children to get ahead without moving away. I get it. That’s why we’re building an economy where no one is left behind. Jobs are coming back, pride is coming back, because of the choices we made in the last two years. This is a blue-collar blueprint to rebuild America and make a real difference in your lives. For example, too many of you lay in bed at night staring at the ceiling, wondering what will happen if your spouse gets cancer, your child gets sick, or if something happens to you. Will you have the money to pay your medical bills? Will you have to sell the house? I get it. With the Inflation Reduction Act that I signed into law, we’re taking on powerful interests to bring your health care costs down so you can sleep better at night. You know, we pay more for prescription drugs than any major country on Earth. For example, one in ten Americans has diabetes. Every day, millions need insulin to control their diabetes so they can stay alive. Insulin has been around for 100 years. It costs drug companies just $10 a vial to make. But, Big Pharma has been unfairly charging people hundreds of dollars – and making record profits. Not anymore. We capped the cost of insulin at $35 a month for seniors on Medicare. But there are millions of other Americans who are not on Medicare, including 200,000 young people with Type I diabetes who need insulin to save their lives. Let’s finish the job this time. Let’s cap the cost of insulin at $35 a month for every American who needs it. This law also caps out-of-pocket drug costs for seniors on Medicare at a maximum $2,000 per year when there are in fact many drugs, like expensive cancer drugs, that can cost up to $10,000, $12,000, and $14,000 a year. If drug prices rise faster than inflation, drug companies will have to pay Medicare back the difference. And we’re finally giving Medicare the power to negotiate drug prices. Bringing down prescription drug costs doesn’t just save seniors money. It will cut the federal deficit, saving tax payers hundreds of billions of dollars on the prescription drugs the government buys for Medicare. Why wouldn’t we want to do that? Now, some members here are threatening to repeal the Inflation Reduction Act. Make no mistake, if you try to do anything to raise the cost of prescription drugs, I will veto it. I’m pleased to say that more Americans have health insurance now than ever in history. A record 16 million people are enrolled under the Affordable Care Act. Thanks to the law I signed last year, millions are saving $800 a year on their premiums. But the way that law was written, that benefit expires after 2025. Let’s finish the job, make those savings permanent, and expand coverage to those left off Medicaid. Look, the Inflation Reduction Act is also the most significant investment ever to tackle the climate crisis. Lowering utility bills, creating American jobs, and leading the world to a clean energy future. I’ve visited the devastating aftermaths of record floods and droughts, storms and wildfires. In addition to emergency recovery from Puerto Rico to Florida to Idaho, we are rebuilding for the long term. New electric grids able to weather the next major storm. Roads and water systems to withstand the next big flood. Clean energy to cut pollution and create jobs in communities too often left behind. We’re building 500,000 electric vehicle charging stations installed across the country by tens of thousands of IBEW workers. And helping families save more than $1,000 a year with tax credits for the purchase of electric vehicles and energy-efficient appliances. Historic conservation efforts to be responsible stewards of our lands. Let’s face reality. The climate crisis doesn’t care if your state is red or blue. It is an existential threat. We have an obligation to our children and grandchildren to confront it. I’m proud of how America is at last stepping up to the challenge. But there’s so much more to do. We will finish the job. And we pay for these investments in our future by finally making the wealthiest and the biggest corporations begin to pay their fair share. I’m a capitalist. But just pay your fair share. And I think a lot of you at home agree with me that our present tax system is simply unfair. The idea that in 2020, 55 of the biggest companies in America made $40 billion in profits and paid zero in federal income taxes? That’s simply not fair. But now, because of the law I signed, billion-dollar companies have to pay a minimum of 15%. Just 15%. That’s less than a nurse pays. Let me be clear. Under my plan, nobody earning less than $400,000 a year will pay an additional penny in taxes. Nobody. Not one penny. But there’s more to do. Let’s finish the job. Reward work, not just wealth. Pass my proposal for a billionaire minimum tax. Because no billionaire should pay a lower tax rate than a school teacher or a firefighter. You may have noticed that Big Oil just reported record profits. Last year, they made $200 billion in the midst of a global energy crisis. It’s outrageous. They invested too little of that profit to increase domestic production and keep gas prices down. Instead, they used those record profits to buy back their own stock, rewarding their CEOs and shareholders. Corporations ought to do the right thing. That’s why I propose that we quadruple the tax on corporate stock buybacks to encourage long term investments instead. They will still make a considerable profit. Let’s finish the job and close the loopholes that allow the very wealthy to avoid paying their taxes. Instead of cutting the number of audits of wealthy tax payers, I signed a law that will reduce the deficit by $114 billion by cracking down on wealthy tax cheats. That’s being fiscally responsible. In the last two years, my administration cut the deficit by more than $1.7 trillion – the largest deficit reduction in American history. Under the previous administration, America’s deficit went up four years in a row. Because of those record deficits, no president added more to the national debt in any four years than my predecessor. Nearly 25% of the entire national debt, a debt that took 200 years to accumulate, was added by that administration alone. How did Congress respond to all that debt? They lifted the debt ceiling three times without preconditions or crisis. They paid America’s bills to prevent economic disaster for our country. Tonight, I’m asking this Congress to follow suit. Let us commit here tonight that the full faith and credit of the United States of America will never, ever be questioned. Some of my Republican friends want to take the economy hostage unless I agree to their economic plans. All of you at home should know what their plans are. Instead of making the wealthy pay their fair share, some Republicans want Medicare and Social Security to sunset every five years. That means if Congress doesn’t vote to keep them, those programs will go away. Other Republicans say if we don’t cut Social Security and Medicare, they’ll let America default on its debt for the first time in our history. I won’t let that happen. Social Security and Medicare are a lifeline for millions of seniors. Americans have been paying into them with every single paycheck since they started working. So tonight, let’s all agree to stand up for seniors. Stand up and show them we will not cut Social Security. We will not cut Medicare. Those benefits belong to the American people. They earned them. If anyone tries to cut Social Security, I will stop them. And if anyone tries to cut Medicare, I will stop them. I will not allow them to be taken away. Not today. Not tomorrow. Not ever. Next month when I offer my fiscal plan, I ask my Republican friends to offer their plan. We can sit down together and discuss both plans together. My plan will lower the deficit by $2 trillion. I won’t cut a single Social Security or Medicare benefit. In fact, I will extend the Medicare Trust Fund by at least two decades. I will not raise taxes on anyone making under $400,000 a year. And I will pay for the ideas I’ve talked about tonight by making the wealthy and big corporations begin to pay their fair share. Look, here’s the deal. Big corporations aren’t just taking advantage of the tax code. They’re taking advantage of you, the American consumer. Here’s my message to all of you out there: I have your back. We’re already preventing insurance companies from sending surprise medical bills, stopping 1 million surprise bills a month. We’re protecting seniors’ lives and life savings by cracking down on nursing homes that commit fraud, endanger patient safety, or prescribe drugs they don’t need. Millions of Americans can now save thousands of dollars because they can finally get hearing aids over-the-counter without a prescription. Capitalism without competition is not capitalism. It is exploitation. Last year I cracked down on foreign shipping companies that were making you pay higher prices for everyday goods coming into our country. I signed a bipartisan bill that cut shipping costs by 90%, helping American farmers, businesses, and consumers. Let’s finish the job. Pass bipartisan legislation to strengthen antitrust enforcement and prevent big online platforms from giving their own products an unfair advantage. My administration is also taking on “junk” fees, those hidden surcharges too many businesses use to make you pay more. For example, we’re making airlines show you the full ticket price upfront and refund your money if your flight is cancelled or delayed. We’ve reduced exorbitant bank overdraft fees, saving consumers more than $1 billion a year. We’re cutting credit card late fees by 75%, from $30 to $8. Junk fees may not matter to the very wealthy, but they matter to most folks in homes like the one I grew up in. They add up to hundreds of dollars a month. They make it harder for you to pay the bills or afford that family trip. I know how unfair it feels when a company overcharges you and gets away with it. Not anymore. We’ve written a bill to stop all that. It’s called the Junk Fee Prevention Act. We’ll ban surprise “resort fees” that hotels tack on to your bill. These fees can cost you up to $90 a night at hotels that aren’t even resorts. We’ll make cable internet and cellphone companies stop charging you up to $200 or more when you decide to switch to another provider. We’ll cap service fees on tickets to concerts and sporting events and make companies disclose all fees upfront. And we’ll prohibit airlines from charging up to $50 roundtrip for families just to sit together. Baggage fees are bad enough – they can’t just treat your child like a piece of luggage. Americans are tired of being played for suckers. Pass the Junk Fee Prevention Act so companies stop ripping us off. For too long, workers have been getting stiffed. Not anymore. We’re beginning to restore the dignity of work. For example, 30 million workers had to sign non-compete agreements when they took a job. So a cashier at a burger place can’t cross the street to take the same job at another burger place to make a couple bucks more. Not anymore. We’re banning those agreements so companies have to compete for workers and pay them what they’re worth. I’m so sick and tired of companies breaking the law by preventing workers from organizing. Pass the PRO Act because workers have a right to form a union. And let’s guarantee all workers a living wage. Let’s also make sure working parents can afford to raise a family with sick days, paid family and medical leave, and affordable child care that will enable millions more people to go to work. Let’s also restore the full Child Tax Credit, which gave tens of millions of parents some breathing room and cut child poverty in half, to the lowest level in history. And by the way, when we do all of these things, we increase productivity. We increase economic growth. Let’s also finish the job and get more families access to affordable and quality housing. Let’s get seniors who want to stay in their homes the care they need to do so. And give a little more breathing room to millions of family caregivers looking after their loved ones. Pass my plan so we get seniors and people with disabilities the home care services they need and support the workers who are doing God’s work. These plans are fully paid for and we can afford to do them. Restoring the dignity of work also means making education an affordable ticket to the middle class. When we made 12 years of public education universal in the last century, it made us the best-educated, best-prepared nation in the world. But the world has caught up. Jill, who teaches full-time, has an expression: “Any nation that out-educates us will out-compete us.” Folks, you all know 12 years is not enough to win the economic competition for the 21st Century. If you want America to have the best-educated workforce, let’s finish the job by providing access to pre-school for 3- and 4-year-olds. Studies show that children who go to pre-school are nearly 50% more likely to finish high school and go on to earn a 2- or 4-year degree, no matter their background. Let’s give public school teachers a raise. And we’re making progress by reducing student debt and increasing Pell Grants for working- and middle-class families. Let’s finish the job, connect students to career opportunities starting in high school and provide two years of community college, some of the best career training in America, in addition to being a pathway to a four-year degree. Let’s offer every American the path to a good career whether they go to college or not. And folks, in the midst of the COVID crisis when schools were closed, let’s also recognize how far we’ve come in the fight against the pandemic itself. While the virus is not gone, thanks to the resilience of the American people, we have broken COVID’s grip on us. COVID deaths are down nearly 90%. We’ve saved millions of lives and opened our country back up. And soon we’ll end the public health emergency. But we will remember the toll and pain that will never go away for so many. More than 1 million Americans have lost their lives to COVID. Families grieving. Children orphaned. Empty chairs at the dining room table. We remember them, and we remain vigilant. We still need to monitor dozens of variants and support new vaccines and treatments. So Congress needs to fund these efforts and keep America safe. And as we emerge from this crisis stronger, I’m also doubling down on prosecuting criminals who stole relief money meant to keep workers and small businesses afloat during the pandemic. Before I came to office many inspector generals who protect taxpayer dollars were sidelined. Fraud was rampant. Last year, I told you the watchdogs are back. Since then, we’ve recovered billions of taxpayer dollars. Now, let’s triple our anti-fraud strike forces going after these criminals, double the statute of limitations on these crimes, and crack down on identity fraud by criminal syndicates stealing billions of dollars from the American people. For every dollar we put into fighting fraud, taxpayers get back at least ten times as much. COVID left other scars, like the spike in violent crime in 2020, the first year of the pandemic. We have an obligation to make sure all our people are safe. Public safety depends on public trust. But too often that trust is violated. Joining us tonight are the parents of Tyre Nichols, who had to bury him just last week. There are no words to describe the heartbreak and grief of losing a child. But imagine what it’s like to lose a child at the hands of the law. Imagine having to worry whether your son or daughter will come home from walking down the street or playing in the park or just driving their car. I’ve never had to have the talk with my children – Beau, Hunter, and Ashley – that so many Black and Brown families have had with their children. If a police officer pulls you over, turn on your interior lights. Don’t reach for your license. Keep your hands on the steering wheel. Imagine having to worry like that every day in America. Here’s what Tyre’s mom shared with me when I asked her how she finds the courage to carry on and speak out. With faith in God, she said her son “was a beautiful soul and something good will come from this.” Imagine how much courage and character that takes. It’s up to us. It’s up to all of us. We all want the same thing. Neighborhoods free of violence. Law enforcement who earn the community’s trust. Our children to come home safely. Equal protection under the law; that’s the covenant we have with each other in America. And we know police officers put their lives on the line every day, and we ask them to do too much. To be counselors, social workers, psychologists; responding to drug overdoses, mental health crises, and more. We ask too much of them. I know most cops are good, decent people. They risk their lives every time they put on that shield. But what happened to Tyre in Memphis happens too often. We have to do better. Give law enforcement the training they need, hold them to higher standards, and help them succeed in keeping everyone safe. We also need more first responders and other professionals to address growing mental health and substance abuse challenges. More resources to reduce violent crime and gun crime; more community intervention programs; more investments in housing, education, and job training. All this can help prevent violence in the first place. And when police officers or departments violate the public’s trust, we must hold them accountable. With the support of families of victims, civil rights groups, and law enforcement, I signed an executive order for all federal officers banning chokeholds, restricting no-knock warrants, and other key elements of the George Floyd Act. Let’s commit ourselves to make the words of Tyre’s mother come true, something good must come from this. All of us in this chamber, we need to rise to this moment. We can’t turn away. Let’s do what we know in our hearts we need to do. Let’s come together and finish the job on police reform. Do something. That was the same plea of parents who lost their children in Uvalde: Do something on gun violence. Thank God we did, passing the most sweeping gun safety law in three decades. That includes things that the majority of responsible gun owners support, like enhanced background checks for 18 to 21-year-olds and red flag laws keeping guns out of the hands of people who are a danger to themselves and others. But we know our work is not done. Joining us tonight is Brandon Tsay, a 26-year-old hero. Brandon put off his college dreams to stay by his mom’s side as she was dying from cancer. He now works at a dance studio started by his grandparents. Two weeks ago, during Lunar New Year celebrations, he heard the studio’s front door close and saw a man pointing a gun at him. He thought he was going to die, but then he thought about the people inside. In that instant, he found the courage to act and wrestled the semi-automatic pistol away from a gunman who had already killed 11 people at another dance studio. He saved lives. It’s time we do the same as well. Ban assault weapons once and for all. We did it before. I led the fight to ban them in 1994. In the 10 years the ban was law, mass shootings went down. After Republicans let it expire, mass shootings tripled. Let’s finish the job and ban assault weapons again. And let’s also come together on immigration and make it a bipartisan issue like it was before. We now have a record number of personnel working to secure the border, arresting 8,000 human smugglers and seizing over 23,000 pounds of fentanyl in just the last several months. Since we launched our new border plan last month, unlawful migration from Cuba, Haiti, Nicaragua, and Venezuela has come down 97%. But America’s border problems won’t be fixed until Congress acts. If you won’t pass my comprehensive immigration reform, at least pass my plan to provide the equipment and officers to secure the border. And a pathway to citizenship for Dreamers, those on temporary status, farm workers, and essential workers. Here in the people’s House, it’s our duty to protect all the people’s rights and freedoms. Congress must restore the right the Supreme Court took away last year and codify Roe v. Wade to protect every woman’s constitutional right to choose. The Vice President and I are doing everything we can to protect access to reproductive health care and safeguard patient privacy. But already, more than a dozen states are enforcing extreme abortion bans. Make no mistake; if Congress passes a national abortion ban, I will veto it. Let’s also pass the bipartisan Equality Act to ensure LGBTQ Americans, especially transgender young people, can live with safety and dignity. Our strength is not just the example of our power, but the power of our example. Let’s remember the world is watching. I spoke from this chamber one year ago, just days after Vladimir Putin unleashed his brutal war against Ukraine. A murderous assault, evoking images of the death and destruction Europe suffered in World War II. Putin’s invasion has been a test for the ages. A test for America. A test for the world. Would we stand for the most basic of principles? Would we stand for sovereignty? Would we stand for the right of people to live free from tyranny? Would we stand for the defense of democracy? For such a defense matters to us because it keeps the peace and prevents open season for would-be aggressors to threaten our security and prosperity. One year later, we know the answer. Yes, we would. And yes, we did. Together, we did what America always does at our best. We led. We united NATO and built a global coalition. We stood against Putin’s aggression. We stood with the Ukrainian people. Tonight, we are once again joined by Ukraine’s Ambassador to the United States. She represents not just her nation, but the courage of her people. Ambassador, America is united in our support for your country. We will stand with you as long as it takes. Our nation is working for more freedom, more dignity, and more peace, not just in Europe, but everywhere. Before I came to office, the story was about how the People’s Republic of China was increasing its power and America was falling in the world. Not anymore. I’ve made clear with President Xi that we seek competition, not conflict. I will make no apologies that we are investing to make America strong. Investing in American innovation, in industries that will define the future, and that China’s government is intent on dominating. Investing in our alliances and working with our allies to protect our advanced technologies so they’re not used against us. Modernizing our military to safeguard stability and deter aggression. Today, we’re in the strongest position in decades to compete with China or anyone else in the world. I am committed to work with China where it can advance American interests and benefit the world. But make no mistake: as we made clear last week, if China’s threatens our sovereignty, we will act to protect our country. And we did. And let’s be clear: winning the competition with China should unite all of us. We face serious challenges across the world. But in the past two years, democracies have become stronger, not weaker. Autocracies have grown weaker, not stronger. America is rallying the world again to meet those challenges, from climate and global health, to food insecurity, to terrorism and territorial aggression. Allies are stepping up, spending more and doing more. And bridges are forming between partners in the Pacific and those in the Atlantic. And those who bet against America are learning just how wrong they are. It’s never a good bet to bet against America. When I came to office, most everyone assumed bipartisanship was impossible. But I never believed it. That’s why a year ago, I offered a Unity Agenda for the nation. We’ve made real progress. Together, we passed a law making it easier for doctors to prescribe effective treatments for opioid addiction. Passed a gun safety law making historic investments in mental health. Launched ARPA-H to drive breakthroughs in the fight against cancer, Alzheimer’s, diabetes, and so much more. We passed the Heath Robinson PACT Act, named for the late Iraq war veteran whose story about exposure to toxic burn pits I shared here last year. But there is so much more to do. And we can do it together. Joining us tonight is a father named Doug from Newton, New Hampshire. He wrote Jill and me a letter about his daughter Courtney. Contagious laugh. Her sister’s best friend. He shared a story all too familiar to millions of Americans. Courtney discovered pills in high school. It spiraled into addiction and eventually her death from a fentanyl overdose. She was 20 years old. Describing the last eight years without her, Doug said, “There is no worse pain.” Yet their family has turned pain into purpose, working to end stigma and change laws. He told us he wants to “start the journey towards America’s recovery.” Doug, we’re with you. Fentanyl is killing more than 70,000 Americans a year. Let’s launch a major surge to stop fentanyl production, sale, and trafficking, with more drug detection machines to inspect cargo and stop pills and powder at the border. Working with couriers like Fed Ex to inspect more packages for drugs. Strong penalties to crack down on fentanyl trafficking. Second, let’s do more on mental health, especially for our children. When millions of young people are struggling with bullying, violence, trauma, we owe them greater access to mental health care at school. We must finally hold social media companies accountable for the experiment they are running on our children for profit. And it’s time to pass bipartisan legislation to stop Big Tech from collecting personal data on kids and teenagers online, ban targeted advertising to children, and impose stricter limits on the personal data these companies collect on all of us. Third, let’s do more to keep our nation’s one truly sacred obligation: to equip those we send into harm’s way and care for them and their families when they come home. Job training and job placement for veterans and their spouses as they return to civilian life. Helping veterans afford their rent because no one should be homeless in this country, especially not those who served it. And we cannot go on losing 17 veterans a day to the silent scourge of suicide. The VA is doing everything it can, including expanding mental health screenings and a proven program that recruits veterans to help other veterans understand what they’re going through and get the help they need. And fourth, last year Jill and I re-ignited the Cancer Moonshot that President Obama asked me to lead in our Administration. Our goal is to cut the cancer death rate by at least 50% over the next 25 years. Turn more cancers from death sentences into treatable diseases. And provide more support for patients and families. It’s personal for so many of us. Joining us are Maurice and Kandice, an Irishman and a daughter of immigrants from Panama. They met and fell in love in New York City and got married in the same chapel as Jill and I did. Kindred spirits. He wrote us a letter about their little daughter Ava. She was just a year old when she was diagnosed with a rare kidney cancer. 26 blood transfusions. 11 rounds of radiation. 8 rounds of chemo. 1 kidney removed. A 5% survival rate. He wrote how in the darkest moments he thought, “if she goes, I can’t stay.” Jill and I understand, like so many of you. They read how Jill described our family’s cancer journey and how we tried to steal moments of joy where you can. For them, that glimmer of joy was a half-smile from their baby girl. It meant everything. They never gave up hope. Ava never gave up hope. She turns four next month. They just found out that Ava beat the odds and is on her way to being cancer free, and she’s watching from the White House tonight. For the lives we can save and for the lives we have lost, let this be a truly American moment that rallies the country and the world together and proves that we can do big things. Twenty years ago, under the leadership of President Bush and countless advocates and champions, we undertook a bipartisan effort through PEPFAR to transform the global fight against HIV/AIDS. It’s been a huge success. I believe we can do the same with cancer. Let’s end cancer as we know it and cure some cancers once and for all. There’s one reason why we’re able to do all of these things: our democracy itself. It’s the most fundamental thing of all. With democracy, everything is possible. Without it, nothing is. For the last few years our democracy has been threatened, attacked, and put at risk. Put to the test here, in this very room, on January 6th. And then, just a few months ago, unhinged by the Big Lie, an assailant unleashed political violence in the home of the then-Speaker of this House of Representatives. Using the very same language that insurrectionists who stalked these halls chanted on January 6th. Here tonight in this chamber is the man who bears the scars of that brutal attack, but is as tough and strong and as resilient as they get. My friend, Paul Pelosi. But such a heinous act never should have happened. We must all speak out. There is no place for political violence in America. In America, we must protect the right to vote, not suppress that fundamental right. We honor the results of our elections, not subvert the will of the people. We must uphold the rule of the law and restore trust in our institutions of democracy. And we must give hate and extremism in any form no safe harbor. Democracy must not be a partisan issue. It must be an American issue. Every generation of Americans has faced a moment where they have been called on to protect our democracy, to defend it, to stand up for it. And this is our moment. My fellow Americans, we meet tonight at an inflection point. One of those moments that only a few generations ever face, where the decisions we make now will decide the course of this nation and of the world for decades to come. We are not bystanders to history. We are not powerless before the forces that confront us. It is within our power, of We the People. We are facing the test of our time and the time for choosing is at hand. We must be the nation we have always been at our best. Optimistic. Hopeful. Forward-looking. A nation that embraces, light over darkness, hope over fear, unity over division. Stability over chaos. We must see each other not as enemies, but as fellow Americans. We are a good people, the only nation in the world built on an idea. That all of us, every one of us, is created equal in the image of God. A nation that stands as a beacon to the world. A nation in a new age of possibilities. So I have come here to fulfil my constitutional duty to report on the state of the union. And here is my report. Because the soul of this nation is strong, because the backbone of this nation is strong, because the people of this nation are strong, the State of the Union is strong. As I stand here tonight, I have never been more optimistic about the future of America. We just have to remember who we are. We are the United States of America and there is nothing, nothing beyond our capacity if we do it together. May God bless you all. May God protect our troops.

US

Introduction On the third of October, the Australian people re-elected the government and renewed its responsibility for managing the nation's affairs in the interests of all Australians. The government presented the Australian people with a clear set of goals for Australia into the next century, and a detailed strategy for achieving them. The government's priorities for its second term derive directly from those goals and that strategy. They are priorities aimed at realising Australia's unrivalled potential in the twenty-first century through building a stronger Australian economy and a fairer Australian society. They are priorities which provide incentives for individuals and enterprises to succeed within a framework of a strategic but limited role for government. They are priorities centred on stronger families, stronger workplaces and stronger communities. The government's priorities balance fairness and incentive—promoting innovation, choice, opportunity and competition at the same time as ensuring compassion and care for those in genuine need. They are priorities which maximise the potential of Australia's position at a unique intersection of history, geography, economic opportunity and cultural diversity. They are priorities clearly focused on delivering practical and beneficial outcomes for all Australians. Above all, the government is committed to implementing the priorities for its second term on the basis of its unequivocal commitment to the Australian values of decency, openness, tolerance and a fair go for all. Economic challenges The government is committed to enhancing our national economic performance and providing a policy framework in which more jobs are created and the living standards of Australians are improved. The government's sound economic policies have been crucial in minimising the impact of the Asian financial crisis. The Australian economy has continued to grow rapidly in the last 12 months despite the financial turmoil in our region and the slide into recession that has been experienced by many of our major trading partners. The Australian economy is forecast to remain one of the best performing in our region, and is expected to grow faster than most of the world's major advanced economies over the next two years. The financial turmoil that initially affected a number of Asian economies has spread more widely in recent months. It directly affects Australia's interests. That is why the government has been an active participant in international efforts to contain the crisis, minimise its impact, and provide support for countries in our region afflicted by it. The government will pursue these objectives in APEC and other international forums to advance Australia's broad national interests. Australia's interests are also affected by the recent high level of instability in international financial markets. The government has therefore assumed, and will continue to assume, an active role in efforts to reform and strengthen the international financial system. To ensure the best possible input from both the public and private sectors on what is a vital national interest for Australia and the greatest economic challenge facing the international community, the government has established a task force on international financial issues which combines the expertise of senior public and private sector representatives. It will report by the end of 1998. The stability of the Australian financial system is testimony to the underlying strength of our economy and the world-class reforms to the financial system introduced by the government in its previous term. The government will continue to actively develop and promote Australia as a regional financial centre. The demonstrated stability of our financial system and the incentives created by the government's new tax system will be important factors in achieving that objective. A new tax system The government has made it clear that reform of Australia's taxation system is the single most important item of unfinished business in building an economic infrastructure that will enable Australia to compete and prosper in an increasingly competitive world economy. The government has strengthened Australia's economic foundations and enhanced our international competitiveness through a policy framework that has delivered sound fiscal management, low interest rates, low inflation, effective workplace relations reforms and high levels of business investment. Tax reform will build on, and complement, these achievements. The government went to the Australian people in the last election with a plan for a new tax system that will provide the basis for stronger, more sustainable economic growth, higher productivity, more jobs and higher living standards. The government will move quickly to put its bold new plan in place. The new tax system will dramatically reduce the taxation burden on Australians. It will slash business costs, thereby creating scope for more jobs growth. It will reduce fuel excise by around $3.5 billion a year. It will ensure that tax cheats and tax avoiders pay their fair share of taxation by reducing opportunities to operate in the cash economy. It will improve incentives to work and save. And it will be simple and transparent. Under the government's new tax system there will be: personal income tax cuts totalling over $13 billion from July 2000; cuts in income tax rates for about 95 per cent of all individual taxpayers so that around 81 per cent of all taxpayers will face a marginal tax rate of no more than 30 per cent, compared with only 30 per cent of taxpayers now; reductions in business costs of over $10 billion a year, and in particular reductions of $4.5 billion a year in the costs facing Australian exporters; a $2 billion family package, including a simplification of the assistance provided to families to make it easier for them to understand and access their entitlements; abolition of provisional tax; and an up front increase in income support payments so that the aged and other pensioners are more than compensated for the price impact of tax reform. The government's new tax system will modernise the financial basis of Australia's federal system as it prepares to enter its second century. The states and territories will receive all of the GST revenue to replace the most burdensome and inefficient state and federal taxes, as well as the existing Financial Assistance Grants. As a result, the states and territories will have a secure and growing source of revenue to fund essential public services in the future. The end result of the government's reform plan will be a world class taxation system which delivers fair and equitable outcomes for all Australians, and which enhances Australia's economic prospects into the next century. Reform in a community context While the government is determined to maintain the impetus of economic reform to expand Australia's opportunities in an increasingly competitive world, it will continue to be sensitive to community concern, particularly in regional Australia, about the impact and pace of change. It fully recognises the need to ensure that the benefits of reform are fairly shared and that adjustment costs are taken into account in framing policies. Reforms are not ends in themselves. The government's commitment to strategic objectives such as a more productive economy, more effective markets, greater competitiveness and fiscal responsibility is a means to achieving faster jobs growth, more opportunities, rising living standards and a more competitive and dynamic Australia. This commitment is underpinned by the government's strong support for a fair and decent society, including an effective social safety net. Jobs and the workplace The government will maintain its efforts to generate strong and sustained jobs growth through sound economic policies and fiscal management, workplace relations reforms, and initiatives to support small business and strengthen the competitiveness of Australian businesses generally. The creation of the Employment, Workplace Relations and Small Business portfolio emphasises the importance of the right workplace relations framework and a dynamic small business sector in securing future jobs growth. The Workplace Relations Act will be amended to include the promotion of youth employment as one of its objectives, and provide for junior wage rates on a continuing basis to protect youth employment. Legislation to reduce the burden of unfair dismissal laws, including the exemption of small businesses from the unfair dismissal provisions of the Workplace Relations Act, will be introduced in the parliament at the earliest opportunity. The government's workplace relations reforms will continue to build on the principles of a direct and simplified relationship between employers and employees, a fair go for all, and genuine freedom of association. The government will also continue to pursue a better system of delivering job services for all Australians. The provision of assistance for the long-term unemployed will remain a priority along with ensuring appropriate assistance for young people, indigenous people and people in rural and regional areas. The Job Network is an important and successful initiative, focused on performance and results, for helping disadvantaged unemployed people to compete effectively for jobs. It will continue to be developed to achieve better outcomes for job seekers. Measures to remove barriers to self-support and create work incentives through the income support and tax systems will be implemented. The government will build on the success of its mutual obligation programs including an expansion of the Work for the Dole program. Ensuring that young people remain connected to the community and develop job skills continues to be a key priority for the government. Our future generation Education and training are fundamental to achieving our vision for Australia in the twenty-first century. Skills and knowledge of the highest order are essential to maximise job opportunities for Australians in the future and to underpin innovation, technology and competitiveness in Australian enterprises as they compete in the global economy. The government will work to ensure that all young people, whatever their career aspirations, will have access to a strong basic educational grounding and a quality pathway from school to further training and employment. The government will provide additional resources to improve literacy and numeracy standards in all schools and to boost the National Asian Languages Program. It will upgrade funding for schools within the Catholic education system to address identified cost pressures. Furthermore, the government will support a Quality Teacher Program to improve teachers' skills and lift the status of teaching in schools. The government will build on the reinvigoration of the traineeship and apprenticeship system achieved during its first term by boosting new apprenticeships in rural and regional small businesses. Higher education policy will focus on expanding access and improving the quality of teaching and research. Families and the community Families will again be a key priority for the government in its new term. This is particularly reflected in the $2 billion package of enhanced family measures in the government's new tax system. The government is committed to increasing opportunities for families to build on and strengthen their own resources and networks of support. The new Family and Community Services portfolio, by drawing together—for the first time—the many different programs of assistance provided to families, will play an important role in achieving this outcome. The new portfolio recognises the central role of families within communities and will assist in developing partnerships between communities, community organisations, business and governments to tackle problems identified at the local level and to strengthen networks of support within communities. Helping families under pressure before they reach the point of crisis is important for the quality of life of families, and for avoiding the consequential costs of family breakdown including youth homelessness, drug addiction, suicide and crime. In its second term, the government will maintain its momentum on the fight against illicit drugs, and will continue to implement its Tough on Drugs initiatives which attack the demand for drugs through education, rehabilitation and active community involvement. These efforts will be backed up with great vigour by effective law enforcement measures to reduce the supply of illicit drugs. The government will build on its achievements for women, with special focus on opportunities for economic independence. It will work to assist women re-entering the work force after a break for parenting or caring responsibilities, and address the health needs of women, including those in rural and remote areas. 1999 is the International Year of Older Persons. This will heighten recognition of the enormous contribution older Australians make to the community and the economy. Through the National Strategy for an Ageing Australia, the government will continue to consult the community about the policies and programs which will help older Australians to meet their needs into the next century. The government has made important reforms to ensure the long-term sustainability of aged care services and to improve choice and access to services, including allowing people wherever possible to be cared for at home if they wish. Where residential care is the best option, the government will ensure it is affordable and of a high quality. The government will continue to strengthen the security of veterans and war widows by heightening recognition of their service and improving health and financial assistance. The commemoration program will be boosted to ensure that veterans' courage and sacrifice are honoured and that our proud history is celebrated. Health The government will work to improve the health and medical care of all Australians under the Medicare framework. The government is committed to a balanced health system, and to strengthening both the public and private sectors. It is moving quickly to promote the role of private health insurance with the introduction of a 30 per cent rebate on insurance contributions as part of its tax reform package. This initiative—designed to take effect in just over seven weeks on 1 January 1999—will be supported by measures to help funds to keep costs and premiums down, while offering a broader and more attractive range of products to private health insurance clients. The government will work with the states and territories under the new Australian Health Care Agreements to continue to improve the efficiency and quality of services in public hospitals. A major focus will be to ensure that Australians living in rural and remote areas have access to high quality health services. Addressing the huge disparity in the health of our indigenous people will continue to be a priority for the government. Indigenous people need to be able to access good local primary health care services at a level more commensurate with their high level of health need. Regional Australia The government is strongly committed to rural and regional Australia, and recognises the hardships which country people have endured in recent times. The new ministry now has a Transport and Regional Services portfolio, headed by a senior cabinet minister, to focus specifically on the needs and concerns of country Australia. The government's new tax system will contain significant boosts for regional and rural Australia, particularly through the $3.5 billion per year reduction in the cost of fuel. The government will help strengthen the economic and social fabric of rural and regional areas. Priority will be given to establishing Rural Transaction Centres in smaller rural towns as a means of restoring access to services lost over more than a decade. An injection of funding for road, rail, telecommunications and environmental infrastructure, and for flood mitigation, will also deliver substantial benefits to regional Australia. Transport and industry policy An efficient and integrated transport sector is vital to underpinning economic growth, creating investment and export opportunities, and providing services to people in both urban and regional Australia. The significant reduction in the cost of fuel to all businesses provided under the government's new tax system reflects that priority. The government will continue the revitalisation of the rail industry, including by facilitating major projects such as very high speed train links, and is providing additional funds to improve our road network. The government will maintain a strong, efficient and safe aviation sector, and will address the issues of a second airport for the Sydney region and management of aircraft noise. It will also continue to address issues in the maritime sector to deliver the benefits of a viable Australian shipping industry and a more productive waterfront. The government is committed to the development of industries of the future. Partnership with industry will be strengthened through the development of action agendas in key industries, including biotechnology. Communications and information technology Improved communications and continuing advances in information technology are fundamentally changing the way we work, live and socialise. To ensure that Australians fully realise the extraordinary potential of these advances in terms of job-creating and other opportunities, the government has established a new portfolio of Communications, Information Technology and the Arts to secure effective information technology cohesion and co-ordination within the Federal Government, and maximum co-operation with other levels of government and industry. In the area of communications, the first priority is the sale of a further share of the government's equity in Telstra. This will bring benefits to Australian taxpayers by paying off public debt and reducing interest payments. There will also be other benefits through initiatives funded by the further sale to improve communications infrastructure and reduce disparities between services to urban and non-urban Australia. The government will continue to boost competitive pressures in the telecommunica tions sector to ensure better services to consumers. As promised before the election, the government will establish an independent inquiry into Telstra's service levels around Australia. Unless and until that inquiry certifies that service levels are adequate, the further sale of Telstra beyond majority government ownership will not be permitted. The approach of the millennium gives pause to consider the critical influence that information technologies will have on economic performance in the twenty-first century. These technologies are already an integral part of Australians' lives and are a key driver of economic and employment growth. Priority will be given to implementing a national strategy for the information economy and continued efforts to address the Year 2000 computer problem. The environment The government remains committed to the ecologically sustainable development of our natural resources for the benefit of all Australians. The government will enact the Environment Protection and Biodiversity Conservation Bill as a matter of priority to put in place a streamlined and more effective environment approvals process, and to establish, for the first time in our environmental history, a genuinely integrated approach to biodiversity conservation. The Natural Heritage Trust is now in its third year of operation and represents an unprecedented national commitment to the continued protection of our unique natural environments. The government will build on the proven success of the Trust, and will provide an additional $250 million from the second phase of the sale of Telstra. Australia also has one of the largest and most diverse ocean resources in the world. The government will finalise a national oceans policy that will bring together the interests of all governments, industry groups and the broader community. Australia and the World The first responsibility of government is to provide for the security and defence of the nation and its people. The government will ensure that the Australian Defence Force maintains its capability during a period of great strategic change in our region. The government will strengthen key alliance relationships and expand defence links in the Asia Pacific in order to contribute effectively to regional and international security. The government's commitment to engagement with Asia is unequivocal. So is its determination to strengthen Australia's profound and enduring links with the United States and Europe. The government will work hard at all levels—bilaterally, regionally and multilaterally—to pursue Australia's trade liberalisation objectives and to increase market access for Australian exporters. In our region, the government remains committed to working closely with Indonesia as that country moves forward with its economic recovery and political reform programs. The government will also maintain strong support for the Papua New Guinean Government in its efforts to achieve lasting peace on Bougainville. The government's aid program will continue to focus on poverty alleviation and sustainable development in the region. The government will also continue to promote human rights and democratic institutions, and to ensure greater involvement of the Australian community in the aid program. Australia and the new millennium The government will conduct a constitutional referendum by the end of 1999, so that the Australian people can decide whether or not Australia will become a republic. As the Constitutional Convention in February 1998 demonstrated, the nation can debate this issue in an open and constructive manner. In 2001, Australia will celebrate an historic milestone—100 years of nationhood. The Australian achievement is an extraordinary one worthy of great pride and genuine cele bration. It will be a time to recognise the benefits of our unique Australian values, our economic stability, the rule of law and our proud record in both defending and promoting freedom. The centenary celebrations provide a great opportunity for Australians to take stock and look forward to a confident, harmonious and prosperous new century of national achievement. As we approach the new millennium and our Centenary of Federation we also face the challenge of reconciliation between indigenous and other Australians. The government will work to achieve the goal of reconciliation over the next two years. It will do so in the knowledge that the great majority of Australians want true reconciliation to be achieved and will support a co-operative approach to achieve that outcome. The government continues to believe in the importance of achieving practical outcomes for indigenous Australians—particularly in terms of improvements in their health care, their education, their housing and their job opportunities. In its second term, therefore, the government will be looking to secure ongoing progress in these key areas. Conclusion The strategy to which the government is clearly committed, and the priorities and goals which it has set, directly relate to the challenges which Australians face as we prepare to enter the twenty-first century. In implementing its plan for a stronger Australia, the government recognises the clear responsibilities with which it has been charged by the Australian people. Its driving purpose will continue to be the fulfilment of those responsibilities in a way that achieves practical benefits for all Australians and that enhances Australia's national interest in a unifying way.

Australia

Honourable Senators and Members of the Parliament of Australia: Introduction On the tenth of November 2001, the Australian people re-elected the government and conferred upon it, for a third time, responsibility for managing this nation's affairs. In doing so, they endorsed a wide-ranging programme of continued reform, disciplined fiscal management and the implementation of policies underpinned by the characteristic values of the Australian nation. The government will take early steps to implement the specific policy commitments it made during the recent election campaign. There are few nations on earth which can enter the early years of this new century with the same sense of optimism, opportunity and quiet confidence that the Australian people are entitled to feel. The government seeks to build on a century of national achievement and accomplishment evident in fields as diverse as business excellence, scientific endeavour, the arts and culture and in the world's great sports. With political stability and social cohesion that are the envy of the world, with the personal freedoms of expression, enterprise and association more certain and assured than ever before, Australians can pursue whatever individual or collective dreams inspire them. Although neither complacent nor unaware of the many challenges ahead, Australia can create for itself a future of immense prospect and prosperity. The government pledges itself to that effort. It will continue to be driven by a belief that self-reliance, individual endeavour and choice must be encouraged and rewarded. It will maintain a strong social security safety net for the more vulnerable in our society. It will champion the concept that families, workers and communities striving together towards shared goals create capacities far more potent than any other arrangements. It will continue to believe that Australian society is fundamentally built upon principles of fairness and decency and the premise that opportunity should be available equally to all, regardless of background, gender, race or religion. It will support the creative talent and entrepreneurial spirit of Australians as they seize the unprecedented opportunities available in the years ahead. The government's priorities throughout the coming term will also be based upon an acknowledgment that it must set in place the foundations for national success well beyond the life of a single parliament - addressing such serious long term issues as the changing age composition of Australia's population and environmental sustainability. Above all, its decisions will recognise that a government is charged with two over-riding responsibilities, namely providing for the security of, and delivering prosperity to, the nation. Security The national consciousness of security issues has understandably risen in the wake of the tragic and momentous events of September 11, 2001. The world is sadly neither the safe nor certain place we would all wish it to be. Australia has joined the United States in an emphatic international response to terrorism. The government will ensure that Australia maintains a strong and flexible Defence Force, able to act in the nation's interest whatever circumstances may arise and in support of the principles of democratic freedom that Australians value so highly. I acknowledge the professionalism, the commitment and the courage of all Australian servicemen and women but particularly those currently on active duty overseas - in the war against terrorism, in East Timor and as peace-keepers in countries throughout the world. Through the implementation of the 2000 Defence White Paper, which provides for real increases in defence spending of $32 billion over the next 10 years, the government will ensure Australia's Defence Forces are properly trained, equipped and supported, and that they remain capable of contributing both to the cause of political stability within our region and broader international endeavours. The government will continue its fight against transnational and organised criminal efforts to boost trafficking in illicit drugs, people smuggling, money laundering, major fraud and other crimes. Modern terrorism clearly presents a new and dangerous threat. Determined and strong responses are needed. To this end, Commonwealth law enforcement and national security agencies are being reviewed and will be allocated additional resources to achieve even higher levels of effectiveness. Priority will be given to collaborating with other nations on security and law enforcement issues, enforcing proper control of our borders, ensuring greater efficiency within Commonwealth agencies and providing clear leadership for the states and territories in these vital areas. The Prime Minister will host a summit of state and territory leaders in April to advance new national frameworks for dealing with these challenges. Both Australia's security and its prosperity will be enhanced through constructive international relations and Australia's network of bilateral relationships will remain the foundation of the government's foreign policy. These relationships are in good order, but will require careful ongoing attention over the term of this parliament. Our ties with the United States are of immense importance to Australia's security and economic interests and the government continues to recognise the ongoing relevance of the ANZUS alliance for regional stability. Maintaining our support for the coalition against terrorism and, more generally, our relationship with the United States will be priorities for the government. Developments in Asia, of course, are of enduring importance to Australian interests. The government will ensure that our already considerable economic and political ties to North and Southeast Asia continue to be strengthened for the benefit of all Australians. Australia's Pacific neighbours have faced many difficult challenges in recent years and the government will continue to work with the region to help it address these issues. Australia has strong economic and diplomatic relations with nations around the earth. The government will continue to foster these relations in the interests of domestic prosperity and global security. Australia is honoured to be hosting the Commonwealth Heads of Government Meeting in Coolum in March and is committed, as Chairman, to ensure that the Commonwealth meets the challenges ahead and encourages members to maintain their shared values of good governance, human rights and economic development. Her Majesty The Queen, as Head of the Commonwealth, will visit Australia for this meeting. This year marks the Golden Jubilee of the Queen's accession to the Throne. There can be little doubt that, during the past fifty years, Her Majesty has fulfilled her duties with great dedication, skill and remarkable energy. Australians will wish her well on the occasion of her Golden Jubilee. Shared prosperity The second fundamental obligation of government is the pursuit of prosperity in which all citizens may share. The government remains committed to achieving higher living standards and more jobs for Australians over the next three years. The resilience of the Australian economy, despite a global slowdown, is a strong endorsement of the government's disciplined approach to economic management and the structural reforms it undertook to improve the efficiency and flexibility of Australia's product, labour and financial markets. Since 1995-96, the government has repaid over $55 billion of public debt. A key priority in the government's third term will be to maintain a strong fiscal position. While Australia's recent economic performance has been extremely impressive, the process of economic reform is ongoing and the government will vigorously pursue economic policies which further strengthen and reform our economy. The government will continue to vigorously advocate genuine trade liberalisation. Securing additional market access through WTO and bilateral trade agreements will be a high priority. The government will continue to explore the prospects of achieving a free trade agreement with the United States. This will be very difficult but, if such an outcome can be realised, the benefits for Australia will be significant. A thriving business sector At home, competitive, well-functioning markets, supported by good regulatory frameworks, encourage economic growth. The proposed review of the competition provisions of the Trade Practices Act, and their administration, will examine whether they adequately encourage growth and international competitiveness, protect the balance of power between small and large business and support the growth of regional business. Attracting overseas direct investment to Australia will also be an important activity of government. The government will continue to develop strategies to promote and attract investment, promote new venture capital arrangements and focus efforts in sectors of high growth potential, such as information and communications technology. The government will consider appropriate changes to current foreign ownership and control of Australian media laws and the cross media rules, aimed at opening up the broadcasting sector to new investment while ensuring continued diversity of opinion. The government will continue to pursue reforms that deliver an efficient, cost competitive energy sector. This will include an improved national energy market for both electricity and gas. The government will also actively promote the responsible development and export of our abundant minerals and energy resources. The government will also undertake a review of the current governance arrangements for statutory authorities and office holders. The government will focus on improving their structures and practices, particularly of those authorities that impact upon the business community, to ensure more efficient and effective operations and the highest standards of accountability. Families Policies that support families and provide them with effective opportunities and choices are crucial to Australia's economic and social future. The government will continue to provide practical assistance to families in their day to day needs and in support of their longer term aspirations. The government will take early legislative steps to implement its election promise to introduce a First Child Tax Refund, recognising the loss of family income that generally results from the arrival of a first child. Tax initiatives aimed at improving Australia's superannuation system and securing family income throughout retirement will also be priorities. The government remains committed to supporting the right of parents to choose the type of education that best suits the needs of their children and to quality schooling for all Australians. In particular, it will maintain its strong emphasis on literacy and numeracy for all young Australians, including indigenous children. Choice and access in health care The government will continue its commitment to improving choice and access to high quality health care for all Australians regardless of their personal circumstances. Australia's world-class public Medicare system will continue to provide access for all to high quality health care, complemented by a vibrant private health sector. This mix of public and private health provision means that Australia's health system will be viable in the long term and able to adapt to our nation's changing needs. In its third term, the government will negotiate new Australian Health Care Agreements between the Commonwealth and the States and Territories. The aim of the Agreements will be to achieve improvements for people who use public hospitals to ensure that they receive appropriate treatment in a timely and responsive way. Welfare Reform Welfare reform remains a key focus of this government. It believes all Australians should have the opportunity to become more self-reliant and attain higher standards of living for themselves and their families. The government's commitment to welfare reform is expressed through the Australians Working Together package. Using Centrelink as a gateway, this package will provide increased assistance and improved incentives for people on welfare to get paid work, at a cost of $1.7 billion over four years. The government will maintain a strong social security safety net and increase opportunities for people with disabilities wishing to work to their fullest potential. In addition, Work for the Dole will remain a vital element of Australia's new active welfare system. The government will strengthen Mutual Obligation arrangements to focus on what people can do, rather than what they cannot. Flexibility and reward in the workplace The government considers that further workplace reform is essential to deliver higher living standards and create more jobs. In the first weeks of parliament, the government will introduce bills to ban compulsory union fees, ensure secret ballots before strikes, prevent one-size-fits-all industry bargaining and establish fair dismissal procedures. The Autumn sittings will also include the introduction of bills to improve protection for workers in Victoria, ensure more democratic and accountable unions and employer organisations, and give more workers a say on workplace safety issues. The government will also provide an effective safety net of minimum wages and conditions that can be relied upon by low paid employees whilst contributing to workplace bargaining above that safety net. The government will consult further about ways to give employees priority over secured creditors in the event of company failures. It will also work with employers to extend opportunities for workers to more effectively balance their family and workplace responsibilities. In its third term, the government will give particular attention to addressing the challenges of an ageing population through helping mature aged people remain in and/or get back into work. Innovation, technology and higher education Recognising the vital link between science and business in building a prosperous future, an important focus for the new Education, Science and Training portfolio will be the continuing implementation of Backing Australia's Ability, which commits an extra $3 billion to supporting research, commercialisation and skills development. As part of this effort, the government has initiated a process to develop national research priorities to assist and guide research funding decisions across a range of government funded research programmes. The government expects to announce these national research priorities towards the end of this year. The government understands that the higher education sector is critical to maintaining Australia's international competitiveness, economic prosperity and cultural development. It will work with universities, the business sector and the broader community to ensure that its policies enhance the quality of teaching and encourage universities to develop their particular teaching and research strengths and areas of specialisation. In today's global economy, knowledge and skills development provide the essential platform for business competitiveness and community prosperity. In the time that the government has been in office, the number of people undertaking new apprenticeships has more than doubled from about 143,000 to an estimated 330,040 in September 2001. The government's support for vocational education and training will be further strengthened in its third term. A stronger country Australia This will be a government committed to creating greater opportunities for country Australia. An important priority for the government is to help improve the profitability and competitiveness of Australia's rural industries. A strong, vibrant primary sector will not only create jobs and earn this country valuable export income, but will also help revitalise many rural and regional communities across Australia. The government will continue to improve the transport system, an important social and economic issue for country Australia. It will maintain its commitment to national highways and roads of national importance and seek further progress in rail reform. Domestic and international aviation will be reviewed, to ensure that the government's approach to competition and regulation recognises the major changes in the aviation operating environment. Australia will also participate in international efforts to strengthen aviation security. The government remains committed to ensuring adequate levels of telecommunications services across regional, rural and remote Australia. It will build on the significant improvements achieved through the Networking the Nation programme and other Social Bonus initiatives. These programmes, combined with the $163 million response to the Telecommunications Service Inquiry, will mean that almost $1 billion will have been spent on improving regional communications services over the life of the government. In response to the Telecommunications Service Inquiry, the government is also introducing further enhancements to the regulatory safety net, achieved through the Universal Service Obligation and the Customer Service Guarantee, to ensure that all Australians have timely, affordable and reliable access to basic telecommunications services. The government's programme of telecommunications sector reform has encouraged greater competition and given Australians access to a wide range of high quality, innovative and low cost telecommunications services. The government's priority is to ensure more services for rural and regional Australia. The government will not proceed with any further sale of Telstra until it is satisfied that arrangements are in place to deliver adequate services to all Australians. Our citizens The government recognises the special place indigenous people occupy in our society as the original inhabitants of Australia and will continue to implement its practical reconciliation agenda, sustaining its focus on tackling disadvantage in the key areas of education, employment, health and housing. These important endeavours will be pursued in partnership with indigenous people. Our joint goals should be to improve outcomes for Aboriginal and Torres Strait Islander peoples. The government will continue an immigration programme that places a strong emphasis on attracting people with skills. Australia will also continue to be one of the very few nations in the world to maintain a refugee programme. Whilst continuing to work for solutions that give help to those most desperately in need, the government is committed to following the fundamental principle, accepted in international law, that Australia alone has the sovereign right to determine who is allowed entry. Australia will continue to seek effective co-operation with nations in our region to combat people smuggling. Protecting the environment A whole of government approach to sustainable environment issues is to be one of the highest priorities in the government's third term. To this end, the government has established a new Sustainable Environment Committee of Cabinet, chaired by the Prime Minister. Immediate action to tackle salinity and water quality problems is essential and, for this reason, the Commonwealth, state and territory governments will jointly invest $1.4 billion over seven years under the National Action Plan for Salinity and Water Quality. The Plan will target some of Australia's worst affected areas and will support action by regional communities and local landholders. The Plan will be complemented by the extension of Australia's largest ever environmental rescue effort, the Natural Heritage Trust. The government's ongoing funding package of $1 billion over five years for greenhouse gas abatement is among the largest by any government in the world. These funds are assisting to develop strong government-industry and government-community partnerships that are beginning to reduce the rate of greenhouse gas emissions. Conclusion Honourable Senators and Members, in the pursuit of success in all areas of national endeavour, the government will maintain its characteristic pragmatism, drive and determination. It will seek to defend all that is best within Australian society today whilst initiating the bold reform necessary for a prosperous and secure future. Its overarching goal will be to better the lives of all Australians, wherever they may live and whatever their own aspirations may be.

Australia

Honourable Senators and Members of the Parliament of Australia: Introduction On the ninth of October 2004, the Australian people re-elected the government, conferring on it, for the fourth time, the honour of and responsibility for managing Australia's affairs. Few nations can claim the special gifts that providence has bestowed on this country—as a beacon of democracy and tolerance underpinned by a prosperous economy and a fair society. Today Australia stands on the threshold of a new era of national achievement. With renewed energy and purpose, the government rededicates itself to the great ideals of the Australian nation and to the service of the Australian people. The government was re-elected on a platform that emphasised strong economic management, a determined role in world affairs, and faith in the capacity of Australians to exercise choice in their daily lives. The government will take early steps to implement the policy commitments it made during the election campaign—commitments that reflect a fundamentally optimistic view of the character of the Australian people and of this nation's capacity to seize the opportunities and meet the challenges of the future. Maintaining a strong economy The government has an ambitious fourth term agenda based on its overriding commitment to ensuring the Australian economy remains strong, productivity growth remains high, and future prosperity is spread throughout the community. Australia has one of the strongest performing economies in the world. This is no accident. The government's economic reforms have contributed to significant increases in productivity. As a result, Australians have enjoyed solid growth, more jobs, falling unemployment, real wage increases, low inflation and interest rates and increasing wealth and incomes. Careful management of the Australian economy over recent years has increased its resilience. But we are not immune to world events. Sustained higher oil prices will have consequences of uncertain severity, and terrorism remains an ever-present risk. At home, continuing low rainfall is a concern for many parts of both rural and metropolitan Australia. The ageing of Australia's population means increasing pressure on the health and welfare sectors. The government has said that action to prepare for some of these costs must occur now. The government is committed to establishing a dedicated financial asset, the Future Fund, with the aim of fully funding Commonwealth superannuation liabilities by 2020. The Fund will also increase national savings, and enhance the net worth of the public sector. Increasing productivity and workforce participation are keys to our future economic success and to meeting the challenge of demographic change. The government is committed to the task of improving the efficiency and competitiveness of the Australian economy and to lifting workforce engagement. Getting more people into work Unemployment is at a 27 year low and a record number of Australians are in work. However, too many people of working age remain on welfare. The government aims to break the tragic cycle of welfare dependency for these income support recipients, and lift labour force participation and employment rates through an appropriate balance of obligations, incentives and assistance. It aims to give all Australians the opportunity to participate in our prosperity. And the best means of tackling poverty is to help Australians find a job. Through the Mature Age Worker Tax Offset, the government will make it more financially attractive for older Australians to remain in employment on a full-time, part-time or casual basis. The government will also work with industry to counter the misplaced prejudices against the employment of mature age workers. The government is committed to encouraging hard work and self-reliance by reducing tax as fiscal circumstances permit, providing incentives for small business and helping families with the cost of raising children. Under the government's announced tax cuts, 80 per cent of taxpayers will face a marginal tax rate of no more than 30 per cent. Labour market reforms In its fourth term, the government will accelerate the reform of workplace relations as a means of raising productivity and Australian living standards. A strategic package of measures will be pursued in this Parliament to promote that objective. Particular attention will be paid to ensuring that small businesses, the engine-room of our economic success, are encouraged by greater workplace flexibility to employ more staff. Legislation will also be introduced to give formal recognition and protection to independent contractors. Education and skills development The links between educational achievement and robust economic growth have never been more apparent. Meeting the skills needs of our economy will drive our national prosperity and help deliver a better quality of life for all Australians. In this term, the government will boost training in areas of existing and looming skill shortages through an integrated package of measures designed to encourage more young people to take up trades. This will provide more pathways for students to enter traditional trades while in school, as well as improving the rewards for going into an apprenticeship and removing barriers that prevent people from beginning or continuing with an apprenticeship. No young Australian should feel less valued for choosing an apprenticeship over university. A key driver of these measures will be the establishment of 24 Australian Technical Colleges, catering for Years 11 and 12 students, which will provide students with industry-endorsed training to equip them for a career in the traditional trades. Over the coming term the government will continue its commitment to parental choice in education. Working with parents, the government will invest directly in school infrastructure through an additional $1 billion commitment over the next four years. Building an enterprise culture The government is committed to fostering a spirit of enterprise in Australia. To help build this enterprise culture, the government will introduce an Entrepreneurs Tax Discount for small enterprises. It will also establish a new Regulation Reduction Incentive Fund specifically designed to reduce the regulatory burden on home-based businesses. It will further remove legislative burdens on small business and improve access to resources so small businesses in Australia can continue to innovate and grow. Modernising industry regulation and infrastructure Better planning and increased investment in national transport infrastructure is critical to the long-term economic performance of Australia. The $12.5 billion land transport plan, AusLink, will be implemented. The transport security net will be extended. Jointly with the states and territories, a new intergovernmental agreement on land transport security will be established and the national transport security regime extended to cover dangerous goods and mass urban transit. The government maintains its commitment to reform Australia's media ownership laws. New arrangements will provide enhanced diversity and increased investment, enabling Australians to have greater access to high quality media services. The government is also committed to ensuring that its regulatory framework for communications and broadcasting remains responsive to the challenges brought about by new technologies. The government will pursue its longstanding policy for the full privatisation of Telstra. Its future sale will be contingent on adequate telecommunications service levels and appropriate market conditions. Comprehensive trade policy agenda With expectations of strong global demand in 2004-2005, prospects are bright for Australian exporters. The government is committed to the multilateral trading system and driving forward the Doha Round of trade negotiations, which promises enormous gains for Australia. At the same time, the government will continue to pursue other opportunities for trade liberalisation, including through free trade agreements. Ensuring timely entry into force of the Australia-US free trade agreement is of the highest priority, as is implementation of the Thai-Australia Free Trade Agreement. The government will also continue to consider possible FTAs with China, Malaysia and ASEAN, the latter in conjunction with New Zealand. To further assist and support Australia's export trade activities, the government will invest an additional $30 million over three years in the Export Market Development Grants Program. It will also appoint 30 new export facilitators to maximise Australian export opportunities in the United States market and reinforce the government's extensive support for Australian exporters by creating `export hubs' in regional Australia through co-location of the services of Austrade and AusIndustry. National security and Australia's place in the world There is no more important responsibility of government than the security of Australia and Australians. Australia continues to face a challenging international and regional security environment. The government will maintain a strong stand against international terrorism and the threat of proliferation of weapons of mass destruction. It will also respond to the adverse impact that failing states have on our national security. While vigilance is needed in current circumstances, Australians should not feel threatened, nor be deterred from leading normal lives, enjoying the freedom for which others before us have so bravely fought. To take account of new security threats, the government will bring forward legislation that will facilitate expeditious access to stored communications, such as email messages, establish a comprehensive surveillance devices regime for the investigation of serious Commonwealth offences, and protect sensitive national security information in criminal proceedings. In addition, the government will continue working closely with states and territories to maintain our world class counter-terrorism capability. Business will be a key partner in advancing arrangements for the protection of the nation's critical infrastructure and ensuring smooth implementation of new anti-money laundering laws. I acknowledge the enduring commitment and unflinching courage of the service personnel who protect Australia's interests. The government will provide the Australian Defence Force with the major new equipment it needs to carry out its vital role of defending Australians at home and Australian interests abroad. The ADF will be provided with new Abrams tanks, additional troop lift helicopters, new Tiger Armed Reconnaissance Helicopters and a new fleet of Armidale Class Patrol Boats. New contracts worth up to $8 billion will be signed for the construction of Air Warfare Destroyers and Amphibious Ships and the government will maximise Australian industry involvement in all major defence projects. To further strengthen our ability to protect key infrastructure, the government will permanently base two new Patrol Boats at either Port Hedland or Dampier to protect the vital assets in Australia's north west. Over the next decade, the government will provide $50 billion of funding to further develop and sustain an ADF capable of deterring threats to Australia and deploying at short notice in support of our national interests. To this end, the government will maintain our forces in Iraq, East Timor and Solomon Islands until their jobs are done. Sustaining Australia's high standing and strong alliance with the United States is a key priority. The alliance reflects the strength of our historical relationship and our shared values. Strong relations with the countries of Asia are vital to Australia's security and prosperity. The government is committed to deepening ties with North Asia—building on mature links with Japan, expanding ties with China and continuing support for peaceful outcomes on the Korean Peninsula. The government will work to strengthen our cooperation with the new administration in Indonesia, including our vital partnership on counter-terrorism. The government will further build relations across South-East Asia through a range of initiatives. The government is committed to expanding Australia's relationship with India and strengthening ties with the other countries of South Asia. The Australian government places a high priority on strengthening cooperation with our regional neighbours and offering assistance in capacity building in the fight against terrorism. To this end, the government will establish six new Australian Federal Police counter-terrorist teams to work with regional neighbours to enhance surveillance and investigative capability and for rapid deployment to disrupt terrorist networks. A Centre for Counter-Terrorism Cooperation and Joint Intelligence Training for Australia, South East Asia and the Pacific will also be established. Supporting families, carers and women Policies that provide Australian families with opportunities and choices are the hallmark of this government. The government will introduce a 30 per cent child care tax rebate to reduce the out of pocket costs paid by parents and increase by $300 a year the rate of Family Tax Benefit Part B. The government is delivering on its election commitment to provide grandparents who are primary carers for their grandchildren with better access to affordable child care. Effective from 1 November, the work, training and study test for access to Child Care Benefit has been waived for eligible grandparent carers and new legislation will provide additional support in recognition of the important role these Australians play in our society. The government will continue to work with parents and local communities to develop the potential of our youngest Australians through early childhood development. It will also build on its strong record of support for people caring for others by implementing initiatives to provide more flexibility to combine caring with work, training or study and to help parents of adult children with a disability plan for the future. The government is committed to providing opportunity and choice for Australian women and will continue to build on its strong record in promoting women's employment and participation in the workforce. The government will implement major changes to Australia's family law system, focusing on resolving disputes outside the courts through a network of Family Relationship Centres. The government also proposes changes to the Family Law Act 1975 to put much more focus on sharing parental responsibility after separation. Choice and peace of mind in health care The government is committed to giving all Australians peace of mind and real choice in health care. It will continue to strengthen Medicare, the nation's world-class health system. GP services will be more affordable for all Australians through legislation to increase the GP rebate from 85 per cent to 100 per cent of the Medicare fee for all consultations. The government is also fully committed to maintaining the Medicare safety net. In addition, Australians will receive greater access to mental health care, particularly to address the burden of depression. The government will make private health insurance even more affordable for older Australians—increasing the private health insurance rebate from 30 per cent to 35 per cent for people aged from 65 to 69 years and to 40 per cent for people older than 70 years. Lifetime Health Cover arrangements will continue to keep private health insurance attractive to younger people. Human services The government is determined to improve the development and delivery of government services to the Australian public. A new Department of Human Services will bring together into one department six key Commonwealth agencies. It will ensure better governance, clearer accountability and coordinated implementation of government policy. The Department will also advise the government on the most efficient and effective way to deliver new and existing payments to Australian families and individuals. It will focus on the provision of better services in a timely and sympathetic fashion. Regional Australia The government will press on with providing better services in regional Australia. It will establish two additional sustainable regions for special government assistance, and will provide banking services at an extra 266 licensed post offices. The government will provide increased support to cultural activity in regional and remote Australia as a means of strengthening community cohesion, well-being and development. Indigenous affairs In these sittings, legislation will be reintroduced to further reform the delivery of indigenous programmes and services. Indigenous Australians are relying on a better relationship with all governments to improve their circumstances. The issues they face are some of the most important for our nation. The government is determined that its approach, focusing on shared responsibility arrangements negotiated with indigenous communities at the local level, will lead to better outcomes for indigenous Australians. The government will ensure that the Australian Public Service works closely with the new National Indigenous Council to focus on practical issues—addressing family violence, reducing substance abuse, increasing opportunities for education and employment and improving health. Veterans Australia has a proud military heritage and members of the ADF continue to serve with distinction across the globe. 2005 will be a time to look back at the contribution of more than 420,000 Australians who served in World War I and some one million in World War II. The government will mark the 90th anniversary of the first landings at Gallipoli and the 60th anniversary of the end of World War II with special tributes. The sacrifices of those who went before will be recognised with pride and gratitude. Environment Water is the most important conservation issue facing Australia. The Prime Minister has written to the Premiers and Chief Ministers urging them to join with the Australian government in implementing the National Water Initiative as they agreed at the June 2004 COAG meeting. The National Water Commission will be established as an independent statutory authority in the Prime Minister's portfolio to advise on reform progress under the National Water Initiative and on projects, supported by the $2 billion Australian Water Fund. The Fund will contribute to major projects for more innovative use and re-use of our water, better understanding and accounting of our water resources, and wiser stewardship of our water by communities around the country. Sustainable development requires a careful balance between environmental goals and meeting the needs of local communities. The government will uphold environmental values by protecting an additional 170,000 hectares of old growth forest in Tasmania—but it will also preserve timber workers' jobs and support the communities that depend on them. The government is committed to developing a robust and comprehensive global response to climate change. Australia is on track to meet its Kyoto emission reduction target and new initiatives, such as the creation of the low emissions technology fund and solar cities trials, will position Australia for the challenges ahead. Conclusion The government begins its fourth term mindful of its responsibility to use its new mandate wisely—to further advance Australia's prosperity and security, to govern in the interests of all Australians, and to uphold those values that bind us together. The government is determined to fulfil the trust placed in it by the Australian people. It will do so by implementing a wide-ranging set of policy commitments which, in turn, places trust in the common sense and good judgement of the Australian people. Our nation is a leading example of democratic freedom, institutional stability and economic well-being. May I conclude by expressing my appreciation of the degree to which this is due in no small measure to the integrity, hard work and fair thinking of our parliamentary representatives. I congratulate those recently elected to this parliament, and wish all members and senators well in your deliberations.

Australia

Honourable Senators and Members of the Parliament of Australia: I acknowledge the traditional owners of the land on which we meet today. I also acknowledge their traditional wisdom and enduring history and culture. Introduction On the 24th of November 2007, Australians voted to elect a new government. As one of the world’s oldest democracies, it is easy for us to take elections for granted and to fail to appreciate how fortunate we are, to live in a nation where governments change hands peacefully, as a result of the free expression of the will of the people. We have just witnessed a change of government, an event that has happened on just six occasions in the past sixty years. Regardless of any partisan affiliation, all Australians can celebrate the success of our democracy when such changes can occur so seamlessly and with such goodwill. The new Australian Government that was sworn into office on the 3rd of December 2007 is committed to a plan to build a modern Australia equipped to face the challenges of the 21st century. This plan includes the following priorities: • strengthening the nation’s long-term economic prospects by prosecuting a new productivity agenda, together with a comprehensive strategy to combat inflation, built on a strong budget surplus and a plan of action on skills and infrastructure; a plan for a ranging program of reform to build over time a world class education system through early childhood education, computers in schools for all Year 9 to 12 students, investing in trades training centres in schools and rebuilding our universities; • national leadership in infrastructure development coordinated through Infrastructure Australia; • a comprehensive plan to respond to the threat of dangerous climate change that includes ratifying the Kyoto Protocol, establishing for the first time a national emissions trading scheme and an ambitious national renewable energy target; long term measures to begin dealing with urban and rural and regional water supply; • reforming our national industrial relations laws to reflect an appropriate balance between fairness and flexibility; • a plan to reform the health and hospitals system; • increasing the availability of childcare as well as increasing the childcare tax rebate; • a plan of reforming the Federation by forming partnerships with the States and Territories to tackle the legitimate demands of working families for the delivery of better services from all levels of government; • strengthening Australia’s national and international efforts to act on emerging and continuing threats to our security as well as articulating an independent voice in the councils of the world; • tackling the growing problem of housing affordability and homelessness; and • acting on reconciliation with our Indigenous peoples through an apology to the Stolen Generations and developing a plan of action to help close the gap between Indigenous and non-Indigenous Australia. Economic management In recent months the world economy has entered a period of greater uncertainty. Although Australia has in recent years benefited from favourable global economic conditions, in particular the rise of China and the global resources boom, the future is uncertain with downward revisions in global economic growth arising in part from recent developments in the US financial market. At the same time on the home front inflationary pressures have been building over the past several years, creating a further threat to our long term economic growth. The Government has been mindful of these conflicting economic currents in developing its five-point plan on inflation. The plan is focused first on fiscal restraint, with the Government aiming to deliver a budget surplus of 1.5 per cent of GDP in 2008-09. Second, the Government is examining options to improve private savings. Third, it will tackle the chronic skills shortages that have been driving inflationary pressure in many areas of the economy for some years. Fourth, a plan of action on infrastructure bottlenecks. And fifth, the Government aims to act on the workforce participation rate by providing practical ways of helping people re-enter the workforce. The Government is committed to maintaining a strong budgetary position by adhering to a medium term fiscal strategy that keeps the budget in surplus, on average, over the economic cycle; by reprioritising existing expenditure; and by maximising public sector efficiency. Economic reform The Government is also committed to improving the quality of government by focussing on outlays that boost the long-term productive capacity of the economy - rather than consumption. Building long term productivity growth following many years of declining productivity growth is a core priority of the nation if we are to have improved living standards for working families into the future. The Government’s productivity agenda includes reforms to education, infrastructure, innovation, workplace relations and reforming the Federation. Central to the Government’s productivity agenda is its commitment to building a world class education system. The Government’s long-term ambition is to produce the best educated workforce in the world. The rest of the world is not standing still as they invest billions into human capital. The Government is committed to a plan of action to prevent Australia falling further behind against critical global benchmarks. That is why the Government is committed to an education revolution. Advanced infrastructure is critically important to raising Australia’s productivity in the long term. The Government, in cooperation with the States and Territories, will focus on better coordination of infrastructure planning and investment - both public and private. Nationally consistent public private partnerships will be critical in this regard. Infrastructure Australia will be established to improve planning and coordination of Australia’s transport, water and energy infrastructure. The Government will also work with the private sector to build a high speed national broadband network - the critical infrastructure platform of the 21st century with the capacity to fundamentally transform business, to overcome much of the tyranny of distance and to boost productivity growth. Innovation is another key driver of productivity and economic growth. The Government aims to foster a culture of innovation by strengthening investment in creativity and knowledge generation. It will establish the Enterprise Connect Network to link business with new ideas and technology. Incentives for business research and development will be focused on lifting investment and competitiveness. The office of the Chief Scientist will once again become a full-time position. The Commonwealth is establishing a new framework for cooperative Commonwealth-State relations in order to take practical steps to rationalise intergovernmental responsibilities and achieve better outcomes in areas of national priority. The Council of Australian Governments (COAG) recognised at its meeting in December 2007 that there is a need for greater cooperation between Commonwealth and State governments and this should be an immediate priority. Commonwealth-State funding arrangements will focus more on outputs and outcomes, underpinned by a commitment from the Commonwealth Government to provide incentive payments to drive reforms. At the December COAG meeting, Australian heads of government identified the regulatory burden on business as an impediment to efficiency that needs to be lifted. Priority areas for action that have been identified include occupational health and safety regulation, payroll tax administration, building codes, trade and professional recognition, simplified accounting methods for the hospitality sector and simplification of the Business Activity Statement. The Government is therefore committed to a significant agenda of economic reform across the spectrum of human capital, physical capital and regulatory reform - with the overriding agenda of building long-term productivity growth. Work and family Workplace arrangements should deliver flexibility for employers and employees, fair wages and conditions, productive work practices and a balance between work and family responsibilities. To meet these objectives, the Government will be introducing a new workplace relations system. In its first legislative act, the Government will abolish the capacity to make Australian Workplace Agreements. The new workplace relations system will provide a strong safety net of minimum conditions, the right to bargain collectively for wages and conditions and fairness for both employers and employees if an employee is dismissed. These elements will ensure that employees can fully participate in the benefits of a growing economy, while fostering productivity growth and low inflation. The Government is committed to further measures that will relieve the pressures on working parents and help them to get the balance right as they juggle their work and family responsibilities. The Government’s initiatives in this area include: • more flexible parental leave; • an increased focus on high quality early childhood education and child care, and • assistance to small businesses wanting to develop family friendly practices. Ensuring that parents have access to affordable, high quality child care that helps them to balance their work and family responsibilities is a high priority for the Government. To further assist parents with the cost of child care, the Government will increase the Child Care Tax Rebate from 30 per cent to 50 per cent of out of pocket child care costs. The Government will also improve access to quality child care through the establishment of up to 260 new child care centres on school, TAFE, university and community sites, and through the introduction of a five-star quality rating system. Families will also benefit from the introduction of universal access to early childhood education for all four year olds for 15 hours per week and 40 weeks per year, and the national rollout of the Australian Early Development Index, which will help communities throughout Australia understand how children are developing by the time they reach school age. Education The Government was elected on a platform of implementing major changes to Australia’s education system, with the aim of achieving higher standards and better results at every level of education from early childhood to mature age. The Government believes that lifting the quantity of investment in education and the quality of educational outcomes is highly important to Australia’s long term productivity growth and economic prosperity. The Government will provide universal access to high-quality early childhood education for Australian children so they can build foundations for lifelong learning. In schools, there will be a major focus on reforms to improve literacy and numeracy outcomes and lift Year 12 retention rates. The development of a national curriculum in the key areas of mathematics, science, English, history and Asian languages aims to ensure high, nationally-consistent standards for all students across Australia. In partnership with the States and Territories, the Government will work to enhance schools’ educational infrastructure. Funding of $2.5 billion will be provided for secondary schools to build or upgrade trade training facilities over the next ten years. The Government will invest $1 billion in the provision of computers for Year 9 to 12 students and faster broadband connections to schools. The Government will also create an additional 450,000 training places over four years, including 65,000 extra apprenticeships, with the first 20,000 places to be available from April 2008. These initiatives will enhance employment prospects for young Australians and address critical skills shortages. In higher education, the demand for graduates in maths, science and early childhood education will be addressed through incentives for graduates in relevant occupations, including the teaching profession. To help attract and retain the best talent, the Government will improve and expand the Commonwealth Scholarship program for both undergraduates and postgraduates and offer new four-year fellowships valued at $140,000 a year to 1,000 leading researchers. Domestic undergraduate full-fee paying places at public universities will be phased out. Health The Government is committed to ending the blame game between Canberra and the States and Territories on health and hospitals. The Government believes the Australian people deserve better than a culture of buck-passing between levels of government. That is why health and hospitals form such a vital part of the COAG reform agenda for 2008. The Government understands that this reform task will not be easy and success is far from guaranteed. Working closely with the States and Territories, reform will focus on funding for improving performance and health outcomes in key areas across the health system including: • pressures on emergency departments; • elective surgery waiting lists beyond clinically acceptable timeframes; • the intersection between aged care and the hospital system; and • better integration of preventative health care to tackle challenges such as obesity and chronic disease. This includes funding to the States and Territories to act on elective surgery waiting lists, funding for GP super clinics, increasing the number of operational aged care places and providing additional nurses for our health care system. Importantly, more support will be provided to health services in rural communities. Beyond these programs the Government will re-establish the Commonwealth Dental Care Program. Hundreds of thousands of Australians have been waiting years to have the most basic dental work done. That is why the Government will commit $290 million to fund up to one million extra dental consultations over three years. Failure to act on dental health is bad for general health, bad for self-esteem and bad for those seeking to break the unemployment cycle. Climate change and water The Government considers that climate change represents one of Australia’s greatest long term economic and environmental challenges. Scientific evidence continues to underscore the seriousness of the threat of climate change and the urgency of action that is needed at a global, national and local level. In one of its first actions, the Australian Government ratified the Kyoto Protocol and so joined the community of nations in the truly global challenge facing our common humanity. The Government intends to play an active and significant role in the post-Bali negotiations to develop a comprehensive new agreement on climate change. The Government has committed to reducing Australia’s greenhouse gas emissions by 60 per cent on 2000 levels by 2050. A major study to help Australia set robust shorter term emission reduction targets will report in mid 2008. To help Australia meet its emissions reductions goals, a national emissions trading scheme will be established by the end of 2010. The Government will also set a 20 per cent target for renewable energy by 2020 to expand the use of renewable energy sources such as solar and wind power. The Commonwealth will work cooperatively with the States and Territories to tackle the water crisis and respond to the impacts of climate change, including in the Murray Darling Basin that supports over 40 per cent of Australia’s food production. The Government will invest in modernising irrigation infrastructure and purchasing water entitlements from willing sellers to put our river systems on a sustainable footing. A $1 billion fund will be established to invest in new and reliable water supplies for urban Australia - including desalination and recycling - and rebates will be available for families to invest in water conservation at home. The prolonged and severe dry conditions in parts of Australia have had a serious impact on the livelihood of rural Australia. While recent weeks have seen rains in many parts of Australia, long term water shortages remain an acute concern. The Government will implement climate change adaptation programs to help support farmers in adapting farming practices as they face the changing climate. The Government’s drought policy will ensure that farmers receiving government assistance are better prepared to deal with the increasing frequency of dry conditions predicted for the future. Housing The Government plans several measures to address challenges relating to housing affordability and homelessness. Home ownership is out of reach for many Australian families, and many Australian cities are experiencing large increases in rental costs and a shortage of rental stock. This is of particular concern because the current shortage of housing supply affects the most disadvantaged people in the Australian community. The Government will establish First Home Saver Accounts —accounts that reward disciplined savings with government contributions. These will help people save a larger home deposit and will improve affordability. The Government will also increase housing supply and make houses less expensive - by releasing Commonwealth land for housing, by investing $500 million in housing-linked infrastructure, and by providing financial incentives to encourage private sector investment in affordable rental properties. The Government understands there is no single solution to the crisis in housing affordability. Any attempt at improving affordability needs to involve the three levels of government working together with the community and private sectors. A National Housing Strategy will be implemented. Working with the States, Territories and local government, a National Housing Affordability Agreement will be developed which incorporates measures to improve housing affordability for home buyers, renters and public housing tenants. Social inclusion The Government will implement a new policy agenda focused on social inclusion. The focus on social inclusion aims to improve the opportunities for all Australians to participate fully in Australian economic and social life. In working to advance social inclusion, the Government will work in close partnership with State, Territory and local governments, business and the not-for-profit sector. Policies that aim to improve social inclusion and address disadvantage include the Government’s commitment to halve the number of homeless people turned away from homeless services each year for the next five years; universal access to pre-school for four year old children; a national action plan on literacy and numeracy; establishing a dental health program; halving the gap in mortality rates of Indigenous and non-Indigenous children under the age of five within a decade; achieving a 90 per cent year 12 retention rate by 2020 and developing a national employment strategy for those with a disability or mental illness. Indigenous policy The Government is committed to advancing reconciliation between Indigenous and non-Indigenous Australia, beginning with a formal apology to the Stolen Generations and extending to a range of initiatives aimed at closing the gap between Indigenous and non-Indigenous Australians in health outcomes and educational achievement. Across the Australian community, there is a strong sense that we have more work to do to bring about reconciliation between Indigenous and non-Indigenous Australians. One of the great privileges of serving in the office of General-General is the opportunity to see and experience so much of our nation’s rich Indigenous cultures. Serving in this role also makes one more acutely aware that while we have made progress, we still have a distance to travel. The richness of Indigenous culture is often under-recognised and, as a nation, we have much to learn about the history of Indigenous Australians - a history that stretches over 60,000 years. The Government’s intention to develop a national curriculum in history offers the prospect that more of this history could be incorporated into our education programs. The apology to the Stolen Generations that will go before the Parliament tomorrow represents an important further step towards reconciliation and I commend the intention to you, honourable Members and Senators, and indeed all Australians, as worthy of your support. The Government acknowledges Indigenous Affairs as a key priority. The Government will seek to rebuild the relationship with Indigenous people and communities based on respect and involve Indigenous leaders and communities in important decisions. Working with COAG partners, the Government intends to focus on closing the gap on Indigenous disadvantage, focusing on three specific areas: • closing the 17-year life expectancy gap within a generation; • halving the gap in mortality rates for Indigenous children under five within a decade, and • halving the gap in reading, writing and numeracy achievements within a decade. National security and international relations The Government intends to strengthen Australia’s relationship with both traditional allies and regional partners, while also re-engaging with Australia’s tradition of active middle power diplomacy to address the range of transnational challenges that will define our future including the threat of terrorism, nuclear proliferation, new threats to border security, human security as well as the impact of climate change. Australia’s alliance with the United States will remain central to Australia’s strategic interests. A stronger working relationship between Australia and the United Nations is also a priority. The Government’s support for the United Nations and multilateral approaches recognises that cooperative engagement is a core means of securing long-term peace and development. The Government will also work to strengthen relations with countries in the Asia-Pacific region in light of its importance to Australia’s economic prosperity and regional stability. The Government recognises that there are both immediate and potential longer term threats to Australia’s national security. The Government will develop a National Security Strategy Statement to guide our military, police, diplomatic and international assistance efforts as we face the security challenges of the 21st century. The Government will commission a Defence White Paper to guide defence capability and ensure that defence expenditure provides the defence force that Australia needs. In consultation with the United States, the United Kingdom and Iraq, the Government will withdraw Australian combat troops from Iraq at the end of the next rotation, due for completion in mid-2008. To contribute to a secure and stable Iraq, Australia will enhance its humanitarian and development assistance to Iraq. Australian troops will continue to be deployed in Afghanistan as part of the international force in that region. The Government is also committed to stability and security in our immediate region, where the Australian Defence Force and Australian Federal Police perform crucial stabilisation and support roles in East Timor and the Solomon Islands. The Government is committed to strengthening Australia’s export performance. The multilateral trading system and the World Trade Organisation Doha Round negotiations will be placed at the centre of Australia’s trade policy. Australia will continue to support regional and bilateral free trade agreements which are compatible with, and enhance multilateral outcomes. Measures will also be taken to lift Australia’s export competitiveness. During recent years there has been a growing recognition that with coordinated international efforts, major progress can be made on reducing global poverty. The Government will lift Australia’s contribution to these efforts in support of the internationally-agreed Millennium Development Goals. The Government will increase the level of Australia’s overseas development assistance to 0.5 per cent of gross national income by 2015-16. Australia’s aid program will play a critical role in promoting economic development, reducing instability and improving governance in the South Pacific. Governance and transparency The Government will implement new measures to help make government more accessible to the community and more transparent in its decision making. The Government will hold regular Community Cabinet meetings in capital cities, regional towns and remote communities across Australia. The Government began this in Perth in January. These meetings will give Australians from all walks of life the opportunity to talk to government ministers on a broad range of national and local issues. The Government is seeking to prepare Australia for the challenges of the future. To do so, it has stated its preparedness to listen to the ideas that Australians have for the future of our country. On the 19th and 20th of April, the Government will convene an Australia 2020 Summit. This Summit will bring together 1000 of Australia’s best and brightest minds to discuss and debate Australia’s long-term future. The Government is committed to then examining the policy ideas that arise from the Summit and reporting back on them later in the year. The Government wants to leave no stone unturned to ensure Australia is on the right track for the future - and that means listening to Australians to hear their ideas for our country’s future. It is important for the nation to lift its planning horizon beyond the three year electoral cycle, and to begin serious planning for the decade ahead and beyond. Laws relating to government information will be enhanced by promoting a culture of disclosure and transparency. This includes enhanced Budget transparency by providing greater disclosure of accessible and useful government financial information. A Freedom of Information Commissioner will to be appointed to take overall responsibility for access to government information and improve review processes. Conclusion The Australian Government is committed to building a modern Australia capable of meeting the challenges of the future. It is committed to bringing a fresh approach to governing. It is committed to being a government that listens to the Australian people, that consults with the Australian people and that is upfront with the Australian people on the problems it can solve —and the problems that lie beyond the powers of any government to solve. The Australian Government has a vision for Australia’s long-term future. The Government wants to seize the great opportunities that lie before us and make Australia competitive on every level with the rest of the world with the aim of making this great country of ours an even greater place in which to live.

Australia

Introduction Honourable senators and members of the Parliament of Australia, I honour the traditional owners of the country upon which we gather and celebrate our Indigenous peoples as the first lawgivers of our land. I also acknowledge the remarkable circumstance of our nation having its first female Governor-General and first female Prime Minister. This historic conjunction should be an inspiration not only to the women and girls of our nation but to all Australians. It demonstrates this is a land of freedom and of opportunity. It should reinforce to every girl and every boy that in this wonderful country they can aim high and see their hopes fulfilled. It is also evidence that our democratic system is strong, with our established principles of government ever adapting to meet new challenges and new demands. Nowhere has the robust nature of our democracy been more evident than in the election held on 21 August 2010. Through this result, the Australian people have placed upon their elected leaders the responsibility of forming a minority government, something not seen in our Commonwealth for seven decades. Parliamentary reform It is a tribute to every senator and member gathered here today that this process unfolded with patience and civility and has yielded a parliament committed to greater transparency and accord. In that spirit, the government will quickly implement new measures to enhance the dignity and effectiveness of this legislature, including a more effective question time, a stronger committee system and greater scope for private members’ bills. The government will also facilitate the creation of a Parliamentary Budget Office and the new role of Parliamentary Integrity Commissioner. It is the government’s intention that these reforms will not only serve for this current term but become an enduring legacy to our parliamentary system. The government will also bring forward for early consideration legislation to ensure that political donations are made more transparent and risks to the integrity of our political system are minimised. Of great significance in this term will be proposals to amend the Constitution to recognise the first Australians and to acknowledge the role of local government in our democratic system. The recognition of Indigenous Australians in our founding charter will be a high point on our nation’s long journey towards reconciliation, which began with the historic referendum of 1967. More broadly, the government recognises that the parliament will play a much enhanced role in the governance of our nation during this term and welcomes the opportunity thus presented to strengthen our democracy. Within this more cooperative framework, the government looks forward to implementing policies that will equip our nation to meet the demands and challenges of the twenty-first century. A stronger economy Foremost among those challenges is the need to build a high-productivity, high-participation, high-skill economy that delivers sustainable growth for all Australians. Having emerged from the global financial crisis with some of the best economic outcomes of any advanced nation, the government will implement measures to ensure Australia’s economy remains flexible and strong. At the heart of these plans is the government’s commitment to return the budget to surplus in 2012-13, placing Australia at the forefront of global fiscal consolidation efforts. The government will advance its economic reform agenda to lift productivity and competitiveness and prepare for the future, through reforms to taxation, superannuation and business regulation, and through investments in education and infrastructure to drive future growth. During this term, the government will pursue plans to reduce the tax burden on the business sector, simplify tax returns for ordinary taxpayers and obtain a more equitable distribution of the nation’s natural wealth through the minerals resource rent tax agreed with our nation’s biggest miners and now the subject of wider consultation. Further deliberations on the nation’s taxation system will be considered at a public forum to be held by mid 2011, which will re-examine the Henry tax review and consider the economic and social effects of taxation reform. Following that forum, the government will hold a debate on tax reform in the Australian parliament, enabling all senators and members to express their views. In the coming term of office, the government will also commence implementation of its promised increase in the superannuation guarantee levy from nine to 12 per cent, ensuring working Australians enjoy greater security in retirement and considerably boosting the nation’s pool of savings. In parallel, the government will seek to implement key findings of the Cooper review to make the nation’s superannuation system more efficient, cost-effective and transparent. During this term, the government will also pursue its reform agenda to break down barriers for businesses operating across state and territory borders, in particular, a national regime for occupational health and safety regulation. Another central aspect of the government’s economic strategy is continued high levels of infrastructure investment, which will help drive productivity and make our cities more liveable. To this end, the government is investing $37 billion in transport infrastructure through the Nation Building Program over the six-year period to 2013-14. The government’s commitments include major urban rail projects in Sydney, Melbourne and Brisbane, the most significant investment in public transport yet made by the Commonwealth. In this term of parliament, the government will also continue the rollout of Australia’s largest ever infrastructure enterprise, the National Broadband Network. By making high-speed affordable broadband available to the whole community, the NBN will help lift the productivity of our regional economies, expand economic opportunities and improve service delivery in key areas such as education and health care. The NBN will also underpin the government’s commitment to provide, from 1 July 2011, a new Medicare rebate for internet based consultations for those living in regional and outer suburban areas where access to medical specialists is limited. Accordingly, the government will present for consideration by this parliament legislation to enable the effective rollout of the NBN, support the heads of agreement with Telstra and improve the existing regulatory regime. The Australian government is deeply committed to ensuring that the dignity and benefits of work are more widely shared among the members of our community. Therefore, the government will pursue measures to increase workplace participation by disadvantaged or disengaged groups, including Indigenous Australians, people with disability, youth and mature age workers. This will include the introduction of a work bonus for age pensioners who choose to undertake part-time work, and training and assessment support for mature age workers. The government will also bring forward a range of new measures to drive positive employment outcomes, including relocation assistance to support the long-term unemployed move to areas with greater job opportunities. With the economy returning to above-trend growth, the government acknowledges the cost of living pressures faced by many families. In response, the government has already introduced three tranches of income tax reductions and has increased the Child Care Rebate from 30 to 50 per cent. In addition, the government’s historic Paid Parental Leave scheme will commence on 1 January 2011, assisting families with the cost of raising children and encouraging greater workforce participation. To provide further assistance to families, the government will extend the scope of the education tax refund to cover the cost of school uniforms. In addition, the government will increase family support by up to $4,000 a year for teenagers who are enrolled in school or vocational training, encouraging young people to remain in the education system and acquire the skills necessary for work and for life. The government will better protect employee entitlements as part of its commitment to fair and balanced workplace relations, and measures will be introduced to enhance the protections available to banking customers. Education Honourable senators and members, education lies at the heart of the government’s agenda to strengthen workforce participation and enhance our nation’s fairness and prosperity. The government will continue to build on its landmark reforms in early childhood education, schools, vocational education, universities and research. In each area the government will continue to improve standards and quality, increase transparency and modernise infrastructure. During this term, in the area of school education, the government will empower local principals and communities to make decisions on the ground to improve the quality and effectiveness of their schools. At the same time, the government will deliver the national curriculum and build on its My School transparency measures. In addition, parents, students and teachers will be provided with a national online assessment and learning bank to help support learning and diagnose individual student strengths and learning needs. There will also be new recognition and rewards for schools that improve attendance and student performance, and the very best classroom teachers will be identified and rewarded through a new national system of performance assessment and bonus payments. The government will also move to ensure Australian students have access to a national educational credential of international standing—the Australian Baccalaureate. To help ensure children are ready to learn when they start school, the government will continue to deliver its early education reform agenda and enable universal access to preschool by 2013. The government will link payment of the family tax benefit part A end-of-year supplement so that four-year-old children receive a health assessment before starting school. In the area of skills development, which is so critical to our nation’s future, the government will continue its reform efforts to create a truly national, high-quality, transparent training system and to lift the skills of the workforce. The government will build on the trade training centres program with a new national trade cadetship initiative to help young people develop trade skills while they are enrolled at school. Additional incentives and mentoring will also be provided to ensure that apprentices gain the skills and experience relevant to the industries of today and the future. The government will introduce a guaranteed entitlement to high-quality training places for all Australians under the age of 25, and in the future will develop a broad entitlement for foundation skills training and skills development for older Australians. During this term of parliament, legislation will be introduced to establish new quality and standards regulators in higher education and vocational education. Given the vital role of universities in driving productivity, research, innovation, regional development and the social and cultural life of the nation, the government will continue to deliver its transformative reform agenda stemming from the Bradley and Cutler reviews and the considerable new funding associated with these reforms. The government will also seek to reintroduce university student amenities and services legislation to enrich the learning experience and wellbeing of students across Australia. A fair and resilient society Honourable senators and members, over the next term, the government will strive not only to build a stronger economy but a more inclusive society. Despite Australia’s strong economic growth, around five per cent of working age citizens experience multiple forms of disadvantage that can result in lower levels of social and economic participation and reduced wellbeing. The government’s second term social inclusion agenda will thus focus on overcoming entrenched disadvantage so that as the economy grows, fewer people are left behind. To achieve these objectives, the government will continue to invest in our health system and schools, our communities and regions to support social inclusion and close the gap on Indigenous disadvantage. The government will implement its landmark structural reforms to improve access to health and hospital services for all Australians and sustain the financial viability of the health system. The government will also expand the rollout of GP superclinics in suburban and regional communities, and create a GP after-hours hotline so families can receive support on weekends or late at night. On mental health, the government will fund a package to help reduce the incidence of suicide and will work towards new measures to further improve the health of Australians living with mental illness. The government will also fund additional aged-care places and invest in multipurpose services that provide integrated aged health and aged-care services. Over the next four years, the government will invest in increasing participation in community sport and supporting our elite athletes, thus contributing to a more active and healthy society. Indigenous communities will benefit from the government’s continued investment in housing, health, early childhood, economic participation and remote service delivery, with outcomes closely tracked against ‘Closing the Gap’ targets. The government’s agenda for Indigenous advancement will also be strongly supported by the establishment of the National Congress of Australia’s First Peoples to be convened from January 2011. The government is committed to ensuring that this term of office delivers tangible improvements in the level of support for those who live with disability. The government will increase the number of supported accommodation places, and will finalise the National Disability Strategy through the Council of Australian Governments. It will also provide individual funding for early intervention services to assist children diagnosed with sight and hearing impairments, cerebral palsy, Down syndrome or fragile X syndrome. The long-term care and support needs of people with disability is a national priority that demands a national response. The government therefore looks forward to giving careful consideration to the Productivity Commission’s forthcoming report on a national disability insurance scheme. Prevention of violence against women and children will also be a priority in this term of the parliament. The forthcoming National Plan to Reduce Violence against Women and their Children will focus the efforts of all governments on preventing violence, delivering justice for victims and improving support services. Problem gambling is another important social issue that the government seeks to address during this new term. The social cost of problem gambling is estimated to be $4.7 billion a year, along with an incalculable human toll on gambling addicts and their families. The government will therefore work to implement, by 2014, a best practice full pre-commitment scheme that is uniform across all states and territories and machines, consistent with the recommendations of the Productivity Commission. The extent and intractability of homelessness remains one of the greatest stains on Australia’s deserved reputation for social fairness and decency. The government is committed to reducing the number of Australians who are homeless and will work closely with state and territory governments and the non-profit sector to halve the rate of homelessness and offer accommodation to all people who sleep rough by 2020. Enhancement of the non-profit sector is also a key priority for this term, and the government will therefore create a new office for the non-profit sector, harmonise and simplify laws on non-profit issues and examine the merits of a single national regulator. The government will strengthen its support for the arts with the release of Australia’s first national cultural policy in almost two decades. The government will also support the performing arts sector, help build a stronger contemporary music industry and respond to the review of the screen production sector during this term of the parliament. Building Regional Australia Honourable senators and members, the recent election has brought renewed attention to the needs of the one-third of Australians who live outside our major cities and who exemplify in a special way our nation’s heritage and character. Those citizens rightly aspire to high-quality, accessible services befitting their status as equal members of the Australian community. Accordingly the government has appointed a new cabinet level minister for regional Australia, supported by a new department of regional Australia. In addition, the government will establish a new House of Representatives committee on regional Australia, allowing members to inquire into the needs and resourcing of our regions and the impact of legislation on regional communities. The government will also fund the creation of a regional development policy centre to provide an additional source of independent advice for honourable members and the wider community. In terms of resources, 60 per cent of the government’s nation-building infrastructure funding has already been allocated to regional Australia, as has the $6 billion Regional Infrastructure Fund. Building on these developments, the government will significantly increase the level of resources available to regional Australia. The government will invest $800 million in a new priority regional infrastructure program that will fund projects such as transport, economic and community infrastructure as identified by local communities. Regional universities and TAFEs will have access to a dedicated regional priorities round of up to $500 million from the Education Investment Fund. There will also be a regional priority round from the Health and Hospitals Fund to build and upgrade regional health infrastructure and support clinical training capacity in our regional hospitals. In addition, the government will ensure that regional Australia receives a minimum population based funding entitlement of all educational resources, and will develop a regional education and skills plan during the course of 2011. Importantly, the government will also carry forward its commitment to build the inland rail link, which has been so long awaited by many country communities. And under the government’s Building Better Regional Cities program, funding will be provided to help facilitate the construction of up to 15,000 affordable homes in regional cities that wish to expand. Climate change and sustainability Honourable senators and members, Australia’s natural heritage is a precious gift held in trust for future generations and for the entire world. It is the government’s strong view that Australia’s unique way of life must be preserved through measures to ensure a more sustainable future, by both protecting the environment and enhancing the amenity of our urban communities. During this term of office, the government will develop the nation’s first ever sustainable population strategy to examine future population needs and how population growth can be better underpinned by appropriate infrastructure and services. Of vital importance to the government’s agenda is the need to reduce the level of damaging greenhouse gas emissions, which endanger the sustainability of our planet. Accordingly, the government will shortly convene a new multiparty climate change committee to provide advice on mechanisms for implementing a carbon price and how best to build community consensus. The committee’s work will be vital in enabling the parliament to conduct a wide-ranging and informed debate on this important issue. At the same time, the government will work to harness the power of natural resources, including wind, solar, geothermal energy and biofuels, as well as funding transmission infrastructure to bring renewable energy from our regions to our cities. The government will also bring forward legislation to strengthen emission standards for new power stations and motor vehicles as well as providing tax concessions for sustainable buildings and rebates for the replacement of older, inefficient vehicles. In addition, the government’s proposed carbon farming initiative will facilitate the sale of carbon credits on domestic and international markets providing a new source of income for farmers and reducing carbon pollution. As the world’s driest inhabited continent Australia must carefully steward its precious water resources especially those of our greatest river system, the Murray-Darling. The government has already purchased more than 900 billion litres of water entitlements for environmental flows, and the release of the Murray-Darling Basin Plan guide next month will advance this important national priority. To better protect our most sensitive marine habitats and assist the long-term viability of our ocean based industries, the government will seek to build a representative network of protected areas in Australian waters. During this term, the government will also respond to the independent review of the Environment Protection and Biodiversity Conservation Act, and will develop a national food plan to examine the long-term sustainability of Australia’s food production. National security and international relations Honourable members and senators, as a diverse multicultural nation dedicated to free trade and creative middle-power diplomacy Australia has a constructive role to play on the world stage. The government will continue to foster those relationships that are so essential to Australia’s interests, including our alliance with the United States and our core bilateral relationships with partners in our region. The government will also ensure that Australia remains an active and effective member of key multilateral institutions, including the United Nations, the G20, the East Asia Summit and the Asia-Pacific Economic Cooperation forum. There is no higher policy priority than national security, and the government will continue to build a whole-of-government approach to meet the full range of threats and challenges that may arise. The government’s most immediate national security priority is Afghanistan, where the international community seeks to prevent that country from again becoming a terrorist staging ground. Our nation’s engagement has come at a high price and we honour the memory of the 21 Australians who have made the supreme sacrifice in Afghanistan since 2001. The government remains committed to the task in Afghanistan and will continue to provide the support necessary for Australian forces to complete their mission. Acknowledging the increasing number of personnel who are injured on duty, the government will introduce a new support scheme, the Simpson program, which will provide increased assistance, training and access to specialist rehabilitation for wounded Defence Force members. More broadly, the government remains committed to ensuring Australia has the defence capabilities it needs to meet current and future challenges while also ensuring that defence spending remains prudent and cost effective. The loss of Australian lives in Bali in 2002 and 2005 is a potent reminder of the need for vigilance and resolve against the threat of terrorism. Accordingly, the government remains committed to a comprehensive approach to counterterrorism which focuses on prevention and reducing the risks faced by Australians at home and abroad. The government also recognises the grave threat to international peace posed by the proliferation of nuclear, biological and chemical weapons and know-how, and will continue to pursue the cause of disarmament together with our international partners. On the issue of border protection, the government seeks to remove the incentive for asylum seekers to undertake dangerous sea voyages to Australia while promoting an approach to assessing refugee claims that is efficient, timely and fair. Accordingly, the government remains committed to an effective response to irregular maritime migration through the development of a regional protection framework in cooperation with our regional neighbours as well as the United Nations High Commissioner for Refugees and the International Organisation for Migration. The government will always honour the obligations under the United Nations Refugee Convention to which our country became a party under Prime Minister Menzies in 1954. Conclusion Honourable senators and members, with the convening of the 43rd Parliament, our system of government ventures into terrain not encountered since the far-off days of World War II. As one of the world’s oldest continuing democracies, we have it within our grasp to ensure that the challenges posed by the configuration of this parliament become a source of renewal and change. Certainly the story of our nation tells us that nothing is impossible when we work together and seek the best in each other—drawing upon the qualities of resourcefulness and courage that are such a hallmark of the Australian spirit. The government acknowledges that the measures outlined today are not the complete sum of what can be accomplished by this parliament. Rather, it is the government’s hope that through its strong leadership, combined with goodwill and consensus, even more can be achieved to the benefit of our people and the advancement of our Commonwealth in the term that lies ahead. I therefore wish you well in your deliberations and warmly commend your dedication to the service of our nation. And with great faith in the enduring strength of our democratic institutions, I take pride in opening the 43rd Parliament of the Commonwealth of Australia.

Australia

Honourable senators and members of the Parliament of Australia. Today, at the opening of the 44th commonwealth parliament, we celebrate the enduring health of our democracy. One hundred and twelve years after the first federal election, nearly 14 million Australians have cast their votes in another free and fair election. For only the fourth time in three decades, the Australian people have voted for a change of government. The people have set a new course for our country. On 7 September, the Australian people voted for a government that said it would repeal the carbon tax, establish a Commission of Audit and improve the budget, strengthen border protection and build the roads of the 21st century. My government will honour the will of the people and repay their trust. Members of the new government take office with a deep sense of humility for the honour conferred upon them. Today and every day, my government will work to deliver the commitments it made to the Australian people. My government has a clear and comprehensive plan of action for building a stronger Australia. It will be a purposeful government. Every day it will work in a way that is careful, collegial, consultative and straightforward, because this is the best way of delivering the better government that the Australian people want. At the heart of my government's plan for Australia is a strong, prosperous economy. A strong and prosperous economy, built on strong, prudent economic management, is the basis for realising every other national goal. My government's plan for a stronger Australia begins with building a more productive and diverse economy that will guarantee Australia's future prosperity by building on our national strengths. It will strengthen the economy through lower taxes, less regulatory burdens and higher productivity. It will work to deliver more jobs and more opportunity—so there is less pressure on families and so that more Australians can get ahead. It understands that the foundations of a strong economy are found in policies which reward hard work and individual effort and which encourage personal aspiration and ambition. We should never be a country that seeks to cut 'tall poppies' down to size but one where everyone is encouraged to grow and succeed. Australia needs more successful people and we should give our people every opportunity to succeed. My government's vision is not of bigger government but of stronger people. It is a vision of a dynamic, confident Australia—where all 23 million of us can individually and together pursue our hopes and dreams. Cutting taxes The repeal of the carbon tax and mining tax are at the heart of my government's plan to strengthen the Australian economy. As its first order of business, this parliament will consider legislation to repeal the carbon tax. My government believes the carbon tax is a burden on every Australian business and it is a burden on families. As part of my government's commitment to families, it will repeal the carbon tax—but will keep the current tax thresholds and fortnightly pension and benefit levels—ensuring real assistance to families. The repeal of the carbon tax will enhance the competitiveness of both big business and small. As well, legislation to abolish the mining tax will be before parliament this year. The end of the carbon tax and mining tax will be a clear message that Australia is 'open for business'. My government is determined to re-energise the resources industry and to create more jobs in more projects, through restoring Australia's reputation as a good place to invest. Australia's mineral wealth is one of our great national gifts and all Australians will benefit from a bigger and stronger mining industry and more certain investment settings. The government will cut the company tax rate by 1.5 per cent from 1 July 2015. The new company tax rate of 28.5 per cent will benefit all Australians. As the Henry Tax Review noted, a lower company tax rate 'will not only result in higher growth but is also likely to result in higher wages'. My government has already determined that it is not proceeding with changes to FBT arrangements for leased vehicles—and this will provide all parts of the car industry across Australia with certainty and confidence. Role of government My government understands that taxpayer money is best spent on delivering better services and a better society—not on interest repayments that come from spending more than you have. It also understands that every dollar it spends is a dollar that has been earned by someone else. As such, government has a duty to ensure that every dollar is used prudently and wisely. A Commission of Audit has been established that will identify waste and duplication and provide taxpayers with better value for money. It is the first such audit in nearly two decades. Its focus will be on making public administration more cost-effective and more productive through reducing duplication and overlap between governments. Honourable senators and members, this will be an active government, not a big government. It aims to strengthen the economy, improve the budgetary position and lay out a plan for long-term sustainable growth. By strengthening the economy, we strengthen Australia. Small business and deregulation Employing almost one in two people in the private sector, small businesses are the best job creators in the Australian economy. My government will lower taxes, cut red tape and make it easier for small businesses to grow and employ more people. For the first time in two decades, there will be a root-and-branch review of national competition policy—because competition drives productivity growth. The company tax cut will reward those who have the courage and resourcefulness to start and grow their own business. My government will lighten the red-tape burden because too many businesses spend too much time meeting a seemingly ever-expanding list of regulatory requirements. My government intends to cut red-tape costs on businesses and community groups by $1 billion a year. And reduce green tape by creating a state-based one-stop shop to streamline the environmental approvals process. As part of the government's plan to boost productivity and reduce regulation, every significant Commonwealth government department and agency will be given an annual target for red-tape cost reductions. Meeting these targets will be essential criteria by which departmental secretaries and senior public servants are assessed. And for two sitting days each year, this parliament will meet to review a deregulation report and repeal redundant legislation and regulation. Employment and welfare As part of its commitment to boost productivity, the Australian Building and Construction Commission will be restored to ensure that, on commercial building sites, the rule of law is respected, productivity is improved, jobs are created and major national construction projects are kept on track. The law will be changed so that registered organisations and their officials are held to the same rules and standards as companies and their directors. My government believes in the dignity of work and the importance of participation, so it will reinvigorate the Work for the Dole program to help ensure that all working-age people are working—preferably for a wage but, if not, through the Work for the Dole program. There will be incentives for employers to take on more mature-age workers and young people. These incentives include a job commitment bonus for long-term unemployed people who get work and remain off welfare for 12 months, with an increased bonus at 24 months—and a new job seeker relocation bonus for young people who move to take up work. Workforce participation More accessible, affordable and flexible child care is good for the economy as well as good for families. Improving access to child care provides parents with more choice, provides the workforce with more workers, and lifts the productivity of the nation. My government is tasking the Productivity Commission to undertake an inquiry into child care. The Productivity Commission will identify how the current system can be improved and how it can be made more responsive to the needs of parents. My government's Paid Parental Leave scheme, starting on 1 July 2015, is also part of its plan for delivering a stronger economy through improved workforce participation. The new scheme will pay women at the rate of their actual wage—rather than the minimum wage—and for 26 weeks rather than 18 weeks under the current scheme. Currently, of the more than 30 countries in the OECD offering a paid parental leave scheme, Australia is one of only two that fail to pay parental leave based on a replacement wage. The new scheme will provide a woman earning an average full-time salary with $21,300 more than the current scheme. Paid parental leave should be a workplace entitlement, not a welfare payment. Above all, it gives working women the support they need to balance the competing responsibilities of career and family. Jobs target By growing the economy, we can create the best conditions for more jobs, higher wages and the funding of better services for all Australians. This will provide benefits for all parts of the economy—in manufacturing, agriculture, education and research, and services, as well as mining. Within five years, my government envisages that our economy will have delivered one million new jobs. And within a decade, over two million new jobs will have been created. Asia and the region As well as playing its part in the wider global community, my government will strengthen Australia's relations with key partners and will bring a 'Jakarta, not Geneva' focus to our foreign policy. The focus of our international policies will be on the advancement of Australia's core strategic and economic interests. Australia has global interests but it is particularly important that we focus on the Asia-Pacific region. As the economies of Asia continue to expand, demand for Australian minerals and other exports will remain strong. As the Asian middle class grows and demographics shift, there will be new demand for Australian education and research, expertise in advanced services, manufacturing and agricultural products. To make sure this moment is not missed, my government will fast-track free trade agreements with South Korea, Japan, China, Indonesia and India. These are agreements that will provide new and enlarged markets for Australia's high-quality products and services—which means more exports and more jobs for Australians. Australia needs to be Asia literate and Asia capable. My government will work to develop stronger people-to-people links and to foster the culture and mindset necessary to capitalise on Asia's historic economic transformation. Academic and cultural exchanges are crucial to building this kind of network, so the government will implement a new, two-way version of the former Colombo Plan that will encourage more young Australians to study in the universities of Asia, as well as bringing students from our region to Australia's universities. A revitalised, competitive, productive and Asia-ready economy is the beginning, not the end, of my government's vision for Australia. Rural and regional Australia Northern Australia is Australia's growth frontier. If we prepare ourselves well, our cities and industries in the North will be well placed to capitalise on the expected growth from the Asia and Pacific regions. Unlocking Northern Australia's potential with more investment, more exports and more jobs will not only benefit the region but the entire country. Over the next 12 months, my government will develop a white paper to guide the policies and plans that will unlock the full economic potential of the North. A strong and competitive agriculture sector is essential to Australia's future. To support this aim, $100 million will be invested in agricultural research and development, with a focus on improving productivity. And within the next 12 months, a white paper focused on the profitability and competitiveness of the agriculture sector will be developed. Economic growth plan for Tasmania While the government's plans to lower taxes, cut red tape and lift productivity will benefit all Australians, my government also recognises that parts of Australia are under sustained economic pressure. In particular, my government is determined to restore confidence and jobs growth in Tasmania and change the economic trajectory of that state. The government will implement an economic growth plan for Tasmania to reset Tasmania's course to one of higher growth, more jobs and rising living standards. The economic growth plan for Tasmania includes establishing a joint Commonwealth and Tasmanian economic council as well as a major projects approval agency, which will be a one-stop shop for all projects valued at over $50 million. Roads of the 21st century Working with the states, my government will build the roads of the 21st century, with cranes over our cities and bulldozers on the ground. The WestConnex and the F3 to M2 upgrade in Sydney; the East West Link in Melbourne; the Gateway Motorway upgrade in Brisbane; the North-South Road corridor in Adelaide; the Perth Gateway project and Swan Valley Bypass; and the Midland Highway in Tasmania. As well as completing the duplication of New South Wales's Pacific Highway and upgrading and flood-proofing of Queensland's Bruce Highway. Better major roads and less congestion will allow Australians to spend less time stuck in traffic and more time at home with their families. There will be better infrastructure planning and more rigorous and transparent assessments of taxpayer funded projects. There will be a decision on a second major airport for Sydney. In collaboration with the states and territories, there will be a rolling 15-year infrastructure plan that identifies funding priorities on the basis of published cost-benefit analysis. For the first time, there will be an annual statement to the House of Representatives on the construction status of major infrastructure projects, the amount of Commonwealth funds spent on them and whether milestones have been met. Broadband The modern, connected economy has made broadband an essential strand of 21st century infrastructure. My government will deliver the fast and affordable broadband that Australians need and have been calling for. Australians' expectation of faster broadband has not been met. A new model for the National Broadband Network is needed if the fast and affordable broadband that Australians want is actually to be delivered. My government will build fibre to tens of thousands of distribution points—not to 12 million premises—and then use existing infrastructure to deliver much faster broadband to Australian homes. A ranking of broadband quality and availability in Australia will be provided to parliament to guide prioritisation of the rollout. NBN Co. will be required to amend its rollout plan so that priority can be given to the areas identified as inadequately served. National Disability Insurance Scheme My government will make the National Disability Insurance Scheme a reality for Australians with disabilities and their carers. It is a vast undertaking almost without precedent in our national life. My government will continue the rollout of the NDIS in line with the Productivity Commission's vision and the timetable detailed by the intergovernmental agreements with the states and territories. Delivering the right support for people with disabilities and their carers is a bipartisan project. So a bipartisan joint parliamentary committee will make sure the NDIS is kept on track. Hospitals To improve the performance of public hospitals, my government will work with the states and territories to give communities a real say in the management of their local hospitals. This approach should instil a 'patients-come-first' culture and deliver better outcomes at a local level. It will put more control into the hands of local hospital administrators and local doctors and nurses, ensuring better decisions are made. My government will continue to support the rollout of Early Psychosis Prevention and Intervention Centres and will establish Australia's first National Centre for Excellence in Youth Mental Health. My government is committed to providing transparency, certainty and confidence to the listing of medicines on the Pharmaceutical Benefits Scheme. It will take steps to ensure that medicines are listed on the advice of the independent Pharmaceutical Benefits Advisory Committee, ensuring that decisions made are based on the advice of medical experts. To continue the tradition of great Australian medical breakthroughs, my government will provide $200 million to help Australian scientists find a cure for dementia. The government will also provide $35 million to help find a cure for type 1 diabetes. This funding will help the Juvenile Diabetes Research Foundation to fund patient trials and co-ordinate a nationwide approach to diabetes research. Education As with public hospitals, my government wants to lift the quality of state schools by giving parents, principals and school communities more of a say in how their school is run. My government will work co-operatively with the states and encourage them to give schools greater independence through simpler budgeting and resource allocation and more autonomy in decision making. In the classroom, my government's vision is for a national curriculum that is rigorous and challenging without being cluttered or prescriptive. We also must make a concerted effort to get the basics right to ensure that all children leave school with strong literacy and numeracy skills. To inspire the next generation of Australian innovators and inventors, the Primary Connections science education program will continue. And because every Australian student has the right to a safe and happy school day, my government will work with social media operators, schools and parent groups to tackle cyberbullying and other harmful online material directed at children. Older Australians Older Australians deserve peace of mind, certainty and confidence. During this parliament, there will be no negative, unexpected changes to the superannuation system—so that Australians planning for their retirement can face the future with confidence. We will provide fairness in superannuation pensions to our veterans. The Defence Force Retirement Benefit and the Defence Force Retirement and Death Benefit superannuation pensions will be more generously indexed from 1 July next year. A first ever aged-care provider agreement will set a new framework for ageing policy and aged-care arrangements into the future—reducing bureaucracy and keeping the focus on quality care. A more secure nation Providing national security is the first duty of every government. To rebuild the Australian Defence Force, my government will restore defence spending to two per cent of GDP within a decade. A new Defence white paper will identify costed, affordable ways to meet Australia's national security objectives. And responsible savings found in the Defence bureaucracy will be reinvested in greater military capacity. 2014 marks the commencement of the Centenary of ANZAC. It is my government's hope that every Australian will be involved in some way in the commemorations that will take place in coming years. It will be a time to reflect on our history and renew our commitment to our country. Stronger borders Honourable senators and members, the government will strengthen Australia's borders and stop the flow of illegal arrivals. My government has reintroduced temporary protection visas—to deny the people smugglers a product to sell. Operation Sovereign Borders has already commenced to combat people smuggling and protect our borders. A presumption against refugee status will apply to those who arrive without papers, and those who deliberately discard their documentation will be denied the benefit of the doubt when determining their refugee status. Priority will be given to offshore refugee and special humanitarian visa applicants over those who arrive by boat. My government is putting in place a regional deterrence framework with our partners to strengthen our region's borders and thereby strengthen Australia's borders. Border Protection Command has been tasked to deploy the full set of measures necessary to ensure the integrity of our maritime borders and protect Australia's sovereignty. All of this will occur in consultation with our friends and neighbours in the region. Environmental priorities The government will take direct action to reach its goal of a five per cent reduction in carbon emissions by 2020. My government will establish an Emissions Reduction Fund, capped at $1.55 billion over the forward estimates. A cleaner environment helps all Australians—now and into the future. However, the best actions are practical and direct ones to improve our rivers, soils, air and farms. This can be done without a carbon tax or an emissions trading scheme. There will be a 15,000-strong Green Army charged with clean-up and conservation in local communities throughout Australia. The Green Army will supplement the land care efforts of councils, farmers and volunteers and work to rejuvenate our parklands and the bush. Indigenous Australians Honourable senators and members, empowered communities are far more important than an empowered government. Nowhere is the truth of this more apparent than in Aboriginal and Torres Strait Islander communities. My government wants a new engagement with Aboriginal people to be one of its hallmarks. The Prime Minister's Indigenous Advisory Council, chaired by Mr Warren Mundine, has been established. The council's focus will be ensuring that children go to schools, adults go to work and the ordinary rule of the land operates in Aboriginal communities. 'Training for training's sake' programs will be replaced with initiatives that help Indigenous Australians find, and keep, meaningful and rewarding work. In cooperation with the Australian Employment Covenant and Generation One, $45 million will train 5,000 Indigenous people for guaranteed jobs—because a real job offers dignity and hope and is a critical part of our reconciliation journey. A new concerted emphasis on attending school and finding work can break the cycle of welfare dependency and the entrenched unemployment that has held back Indigenous Australians for too long. Constitutional recognition of Indigenous people Within 12 months, my government will put forward for public consultation a draft constitutional amendment to recognise Indigenous people in the Constitution and establish a bipartisan process to assess its chances of success. A referendum recognising Aboriginal people as the first Australians could be a unifying and liberating moment for the nation, even surpassing the 1967 change or the national apology. Such an acknowledgement of Aboriginal people as the first Australians would complete our Constitution rather than change it. Conclusion There will be more for this parliament to do. New challenges will arise; new problems will need to be solved. But my government begins its time in office with a sense of optimism. There is no limit to what Australia can achieve, but only if we respect the limits of government, as well as its potential. Over the next three years, my government aims to provide mature and stable leadership that matches words with deeds, leadership that puts its faith in Australia's greatest resource—the genius and creativity of our people. Honourable senators and members, at the opening of the first parliament in Canberra in 1927, the Duke of York said that a new parliament marked a new page of history. He said that the opening of the Australian parliament was an opportunity for the rededication of this Commonwealth to the great ideals of liberty, fairness, justice and the cause of peace. Today, with a new parliament, a page has turned. A new page in our country's history is about to be written. May we all play our part in writing that shared history and building the stronger Australia that we all want. It is now my duty, and my pleasure, to declare the 44th Parliament of the Commonwealth of Australia open.

Australia

I acknowledge the traditional owners of the land on which we meet, the Ngunawal people, and pay my respects to their elders, past and present, emerging leaders and all Aboriginal and Torres Strait Islanders gathered here today. Honourable senators and members of the Parliament of Australia. Once again, we can be very proud of our democracy. We are a free people. We are a nation that has achieved great things and earned a special place in the modern world and the region in which we live. We are home to one of the world's oldest living cultures. We are blessed with an environment boasting oceans, forests, soils, water, coasts, rivers, deserts and other ancient landscapes beyond compare that we must steward responsibly. We are now in our 28th year of uninterrupted economic expansion. More Australians are working than ever before, and fewer Australians of working age are dependent on welfare than in generations. Our economic strength has been won by the enterprise, innovation and determination of a hardworking people, especially those running small and family businesses. Our prosperity enables us to deliver one of the world's most reliable social safety nets, providing income support, universal health care, disabilities support, aged care and comprehensive education to a growing population, regardless of where they live. We are deeply connected into our region, economically, strategically and through our deep historical ties. We have liberalised trade agreements with economies that account for more than 70 per cent of our trade. We are the largest provider of development assistance to the island nations of our Pacific family. Our Defence Force is respected not just for its capability but for its compassion, as it has responded to the many threats and events that have impacted our region. Our security, law enforcement, border protection and emergency relief agencies keep Australians safe in an often unpredictable world and in the face of fierce natural disasters. We are one of the world's oldest democracies; our freedom has produced a cohesive society that makes us the most successful immigrant and multicultural nation on earth. On 18 May 2019, more than 15 million Australians had their say about the future of our country and what they expect from the government and parliament they have elected to serve them for the next three years. Australians quietly going about their own lives, making decisions and taking responsibility for themselves and their families and working to make their communities stronger. These hardworking Australians made a simple and humble demand that their honest and decent aspirations for their future be respected and supported by those they elected. They voted for a government that understands Australians are focused on raising their families, running their businesses, working hard, volunteering, and caring for their family and friends. My government was elected on a platform to keep the economy strong and to pursue policies that ensure Australians keep more of the money they work so hard to earn and to give them more freedom and opportunity to make their own choices about their priorities in life. My government understands that it is the individual—and the collective—efforts of Australians that make our country stronger. That is why the aspirations, efforts and priorities of these Australians will now drive my government's agenda. To keep our economy strong, to keep Australians safe and to keep Australians together. The economy and tax reform My government believes a strong economy is the foundation of the compact between Australians and their government. Because a strong economy underpins a stronger society. A strong economy enables more spending on schools and hospitals. It allows my government to subsidise more medicines, to fund better roads and provide more support to Australia's rural and regional communities. And just as importantly, a strong economy makes us more resilient when economic shocks and global headwinds confront our country. My government understands that you can't take economic growth for granted and it requires continual work—in improving confidence, competitiveness and productivity. The government has clear goals that are based on its economic plan. To create 1.25 million jobs over the next five years, including jobs for 250,000 young Australians. These new jobs will build on the additional 1.4 million jobs created over the past five and a half years. To pay down debt—consistently and responsibly—and to eliminate net debt by 2030. To see another 250,000 small and family business open their doors during the next five years. And to see 10,000 more Australian companies exporting to the world by 2022, with these exporters benefiting from existing and new trade deals, which, by the end of this term, will cover around 90 per cent of our trade. My government's plan for a strong economy begins with sound fiscal policy. This financial year, my government is returning the budget to surplus. This will be the first surplus in 12 years. The budget, brought down in April, sets out the government's plan to deliver surpluses over the forward estimates—with $45 billion in surpluses over the next four years. Recognising the progress that has been made in repairing the budget, my government will put more power into the hands of Australians by letting people keep more of what they earn. That is why my government's first legislative priority will be to provide tax relief to hardworking Australians earning up to $126,000 a year. My government trusts Australians with their own money, and it wants them to have more of it. That is why my government will lift the threshold for the minimum rate of tax from $37,000 as it is today to $45,000 from 2022-23 onwards and abolish the second top rate of 37 per cent entirely from 2024-25. The middle tax rate of 32.5 per cent will also be reduced to 30 per cent. This means that in five years time, 94 per cent of Australian taxpayers will pay no more than 30c in the dollar in tax—and only on their earnings above $45,000 a year. From 2024-25, Australians will be able to increase their earnings from $45,000 to $200,000 a year without facing an increase in their marginal tax rate. And around 60 per cent of all personal income tax will be paid by the highest earning 20 per cent of taxpayers. My government's plan for tax relief also includes small, medium and family businesses. By 2021-22, the small business tax rate will be just 25 per cent. The extension and expansion of the instant asset write-off will provide the incentive for small businesses to invest in the equipment they need to grow. My government is creating a tax system that is fairer—and one that provides more incentives for Australians to work hard and get ahead, one that enables Australians to exercise more control over how their own money is spent. Regulatory reform and industrial relations While Australia is on track to achieve 28 years of economic growth—a modern economic wonder—there are economic headwinds. Protectionist sentiment and trade conflicts abroad, drought and flood, and a necessary moderation of the housing market at home. An essential driver of grown is cooperative, productive and confident businesses—of which investment is an essential outcome. To strengthen investment, my government will undertake renewed regulatory reform. It will partner with businesses in identifying the barriers, blockages and bottlenecks to investment. Confidence to invest relies on productive and harmonious workplaces. This means tackling lawlessness in workplaces whenever and wherever it may occur. My government will introduce legislation to deal with registered organisations and individuals who break the law. It will prohibit officials who are not fit and proper persons from holding office, and stop the misuse of worker entitlement funds. As well, the Minister for Industrial Relations is reviewing the impediments to shared workplace gains for employers and employees. This work will be evidence based. It will protect the rights and entitlements of workers and identify a way forward that will benefit our economy and, most importantly, the workers who rely on it. Jobs With a stronger economy, my government will deliver on its plan to get Australians into more and better paid jobs. An essential part of this plan is ensuring our workplaces have the skills they need. This means strengthening our vocational education and training system. My government will address and build on the findings of the Joyce review by setting up a National Skills Commission and a new National Careers Institute which will give people the information they need to make the best decisions about their future careers. My government will support its job creation efforts with a $585 million commitment to improving skills and training—including creating 80,000 new apprenticeships and establishing 10 new Industry Training Hubs in key locations of high youth unemployment in regional Australia. My government will double the apprentice wage subsidy trial to assist 3,200 young Australians in regional and rural areas secure the job and the qualifications they need to pursue a rewarding career. Australians who wish to return to the workforce will also be supported by a new government program—the Mid-Career Checkpoint. This initiative will support up to 40,000 Australians, particularly women, to return to the workforce—usually after taking time out to care for children and older members of their family. Home o wnership More jobs, more money in the pockets of working Australians, together with new support from my government, will enable more Australians to realise the dream of owning their own home. Australians work hard to get a foot on the housing market ladder. A home allows individuals, couples and families to create their own economic security. My government believes in homeownership and seeing more Australians in their own homes. My government will use the dividends of a strong economy to make it easier for more Australians to buy their first home. It will introduce the First Home Loan Deposit Scheme to help people who want to buy their home to access finance without having to save a 20 per cent deposit, so they can get into the market more quickly. From 1 January 2020, first home buyers who have already saved at least five per cent of their deposit, and who earn up to $125,000 for a single person or $200,000 for couples, will be able to get better and earlier access to mortgage finance. My government is also addressing housing affordability by investing one billion dollars in local infrastructure to unlock new housing supply; releasing more suitable Commonwealth land for housing development; reducing barriers for older Australians to downsize from their family homes and enforcing rules on foreign investment in established residential real estate. Infrastructure Building new strong communities requires a commitment to new infrastructure—to building the roads, rail links and airports we need to bust congestion and make everyday life easier for all Australians. The new Western Sydney International Nancy-Bird Walton Airport along with the transport links to support its operation are being built. The airport will be a job producing hub for Western Sydney. My government is supporting major infrastructure projects around the country: the Melbourne Airport rail link and East West Link to get that great city moving fast rail between Geelong and Melbourne to open up new opportunities for businesses and families throughout that busy corridor upgrading the Tonkin Highway in Perth fixing the Bruce Highway in Queensland improving the Buntine Highway in the Northern Territory building a new Bridgewater Bridge in Tasmania and completing the North-South Corridor in South Australia as well as targeting funding to ease the worst pressure points for traffic congestion in cities and regional centres right across the nation. My government has committed $100 billion to these projects to make life easier for mums and dads in the suburbs, and businesses with freight that requires transport. Our efforts also include digital infrastructure, and by 2020 the rollout of the National Broadband Network will be complete. My government will further address the issue of congestion in our cities by enacting policies to better match migration with Australia's needs. This will ease the pressure on big cities while supporting the growth of smaller cities and regions. It will reduce the migration cap by 15 per cent and provide incentive for more new migrants to settle outside the big cities where there are jobs services. The Commonwealth will also work more closely with state and territory governments to match infrastructure with local population needs. And these efforts will be supported by our nationwide infrastructure program. Health My government's commitment to a strong economy will enable it to invest in the services that all Australians rely on for happier, healthier and more-prosperous lives. Services like public hospitals that provide the critical care that we all rely on. My government will invest an extra $31 billion in public hospitals over the next five years, providing funding for more emergency department visits, outpatient services, needed scans and surgeries, and treatments of life-threatening illnesses and diseases. My government will also invest $308 million to reduce the cost of life-changing medicines for Australians, especially those who have chronic health conditions that require multiple medications. From 1 January 2020, the threshold to receive free or discounted medicines will be lowered by 12 prescriptions for pensioners and concession card holders and by two prescriptions for non-concession-card-holders. These investments in the health of all Australians are the dividend of good economic management. My government's ability to return the budget to surplus is also enabling greater investment in mental health care, particularly for our young people. Mental health Each year one in five Australians aged over 16 experiences mental illness. For young people, that rate is even higher, affecting just over a quarter of those aged between 16 and 24. Tragically, suicide is a leading cause of death for our young people, devastating families, schools and communities in every corner of this nation. That should not be so in our country. We must do more, and my government will. I know this is an issue to which the Prime Minister is strongly and personally committed. My government will invest almost $740 million in youth mental health and suicide prevention services. Thirty new headspace centres will be opened to reduce wait times and make more counselling services available for young people, and eight dedicated mental health centres for adults will be trialled. Importantly, more services will be made available in regional and rural areas, where the insecurity that comes with every season takes a heavy toll on the mental health of young people and older members of the community alike. My government will increase support for mental health services for First Australians, because too many precious live are being lost far too early. And my government will support more postnatal support services to ensure that new mothers get the mental health care they need while they most need it and that their children get the best possible start in life. National Disability Insurance Scheme Too often in the past, Australians with disabilities have been on the periphery of our national conversation about health services. Now, having fully funded the National Disability Insurance Scheme and made services available to almost 300,000 people, my government's commitment is to extend these services to more than half a million Australians over the next five years. My government has, for the first time, appointed a minister especially for the NDIS who will sit at the cabinet table. The minister will be dedicated to ensuring that Australians with disabilities have the services they need, where and when they need them and in a way that works for them. Education This country owes a responsibility to all young Australians to enable them to meet their full potential. From early childhood to university, no Australian child or teenager should be denied opportunity for want of a quality education. Over the next decade my government will increase funding for all primary and secondary schools across all sectors by an average of 62 per cent per student. This $310 billion investment is a commitment to deliver the world-class education system that will equip Australia for the decades ahead. Government services and payments Every day, the Commonwealth has millions of interactions with citizens through the provision of government services and payments. My government intends to lift the performance of government service delivery—and will establish Services Australia. Bringing government services together and ensuring those services support people at key stages of their lives—such as having a baby or retiring from work—will underpin the transformation of government service delivery. As more and more Australians choose to engage with government using convenient digital services, my government will continue to invest in the use of data as a national resource to make better informed decisions, develop innovative solutions to the issues facing citizens and provide improved services. Defence and veterans In a period of unprecedented change in our global security environment, nothing is more important to my government than keeping Australians safe. That's what the men and women of the Australian Defence Force dedicate their lives to every day. My government will continue to give our Navy, Army and Air Force the capabilities they need to combat new threats and challenges in the 21st century. In addition to the continuing commitment to restore defence spending to two per cent of GDP, my government will continue to deliver our ambitious Naval Shipbuilding Plan, our combat vehicle program, and our 5th generation Air Force. My government will ensure the Australian Army is better protected with a new self-propelled howitzer artillery system. And my government will never forget our veterans, who have served in our nation's uniform with courage and dedication. We will keep our promise to our returned service men and women, including those who have been involved in the more recent chapters of our military history. If we ask men and women to risk all for our country, then it behoves our nation to do everything we can for them. Our efforts supporting veterans and their families will focus on: improving veterans' care and support; helping veterans find jobs after their service in uniform is complete; and recognising and respecting the service and sacrifice of veterans and their families. My government will continue to ensure that veterans and their families are cared for and supported through record investments in mental health care and counselling, which will remain uncapped and demand-driven. But there is always more that we can do to ensure that we are consistently meeting the expectations of our veterans and the wider community, particularly as we fight the scourge of veteran suicide. My government will continue to work with veterans and the ex-service community to ensure that no veteran ever believes that taking their own life is the only way forward. We will invest in six new veterans' wellbeing hubs around the country to ensure those who've served have the health and employment services they need when they return home or return to civilian life. Security The fight to keep us safe doesn't only occur on the battlefield. My government will provide the nation's security and intelligence agencies with the resources and the legal framework they need to protect us all from terrorism and foreign interference. These agencies have already thwarted 15 major terrorist attacks and we thank them for their ongoing commitment to the safety of all Australians both at home and abroad. And my government will maintain its absolute commitment to Operation Sovereign Borders to ensure our migration program remains orderly and accountable to all Australians. Foreign Policy My government will continue to work with international partners to further Australia's national interest at home and internationally. It is committed to further strengthening our alliance relationship with the United States in support of our shared interests and values, including through increased US engagement and cooperation in the Indo-Pacific region. It will seek to create opportunities to expand and deepen Australia's valued relationship with China—a comprehensive strategic partnership founded on mutual respect and mutual benefit. The government is fully committed to maintaining the momentum of Australia's Pacific step-up—our strategy to boost engagement with Australia's Pacific neighbours by strengthening community, economic and security bonds and working in partnership to tackle common challenges. We will intensify efforts to ensure the Indo-Pacific region remains free, open and inclusive, including through deepening engagement and closer cooperation with ASEAN and Australia's partners in South-East and South Asia. Beyond the Indo-Pacific region, my government will continue to work with like-minded partners to uphold and reinforce the rules based global order, which has served Australia's interests and fundamental values for nearly 75 years. This will include building interest based coalitions in international forums to press for further action to tackle challenges posed by terrorist exploitation of the internet and reform of the multilateral rules based trading system. Energy My government's policies will address energy affordability, improve energy reliability and ensure Australia meets its emissions reduction goal. Policies to introduce a default market offer for electricity and ban unconscionable late payment fees commenced yesterday. The default market offer will benefit up to 800,000 Australian families and businesses, providing them with more affordable electricity prices. As well, five million eligible social security recipients will benefit from energy assistance payments of $75 for singles and $125 for couples—assisting them with their next power bill and cost-of-living expenses. My government is focused on building the Snowy 2.0 scheme and we are supporting the Battery of the Nation project and Marinus Link, delivering record investments in new renewable energy for Australians. Climate change My government understands that Australia must and will continue to take urgent and effective action to address climate change. We will undertake this action as part of a coordinated global effort. We will continue to set and meet responsible and achievable carbon emissions reduction targets and encourage other nations to do likewise. Australia is on track to meet our emissions targets under the Kyoto protocol, and we will exceed our target by 367 million tonnes. Australia will meet our 2030 targets under the government's Climate Solutions plan. Environment Caring for our environment and conserving it for the future is an integral part of meeting our intergenerational obligation to future Australians. My government will improve soil health, protect threatened species and restore wetlands by investing $1 billion for Phase 2 of the National Landcare Program. It is also investing $1.2 billion in the future health of the Great Barrier Reef. These efforts include improving water quality, combating crown-of-thorns starfish and undertaking vital research. My government is determined to reduce waste and increase recycling. We will work closely with industry on achieving needed change. This includes supporting a phase-out of microbeads from personal-care and cosmetic products, and working with the packaging industry to ensure 100 per cent of Australian packaging is recyclable, compostable or reusable by 2025. My government will also move to take up a global advocacy position with other nations in our region, like Indonesia, on the health of our oceans. Our continent touches both the Pacific and Indian oceans. Our geography, values, responsibilities and interests demand that we lift our advocacy efforts in this important area. We will use our existing and expanded domestic actions as the basis for our advocacy, to lead by example on this important global environmental agenda. Rural and regional Australians For many Australians, living in a rural or regional area is not only a way of life; it informs the very core of their identity. Regional and rural Australians provide much of the food we eat and the fibres we wear; they work in the industries that produce export income to help our economy thrive. Like all Australians, those in the bush are resilient, self-reliant and aspirational—but they're also harder hit than most by unexpected events. Earlier this year, nature flung its worst at North Queenslanders, and they are demonstrating their resilience and strong character as they rebuild and recover. The government's focus is on assisting local communities to continue that recovery. Though we would all like it to be otherwise, drought conditions are not expected to ease in the short term. One of the first orders of business of this 46th Parliament will be to legislate the $3.9 billion Future Drought Fund. That funding must be a priority to help better manage drought, to protect our valuable rural industries and the people who make them possible. My government will also introduce a new suite of measures to support farmers, their families and rural communities to continue to battle drought, flood and natural disasters. Concessional loans will be available for re-stocking and replanting to help farmers bounce back when the rain returns. And the farm asset threshold will be permanently raised to $5 million to allow more people to access the farm household allowance. My government wants to encourage new farmers. That's why it is establishing a new concessional loan product to help farmers to buy their first farm. My government will also prioritise legislation to criminalise the invasion of rural properties and the incitement of violence that too often leads to such behaviour. It is also committed to eliminating mobile phone blackspots across one million square kilometres of this country. It will also do more to support university and vocational education students to stay in their local communities by providing five additional regional study hubs. And to improve the health of people living outside our cities, 13 new regional cancer centres will be opened, and 3,000 more doctors and the same number of nurses will be supported into regional general practice in the decade ahead. New medical treatments and medicines will also be delivered through clinical trials in regional, rural and remote areas. My government's promise is to govern for all Australians and that promise includes those of us living in our most rural and remote communities. Indigenous Australians My government will continue to prioritise the interests of Aboriginal and Torres Strait Islander people. For the first time in Australian history, an Aboriginal member of this parliament will have responsibility for policy affecting Indigenous peoples. Congratulations to the member for Hasluck and on behalf of all Australians I wish you every good fortune in your endeavours. I also congratulate the member for Barton on her appointment as the shadow minister for Indigenous Australians and wish her the best as well. My government has also bolstered its commitment to First Australians by creating a new agency—the National Indigenous Australians Agency—to oversee all policy and programs related to Aboriginal and Torres Strait Islander peoples. This new agency is part of the Prime Minister's portfolio, ensuring that its important work is overseen at the most senior levels of government. The agency is tasked to deliver on the revised Closing the Gap targets that drive improved outcomes for Indigenous Australians. Priority will be placed on practical efforts to ensure Indigenous children are healthy and in school; that they can live safely in their communities; that we confront the terrible curse of youth suicide in remote communities; that we improve employment outcomes; and ensure that Indigenous Australians can expect the same from life in Australia as any other citizen. My government will also continue to work to find consensus on a way forward for constitutional recognition of Indigenous Australians and develop ground-up governance models for enhanced, inclusive and local decision-making on issues impacting the lives of Indigenous Australians. Older Australians My government will continue to prioritise better support for the people who made this country what it is today—older Australians. It will establish a new Aged Care Workforce Research Centre to find new ways to deliver care for older Australians and appropriate training for aged-care providers, as well as ensuring the aged-care workforce grows to meet increasing demand. My government also recognises that not all older Australians need care, but many find themselves spending long days alone and simply need a friend. With that in mind, it will invest $10 million in a program to keep senior Australians connected to their communities and to one another. Loneliness is a terrible thing, never more so than toward the end of a full and well-lived life. My government is committed to doing more to ensure that the people to whom this nation owes the greatest debt have the chance to live fulfilled and more connected lives. Through the royal commission into aged care as well as the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability, Australians will have a clearer idea about the quality of services and care that needs to be provided to some of our most vulnerable citizens. Ending violence against women Combating violence against women and children remains an important priority, as part of my government's plan to keep Australians safe. The Commonwealth will make a $328 million investment into prevention and frontline services as part of the Fourth Action Plan to reduce violence against women and their children. Tackling the scourge of domestic violence is a community responsibility and my government will continue to work with the states, territories and non-government sector to deliver lasting change to prevent and reduce family, domestic and sexual violence. Online crime and safety The way we live our lives is constantly changing. Social media and online platforms are a bigger part of our lives than ever. They also bring with them new challenges and new dangers. My government will crack down on social media providers, online predators and trolls, to better protect children and the broader community. These measures will build on the world-leading protections Australia already has in place. The rules that apply in the real world must also apply to our life online. A new Online Safety Act will be developed to ensure our regulation keeps pace with technological change. Penalties for online harassment will be increased and new aggravated offences introduced for the worst categories of online crimes. New offences will be introduced for providing electronic services to facilitate dealing with child abuse material and for grooming activity; and my government will reintroduce legislation to impose mandatory minimum sentences for child sex offences. My government will also invest $156 million in protecting all Australians from cyberattacks that harm individuals, businesses and our national security. The Cyber Resilience and Workforce Package will ensure we create the cyberworkforce we need for the future; counter the capability of foreign cybercriminals; and expand assistance to the community to fight against malicious online criminals. Conclusion The opening of a new parliament marks a new chapter in our country's history. It marks an opportunity for our nation's elected members and senators to come together to tackle important new issues, and to view existing challenges with fresh eyes. Democracy is a robust undertaking, and disagreement is a fundamental part of that contest of ideas. As the Prime Minister has often noted, the challenge of modern democracies is not to disagree less, but to disagree better. That is best achieved when members and senators focus on the lives, welfare and opportunities of the people of Australia. It is their welfare and their security which is the unifying force of this great institution. I wish you well as you proceed in your service of our good and decent country. And with those words it is my duty and my very great pleasure to declare the 46th Parliament of the Commonwealth of Australia open.

Australia

I acknowledge the traditional owners of the land on which we meet, the Ngunawal people, and pay my respects to their elders, past and present, emerging leaders and all Aboriginal and Torres Strait Islanders gathered here today. Honourable senators and members of the Parliament of Australia. Once again, we can be very proud of our democracy. We are a free people. We are a nation that has achieved great things and earned a special place in the modern world and the region in which we live. We are home to one of the world's oldest living cultures. We are blessed with an environment boasting oceans, forests, soils, water, coasts, rivers, deserts and other ancient landscapes beyond compare that we must steward responsibly. We are now in our 28th year of uninterrupted economic expansion. More Australians are working than ever before, and fewer Australians of working age are dependent on welfare than in generations. Our economic strength has been won by the enterprise, innovation and determination of a hardworking people, especially those running small and family businesses. Our prosperity enables us to deliver one of the world's most reliable social safety nets, providing income support, universal health care, disabilities support, aged care and comprehensive education to a growing population, regardless of where they live. We are deeply connected into our region, economically, strategically and through our deep historical ties. We have liberalised trade agreements with economies that account for more than 70 per cent of our trade. We are the largest provider of development assistance to the island nations of our Pacific family. Our Defence Force is respected not just for its capability but for its compassion, as it has responded to the many threats and events that have impacted our region. Our security, law enforcement, border protection and emergency relief agencies keep Australians safe in an often unpredictable world and in the face of fierce natural disasters. We are one of the world's oldest democracies; our freedom has produced a cohesive society that makes us the most successful immigrant and multicultural nation on earth. On 18 May 2019, more than 15 million Australians had their say about the future of our country and what they expect from the government and parliament they have elected to serve them for the next three years. Australians quietly going about their own lives, making decisions and taking responsibility for themselves and their families and working to make their communities stronger. These hardworking Australians made a simple and humble demand that their honest and decent aspirations for their future be respected and supported by those they elected. They voted for a government that understands Australians are focused on raising their families, running their businesses, working hard, volunteering, and caring for their family and friends. My government was elected on a platform to keep the economy strong and to pursue policies that ensure Australians keep more of the money they work so hard to earn and to give them more freedom and opportunity to make their own choices about their priorities in life. My government understands that it is the individual—and the collective—efforts of Australians that make our country stronger. That is why the aspirations, efforts and priorities of these Australians will now drive my government's agenda. To keep our economy strong, to keep Australians safe and to keep Australians together. The economy and tax reform My government believes a strong economy is the foundation of the compact between Australians and their government. Because a strong economy underpins a stronger society. A strong economy enables more spending on schools and hospitals. It allows my government to subsidise more medicines, to fund better roads and provide more support to Australia's rural and regional communities. And just as importantly, a strong economy makes us more resilient when economic shocks and global headwinds confront our country. My government understands that you can't take economic growth for granted and it requires continual work—in improving confidence, competitiveness and productivity. The government has clear goals that are based on its economic plan. To create 1.25 million jobs over the next five years, including jobs for 250,000 young Australians. These new jobs will build on the additional 1.4 million jobs created over the past five and a half years. To pay down debt—consistently and responsibly—and to eliminate net debt by 2030. To see another 250,000 small and family business open their doors during the next five years. And to see 10,000 more Australian companies exporting to the world by 2022, with these exporters benefiting from existing and new trade deals, which, by the end of this term, will cover around 90 per cent of our trade. My government's plan for a strong economy begins with sound fiscal policy. This financial year, my government is returning the budget to surplus. This will be the first surplus in 12 years. The budget, brought down in April, sets out the government's plan to deliver surpluses over the forward estimates—with $45 billion in surpluses over the next four years. Recognising the progress that has been made in repairing the budget, my government will put more power into the hands of Australians by letting people keep more of what they earn. That is why my government's first legislative priority will be to provide tax relief to hardworking Australians earning up to $126,000 a year. My government trusts Australians with their own money, and it wants them to have more of it. That is why my government will lift the threshold for the minimum rate of tax from $37,000 as it is today to $45,000 from 2022-23 onwards and abolish the second top rate of 37 per cent entirely from 2024-25. The middle tax rate of 32.5 per cent will also be reduced to 30 per cent. This means that in five years time, 94 per cent of Australian taxpayers will pay no more than 30c in the dollar in tax—and only on their earnings above $45,000 a year. From 2024-25, Australians will be able to increase their earnings from $45,000 to $200,000 a year without facing an increase in their marginal tax rate. And around 60 per cent of all personal income tax will be paid by the highest earning 20 per cent of taxpayers. My government's plan for tax relief also includes small, medium and family businesses. By 2021-22, the small business tax rate will be just 25 per cent. The extension and expansion of the instant asset write-off will provide the incentive for small businesses to invest in the equipment they need to grow. My government is creating a tax system that is fairer—and one that provides more incentives for Australians to work hard and get ahead, one that enables Australians to exercise more control over how their own money is spent. Regulatory reform and industrial relations While Australia is on track to achieve 28 years of economic growth—a modern economic wonder—there are economic headwinds. Protectionist sentiment and trade conflicts abroad, drought and flood, and a necessary moderation of the housing market at home. An essential driver of grown is cooperative, productive and confident businesses—of which investment is an essential outcome. To strengthen investment, my government will undertake renewed regulatory reform. It will partner with businesses in identifying the barriers, blockages and bottlenecks to investment. Confidence to invest relies on productive and harmonious workplaces. This means tackling lawlessness in workplaces whenever and wherever it may occur. My government will introduce legislation to deal with registered organisations and individuals who break the law. It will prohibit officials who are not fit and proper persons from holding office, and stop the misuse of worker entitlement funds. As well, the Minister for Industrial Relations is reviewing the impediments to shared workplace gains for employers and employees. This work will be evidence based. It will protect the rights and entitlements of workers and identify a way forward that will benefit our economy and, most importantly, the workers who rely on it. Jobs With a stronger economy, my government will deliver on its plan to get Australians into more and better paid jobs. An essential part of this plan is ensuring our workplaces have the skills they need. This means strengthening our vocational education and training system. My government will address and build on the findings of the Joyce review by setting up a National Skills Commission and a new National Careers Institute which will give people the information they need to make the best decisions about their future careers. My government will support its job creation efforts with a $585 million commitment to improving skills and training—including creating 80,000 new apprenticeships and establishing 10 new Industry Training Hubs in key locations of high youth unemployment in regional Australia. My government will double the apprentice wage subsidy trial to assist 3,200 young Australians in regional and rural areas secure the job and the qualifications they need to pursue a rewarding career. Australians who wish to return to the workforce will also be supported by a new government program—the Mid-Career Checkpoint. This initiative will support up to 40,000 Australians, particularly women, to return to the workforce—usually after taking time out to care for children and older members of their family. Home o wnership More jobs, more money in the pockets of working Australians, together with new support from my government, will enable more Australians to realise the dream of owning their own home. Australians work hard to get a foot on the housing market ladder. A home allows individuals, couples and families to create their own economic security. My government believes in homeownership and seeing more Australians in their own homes. My government will use the dividends of a strong economy to make it easier for more Australians to buy their first home. It will introduce the First Home Loan Deposit Scheme to help people who want to buy their home to access finance without having to save a 20 per cent deposit, so they can get into the market more quickly. From 1 January 2020, first home buyers who have already saved at least five per cent of their deposit, and who earn up to $125,000 for a single person or $200,000 for couples, will be able to get better and earlier access to mortgage finance. My government is also addressing housing affordability by investing one billion dollars in local infrastructure to unlock new housing supply; releasing more suitable Commonwealth land for housing development; reducing barriers for older Australians to downsize from their family homes and enforcing rules on foreign investment in established residential real estate. Infrastructure Building new strong communities requires a commitment to new infrastructure—to building the roads, rail links and airports we need to bust congestion and make everyday life easier for all Australians. The new Western Sydney International Nancy-Bird Walton Airport along with the transport links to support its operation are being built. The airport will be a job producing hub for Western Sydney. My government is supporting major infrastructure projects around the country: the Melbourne Airport rail link and East West Link to get that great city moving fast rail between Geelong and Melbourne to open up new opportunities for businesses and families throughout that busy corridor upgrading the Tonkin Highway in Perth fixing the Bruce Highway in Queensland improving the Buntine Highway in the Northern Territory building a new Bridgewater Bridge in Tasmania and completing the North-South Corridor in South Australia as well as targeting funding to ease the worst pressure points for traffic congestion in cities and regional centres right across the nation. My government has committed $100 billion to these projects to make life easier for mums and dads in the suburbs, and businesses with freight that requires transport. Our efforts also include digital infrastructure, and by 2020 the rollout of the National Broadband Network will be complete. My government will further address the issue of congestion in our cities by enacting policies to better match migration with Australia's needs. This will ease the pressure on big cities while supporting the growth of smaller cities and regions. It will reduce the migration cap by 15 per cent and provide incentive for more new migrants to settle outside the big cities where there are jobs services. The Commonwealth will also work more closely with state and territory governments to match infrastructure with local population needs. And these efforts will be supported by our nationwide infrastructure program. Health My government's commitment to a strong economy will enable it to invest in the services that all Australians rely on for happier, healthier and more-prosperous lives. Services like public hospitals that provide the critical care that we all rely on. My government will invest an extra $31 billion in public hospitals over the next five years, providing funding for more emergency department visits, outpatient services, needed scans and surgeries, and treatments of life-threatening illnesses and diseases. My government will also invest $308 million to reduce the cost of life-changing medicines for Australians, especially those who have chronic health conditions that require multiple medications. From 1 January 2020, the threshold to receive free or discounted medicines will be lowered by 12 prescriptions for pensioners and concession card holders and by two prescriptions for non-concession-card-holders. These investments in the health of all Australians are the dividend of good economic management. My government's ability to return the budget to surplus is also enabling greater investment in mental health care, particularly for our young people. Mental health Each year one in five Australians aged over 16 experiences mental illness. For young people, that rate is even higher, affecting just over a quarter of those aged between 16 and 24. Tragically, suicide is a leading cause of death for our young people, devastating families, schools and communities in every corner of this nation. That should not be so in our country. We must do more, and my government will. I know this is an issue to which the Prime Minister is strongly and personally committed. My government will invest almost $740 million in youth mental health and suicide prevention services. Thirty new headspace centres will be opened to reduce wait times and make more counselling services available for young people, and eight dedicated mental health centres for adults will be trialled. Importantly, more services will be made available in regional and rural areas, where the insecurity that comes with every season takes a heavy toll on the mental health of young people and older members of the community alike. My government will increase support for mental health services for First Australians, because too many precious live are being lost far too early. And my government will support more postnatal support services to ensure that new mothers get the mental health care they need while they most need it and that their children get the best possible start in life. National Disability Insurance Scheme Too often in the past, Australians with disabilities have been on the periphery of our national conversation about health services. Now, having fully funded the National Disability Insurance Scheme and made services available to almost 300,000 people, my government's commitment is to extend these services to more than half a million Australians over the next five years. My government has, for the first time, appointed a minister especially for the NDIS who will sit at the cabinet table. The minister will be dedicated to ensuring that Australians with disabilities have the services they need, where and when they need them and in a way that works for them. Education This country owes a responsibility to all young Australians to enable them to meet their full potential. From early childhood to university, no Australian child or teenager should be denied opportunity for want of a quality education. Over the next decade my government will increase funding for all primary and secondary schools across all sectors by an average of 62 per cent per student. This $310 billion investment is a commitment to deliver the world-class education system that will equip Australia for the decades ahead. Government services and payments Every day, the Commonwealth has millions of interactions with citizens through the provision of government services and payments. My government intends to lift the performance of government service delivery—and will establish Services Australia. Bringing government services together and ensuring those services support people at key stages of their lives—such as having a baby or retiring from work—will underpin the transformation of government service delivery. As more and more Australians choose to engage with government using convenient digital services, my government will continue to invest in the use of data as a national resource to make better informed decisions, develop innovative solutions to the issues facing citizens and provide improved services. Defence and veterans In a period of unprecedented change in our global security environment, nothing is more important to my government than keeping Australians safe. That's what the men and women of the Australian Defence Force dedicate their lives to every day. My government will continue to give our Navy, Army and Air Force the capabilities they need to combat new threats and challenges in the 21st century. In addition to the continuing commitment to restore defence spending to two per cent of GDP, my government will continue to deliver our ambitious Naval Shipbuilding Plan, our combat vehicle program, and our 5th generation Air Force. My government will ensure the Australian Army is better protected with a new self-propelled howitzer artillery system. And my government will never forget our veterans, who have served in our nation's uniform with courage and dedication. We will keep our promise to our returned service men and women, including those who have been involved in the more recent chapters of our military history. If we ask men and women to risk all for our country, then it behoves our nation to do everything we can for them. Our efforts supporting veterans and their families will focus on: improving veterans' care and support; helping veterans find jobs after their service in uniform is complete; and recognising and respecting the service and sacrifice of veterans and their families. My government will continue to ensure that veterans and their families are cared for and supported through record investments in mental health care and counselling, which will remain uncapped and demand-driven. But there is always more that we can do to ensure that we are consistently meeting the expectations of our veterans and the wider community, particularly as we fight the scourge of veteran suicide. My government will continue to work with veterans and the ex-service community to ensure that no veteran ever believes that taking their own life is the only way forward. We will invest in six new veterans' wellbeing hubs around the country to ensure those who've served have the health and employment services they need when they return home or return to civilian life. Security The fight to keep us safe doesn't only occur on the battlefield. My government will provide the nation's security and intelligence agencies with the resources and the legal framework they need to protect us all from terrorism and foreign interference. These agencies have already thwarted 15 major terrorist attacks and we thank them for their ongoing commitment to the safety of all Australians both at home and abroad. And my government will maintain its absolute commitment to Operation Sovereign Borders to ensure our migration program remains orderly and accountable to all Australians. Foreign Policy My government will continue to work with international partners to further Australia's national interest at home and internationally. It is committed to further strengthening our alliance relationship with the United States in support of our shared interests and values, including through increased US engagement and cooperation in the Indo-Pacific region. It will seek to create opportunities to expand and deepen Australia's valued relationship with China—a comprehensive strategic partnership founded on mutual respect and mutual benefit. The government is fully committed to maintaining the momentum of Australia's Pacific step-up—our strategy to boost engagement with Australia's Pacific neighbours by strengthening community, economic and security bonds and working in partnership to tackle common challenges. We will intensify efforts to ensure the Indo-Pacific region remains free, open and inclusive, including through deepening engagement and closer cooperation with ASEAN and Australia's partners in South-East and South Asia. Beyond the Indo-Pacific region, my government will continue to work with like-minded partners to uphold and reinforce the rules based global order, which has served Australia's interests and fundamental values for nearly 75 years. This will include building interest based coalitions in international forums to press for further action to tackle challenges posed by terrorist exploitation of the internet and reform of the multilateral rules based trading system. Energy My government's policies will address energy affordability, improve energy reliability and ensure Australia meets its emissions reduction goal. Policies to introduce a default market offer for electricity and ban unconscionable late payment fees commenced yesterday. The default market offer will benefit up to 800,000 Australian families and businesses, providing them with more affordable electricity prices. As well, five million eligible social security recipients will benefit from energy assistance payments of $75 for singles and $125 for couples—assisting them with their next power bill and cost-of-living expenses. My government is focused on building the Snowy 2.0 scheme and we are supporting the Battery of the Nation project and Marinus Link, delivering record investments in new renewable energy for Australians. Climate change My government understands that Australia must and will continue to take urgent and effective action to address climate change. We will undertake this action as part of a coordinated global effort. We will continue to set and meet responsible and achievable carbon emissions reduction targets and encourage other nations to do likewise. Australia is on track to meet our emissions targets under the Kyoto protocol, and we will exceed our target by 367 million tonnes. Australia will meet our 2030 targets under the government's Climate Solutions plan. Environment Caring for our environment and conserving it for the future is an integral part of meeting our intergenerational obligation to future Australians. My government will improve soil health, protect threatened species and restore wetlands by investing $1 billion for Phase 2 of the National Landcare Program. It is also investing $1.2 billion in the future health of the Great Barrier Reef. These efforts include improving water quality, combating crown-of-thorns starfish and undertaking vital research. My government is determined to reduce waste and increase recycling. We will work closely with industry on achieving needed change. This includes supporting a phase-out of microbeads from personal-care and cosmetic products, and working with the packaging industry to ensure 100 per cent of Australian packaging is recyclable, compostable or reusable by 2025. My government will also move to take up a global advocacy position with other nations in our region, like Indonesia, on the health of our oceans. Our continent touches both the Pacific and Indian oceans. Our geography, values, responsibilities and interests demand that we lift our advocacy efforts in this important area. We will use our existing and expanded domestic actions as the basis for our advocacy, to lead by example on this important global environmental agenda. Rural and regional Australians For many Australians, living in a rural or regional area is not only a way of life; it informs the very core of their identity. Regional and rural Australians provide much of the food we eat and the fibres we wear; they work in the industries that produce export income to help our economy thrive. Like all Australians, those in the bush are resilient, self-reliant and aspirational—but they're also harder hit than most by unexpected events. Earlier this year, nature flung its worst at North Queenslanders, and they are demonstrating their resilience and strong character as they rebuild and recover. The government's focus is on assisting local communities to continue that recovery. Though we would all like it to be otherwise, drought conditions are not expected to ease in the short term. One of the first orders of business of this 46th Parliament will be to legislate the $3.9 billion Future Drought Fund. That funding must be a priority to help better manage drought, to protect our valuable rural industries and the people who make them possible. My government will also introduce a new suite of measures to support farmers, their families and rural communities to continue to battle drought, flood and natural disasters. Concessional loans will be available for re-stocking and replanting to help farmers bounce back when the rain returns. And the farm asset threshold will be permanently raised to $5 million to allow more people to access the farm household allowance. My government wants to encourage new farmers. That's why it is establishing a new concessional loan product to help farmers to buy their first farm. My government will also prioritise legislation to criminalise the invasion of rural properties and the incitement of violence that too often leads to such behaviour. It is also committed to eliminating mobile phone blackspots across one million square kilometres of this country. It will also do more to support university and vocational education students to stay in their local communities by providing five additional regional study hubs. And to improve the health of people living outside our cities, 13 new regional cancer centres will be opened, and 3,000 more doctors and the same number of nurses will be supported into regional general practice in the decade ahead. New medical treatments and medicines will also be delivered through clinical trials in regional, rural and remote areas. My government's promise is to govern for all Australians and that promise includes those of us living in our most rural and remote communities. Indigenous Australians My government will continue to prioritise the interests of Aboriginal and Torres Strait Islander people. For the first time in Australian history, an Aboriginal member of this parliament will have responsibility for policy affecting Indigenous peoples. Congratulations to the member for Hasluck and on behalf of all Australians I wish you every good fortune in your endeavours. I also congratulate the member for Barton on her appointment as the shadow minister for Indigenous Australians and wish her the best as well. My government has also bolstered its commitment to First Australians by creating a new agency—the National Indigenous Australians Agency—to oversee all policy and programs related to Aboriginal and Torres Strait Islander peoples. This new agency is part of the Prime Minister's portfolio, ensuring that its important work is overseen at the most senior levels of government. The agency is tasked to deliver on the revised Closing the Gap targets that drive improved outcomes for Indigenous Australians. Priority will be placed on practical efforts to ensure Indigenous children are healthy and in school; that they can live safely in their communities; that we confront the terrible curse of youth suicide in remote communities; that we improve employment outcomes; and ensure that Indigenous Australians can expect the same from life in Australia as any other citizen. My government will also continue to work to find consensus on a way forward for constitutional recognition of Indigenous Australians and develop ground-up governance models for enhanced, inclusive and local decision-making on issues impacting the lives of Indigenous Australians. Older Australians My government will continue to prioritise better support for the people who made this country what it is today—older Australians. It will establish a new Aged Care Workforce Research Centre to find new ways to deliver care for older Australians and appropriate training for aged-care providers, as well as ensuring the aged-care workforce grows to meet increasing demand. My government also recognises that not all older Australians need care, but many find themselves spending long days alone and simply need a friend. With that in mind, it will invest $10 million in a program to keep senior Australians connected to their communities and to one another. Loneliness is a terrible thing, never more so than toward the end of a full and well-lived life. My government is committed to doing more to ensure that the people to whom this nation owes the greatest debt have the chance to live fulfilled and more connected lives. Through the royal commission into aged care as well as the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability, Australians will have a clearer idea about the quality of services and care that needs to be provided to some of our most vulnerable citizens. Ending violence against women Combating violence against women and children remains an important priority, as part of my government's plan to keep Australians safe. The Commonwealth will make a $328 million investment into prevention and frontline services as part of the Fourth Action Plan to reduce violence against women and their children. Tackling the scourge of domestic violence is a community responsibility and my government will continue to work with the states, territories and non-government sector to deliver lasting change to prevent and reduce family, domestic and sexual violence. Online crime and safety The way we live our lives is constantly changing. Social media and online platforms are a bigger part of our lives than ever. They also bring with them new challenges and new dangers. My government will crack down on social media providers, online predators and trolls, to better protect children and the broader community. These measures will build on the world-leading protections Australia already has in place. The rules that apply in the real world must also apply to our life online. A new Online Safety Act will be developed to ensure our regulation keeps pace with technological change. Penalties for online harassment will be increased and new aggravated offences introduced for the worst categories of online crimes. New offences will be introduced for providing electronic services to facilitate dealing with child abuse material and for grooming activity; and my government will reintroduce legislation to impose mandatory minimum sentences for child sex offences. My government will also invest $156 million in protecting all Australians from cyberattacks that harm individuals, businesses and our national security. The Cyber Resilience and Workforce Package will ensure we create the cyberworkforce we need for the future; counter the capability of foreign cybercriminals; and expand assistance to the community to fight against malicious online criminals. Conclusion The opening of a new parliament marks a new chapter in our country's history. It marks an opportunity for our nation's elected members and senators to come together to tackle important new issues, and to view existing challenges with fresh eyes. Democracy is a robust undertaking, and disagreement is a fundamental part of that contest of ideas. As the Prime Minister has often noted, the challenge of modern democracies is not to disagree less, but to disagree better. That is best achieved when members and senators focus on the lives, welfare and opportunities of the people of Australia. It is their welfare and their security which is the unifying force of this great institution. I wish you well as you proceed in your service of our good and decent country. And with those words it is my duty and my very great pleasure to declare the 46th Parliament of the Commonwealth of Australia open.

Australia

Honourable senators and members of the parliament of Australia. I begin by acknowledging that we are meeting today on Ngunnawal and Ngambri country and pay respects to elders past and present, and particularly acknowledge the younger generation who are our pathway to our future. Since I last spoke in this chamber, ferocious fires, devastating floods and a once-in-a-hundred-years pandemic have unleashed an extraordinary period of uncertainty, trauma and loss upon our country. The past three years have asked so much of so many. Again and again, Australians have risen to the moment. Thinking of their communities. Looking after each other. In hard times, Australians have been at their caring and courageous best. Major challenges—new and old—are before us. In confronting these challenges, this parliament must seek to match the resolve and resilience of the people in whose name you serve. As the Prime Minister has said—prove 'worthy of the people of Australia'. In a turbulent world we can find hope in the strength of our democracy. In May, at more than 7,000 polling centres, many thousands of postboxes, via the phone and in diplomatic missions the world over, millions of Australians cast their ballots and exercised their fundamental right and responsibility as citizens of our great democracy. Australians have elected one of the most diverse parliaments in the history of our federation. And for the first time in almost a decade, Australians voted to change the government. All of us can give thanks that changes of government take place peacefully and swiftly in Australia, and with respect and courtesy for those with whom we may not agree. The new government has pledged to govern for all Australians, whoever they are, wherever they live and whoever they voted for—and to honour the trust Australians have conferred. The government knows this country faces serious and pressing challenges: rising cost of living low wages growth climate change—and its devastating impact tensions in the region, uncertainty in the world pressure in health and aged care and an economy in need of cheaper energy and new skills. The government is determined to tackle these challenges in a spirit of unity and togetherness—as well as urgency. It does not want to waste a single day. To this end, the Prime Minister and a select few ministers were at Government House to be sworn in less than 48 hours after the election result was known. Sooner than any other new government in Australia's history. The government's commitment to 'hit the ground running' was honoured, with the Quad leaders meeting in Tokyo and a prime ministerial visit to Indonesia. The government made a submission to the Fair Work Commission, to prevent Australia's lowest-paid workers from going backward—resulting in a 5.2 per cent wage increase. The government also submitted a new, more ambitious 2030 nationally determined contribution to the United Nations Framework Convention on Climate Change. Committing to reduce emissions to 43 per cent below 2005 levels by 2030, putting Australia on track to achieve net zero by 2050. Beyond that, the government has already taken measures to shore up Australia's energy market, protect aged-care residents and provide assistance to Australians affected by the recent floods. The Uluru Statement from the Heart The government takes office with a renewed ambition for Australia to reconcile with our past, to tell and know the truth about history, and to place a First Nations voice at the heart of our democratic process. The Uluru Statement from the Heart was an act of generosity by First Nations people, mapping out a path forward for us as a nation. It is the government's intention to take up this generous offer and seek to enshrine a voice to parliament in the Constitution via a national referendum in this term. The government views the implementation of the Uluru statement as an opportunity for healing and for learning from the truth of our history. And, just as importantly, the voice is a chance to build a better future for First Nations people. A future where a voice to parliament helps drive and deliver better health outcomes and longer lives, new education and employment opportunities, safer communities with decent housing, and an end to the cycle of injustice, incarceration and deaths in custody. All of this—voice, truth, treaty and closing the gap—depends on genuine partnerships. The government commits to engaging closely and respectfully with First Nations people and the Australian community more broadly ahead of the referendum. Honourable senators and members, a First Nations voice promises to be like the '67 referendum, like Mabo, like the national apology—a defining moment for our nation. An historic opportunity to move on from the safety of words to the bravery of action. At the centre of the government's determination to close the gap is to believe that First Nations people, like every other Australian, should be made to feel empowered. To this end, the Community Development Program, compulsory income management and the cashless debit card will all cease. In their place will be policies that provide First Nations people with greater support to secure good jobs and earn proper wages in safe conditions. In the same spirit, the government will invest in First Nations management of lands and waters, humbly recognising the skills and knowledge gained over tens of thousands of years. The government will expand the community led model of justice reinvestment to turn the tide on incarceration and act on the national shame of First Nations' deaths in custody. It will partner with communities, peak bodies and elders to improve health and life expectancy. And the government will commit to new Indigenous employment targets for the Public Service and for Australia's 200 largest companies. I congratulate the Hon. Linda Burney MP, member for Barton and a proud member of the Wiradjuri nation on her appointment as the Minister for Indigenous Australians. I also congratulate Senator Malarndirri McCarthy, a proud Yanyuwa woman, on her appointment as Assistant Minister for Indigenous Australians and Assistant Minister for Indigenous Health. And Senator Pat Dodson, a proud Yawuru man, on his appointment as Special Envoy for Reconciliation and the Implementation of the Uluru Statement from the Heart. I wish them all the best as they lead this urgent and historic work—work which will promote unity and healing. A stronger economy Helping Australians—all Australians—achieve their aspirations in life is central to the government's values of opportunity, fairness and reward for effort. The government's policies will promote economic growth that creates opportunities for Australians, and the government's policies will create opportunities for more Australians to drive economic growth. At the macro level, the Australian economy faces a number of significant challenges. Disrupted supply chains mean it's harder and more expensive for Australian businesses and households to buy the goods they want and need. Rising interest rates are increasing pressure on mortgages. And a decade of low wages has put a handbrake on confidence. We are, in the words of the Treasurer, in 'choppy waters'. But the government is determined to steer Australia safely through. The government will make targeted investments that expand the capacity of the economy, reduce debt as a share of GDP over time, and improve quality of life for Australians. Prioritising spending that achieves the greatest economic benefit is the most efficient way. Spending that creates jobs, boosts participation, lifts productivity, increases wages and grows incomes. The government will invest in cleaner and cheaper energy, better training of our workforce, cheaper child care, and an upgraded NBN. Importantly, the government will focus on the quality of spending, not just the quantity. This includes ensuring multinational companies pay their fair share of tax. Child care The government recognises that the rising cost of child care is a pressure point for family budgets and a continuing drag on economic participation and productivity. To honour a key election commitment, the government will reduce childcare costs for more than a million families. The government will also instruct the Australian Competition and Consumer Commission to design a price regulation mechanism to drive down out-of-pocket costs. The Productivity Commission will undertake a comprehensive review of the childcare sector, with the aim of implementing a universal subsidy for all families. This will be accompanied by a whole-of-government Early Years Strategy, focused on the wellbeing, education and development of Australia's children. The ultimate goal is to add affordable child care to the list of universal services—alongside Medicare, the NDIS and superannuation—that Australians cherish. Investing in cheaper child care reflects the government's belief that one of the most powerful initiatives it can pursue for stronger economic growth and greater productivity is more equal opportunity for women. This is why the government has set itself a goal to re-establish Australia as a global leader in gender equality. A new National Strategy to Achieve Gender Equality will be developed, geared at closing the gender pay gap and improving women's economic equality, health and wellbeing. An independent Women's Economic Security Taskforce will also come into force to deliver gender responsive budgeting and embed gender analysis in the policy development process. The government will seek to strengthen the ability of the Fair Work Commission to support wage growth in female dominated industries, such as aged care. The recommendations of the Human Rights Commission's landmark Respect@Work report will be implemented, including, crucially, a positive duty on employers to create safe workplaces for women, free from harassment. The government has plans to help end violence against women and children, including finalising the next National Plan to End Violence against Women and Children 2022-2032. The government will establish 10 days paid family and domestic violence leave; increase the supply of emergency housing for women and children fleeing family violence; and invest in more case workers to assist women leaving violent situations. A fair go at work One of this government's central aims is building an economy that works for people, not the other way around. An economy where working hard means Australians can pay their bills, support their families and save for the future. Today, more than 1.3 million Australians are either unemployed or looking for more hours, and many more struggle on low wages and with poor working conditions. The government knows Australia can do better than this. The nature of work has changed enormously, with an increase in new work arrangements and the gig economy. The government will seek to ensure that Australia's laws catch up with this reality and protect people from exploitation and unsafe working conditions. The government will make secure work an objective in the Fair Work Act. And it will legislate to make wage theft a crime. Skills For the government—and for the business community of Australia—skills are high on the national agenda. In the coming period the government will legislate to establish Jobs and Skills Australia, to drive vocational education and training, and strengthen workforce planning. The new body will bring employers, trade unions and the training and education sector around the same table to achieve common objectives. The Commonwealth will help train thousands of new workers by ensuring that one in 10 workers on major government projects is an apprentice, trainee or cadet. Public TAFE will be returned to the centre of Australia's training system. And the government will support fee-free TAFE places for Australian students, focused on those studying in industries with a skills shortage. There will also be up to 20,000 more university places, with priority going to universities offering places in priority areas like clean energy, advanced manufacturing, health and education. Action will also be taken to reduce the number of on-hand visa applications, to address skills shortages in the short term. In the same way, the government will work with Australia's agricultural sector, to ensure farmers and producers can access workers at the right time while ensuring those workers see their rights upheld. The government believes that with the right settings we can build a bigger, better trained and more productive workforce; boost incomes and living standards; and create more opportunities for more Australians to get ahead. And, to support these goals, the government will hold an Australian Jobs and Skills Summit on 1 and 2 September here at Parliament House. The summit will bring businesses, trade unions, the non-government sector and all levels of government together to find common ground on the economic challenges we face. It will inform the development of an employment white paper, which will highlight the structural changes and opportunities in the Australian labour market and chart a path forward. A future made in Australia At the election, the government signalled its strong belief that Australia must be a country that makes things. Australia has a proud history of manufacturing, but over recent decades the scope of our manufacturing has narrowed, as international competitors have displaced Australian makers and Australian skills. The supply chain issues experienced through the pandemic have put a spotlight on this challenge. The government will seek to rebuild Australia's proud manufacturing industry through a commitment to a future made in Australia. This begins with the establishment of a $15 billion National Reconstruction Fund to grow and diversify Australia's industrial base. The fund will take as its mission supporting new and emerging industries, helping our economy transition to reach net zero emissions by 2050, creating secure, well-paid jobs for Australian workers, driving regional economic development, and building our sovereign capability. Priority areas for investment will include renewables and low-emission technologies; medical science; transport; value-add in agriculture, forestry and fisheries; value-add in resources; and, finally, defence and enabling capabilities. The Buy Australian Plan will complement this investment by maximising the use of Australian-made goods, products and materials in Commonwealth contracts—harnessing the significant purchasing power of government. The government will also work with industry to reach a goal of 1.2 million Australian tech-related jobs by 2030. New investments will be made in the Australian railway industry too, ensuring that more trains are built in Australia by local Australian workers. Whether a train or a ferry, a solar panel or a piece of technical defence equipment, Australians will once again be making the products our economy needs for the future. Investing in infrastructure The government believes revitalising Australian manufacturing is an investment in national resilience and national security—and the same is true for renewing and improving our national infrastructure. Infrastructure investment enables people and goods to move around faster, reducing the cost of doing business, growing the economy and better connecting our communities, improving Australians' quality of life. The government is resolved to restore confidence in Australia's infrastructure and regional development pipelines. At the centre of this effort will be reforming Infrastructure Australia as our nation's foremost infrastructure advisory body. The Commonwealth—in cooperation with state and territory governments—will focus on quality investments, including to improve safety, reduce congestion and boost productivity. The government will also begin work on nation-building projects like high-speed rail and an Australian flagged strategic fleet. It will also ensure the Inland Rail project gets back on track. And—as part of a new national push to improve road safety and lower the road toll—the government will work with truck drivers and the wider industry to upgrade rest areas on national roads. Medicare and the NDIS The government believes every Australian has the right to access universal, affordable medical care. It is one of the things that underpins our unity as a nation. But for too many Australians, geography, income and background still pose barriers to care. The government is committed to making it easier for Australians to see a doctor and afford treatment. To serve this priority, at least 50 Medicare urgent care clinics will be established. Their services will be bulk-billed. The government will deliver a $750 million Strengthening Medicare Fund, with investment priorities guided by the Strengthening Medicare Taskforce. The government will also cut the cost of medicines on the Pharmaceutical Benefits Scheme from $42.50 to $30—saving Australians $12.50 for every medication. The 50 per cent loading for telehealth psychiatric consultations under the Medicare Benefits Schedule will be reinstated, allowing easier access to bulk-billed services for Australians who live in regional and rural areas. There will also be wider access to the Commonwealth seniors health card, opening up access to cheaper medicines, and bulk-billed doctor visits for an extra 50,000 older Australians. GPs will be able to access grants to modernise their practices, and the government will invest in initiatives to bring more doctors to regional and rural Australia. The government is committed to strengthening Medicare and is determined to fill the promise of the National Disability Insurance Scheme to empower Australians with disability, their families and carers. The wisdom, diverse experience and perspective of people with disability will be at the centre of the government's efforts to prove the design, delivery, accountability and sustainability of the NDIS. The government will also develop a National Autism Strategy and oversee the National Disability Data Asset so we can better understand the life experiences of people with disability in Australia. The government believes the NDIS can—and must—work better for people with disability. COVID-19 As this winter brings a new omicron wave, the COVID-19 pandemic continues to challenge virtually every facet of our healthcare system. The government will continue to adapt its response in line with the public health advice, including significant renewed efforts to increase the uptake of booster vaccines, influenza vaccines and COVID-19 treatments. The government will also extend the National Partnership on COVID-19 Response for a further three months, to 31 December 2022, at a cost of approximately $760 million. This will provide funding to states and territories to continue to care for those with COVID-19 and protect the community through the public health response. The government will also use this opportunity to better prepare for the future. It will establish a Centre for Disease Control, to strengthen Australia's pandemic preparedness and ensure a nationally coordinated response to future outbreaks of infectious disease. Aged care COVID-19 took a devastating toll on Australians in aged care. But the government recognises aged care was in crisis well before the pandemic struck. The Royal Commission into Aged Care Quality and Safety has challenged Australia to do better. Far better. The government will legislate changes to deliver quality, security and dignity in care for every older Australian across our aged-care system. This will mean a registered nurse on site in every aged-care facility, 24 hours a day, seven days a week. It will mandate for every Australian in aged care to receive 215 minutes of care per day, ensuring more care for every resident. It will deliver better food, an increase in transparency and accountability, and a cap on the fees people can be charged for administration and management of their home care package. The government will back calls for a real pay increase for aged-care workers at the Fair Work Commission, recognising that higher standards of care must be supported by higher wages. The government sees a moral duty in caring for our elders and treating our older Australians with the respect, humanity and dignity they deserve. Climate change and energy Acting on climate change is a priority for the government—and an opportunity for Australia. Embracing the transition to clean energy will create hundreds of thousands of new jobs. Under its Powering Australia plan, the government expects to create more than 600,000 job opportunities, with five out of every six in regional Australia. The plan will also spur $76 billion worth of investment and will help save families and businesses hundreds of dollars a year on their electricity bills. Powering Australia will create clean energy jobs and cut power costs. But is also a plan to bring people together and move the country forward, around a collective desire to take far stronger action on climate change and accelerate our efforts towards net zero emissions by 2050. Additionally, the government has formally updated Australia's nationally determined contribution under the Paris Agreement, a 43 per cent reduction on 2005 levels by 2030. The government intends to go a step further, enshrining this new commitment in legislation and sending industry and investors a clear message: certainty. The government believes that, with the right policies and investments, Australia can become a clean energy superpower. That's why the government will invest in accelerating the decarbonisation of Australia's electricity grid. The government will also support manufacturing of renewables and low-emission technologies and invest in community batteries and solar banks. Australia's first national electric vehicle strategy will be established, too. Investment in vehicle charging and hydrogen refuelling infrastructure will double. The government will establish a New Energy Skills Program and train 10,000 new energy apprentices. The role of the Climate Change Authority will be restored. And, to show the seriousness with which Australia approaches climate change, Australia will seek our Pacific partners' views on co-hosting a future UN climate Conference of the Parties. Environment and water The government believes that acting on climate change is a chance to grow the economy and protect the environment. The Great Barrier Reef is a UNESCO World Heritage site and one of the seven wonders of the natural world. Protecting its future is an important responsibility. The government will invest in reef preservation and restoration, ensuring that the reef can be enjoyed for generations to come. The government will partner with local communities to clean up urban rivers and catchments, to improve water quality and amenity, and help protect threatened species. The government will double the number of rangers in the Indigenous rangers program, bringing the total number of rangers to 3,800 by 2030. And they will boost funding for the management of Indigenous protected areas—critical for maintaining cultural sites, biodiversity conservation and restoration. Furthermore, the government has committed to a full response to the Samuel review of the Environment Protection and Biodiversity Conservation Act; and to ongoing consultation to make environmental laws work better for everyone. Water management is a priority, too. The government will establish a National Water Commission to drive ongoing water reform, and futureproof Australia's water supply. The government will also deliver on water commitments under the Murray-Darling Basin Plan, including 450 gigalitres for South Australia. Disaster readiness The government recognises the economic opportunity and the environmental necessity that acting on climate change presents for Australia. It also understands that the consequences of climate change are already being visited upon our communities with greater frequency and ferocity. The government will oversee an ongoing process of review to ensure Australia's national disaster recovery support arrangements are streamlined, fair and equitable. It will work with states, territories and local governments to continue to implement the recommendations of the Royal Commission into National Natural Disaster Arrangements. And it will build our national resilience, ensuring we have the capacity to predict, prevent, absorb, adapt to and evolve from national emergencies and disasters in the future, including through the Disaster Ready Fund. Australia ' s place in the world This 47th Parliament of Australia meets in an international environment far less certain than any other time in recent memory. The Prime Minister earlier this month witnessed firsthand the devastation wrought by Russia's invasion of Ukraine. As that unprovoked, illegal and immoral war continues to rage, the rules based global order comes under increasing strain. The government will continue to show solidarity with the people of Ukraine. And seek to manage the ripple effect of uncertainty in our own region. At this time, Australia needs to deploy all aspects of our power—military, diplomatic, economic and social. The government believes the Australian people must be at the heart of our engagement, because what we project to the world starts with who we are. Our multicultural society makes us a more diverse, more prosperous and more vibrant nation. But multiculturalism is also a diplomatic asset—as the home of more than 300 ancestries, Australia can reach into every corner of the world and say, 'We share common ground.' We can work together, with our partners, to secure a region that is stable, prosperous and respectful of sovereignty. We will deepen cooperation through ASEAN, strengthen our bilateral relationships, and further our shared goals through the Quad. Australia will bring new energy and resources to the Pacific, respecting Pacific institutions and listening to Pacific priorities, the most pressing of which is the climate crisis. Ultimately, the government's foreign policy is an expression of our national values, national interests and national identity. An important part of that equation is trade. The government's objectives will be to advance Australia's interests, bolster the rules-based multilateral trading system, and deliver business opportunities for Australian producers and suppliers. The government sees great gains for us in a future powered by cleaner and cheaper energy. So, as the world demands change, we need to not just diversify the markets we export to but what we export as well. Turning to defence policy and national security, the government will spend two per cent of Australia's GDP on defence, including enhancing the Australian Defence Force with capabilities outlined in the 2020 Defence strategic update. AUKUS will remain central, not only in delivering nuclear powered submarines but also in guiding accelerated development of advanced defence capabilities where they have the most impact. A Defence Force Posture Review will similarly ensure the capability is there to meet Australia's growing strategic challenges. In 2022, national security also takes in everything from cybersecurity to biosecurity. The government will seek to bolster Australian cybersecurity expertise—and has already acted to boost Australia's biosecurity system against the threat foot-and-mouth disease poses to our farmers. Operation Sovereign Borders will be maintained, to ensure people smugglers in the region cannot restart a business model built on human suffering. And the government will support a strong humanitarian migration program that can respond to humanitarian crises as they arise. Keeping the nation safe is the solemn duty of every government. And the government believes that the Australians who fulfil that responsibility and risk their lives in the service of our nation are owed not just respect and remembrance but ongoing support. This is a moral obligation we owe ADF personnel, veterans and their families, including those affected by our longest and most recent war in Afghanistan. Priorities include speeding up DVA claims and payments processing times and expanding the network of veterans and families hubs across Australia. The government has also listened to the families of defence personnel and veterans and supported their calls for the Royal Commission into Defence and Veteran Suicide, and will look forward to the royal commission's interim report next month. Safer and more affordable housing Alongside the government's commitment to nation-building sits a determination to ensure more Australians can count on the safety and stability of secure housing. We all know the difference a secure roof over your head can make to a person's life chances. The government will establish a Housing Australia Future Fund to build an additional 30,000 new social and affordable houses within five years. It will create a National Housing Supply and Affordability Council, and launch a National Housing and Homelessness Plan. The government also sees the importance of homeownership, the sense of belonging and pride and stability it can confer. And so, it will support more Australians into their own home through the Help To Buy scheme and the Regional First Home Buyer Support Scheme. Education The government believes education is the most powerful weapon against disadvantage—and the best investment in Australia's economic future. Cheaper child care means more children will get access to early years education. And the government will cooperate with the states and territories to make sure all schools are put on a path to full and fair funding. The government knows great teachers change lives—and will initiate policies to attract the best and brightest to the teaching profession and work with schools across jurisdictions to address teacher workforce challenges. In addition, the government will prioritise helping kids bounce back after COVID-19, with a $200 million investment in mental health and wellbeing support. The government will boost investment in public TAFE and apprenticeships, to ensure a new generation of Australians can gain the skills and confidence for the jobs of the future. And resetting the relationships with universities is a priority, too. The government has pledged to develop an Australian Universities Accord, covering the accessibility, affordability, quality and sustainability of our treasured higher education institutions. With that, comes a renewed focus on university and research excellence, including the translation and commercialisation of great Australian ingenuity. Valuing the arts The government has great faith in our national cultural endeavour, and recognises the importance of getting Australia's arts industry back on track, too. The conviction is simple: that a nation that invests in art and creativity is a nation that knows itself, and invites the world to know it better. It's in this spirit that this parliamentary term will see the release of a national cultural policy—the first in almost a decade. There will also be greater certainty for two other vital cultural institutions—the ABC and SBS—with new funding terms spanning five years. Fighting corruption The government has an ambitious agenda for Australia. And it recognises that so much of what it hopes to achieve depends on the trust of the Australian people. Trust that government and public institutions will act with integrity in the interests of the nation. To strengthen this trust, the government will legislate to create a powerful, independent and transparent national anticorruption commission. This will bring the Commonwealth in line with the states and territories, and will enable investigations of serious and systemic corruption. It will be an important addition to the integrity framework of this country. And out of the same commitment to accountability and public confidence, the government will establish a royal commission into the scheme commonly known as robodebt. A strong Australian Public Service Leading with integrity also means working in partnership with a strong, committed and empowered Public Service. The removal of the average staffing level cap, rebalancing the use of labour hire, limiting fixed-term contracts and undertaking a strategic reinvestment of funds will form the first phase of the government's plan to rebuild the Public Service's capacity to deliver the best outcomes for the Australian people. The government will ensure the APS becomes a model employer and an employer of choice, including—and especially—for First Nations people, and those living with disability. The government will seek to lead by example. Conclusion A change of government represents a chance to bring the nation together anew. To senators and members from the government, opposition and crossbench, I congratulate you on being called to serve our country and our democracy. I urge you to advocate thoughtfully, debate respectfully and—in everything you do—prove worthy of the Australian people. I wish you every success in meeting this moment. It is now my duty and my honour to declare the 47th Parliament of the Commonwealth of Australia open.

Australia

Honourable Members of the Senate, Members of the House of Commons, Ladies and Gentlemen: It is an honour for me, today, to open this Second Session of the Thirty-Sixth Parliament of Canada. I appreciate having the opportunity so early in my mandate to represent the Queen as one of the three elements of Parliament. It is a responsibility which I take seriously, and I intend to follow your deliberations closely. Unlike my immediate predecessors, I have not had the privilege of serving among you. I do, however, value highly the role that you play and the dedication that you show in making this remarkable institution work effectively as the centrepiece of the Canadian democratic system. I am very aware of the sacrifices that so many of you make in your personal and professional lives in accepting the challenges of public office. The commitment you have made is one that I share, and I look forward to working with you over the next five years in the service of the people of Canada. Today, the representatives of the Canadian people gather to open the session of Parliament that will carry the country into the new millennium. We stand before a new century confident in the promise of Canada for our children and grandchildren. Technology is altering every aspect of our lives. Knowledge and creativity are now the driving force in a new economy. And collaboration is becoming more essential as the issues facing our diverse society grow in their complexity. But Canadians will succeed in this changing world, just as we have succeeded throughout our country’s history. The promise of Canada was born in an age when countries were forged through war or revolution. Our nation’s founders chose a unique path, which has become the Canadian way – creating a country dedicated to peace, order and good government for all its citizens. It took foresight and commitment to break the mould of the nation-state founded on a single language, culture or religion. That foresight and commitment have been greatly rewarded. Canada began as a small colony with little industry and no role of its own in global affairs. Over generations, individual Canadians built a better future for their families and their communities. Canadians and their governments overcame barriers of distance and a harsh northern climate to build a national railway, a system of highways, a postal service, and national cultural institutions, as well as hospitals, universities, and other institutions. Canadians and their governments also put in place a modern social safety net. Together, these achievements have provided the foundation for our quality of life. Within a few generations, we evolved into an independent nation with an advanced industrialized economy and a voice in the councils of the world: the United Nations, the G-8, the Organisation for Economic Co-operation and Development, NATO, and many others. Canada is now serving its sixth elected term on the United Nations Security Council. Ours is a voice for peace. Canada was the first to propose the use of troops for peacekeeping. Today, Canadians are keeping the peace in many countries around the world. But whenever tyranny has threatened peace and security, Canadians have never hesitated to answer the call. Together with our proud Canadian veterans, we remember those who paid with their lives at Vimy Ridge, on Juno Beach, and at Hill 355 in Korea. In the tradition of the coureurs des bois, we have explored the frontiers of science. From the invention of newsprint to the creation of advanced computer languages, Canadian ingenuity has helped to build the information age. From the discovery of insulin to the earliest pacemaker, Canadians have given new life to millions around the world. Canada was a pioneer in the peaceful use of space, becoming a leader in satellite communications and remote-sensing technologies. Today, our astronauts are using Canadian technology to help assemble the International Space Station – the largest scientific project in history. In a complex world, diverse approaches, skills and ideas are essential to building a higher quality of life. Canada is a bilingual country in which both men and women of many different cultures, races and religions participate in economic, social and political life. Our diversity is a source of strength and creativity, making us modern and forward-looking. Our actions and our history make us at home in a world of change and increasing interdependence. Our human talent, our values and our commitment to working together will secure Canada’s leadership in the knowledge-based economy. Today, Canadians can look with pride on Canada’s success. We have a dynamic economy, a strong and democratic society, and a sense of community. We are recognized throughout the world for our quality of life. We will build a higher quality of life for all Canadians – for our children, ourselves, and our neighbours. A Strong and United Canada A high quality of life for Canadians and a strong, united Canada are inseparable. The Government will continue to take a comprehensive approach to strengthening the unity of our country. All its actions will serve to strengthen Canada by enhancing the quality of life of Canadians. Our federal system allows us to value the different strengths of each region of our country. It guarantees all citizens equal rights and freedoms. And it enables Canada’s wealth to be shared by all citizens no matter where they live – from Newfoundland in the east, to British Columbia in the west, to our newest territory, Nunavut, in the north. Over the last two Parliaments, Canadians have built a foundation for even greater success. Our economy is strong. Our citizens enjoy expanding opportunities and increasing choices. Our artists, writers, musicians and filmmakers draw admiration from around the world. And Canada itself earns the respect of the community of nations as a symbol of peace, democracy and compassion. The best way to achieve the promise of Canada for every citizen is to work together to build the highest quality of life for all Canadians. But there are some who would pull us apart rather than bring us together. Even though Quebeckers do not want a third referendum, the Government of Quebec continues to talk about holding another one. The Government of Canada therefore reaffirms the commitment it has made to Quebeckers and all other Canadians that the principle of clarity, as set out by the Supreme Court of Canada, will be respected. To seize the opportunities and meet the challenges of a new global economy, we must work together in the Canadian way and concentrate on what matters most to Canadians. We must take bold steps today to make Canada even stronger in the next century. This requires national will, national strategies and partnerships across the country. Citizens and governments must collaboratively build an even stronger and more united Canada, a Canada that remains an example to the world. Canadians expect their national government to focus on areas where it can and must make a difference. And they want this done in the Canadian way – working together, balancing individual and government action, and listening to citizens. Canadians expect their Government to be fiscally prudent, to reduce the debt burden, to cut taxes, and to pursue the policies necessary for a strong society. The emerging global marketplace offers an enormous opportunity to create more Canadian jobs, more Canadian growth and more Canadian influence in the world. It provides expanding opportunities to secure a higher quality of life for all Canadians. To seize these opportunities, we must build on our strengths. Achieving a higher quality of life requires a comprehensive strategy to accelerate the transition to the knowledge-based economy, promote our interests and project our values in the world. Together, we will strive for excellence. This demands that we collaborate with our partners to: • develop our children and youth, our leaders for the 21st century; • build a dynamic economy; • strengthen health and quality care for Canadians; • ensure the quality of our environment; • build stronger communities; • strengthen the relationship with Canada’s Aboriginal peoples; and • advance Canada’s place in the world. Children and Youth: Our Leaders for the 21st Century Our Children Because of the changing nature of the world economy, the prospects for a high quality of life in any country will depend – as never before – on having a population that is adaptable, resilient and ready to learn throughout life. The foundation for this is laid in the very early years. No commitment we make today will be more important for the long-term prosperity and well-being of our society than the commitment to invest our efforts in very young children. Parents and families have the primary responsibility for the care of their children. But all of society must work together to ensure that our children develop the abilities to succeed. The Government will extend and make more accessible Employment Insurance benefits for parental leave, to help parents take more time from work to spend with their children. It will make its own workplace policies and those of federally regulated employers more family friendly. Through further tax relief, it will put more dollars in the hands of families with children. And, with its provincial and territorial partners, it will work to reform family law and strengthen supports provided to families to ensure that, in cases of separation or divorce, the needs and best interests of children come first. Federal, provincial and territorial governments are developing together the National Children’s Agenda. As part of this work, it is the Government’s objective to reach an agreement among governments by December 2000 on a national action plan to further support parents and families. This plan will be consistent with the Social Union Framework Agreement. It will set out common principles, objectives and fiscal parameters for all governments to increase resources and further strengthen supports for early childhood development. To make it easier for families to break the cycle of poverty, the federal, provincial and territorial governments also established the National Child Benefit. The Government of Canada is already investing an additional $1.7 billion annually in low-income families with children, while the provinces and territories are investing in complementary services. The Government wants no family to have to choose between a job and benefits for their children. Therefore, by 2002, the Government will make a third significant investment in the National Child Benefit, while seeking a commitment from its provincial and territorial partners to increase their investment in services for families with children. Young Canadians Young Canadians are the leaders of tomorrow. Already, they are at home in the wired world. They have energy, ideas and technological savvy, and they want to contribute to building their country in the 21st century. In our global and connected world, young Canadians are acquiring knowledge and skills at an earlier age. They deserve more and earlier opportunities to get involved, develop their talents and expand their skills. In doing so, they will become active and engaged citizens. The Government will focus on providing young people with more opportunities to connect to the Canadian experience, to view their country in all its splendour, to gain a first-hand understanding of the different regions, and to be challenged by what they learn from their fellow citizens across this land. The Government will: • draw on the expertise of young Canadians to help connect rural and urban communities to the information highway, by hiring them to put in place additional Internet access sites for public use; • create a single-window service – Exchanges Canada – to give 100,000 young Canadians every year the chance to learn about another part of the country; • ensure that younger Canadians – from age 13 – are given an opportunity to apply their creative abilities, by providing them with a chance to produce their "first works" using traditional approaches and new technologies in the arts, cultural, digital and other industries; • actively engage tens of thousands of young Canadian volunteers to participate in community and national environmental projects and to help others improve their literacy skills; and • enable young Canadians to apply their energy and talents overseas, by participating in international internship programs and helping developing countries get connected to the Internet. In addition, the Government will continue to place a priority on providing young Canadians with career information, access to work experience, and learning opportunities. A Dynamic Economy for the 21st Century In the global, knowledge-based economy, the advantage goes to countries that are innovative, have high levels of productivity, quickly adopt the latest technology, invest in skills development for their citizens, and seek out new opportunities around the world. Canadians have built a strong and dynamic economy. It is the cornerstone of our quality of life – providing Canada with the means to continue building a more equitable society, a healthier population, and stronger communities. In the space of only a few years, our nation’s finances have gone from deficits and debt to balanced budgets, with low inflation and low interest rates. Laws and regulations have been modernized and the role of government in business decisions has been reduced. The Government will continue to build a better environment for economic growth and enhanced productivity by reducing the debt burden, cutting taxes, and making strategic investments. Such investments will help small businesses grow, encourage trade, support citizens in developing the skills they need, and ensure that Canada has modern infrastructure. The Government is committed to prudent fiscal management. It will never let the nation’s finances get out of control again. It will keep the ratio of debt to GDP on a permanent downward track. It will deliver on the commitment it made at the beginning of this Parliament to devote half the budget surplus to debt repayment and tax relief, and the other half to investments that address the social and economic needs of Canadians. Lower Taxes As the nation’s finances have improved, the Government has begun to deliver broad-based tax relief – totalling $16.5 billion over three years. As the nation’s finances continue to improve, the Government will further reduce taxes to increase the disposable income of Canadians, enhance innovation and risk taking, and create a more robust economy. Tax reduction is a key component of a strategy to increase individual incomes and to ensure an economy that produces the growth and wealth which enable those public and private investments necessary for a high quality of life. In its next budget, the Government will set out a multi-year plan for further tax reduction. Increased Trade and Investment Canada’s economy is more open than any of the leading industrialized countries. We are blessed with a population that comes from countries all over the world. Foreign markets for our goods and services provide us with new opportunities. Foreign investment provides us with capital, new ideas, new technologies, and innovative business practices. To build on Canada’s advantage, the Government will increase its trade promotion in strategic sectors with high export potential – sectors ranging from biotechnology and environmental and information technology to tourism, culture and health. It will also continue to support innovation and the development of new technologies in leading export sectors such as agriculture, agri-food and natural resources. It will launch Investment Team Canada – a co-ordinated effort by all governments and the private sector to make the international community more aware of the unique opportunities for investment and growth in Canada. The Government will also modernize legislation to make it easier for global corporations to locate their headquarters in Canada. The Government will use the upcoming round of World Trade Organization negotiations, including those on agriculture, to help build a more transparent, rules-based global trading system – one that ensures a level playing field, provides better access to world markets for Canadian companies in all sectors, and respects the needs of Canadians, our culture, and the environment. In addition, the Government will work with its partners in the hemisphere toward the establishment of the Free Trade Area of the Americas by 2005. Skills and Knowledge for the 21st Century A skilled workforce and a capacity to innovate continuously are crucial building blocks of a successful 21st century economy. Over the last three years, the Government has put in place a strategy to build on Canada’s advantage as the country with the most highly educated workforce in the world. It has made it easier to save for a child’s education. It will make college and university more affordable through Canada Millennium Scholarships. It has improved student debt relief and provided better tax assistance to finance lifelong learning. We will continue to build on this strategy. The Government will forge partnerships with other governments, public- and private-sector organizations, and Canadian men and women to establish a national action plan on skills and learning for the 21st century. This plan will focus on lifelong learning, address the challenge of poor literacy among adults, and provide citizens with the information they need to make good decisions about developing their skills. Over the next two years, the Government will work with its partners to: • enable skills development to keep pace with the evolving economy. This work will be led by the Sectoral Councils, which bring together representatives from business, labour, education and other professional groups to address human resource issues in important areas of the Canadian economy; • make it easier for Canadians to finance lifelong learning; and • provide a single window to Canada-wide information about labour markets, skills requirements and training opportunities – on the Internet, over the telephone or in person in communities across the country. To ensure that the Public Service of Canada remains a strong, representative, professional and non-partisan national institution that provides Canadians the highest quality service into the 21st century, the Government will also focus on the recruitment, retention and continuous learning of a skilled federal workforce. Infrastructure for the 21st Century For Canada to generate jobs, growth and wealth, it must have a leading, knowledge-based economy that creates new ideas and puts them to work for Canadians. To do this, it is essential to connect Canadians to each other, to schools and libraries, to governments, and to the marketplace – so they can build on each other’s ideas and share information. Achieving this objective will require new types of infrastructure. Knowledge Infrastructure Improving Canada’s knowledge infrastructure means supporting a new generation of leaders, attracting the best researchers, and encouraging our graduates to put their talents to work here at home. The Government will introduce the legislation necessary to create the Canadian Institutes of Health Research. These institutes will provide a model for world-leading research, bringing together for the first time all the researchers who have an impact on health to undertake shared research priorities. This innovative approach recognizes the importance of collaborative research for improving the health and well-being of Canadians and for building a high-quality health system. The Government of Canada has for many years been one of the most important contributors to research at Canadian universities. In the last two years, the Government has pursued an ambitious agenda to improve its support for advanced research in Canada. To build on this agenda, the Government will: • increase its support to the Granting Councils, enabling them to forge new partnerships with our universities to attract the best research minds in the world through an innovative program of 21st Century Chairs for Research Excellence; • foster greater international research collaboration by Canadian universities and institutes and expand Canadian expertise in such areas as genomics, climate change, and advanced engineering; and • find new markets for new products and services developed through research by universities and government research centres. The Government will also ensure that it has a modern and effective research and science capacity to promote the health, safety and economic well-being of Canadians. Information Infrastructure Improving Canada’s information infrastructure will support the exchange of ideas and the conduct of business over computer networks, connect Canadians to the information highway, and accelerate the adoption of electronic commerce. The Government will: • take steps to make Canada a centre of excellence for electronic commerce and encourage its use throughout the economy; • re-introduce legislation to protect personal and business information in the digital world and to recognize electronic signatures; and • provide increased access to high-speed Internet service for classrooms and libraries and stimulate the production of Canadian multimedia learning content and applications. This will build on the success of SchoolNet. The Government will become a model user of information technology and the Internet. By 2004, our goal is to be known around the world as the government most connected to its citizens, with Canadians able to access all government information and services on-line at the time and place of their choosing. We will build on a pilot project now under way to make www.access.ca a personal gateway to government information and community content on the Internet, and we will encourage all Canadians to make use of this address. Our knowledge-based economy is more than high-tech companies. It is an economy in which all sectors strive to use leading technologies and processes. It is an economy in which old barriers to access or of distance matter less – where technology enables urban and rural communities from the Atlantic to the West to the North to compete globally, and where technology opens new doors to all Canadians. It is an economy in which rural Canada also benefits from value-added activity, environmentally astute land management, and new job skills and opportunities. It is an economy in which clusters of technology development already exist in smaller communities all over Canada. Indeed, it is an economy in which technology can lead to greater economic stability for the primarily rural regions in which cyclical resource industries – agriculture, fisheries, forestry, mining and tourism – are the dominant sources of wealth. The Government will encourage the development and adoption of new technologies in all sectors. Cultural Infrastructure The strength of Canada is reflected in its rich diversity. Across this country, Canada’s culture comes alive through our writers, singers and performers, through our filmmakers and artists, and through those who chronicle our history and preserve our heritage. New technologies offer new opportunities to strengthen the bonds between Canadians. The Government will bring Canadian culture into the digital age, linking 1,000 institutions across the country to form a virtual museum of Canada. It will put collections from the National Archives, National Library and other key institutions on-line. It will also increase support for the production of Canadian stories and images in print, theatre, film, music and video. In particular, it will increase support for the use of new media. Physical Infrastructure Canada must also continue to improve its physical infrastructure for the 21st century. To increase trade and economic growth, we must ensure that we have the capacity to move people and goods safely and efficiently. To maintain the quality of life in our cities and rural communities, we must ensure that we have clean air and water. The Government will work with other levels of government and the private sector to reach – by the end of the year 2000 – agreement on a five-year plan for improving physical infrastructure in urban and rural regions across the country. This agreement will set out shared principles, objectives and fiscal parameters for all partners to increase their resources directed toward infrastructure. It will focus on areas such as transport, tourism, telecommunications, culture, health and safety, and the environment. Health and Quality Care for Canadians Good health and quality care are essential to the well-being of all Canadians and are part of our strength in today’s global marketplace. Advances in technology, research and information are opening tremendous new opportunities for improving the health and well-being of citizens. Canadians expect their governments to work together to ensure that Canada’s health care system is modern and sustainable. The Government recently reaffirmed its commitment to medicare by investing an additional $11.5 billion to modernize the health system for the beginning of the 21st century. The Government will continue to move forward with its provincial and territorial partners and the health care community on common priorities. With its partners, the Government will support the testing of innovations in integrated service delivery in areas such as home care and pharmacare, working toward a health system in which all parts operate seamlessly. As the results of these innovations become available, we will be better able to make informed decisions about the next significant investments in health – ensuring that our health system meets the evolving needs of all Canadians. A modern health information system will give health professionals and individual citizens improved access to up-to-date information about health issues and treatment options. The Government will ensure that citizens in every region of the country have access to such information so they can make better-informed decisions. The Government will protect the health of Canadians by strengthening Canada’s food safety program, by taking further action on environmental health issues, including the potential health risks presented by pesticides, and by modernizing overall health protection for a changing world. We will also continue to address the serious health problems in Aboriginal communities, supporting their efforts to promote wellness and to strengthen the delivery of health services. The Quality of Our Environment The long-term economic and social well-being of every Canadian depends on the state of our natural environment. Canada’s ability to adopt innovative environmental practices and technologies will increasingly be part of Canada’s strength in the 21st century. Canadians have long recognized the underlying relationship between a healthy environment and a high quality of life. Canadians and leading businesses are already working in their own communities to preserve the natural environment, pushing the frontiers and opportunities of environmental technologies and new eco-efficient practices. The quality of the environment in our communities is also linked to the environmental health of other communities around the world. Problems such as climate change and dangerous levels of persistent toxins can be resolved only through concerted international action. Within Canada, the Government will work with other governments and citizens to meet our country’s commitment under the Kyoto Protocol to reduce greenhouse gas emissions. It will set and enforce tough pollution standards, in particular to better protect the health of children, seniors and residents of the North. It will place greater emphasis on sustainable development in government decision making. It will also address the structural weaknesses that have been identified in the management of toxic substances. Internationally, Canada will provide technical assistance to developing countries in adopting sustainable practices. The Government will introduce legislation and stewardship programs, working with provinces and territories to ensure that species at risk and their critical natural habitat are protected. The Government will also continue to extend Canada’s national parks system. In its own operations, the Government will make itself a model of environmental excellence. It will do more to clean up contaminated federal sites. It will strengthen its capacity for conducting environmental science research. It will also explore new environmental clean-up technologies. The Government will report regularly on the results achieved in addressing the top environmental concerns of Canadians. Building Stronger Communities Working Together Our history has been one of Canadians helping Canadians to seize opportunities and rise to challenges. This commitment to working together – by Canadians, their governments and their communities – will ensure Canada’s continued success in addressing the complex issues of the 21st century. The Social Union Framework Agreement, reached earlier this year, is a commitment by governments to work together for Canadians. It calls for governments to report publicly on the effectiveness of social programs. It also commits governments to eliminating barriers that unjustifiably impede the mobility of citizens within Canada. These barriers include rules that prevent some citizens from obtaining recognition of their qualifications when they move to another province, that deny some students use of their student loans when they study out-of-province, and that restrict access to essential services for some citizens – including those with disabilities – because of their province of origin. The Government of Canada is committed to working together with its partners to meet the deadlines set out in the Social Union Framework Agreement, thereby removing all unjustifiable barriers to mobility no later than 2002. In 2001, Canadians will mark the International Year of Volunteers – a time to celebrate the achievements of Canada’s everyday heroes. The Government recognizes the need to build partnerships with communities and to renew its relationship with the voluntary organizations that serve and sustain them. The Government will enter into a national accord with the voluntary sector, laying a new foundation for active partnership with voluntary organizations in the service of Canadians. Strong communities depend on the participation of all their members. To this end, the Government will pursue its efforts with other governments, the private and voluntary sectors, and all citizens to build communities in which Canadians with disabilities are fully included and in which new Canadians feel more at home. In addition, the Government will continue working with its partners in all sectors to address the root causes of homelessness and help communities respond to their members’ needs for shelter and other support. Promoting Safer Communities Canadians are justifiably proud of having built communities where citizens feel safe. This is a key component of our quality of life and a contributor to Canada’s comparative advantage. The Government will work with Canadians to ensure that our communities continue to be safe. Its focus will be balanced, combining prevention and a community-centred approach with action to deal with serious crime. It will expand the community-based crime prevention strategy and re-introduce legislation to reform the youth justice system. The Government will combat drug trafficking while helping communities aid those most affected. It will also launch a program of restorative justice to help victims overcome the trauma of crime and provide non-violent offenders with a chance to help repair the damage caused by their actions. The Government will focus attention on new and emerging threats to Canadians and their neighbours around the world. It will work to combat criminal activity that is becoming increasingly global in scope, including money laundering, terrorism, and the smuggling of people, drugs and guns. The Government will strengthen the capacity of the RCMP and other agencies to address threats to public security in Canada and work with enforcement agencies in other countries. In addition, it will work to modernize legislation to better ensure public security. The Government of Canada will also continue to work closely with the Government of the United States to modernize our shared border for the 21st century. A Stronger Relationship with Canada’s Aboriginal Peoples The contribution of Canada’s Aboriginal peoples has shaped our country’s heritage and will continue to enrich Canada in the new century. The Government will continue to build on the strong foundation of reconciliation and renewal created by Gathering Strength – Canada’s Aboriginal Action Plan. We are now building stronger partnerships with Aboriginal people – concentrating on improving their living conditions and, increasingly, on strengthening their economies. As a result, Aboriginal people will be able to more fully participate in and contribute to Canada’s economic development and social well-being. Fostering good government and strong accountability in First Nations communities will increase investor confidence, support economic partnerships, and improve living conditions. Land claim agreements, in particular, are essential to create certainty for Aboriginal people and their surrounding communities – providing the climate needed for partnerships, investments and economic opportunities. Early in the new session of Parliament, the Government will introduce legislation to implement the historic agreement with the Nisga’a. Canada’s Place in the World As we move into the 21st century, Canada has the momentum to lead the way toward a safer and more secure world. Canadians have built the highest quality of life in the world by focussing on the needs of people. We have the expertise to advance an agenda of human security – protecting people from threats to their rights, their safety and their lives. Canada is an outward-looking country, with a trade-oriented economy and a population drawn from every corner of the globe. We have a reputation internationally for making a difference – through our contribution to eliminating landmines, our work with NATO and the United Nations in Kosovo, our development assistance to Asia and Africa, our efforts to establish the International Criminal Court, and our work to renew the international financial system. As the Cold War recedes into the past, there is a greater need to complement national security with an approach that addresses the growing challenges that undermine the security of individuals. Human security is challenged when children are used as soldiers in combat, when citizens are denied their rights, when civilians are caught in conflict, and when people are the victims of economic crisis, natural disaster, widespread disease, or environmental degradation. Canadians recognize that their quality of life depends in part on the quality of life of their neighbours – those who share this planet with us. A world where people are secure is a world where fewer people are forced to flee their homes, where there is less crime and terrorism, and where there is a reduced threat of disease and pollution. The Government will give increased prominence to human security in its foreign policy, working to achieve meaningful progress in the councils of the world on a global human security agenda. In 2001, the United Nations General Assembly will hold a special session on children. In the spirit of partnership that led to the historic treaty banning landmines, the Government will work to reach key international agreements to protect the rights of children. Canada will champion efforts to eliminate the exploitation of children, including the use of child soldiers in armed conflict, and will help address the crisis of children affected by the HIV/AIDS epidemic. The Government will act with like-minded countries to reform and strengthen international institutions such as the United Nations, International Monetary Fund, World Bank and World Trade Organization. It will also work to develop a new approach internationally to support the diversity of cultural expression in countries around the world. To advance Canada’s leadership in the Arctic region, the Government will outline a foreign policy for the North that enhances co-operation, helps protect the environment, promotes trade and investment, and supports the security of the region’s people. The Government will increase international development assistance and work in innovative ways to enable poor countries to improve the quality of life of their citizens. The Government will also continue to ensure that the Canadian Forces have the capacity to support Canada’s role in building a more secure world and will further develop the capacity of Canadians to help ensure peace and security in foreign lands. Honouring Canada’s Promise for the 21st Century As we prepare to celebrate the turn of the millennium, we can look to our past with pride and to our future with confidence. Like previous generations, we will face new challenges. But guided by our values and our collective experience, we can ensure that Canada remains the best place in the world in which to live – the best place to raise children, to learn, to pursue opportunity, to share in rich, diverse and safe communities, and to admire the beauty of nature. All Canadians – every citizen, every government, every business and every community organization – have a part to play. We will build the 21st century together. Members of the House of Commons: You will be asked to appropriate the funds required to carry out the services and expenditures authorized by Parliament. Honourable Members of the Senate and Members of the House of Commons: As the representatives of the Canadian people across this great land, yours is a special duty – a higher responsibility to strive for excellence in the service of your country. Let the Canadians of tomorrow look upon this Parliament and say, Here were men and women committed to building a stronger Canada and a better quality of life for their children and grandchildren. May Divine Providence guide you in your deliberations.

Canada

Honourable Members of the Senate, Members of the House of Commons, Ladies and Gentlemen: It is my great pleasure to greet you on this first day of the 37th Parliament since Confederation. The vital relationship that exists between the Canadian people and Parliament is what we celebrate today through history, custom and symbolism. I also have the pleasure of welcoming new members to the House of Commons, and I want all parliamentarians to know how deeply I appreciate the ideals that motivate you to serve your country. I also appreciate the sacrifices brought on by your task and made in the name of the common good and of leadership. And in a healthy democracy, leadership can come from everyone, because it is a sense of really knowing what you want and what you can contribute. A little more than a year ago, I became Canada’s 26th Governor General. I set out as the main objective of my first year in office to visit every province and territory and to meet as many Canadians as possible, wherever they live and make their lives — to engage in a true dialogue with them. I have seen many places that Canadians have decided to call home, from big cities to small hamlets, from the Island of Montreal to Ellesmere Island. But what we call home is more than a place name on a map. It is our belonging to a community of ideas and ideals; it is the knowledge that we can say something and be listened to, and the conviction that we can respect, rely upon and help each other. Meeting Canadians across the country has given me the opportunity to hear about the different challenges we face. Looking at these issues, we of course remember that we have demonstrated, time and time again, that we have the self-confidence to act, and to act successfully. Change does not frighten us — we have always harnessed it to our advantage. It is often said that our country’s strength lies in its diversity. Why is this so? Because diversity imposes serious responsibilities. Indeed, if we accept our place in a rich and successful society, we must also acknowledge and engage with the parts of our society that are less advantaged. The Government has been given a third mandate by Canadians. In leading Canada into the new millennium, its overarching goal will continue to be to build a stronger, ever more inclusive Canada and secure a higher quality of life for all Canadians. In pursuing this aim, the Government will carry out the commitments set out in its election platform. Canada is proud, optimistic and strong. The Government has achieved the critical objective of restoring the nation’s finances. The economy continues its longest period of economic expansion since the 1960s. Inflation and interest rates are low and stable. More than two million new jobs have been created since 1993. Significant new investments are being made in children and youth, in innovation and skills, in health care, and in the environment. As we enter this new century, Canada and Canadians face the challenges of competing in a faster-paced, technology-driven world economy. Of responding to economic uncertainty among our trading partners. Of continuing to strengthen the fabric of our society in an era of increasing globalization. And of advancing our Canadian interests and values in the international arena. We must ensure that every region, every province and territory, every community, and every citizen has a strong voice and can contribute to building our nation. To bring the benefits of our prosperity to all communities, whether urban, rural, Northern or remote. To promote innovation, growth and development in all parts of our economy, including our agricultural and resource sectors and our manufacturing and service industries. Canadians must rise to these challenges. Success in our more interdependent and complex world will require the contribution of all Canadians. The Government of Canada, for its part, will focus on:  building a world-leading economy driven by innovation, ideas and talent;  creating a more inclusive society where children get the right start in life, where quality health services are available to all, and where Canadians enjoy strong and safe communities;  ensuring a clean, healthy environment for Canadians and the preservation of our natural spaces; and  enhancing our Canadian voice in the world and our shared sense of citizenship. In fulfilling its responsibilities, the Government of Canada will be guided by the values of Canadians. It will work with other levels of government, the private and voluntary sectors, and individual citizens. It will continue to set bold goals and work toward them in a pragmatic, step-by-step way. It will continue to be a prudent steward of the nation’s finances as it focusses on the priorities of Canadians. Its efforts will be affordable and sustainable. The Government reaffirms its commitment to balanced budgets. To assist the Government in fulfilling its responsibilities, Canada must have a public service distinguished by excellence and equipped with the skills for a knowledge economy and society. The Government will seek bright, motivated young women and men to accept the challenge of serving their country in the federal public service. The Government is committed to the reforms needed for the Public Service of Canada to continue evolving and adapting. These reforms will ensure that the Public Service is innovative, dynamic and reflective of the diversity of the country — able to attract and develop the talent needed to serve Canadians in the 21st century. The Government will help to create opportunity for Canadians and ensure that opportunity is shared by all. This is the Canadian Way for the 21st century. Creating Opportunity An innovative economy is essential to creating opportunity for Canadians. An innovative economy is driven by research and development. It requires a highly skilled work force and investments in new technology. A business environment and tax policies that encourage smart risk taking and entrepreneurship and that reward success. An attractive environment for investment. And a strong global brand for Canadian excellence. An innovative economy is one where the benefits of new ideas are shared by every sector and every region — from East to West to North, from office workers to farm families. Canada has laid a solid foundation for success in the new economy. Our economic fundamentals are among the best in the world. Spiralling debt and deficits have been replaced by social and economic investments, tax cuts and debt repayments. On January 1st of this year, most elements of the Government’s comprehensive and broad-based package of $100 billion in tax relief took effect. We are better positioned than at any time in the last three decades to seize the opportunities of the global economy and to weather a short-term slowing of growth experienced by Canada’s major trading partners. Innovation To secure our continued success in the 21st century, Canadians must be among the first to generate new knowledge and put it to use. Our objective should be no less than to be recognized as one of the most innovative countries in the world. Achieving this will require a comprehensive approach and the support and participation of all governments, businesses, educational institutions, and individual Canadians. We must strive for Canada to become one of the top five countries for research and development performance by 2010. This is a challenge for all Canadians, but in particular for the private sector as the largest research investor in Canada. As its contribution, the Government will at least double the current federal investment in research and development by 2010. In making new investments, the Government will:  continue to pursue excellence in Canadian research by strengthening the research capacity of Canadian universities and government laboratories and institutions;  accelerate Canada’s ability to commercialize research discoveries, turning them into new products and services; and  pursue a global strategy for Canadian science and technology, supporting more collaborative international research at the frontiers of knowledge. New federal investments will include strategically targetted research that is co-ordinated with partners. These investments will directly benefit Canadians in areas such as health, water quality, the environment, natural resources management, and oceans research. Among its investments, the Government will increase support for the development of new technologies to assist Canadians with disabilities. Research in life sciences will benefit all of Canada, particularly our agricultural and rural economies. The Government will help Canada’s agricultural sector move beyond crisis management — leading to more genuine diversification and value-added growth, new investments and employment, better land use, and high standards of environmental stewardship and food safety. Skills and Learning Canada will only realize its full potential by investing aggressively in the skills and talents of its people. To succeed in the knowledge economy, Canada will need people with advanced skills and entrepreneurial spirit. Canada’s youth are optimistic, technologically savvy, globally connected and the most highly educated generation in our history. The Government will continue to help young Canadians contribute to their country, gain employment, and apply their business and creative skills. Building a skilled work force must be a national effort. The Government of Canada will work with provinces and territories and with non-governmental organizations to ensure that all Canadians, young and old, can achieve their learning goals. Canada must see at least one million more adults pursue learning opportunities during the next five years. The Government will also help adults who want to improve their skills, but who may face difficulty in finding the time or resources to do this while providing for themselves and their families. It will create Registered Individual Learning Accounts to make it easier for Canadians to finance their learning. And it will improve the loans that are available to part-time students, so more workers can learn while they earn. Some Canadians face particular challenges in upgrading their skills and enhancing their education. The Government will take steps to make it easier for them to access skills and learning.  Youth at risk are among the most likely to drop out of school or to have difficulty in making the transition from school to work. The Government will work with its partners to ensure support for youth who particularly need help staying in school or getting their first job.  Today, many Canadian adults lack the higher literacy skills needed in the new economy. The Government of Canada will invite the provinces and territories along with the private sector and voluntary organizations to launch a national initiative with the goal of significantly increasing the proportion of adults with these higher-level skills.  Persons with disabilities face barriers to full participation in the economy and society. The Government of Canada will work with the provinces and territories and other partners toward a comprehensive labour-market strategy for persons with disabilities.  Increasing numbers of Aboriginal people are developing their business skills and competing in the new economy. The Government will work with Aboriginal people to help strengthen their entrepreneurial and business expertise. Immigrants have enriched Canada with their ideas and talents. The Government will take steps to help Canada attract the skilled workers it needs. It will also work in co-operation with the provinces and territories to secure better recognition of the foreign credentials of new Canadians and their more rapid integration into society. The Government will re-introduce changes to immigration legislation to streamline and improve the immigration system. Connecting Canadians The Government has helped to make Canada one of the most connected countries in the world, yet the speed of change continues to accelerate. Canada must continue to develop and strengthen its information infrastructure. The private sector today is expanding high-speed access to the Internet in many regions. The National Broadband Task Force will advise the Government on how Canadians together can achieve the critical goal of making broadband access widely available to citizens, businesses, public institutions and to all communities in Canada by 2004. The Government will continue to support the Community Access Program and SchoolNet, ensuring that Canadians, their communities and their schools can have an on-ramp to the information highway. These programs are critical to Canada’s effort to close the digital divide, particularly in rural, remote, Northern and Aboriginal communities. The Government will also enhance SchoolNet, focussing on creating more and better learning content on-line. The Government will continue to work toward putting its services on-line by 2004, to better connect with citizens. It will also modernize federal privacy law to safeguard the personal information of Canadians and provide better copyright protection for new ideas and knowledge. Trade and Investment The Government’s investments in innovation, skills and connectivity, as well as its reduction of corporate taxes and improved treatment of capital gains, are making Canada one of the most attractive places to invest and to do business. In addition, the Government will:  ensure that Canadian laws and regulations remain among the most modern and progressive in the world, including those for intellectual property and competitiveness; and  re-introduce legislation to promote a strong and efficient financial services sector that will benefit the Canadian economy and all Canadians. The Government will work closely with the United States, Canada’s most important trading partner, to maintain secure and efficient access to each other’s markets. It will continue the joint work begun to modernize the shared border. At the Third Summit of the Americas in Quebec City this April, the Government will advance work toward creating the Free Trade Area of the Americas. The Government will also launch a branding strategy to raise awareness of the advantages of investing in Canada. As part of this effort, the Government will continue its successful Team Canada trade missions and launch Investment Team Canada missions to the United States and Europe. Sharing Opportunity The Canadian Way recognizes that economic and social success must be pursued together. We cannot build a prosperous society in the absence of economic growth. We cannot lead in innovation and new ideas without healthy and secure citizens. We must not pursue our interests in the world without strengthening our distinct culture and values here at home. Nowhere is the creation and sharing of opportunity more important than for Aboriginal people. Too many continue to live in poverty, without the tools they need to build a better future for themselves or their communities. As a country, we must be direct about the magnitude of the challenge and ambitious in our commitment to tackle the most pressing problems facing Aboriginal people. Reaching our objectives will take time, but we must not be deterred by the length of the journey or the obstacles that we may encounter along the way. The Government is committed to strengthening its relationship with Aboriginal people. It will support First Nations communities in strengthening governance, including implementing more effective and transparent administrative practices. And it will work to ensure that basic needs are met for jobs, health, education, housing and infrastructure. This commitment will be reflected in all the Government’s priorities. Children and Families Securing a good start in life for children is the only way to ensure that they are ready to learn, to seize opportunity as adults, and to contribute to the building of their country. There was a time in Canada when retirement often meant facing a new life of hardship. A generation ago, Canadians set a national goal to eliminate poverty among seniors, and we have made significant progress. There was a time in this country when falling sick meant risking one’s life savings. Working together, Canadians built a national, publicly funded health care system to ensure access to quality care for every citizen regardless of income. There was a time when losing a job also meant immediate loss of income for workers and their families. And so Canadians created Employment Insurance. Now Canadians must undertake another national project — to ensure that no Canadian child suffers the debilitating effects of poverty. Canadians and their governments have already taken significant steps in this direction. A strong economy and job creation have been essential to reducing poverty and ensuring that families have the resources to care for their children. But economic growth alone is not enough. Governments also have a key role to play in helping families left behind and in providing support to families and children. All governments have put in place a range of measures to help families and children. The National Child Benefit is the cornerstone of our collective efforts to provide children with a better start. It is the single most important social program to be introduced in this country since medicare in the 1960s. The Government of Canada’s contribution to the National Child Benefit will continue to rise over the next four years. Most recently, the Government of Canada and provinces and territories launched the Early Childhood Development initiative to expand and improve access to services for all families and children. The Government of Canada is investing more than $2 billion in this initiative over five years. As part of this agreement, governments will begin reporting to Canadians on the outcomes of their programs and services for children. These reports will give the Government of Canada and its partners the information they need to take whatever additional steps are necessary to provide Canadian children with a better start in life. The Government of Canada will also take immediate action with its partners where the challenges are greatest.  Single parents and their children often face special challenges overcoming poverty. The governments of Canada, New Brunswick and British Columbia have been testing new approaches to help single parents become more self-sufficient. The Government of Canada is prepared to test innovations with other provinces and territories, with the longer-term aim of developing new measures that help these parents overcome poverty.  The Government will work with its partners on modernizing the laws for child support, custody, and access — to ensure that these work in the best interests of children in cases of family breakdown.  It will improve the support available to parents and caregivers in times of family crisis. No Canadian should have to choose between keeping their job and providing palliative care to a child. The Government will take steps to enable parents to provide care to a gravely ill child without fear of sudden income or job loss.  In securing a better future for Aboriginal children, the Government will work with First Nations to improve and expand the early childhood development programs and services available in their communities. It will also expand significantly the Aboriginal Head Start program, to better prepare more Aboriginal children for school and help those with special needs.  The Government of Canada will also co-operate with Aboriginal communities and provinces and territories on the measures required to reduce the number of Aboriginal newborns affected by fetal alcohol syndrome. No child should experience this syndrome, but Canada’s immediate aim must be to significantly reduce its incidence in the Aboriginal population by the end of this decade. Good Health and Quality Care A healthy Canadian society is built on the health and well-being of individual Canadians and the health of our communities. Canadians place a high priority on good health and on their health care system. We know that our system of medicare, which ensures access to needed services regardless of income or place of residence, is vital to our quality of life. It is a Canadian advantage and deeply valued by all citizens. The Government of Canada will uphold the Canada Health Act. It will work with the provinces and territories to ensure that all governments continue to fulfil their commitment to the principles of medicare. Governments in Canada have come together to strengthen and renew Canada’s health care system. Last September, First Ministers affirmed the commitment of their governments to the principles of the Canada Health Act and endorsed a health action plan that will enable them to move forward in building a modern, integrated and sustainable health system for Canadians. Over the next three years, governments will take concrete action to reform and support innovation in primary care, to adopt modern health information technologies, and to purchase needed diagnostic and medical equipment. For its part, the Government of Canada is committing more than $21 billion in new funding to the provinces and territories over five years through the Canada Health and Social Transfer. The Government will also champion community-based health promotion and disease prevention measures.  It will strengthen its efforts to encourage physical fitness and participation in sport, and take further steps to combat substance abuse, reduce tobacco consumption, prevent injuries and promote mental health.  It will advance progress on disease prevention, focussing in particular on reducing the incidence of preventable diabetes and tuberculosis — especially among Aboriginal people, who suffer disproportionately from these diseases.  The Government will also provide a further major increase in funding to the Canadian Institutes of Health Research. The new funding will enable the Institutes to enhance their research into disease prevention and treatment, the determinants of health, and health system effectiveness. Building on the health action plan’s commitment to public reporting, the Government of Canada will work with the provinces and territories to create a citizens’ council on health care quality. This council will ensure that the public’s perspective is considered in developing meaningful indicators of health system performance. As public reporting begins on how the health system is meeting the needs of Canadians, governments will use this information to continue to move forward with the renewal of medicare. A Clean Environment Canada is blessed by the beauty of its vast landscape and the wealth of its natural resources. But with this blessing comes the responsibility to ensure its preservation. A healthy environment is an essential part of a sustainable economy and our quality of life. The Government’s focus will be on the three priorities of clean air, clean water, and the conservation of Canada’s natural spaces. Last December, the Government of Canada signed an agreement with the United States to significantly reduce the emissions that cause smog. This agreement will lead to a 90 percent reduction in smog-causing vehicle emissions by 2010, bringing cleaner air to millions of citizens in both countries. The Government will move quickly to implement this agreement and other measures, working with the provinces and territories to achieve cleaner air. It is Canada’s responsibility, as steward of one of the world’s largest supplies of fresh water, to protect this critical resource. Safeguarding our water is a shared task among governments, industry and individual Canadians. The Government of Canada will fulfil its direct responsibilities for water, including the safety of water supplies on reserves and federal lands.  The Government will also lead in developing stronger national guidelines for water quality by enhancing scientific research and continuing its collaboration with partners. Drawing on expertise within the Government and from across Canada, it will significantly strengthen the role of the National Water Research Institute.  It will fund improvements to municipal water and waste water systems through the federal-provincial-municipal Infrastructure Canada program.  It will also invest in research and development and advanced information systems to enable better land use and protect surface and ground water supplies from the impact of industrial and agricultural operations. Canadians are the guardians of a significant percentage of the world’s wilderness and wildlife. The Government will invest in the creation of new national parks and implement a plan to restore existing parks to ecological health. It will work with its partners toward more integrated, sustainable management of Canada’s oceans. And it will re-introduce legislation for marine conservation areas and to protect species at risk. As part of its efforts to promote global sustainable development, the Government will ensure that Canada does its part to reduce greenhouse gas emissions. It will work with its provincial and territorial partners to implement the recently announced first national business plan on climate change. To safeguard Canadians from toxic substances and environmental contaminants, the Government will also strengthen laws, research efforts and other measures for health protection. This will include the development of appropriate standards that reflect the special vulnerabilities of children. Strong and Safe Communities Strong and safe communities are an essential part of the fabric of our society. They are critical to providing Canadians with the security to build a better future for themselves and their families. They are also important to attracting talented people from around the world to come and make their home here. Canadian communities of all sizes — whether urban or rural, Aboriginal or multicultural — face diverse challenges and have unique needs. The Government of Canada will strive to ensure that, wherever possible, its actions and programs are co-ordinated to help build local solutions to local challenges. It will work with partners across Canada to launch a dialogue on the opportunities and challenges facing urban centres. It will co-operate with provincial and municipal partners to help improve public transit infrastructure. And it will help to stimulate the creation of more affordable rental housing. Ensuring that Canada’s communities are safe is an important element of fostering and attracting the talented people needed for success in the new economy. Crime rates in Canada have fallen steadily for almost a decade. The Government of Canada will continue to work with provinces and territories, communities, and all its partners to implement a balanced approach to addressing crime — focussing on prevention as much as punishment, strengthening penalties for serious crime, and considering the needs of victims. The Government will focus on safeguarding Canadians from new and emerging forms of crime. It will take aggressive steps to combat organized crime, including the creation of stronger anti-gang laws and measures to protect members of the justice system from intimidation. It will provide enhanced law enforcement tools to deal with emerging threats to security, such as cybercrime and terrorism. It will act to safeguard children from crime, including criminals on the Internet. The Government will take steps to ensure that our laws protect children from those who would prey on their vulnerability. The Government will re-introduce legislation to change how the justice system deals with young offenders. It will encourage alternatives to custody for non-violent offenders, emphasizing rehabilitation and re-integration into society, while toughening consequences for more violent youth. Working with the provinces, territories and communities, the Government of Canada will strengthen the capacity of local communities to deal with conflict, prevent crime, and address drug abuse. It is a tragic reality that too many Aboriginal people are finding themselves in conflict with the law. Canada must take the measures needed to significantly reduce the percentage of Aboriginal people entering the criminal justice system, so that within a generation it is no higher than the Canadian average. Vibrant Canadian Culture Canada is defined by far more than its political boundaries or economic relationships. In these times of rapid change and globalization, it is more important than ever that we know who we are as Canadians and what brings us together. The focus of our cultural policies for the future must be on excellence in the creative process, diverse Canadian content, and access to the arts and heritage for all Canadians. Both the English and French networks of the Canadian Broadcasting Corporation have long been cornerstones of Canadian cultural policy. The CBC helps connect Canadians to each other, their history and their country. It reaches all parts of Canada, from big cities to small towns to Northern and Aboriginal communities. It provides a distinctive Canadian voice in both official languages and important opportunities for our creative people. The Government will increase its support to help the CBC fulfil its distinct role as a public broadcaster serving all Canadians. The Government will assist the book-publishing and sound-recording sectors to make the transition to the new economy. It will continue to support the development of digital content for the Internet and other new media in French and English. And it will work to expand international markets for Canadian cultural products and services. Communities across Canada are increasingly recognizing the importance of arts and heritage for their quality of life and ability to attract talent, investment and tourism. The Government of Canada will continue to work with the private and not-for-profit sectors and other governments to strengthen Canada’s cultural infrastructure. It will help communities to develop arts and heritage programs that are sustainable and relevant to their diverse circumstances and aspirations. Creating and Sharing Opportunities Globally The well-being of Canada and Canadians depends on global human security, prosperity and development. The Government of Canada is committed to working with its international partners to promote international peace and security by enhancing the mechanisms for conflict prevention and resolution. It will work to strengthen global governance as well as existing and new multilateral institutions. These include the G-20 — a new forum of which Canada is the first chair — which is striving to enhance the stability of the world economy and ensure that globalization benefits all its participants. The Government will increase Canada’s official development assistance and use these new investments to advance efforts to reduce international poverty and to strengthen democracy, justice and social stability worldwide. Canadians have become leaders in harnessing the power of technology to build a more inclusive society. This experience serves as a powerful model for the world. Through its participation on the Digital Opportunities Task Force established by the G-8 nations and through its own investments in developing countries, Canada will contribute to closing the global digital divide. The Government will continue Canada’s proud record of peacekeeping. In Budget 2000, the Government provided funding increases for the Canadian Forces to help ensure that they are equipped and prepared to respond quickly to calls for help at home and abroad. The Summit of the Americas this year presents an exceptional opportunity to promote a balanced and coherent vision for deepening co-operation among the nations of the Western hemisphere. The summit declaration and action plan will support Canada’s interest in strengthening democracy and human rights, expanding commerce through the Free Trade Area of the Americas initiative, increasing people’s access to the benefits of growth, and providing opportunities for all nations in the Americas to improve the quality of life of their citizens. At the Summit of the Americas and as chair of the G-8 in 2002, Canada will work to expand opportunities for more countries to participate in the benefits of globalization, while pressing for peace and security in the world. Celebrating Our Canadian Citizenship Canada was born of a noble vision and an act of will. Our Canadian citizenship has been built over time through the experiences we have shared . . . . . . when together we celebrate the successes of our scientists, scholars, athletes and artists, our leaders on the world stage, and our peacekeepers. And when we remember and honour our war veterans. . . . when we visit other parts of our country or when we travel abroad and see ourselves through the eyes of others. . . . when every year thousands of new Canadians stand proudly with their families to take on the responsibilities of Canadian citizenship. . . . when we come together to help each other in tough times. And when millions of Canadians volunteer their time and energy to make their communities a better place. The Government will help Canadians to strengthen their bonds of mutual understanding and respect, to celebrate their achievements and history, and to exercise their shared citizenship.  It will continue to expand exchange programs for young Canadians to reach its goal of 100,000 exchanges each year.  Canada’s linguistic duality is fundamental to our Canadian identity and is a key element of our vibrant society. The protection and promotion of our two official languages is a priority of the Government — from coast to coast. The Government reaffirms its commitment to support sustainable official language minority communities and a strong French culture and language. And it will mobilize its efforts to ensure that all Canadians can interact with the Government of Canada in either official language. The institutions of Government will continue to be strengthened. Since 1993, the Government has taken a range of measures to enable members of Parliament to more effectively represent the views of their constituents. MPs have participated in pre-budget consultations, at the end of which recommendations were made to the Government. Moreover, private members’ bills from the House and Senate have been taken into account more often and considered with greater attention than at any time in the past. In this new session of Parliament, the Government will make further proposals to improve procedures in the House and Senate. Among other measures, voting procedures will be modernized in the House of Commons and, to assist parliamentarians in carrying out their duties, the Government intends to increase the resources of the Library of Parliament to better serve the research needs of standing committees of the House and Senate. Every Canadian is called upon to make a contribution to building our country. To ensure that the promise of Canada becomes an even greater reality in the 21st century. And to ensure that our Canadian Way remains the best example of what is possible when women and men of every race and creed come together in community in search of a better future. Members of the House of Commons: You will be asked to appropriate the funds required to carry out the services and expenditures authorized by Parliament. Honourable Members of the Senate and Members of the House of Commons: May Divine Providence guide you in your deliberations.

Canada

Honourable Members of the Senate, Members of the House of Commons, Ladies and Gentlemen: It is a pleasure to greet you in the Jubilee Year of Her Majesty Queen Elizabeth II, whom we will be welcoming to Canada very shortly. We also mark this year the 50th anniversary of Canadian Governors General. To celebrate this, we invited to Rideau Hall an energetic group of one hundred 17- and 18-year-olds from every province and territory to participate in a Youth Forum on creating community. In Gaspé, in Nunavut, on Haida Gwaii, all across the country, we are meeting young people who are becoming catalysts for change, as they take their place as leaders in the fields they choose. It is exciting and encouraging to hear what young people are saying and what they are doing. Already, they are innovative. They are diverse. And they will change things. Some of them will do so through journalism, the arts, business or the labour movement. Others will devote themselves to civic and public life, perhaps becoming in time your successors, to carry on the democratic traditions of Parliament to which you are committing your lives. Nothing is more precious and valuable than our way of creating a society through the exercise of our democratic rights as citizens. And the sacrifices that some of our citizens make are deeply appreciated by their country. My trip in April to Germany, where our fallen and injured were brought from the tragic incident in Afghanistan, was emotionally shared by all Canadians, many of whom have expressed how much the sacrifice of these men has meant to them. This kind of contribution, this kind of democratic participation, this kind of nurturing of young leadership make us what we are as a nation. It is a very precious life that we share as Canadians. And we must be prepared not only to praise it, but also to make sacrifices for it. Canadians today are confident about their personal prospects and Canada’s future. Less than ten years ago, our economy was in decline, our deficit and debt were rising out of control, our unity was under threat, our confidence was shaken. Today, because of our collective efforts, we have new opportunities, new possibilities and new choices for the Canada we want. We have established the foundations for great success: fiscal sovereignty, a unified country and a confident people. We will not put at risk the accomplishments of the last decade. We will continue to be prudent and live within our means. Maintaining our fiscal sovereignty and a dynamic economy allows us to reach higher. To find new solutions to enduring problems. To set new goals and ambitious targets. To take responsibility for building the Canada we want, for ourselves and for future generations. We now have a generation of Canadians who have grown up in the Internet world, a generation of Canadians who are global, at ease with change and diversity, optimistic and eager to create, innovate and excel. And who believe they can achieve their aspirations in Canada. Canada must tap into and unleash this energy. The goal of the government is nothing less than making Canada a land of ever-widening opportunity. Ensuring that the benefits of the new economy touch every community and lift every family and every Canadian. Working together, we can put in place the health care system for the 21st century. We can get Canada’s children off welfare. We can close the gap in life chances between Aboriginal and non-Aboriginal Canadians. We can tackle the challenge of climate change. We can be a world leader in innovation and learning, a magnet for talent and investment. We can build world-class cities and healthy communities. We can strengthen the bonds of shared citizenship and the partnership between government and Canadians. We can secure our place in North America and in the world as a mature country, confident in who we are and where we are headed. This is the time for Canada. Canada and the World We live in uncertain times. The events of September 11 demonstrated that our progress at home can be affected in a moment by world events. We see unrest in many parts of the world. We still see far too much poverty. The government will continue to work with its allies to ensure the safety and security of Canadians. Canada will continue to work through organizations such as the United Nations to ensure that the rule of international law is respected and enforced. At the same time, the government will remain vigilant and ready to ensure the protection of Canadians from emerging threats, and will work with the United States to address our shared security needs. But there is more we can do. Canada has a long history of contributing solutions to global problems. We will continue to speak out in every forum for the values of pluralism, freedom and democracy, and contribute to reducing the growing global divide between rich and poor. We will double our development assistance by the year 2010, and earmark at least half of that increase for Africa as part of Canada’s support for the New Partnership for Africa’s Development. As of January 1, 2003, Canada will eliminate tariffs and quotas on almost all products from the least-developed countries. In the face of rapid change and uncertainty, the government must engage Canadians in a discussion about the role that Canada will play in the world. Before the end of this mandate, the government will set out a long-term direction on international and defence policy that reflects our values and interests and ensures that Canada’s military is equipped to fulfill the demands placed upon it. Putting in Place the Health Care System for 21st Century No issue touches Canadians more deeply than health care. Our health care system is a practical expression of the values that define us as a country. Of the willingness of Canadians to share risk and accept responsibility for one another. In 2000, all First Ministers reached an agreement on health care that reinforced our collective commitment to the principles of medicare, to working collaboratively to reform our system and to measure and report on our progress. Resources were provided. Work is proceeding. And the first public report is now available. Building on this work, Roy Romanow was appointed to lead a commission on the longer-term future of Canada’s publicly funded health care system. He will report in November. The Prime Minister will convene a First Ministers Meeting early in 2003 to put in place a comprehensive plan for reform, including enhanced accountability to Canadians and the necessary federal long-term investments, which will be included in the next budget. At the same time, the government will move ahead with an action plan in health policy areas under its direct responsibility. Under this plan, it will renew federal health protection legislation to better address emerging risks, adapt to modern technology and emphasize prevention. The government will take steps to strengthen the security of Canada’s food system and reintroduce pesticides legislation to protect the health of Canadians, particularly children. It will work with its partners to develop a national strategy for healthy living, physical activity and sport, and will convene the first ever national summit on these issues in 2003. The government will take further action to close the gap in health status between Aboriginal and non-Aboriginal Canadians by putting in place a First Nations Health Promotion and Disease Prevention strategy with a targeted immunization program, and by working with its partners to improve health care delivery on-reserve. The government will also modify existing programs to ensure that Canadians can provide compassionate care for a gravely ill or dying child, parent or spouse without putting their jobs or incomes at risk. Helping Children and Families out of Poverty Five years ago, Canada’s governments launched the National Children’s Agenda, engaging Canadians in every part of the country on how to ensure that all Canadian children have a good start in life; that families with children have the tools they need to provide care and nurturing. No investments have greater payoff. No investments do more to break the cycle of poverty and dependency, and to maximize the potential of every Canadian. The government will put in place a long-term investment plan to allow poor families to break out of the welfare trap so that children born into poverty do not carry the consequences of that poverty throughout their lives. It will again significantly increase the National Child Benefit for poor families, and will work with its partners to increase access to early learning opportunities and to quality child care, particularly for poor and lone-parent families. It will also put in place targeted measures for low-income families caring for severely disabled children, to help meet the needs of the child and of the family. The government will take additional measures to address the gap in life chances between Aboriginal and non-Aboriginal children. It will put in place early childhood development programs for First Nations, expanding Aboriginal Headstart, improving parental supports and providing Aboriginal communities with the tools to address fetal alcohol syndrome and its effects. The most enduring contribution Canada can make to First Nations is to raise the standard of education on-reserve. The government will work with the recently created National Working Group on Education to improve educational outcomes for First Nations children, and take immediate steps to help First Nations children with special learning needs. Parents have the primary responsibility for providing their children with the tools to learn and develop. But Canadians also have a collective responsibility to protect Canada’s children from exploitation in all its forms, and from the consequences of family breakdown. The government will therefore reform the Criminal Code to increase the penalties for abuse and neglect, and provide more sensitive treatment for children who take part in justice proceedings as victims or as witnesses. It will also reform family law, putting greater emphasis on the best interests of the child; expand the Unified Family Courts; and ensure that appropriate child and family services are available. The Challenge of Climate Change and the Environment Canadians know that our health and the health of our children, the quality of life in our communities and our continued economic prosperity depend on a healthy environment. On a global scale, the problem of climate change is creating new health and environmental risks and threatens to become the defining challenge for generations to come. As a northern country, Canadians will feel some of the effects of climate change sooner than will others. As a prosperous country, we must and will do our part. As part of the Kyoto Protocol, Canada agreed to obligations to reduce greenhouse gas emissions by 2012. Extensive consultations and preparatory work followed. The government is now intensifying consultations with Canadians, industry and provinces to develop an implementation strategy to meet Canada’s obligations over the next ten years. Before the end of this year, the government will bring forward a resolution to Parliament on the issue of ratifying the Kyoto Protocol on Climate Change. Meeting this challenge must become a national project, calling upon the efforts and contributions of all Canadians, in all regions and sectors of the economy—producers and consumers, governments and citizens. To conserve our wilderness areas, clean water sources and key habitat, the government will create ten new national parks and five new National Marine Conservation Areas over the next five years. It will improve the ecological integrity in Canada’s existing national parks. It will reintroduce legislation to protect species at risk. The government will accelerate the clean-up of federal contaminated sites in Canada. It will work with the United States to further improve air quality. It will accelerate its work with the provinces on improved national water quality guidelines, and ensure their implementation in areas of federal jurisdiction. A Magnet for Talent and Investment The Canada we want requires a strong economy. The government will maintain its unwavering commitment to balanced budgets, disciplined spending, a declining ratio of debt-to-GDP, and fair and competitive taxes. It will build on its investments in research, literacy and education, and in competitive cities and healthy communities. It will also adjust its policies to enhance the climate for investment and talent. The government will reallocate resources to the highest priorities and transform old spending to new purposes. Skills, Learning and Research The fuel of the new economy is knowledge. The government has invested heavily in providing Canada’s schools and libraries with the information technology to connect young Canadians with the best information and knowledge the world has to offer. It has invested in access to universities and in excellence in university research because Canada’s youth need and deserve the best education possible, and Canada needs universities that produce the best knowledge and the best graduates. The government will build on these investments. It will continue to increase its funding to the federal granting councils to provide young Canadians greater support for graduate studies and research. It will work with universities on the indirect costs of research and on strategies for its commercialization to create opportunities for entrepreneurs and to fuel innovation. It will continue to work with small- and medium-sized enterprises in the development and application of new technologies in traditional and emerging sectors. It will strengthen government science, integrating its efforts across departments and disciplines, and focussing on the priorities of Canadians. In November, the Government of Canada will host the National Summit on Innovation and Learning. This will be an opportunity to position Canada as a world leader in such areas as health sciences, biotechnology and clean energy. The economy of the 21st century will need workers who are lifelong learners, who can respond and adapt to change. Canada’s labour market programs must be transformed to meet this challenge. To this end, the government will work with Canadians, provinces, sector councils, labour organizations and learning institutions to create the skills and learning architecture that Canada needs, and to promote workplace learning. This will include building our knowledge and reporting to Canadians about what is working and what is not. The Youth Employment Strategy has been successful in increasing job opportunities and experience for young Canadians. But the employment needs of our youth are changing. Government strategies have to keep pace. Working with youth and other partners, the government will redirect its resources in this area to develop skills for the future and to help those who face the greatest barriers to employment. It will also work with the provinces to fast-track a comprehensive agreement to remove barriers to participation in work and learning for persons with disabilities. The government will promote entrepreneurial skills and job creation among Aboriginal people by increasing support for Aboriginal Business Canada. It will also tailor and target its training programs to help Aboriginal and Inuit people participate in economic opportunities such as the development of Voisey Bay, northern gas pipelines and similar projects throughout Canada. One of Canada’s greatest assets—and a unique advantage in a globalized world—is our openness to immigrants from every corner of the globe. The demographic realities of an aging population and slowing labour force growth place an even greater premium on this immigration advantage. Canada must continue to be the country that immigrants choose to find hope, hospitality and opportunity. The government will work with its partners to break down the barriers to the recognition of foreign credentials and will fast-track skilled workers entering Canada with jobs already waiting for them. It will also position Canada as a destination of choice for talented foreign students and skilled workers by more aggressively selecting and recruiting through universities and in key embassies abroad. Smart Regulation The knowledge economy requires new approaches to how we regulate. We need regulation to achieve the public good, and we need to regulate in a way that enhances the climate for investment and trust in the markets. The government will move forward with a smart regulation strategy to accelerate reforms in key areas to promote health and sustainability, to contribute to innovation and economic growth, and to reduce the administrative burden on business. As part of this strategy, the government will adapt its intellectual property framework to enable Canada to be a world leader on emerging issues such as new life forms. It will speed up the regulatory process for drug approvals to ensure that Canadians have faster access to the safe drugs they need, creating a better climate for research in pharmaceuticals. It will work with provinces to implement a national system for the governance of research involving humans, including national research ethics and standards. The government will revise Canadian copyright rules to ensure that Canada has a progressive regime that supports increased investment in knowledge and cultural works. It will reintroduce legislation to amend the Canadian Environmental Assessment Act. It will also streamline environmental assessment processes, including implementing a single window for projects such as the northern pipeline. To pursue its strategy over the longer-term, the government will create an External Advisory Committee on Smart Regulation to recommend areas where government needs to redesign its regulatory approach to create and maintain a Canadian advantage. The government will implement the recently announced Agricultural Policy Framework and related measures to promote innovation in that key sector, which is vital to rural Canada and all Canadians. The Canada-US Smart Border Declaration contributes to both our national security and the free flow of people, goods and commerce across our shared border. The government will build on this work and increase its consular presence to expand fair and secure trade and commerce, and to brand Canada in the United States. It will continue to work bilaterally and multilaterally to resolve trade disputes over softwood lumber and agriculture. Recent events in the United States have weakened confidence in capital markets, not only in that country, but around the world. The government has been working closely with all parties to bolster investor confidence and improve the efficiency and integrity of Canadian capital markets. In this regard, it will review and, where necessary, change its laws and strengthen enforcement to ensure that governance standards for federally incorporated companies and financial institutions remain of the highest order. Many investors and businesses have expressed concern that Canada’s fragmented securities regulatory structure is inadequate and an obstacle to growth. They have urged reform to ensure that businesses can efficiently access the financing they need to grow, and to assure Canadians that they will be treated fairly when they invest. Co-operation among governments will be necessary. The government will work with all participants to ensure that Canada has the modern and efficient securities regulatory system it needs. Competitive Cities and Healthy Communities Competitive cities and healthy communities are vital to our individual and national well-being, and to Canada’s ability to attract and retain talent and investment. They require not only strong industries, but also safe neighbourhoods; not only a dynamic labour force, but access to a rich and diverse cultural life. They require new partnerships, a new urban strategy, a new approach to healthy communities for the 21st century. Modern infrastructure is key to the prosperity of our cities and the health of our communities. Working with provinces and municipalities, the government will put in place a ten-year program for infrastructure to accommodate long-term strategic initiatives essential to competitiveness and sustainable growth. Within this framework, it will introduce a new strategy for a safe, efficient and environmentally responsible transportation system that will help reduce congestion in our cities and bottlenecks in our trade corridors. It will extend its investments in affordable housing for those whose needs are greatest, particularly in those Canadians cities where the problem is most acute. It will extend the Supporting Communities Partnership Initiative to provide communities with the tools to plan and implement local strategies to help reduce homelessness. In a number of cities, poverty is disproportionately concentrated among Aboriginal people. The government will work with interested provinces to expand on existing pilot programs to meet the needs of Aboriginal people living in cities. The government will target its regional development activities to better meet the needs of the knowledge economy and address the distinct challenges of Canada’s urban, rural and northern communities. The government will work with Canada’s largest cities to develop targeted strategies to reduce the barriers faced by new immigrants in settling into the social and economic life of their new communities. It will introduce targeted measures to help children of recent immigrants to learn French and English, so that they can realize the opportunities that brought their parents to this country. The government will also implement a national drug strategy to address addiction while promoting public safety. It will expand the number of drug treatment courts. It will act on the results of parliamentary consultations with Canadians on options for change in our drug laws, including the possibility of the decriminalization of marijuana possession. A New Partnership Between Government and Citizens Canada has a unique model of citizenship, based simultaneously on diversity and mutual responsibility. This model requires deliberate efforts to connect Canadians across their differences, to link them to their history and to enable their diverse voices to participate in choosing the Canada we want. The government will ensure that as Canadians take charge of their future, they will have access to their history by creating a new institution that brings together the National Archives of Canada and the National Library of Canada, providing new tools to reach Canadians, young and old. It will also strengthen key arts and heritage institutions and protect significant historic sites and buildings. It will create more opportunities for young Canadians to help clean up our environment and assist in achieving Canada’s global priorities, particularly in Africa. It will reform our citizenship legislation to reassert the rights and reinforce the responsibilities that go with being Canadian. It will put into action the accord it signed with the voluntary sector last December, to enable the sector to contribute to national priorities and represent the views of those too often excluded. The government will work with provinces toward renewal of legal aid so that Canadians can have access to adequate legal representation before the courts. Linguistic duality is at the heart of our collective identity. The government will implement an action plan on official languages that will focus on minority-language and second-language education, including the goal of doubling within ten years the number of high school graduates with a working knowledge of both English and French. It will support the development of minority English- and French-speaking communities, and expand access to services in their language in areas such as health. It will enhance the use of our two official languages in the federal public service, both in the workplace and when communicating with Canadians. The government will reintroduce legislation to strengthen First Nations governance institutions—to support democratic principles, transparency and public accountability, and provide the tools to improve the quality of public administration in First Nations communities. It will work with these communities to build their capacity for economic and social development, and it will expand community-based justice approaches, particularly for youth living on reserves and Aboriginals in the North. The government will also work with Aboriginal people to preserve and enhance Aboriginal languages and cultures. Canadians want their government to be open, accountable and responsive to their diverse and changing needs. Early in this session, the government will provide clear guidance and better enforcement of the ethical standards expected of elected officials and senior public servants. The government will strengthen the legislation governing its relationship with lobbyists. And the government will introduce legislative changes to the financing of political parties and candidates for office. Canadians know the value and importance of the role of government and of the need for excellence in the public service. The government will introduce long-awaited reforms for the public service to ensure that it can attract the diverse talent it needs to continue to serve Canadians well. Conclusion The Canada we want cannot happen by government acting alone or by citizens acting apart. We know that by pursuing the common good, we pursue our own good; that a country is more than a collection of narrow interests, it is a common enterprise to which all can contribute. The priorities we have outlined today build on the conviction that we must add to the work of our ancestors, and leave Canada a better place for future generations. May our future, like our past, be a story of achievement. Fellow Canadians: Respectful of our history, confident in our future, let each of us do our part. Members of the House of Commons: You will be asked to appropriate the funds required to carry out the services and expenditures authorized by Parliament. Honourable Members of the Senate and Members of the House of Commons: As you carry out your duties and exercise your responsibilities, may you be guided by Divine Providence.

Canada

HONOURABLE MEMBERS OF THE SENATE, MEMBERS OF THE HOUSE OF COMMONS, LADIES AND GENTLEMEN: I congratulate both the returning members of Parliament, as well as the more than one hundred who are newly elected, as you take up your duties in the House of Commons for this Thirty-Eighth Parliament of Canada. This year, Canadians commemorated the 60th anniversary of D-Day and the landing of allied forces in Europe—an event that spelled the beginning of the end of the Second World War. Canadian soldiers, sailors and aircrews fought with dogged bravery and were ultimately victorious on Juno Beach that day. Shortly, I will be going to Italy to commemorate the significant campaign in which six thousand Canadians sacrificed their lives. To me, personally, these commemorations are a symbol of our eternal gratitude and an affirmation that we have not forgotten. On these occasions, we are reminded of the huge debt we owe to those in uniform who have served this country—then and today. Our veterans connect generations and Canadians. As a country and as individuals, we gain in pride and in purpose from their deeds and their service. I recently concluded extended visits to six cities of varying size—Saint John, Quebec City, Toronto, Saskatoon, Calgary and Vancouver. In them, I found remarkable, innovative projects for social renewal and individual commitment. They express the confidence and love that we all hold for this country. This is the spirit of Canada I see as Governor General. The Government starts this new session with a commitment that all parliamentarians share—regardless of political affiliation—to contribute to real progress for Canadians, for this country, for our future. The Government faces a new Parliament fresh from an election. The people of Canada want this Government, and all parliamentarians, to rise above partisanship to address the public interest. They want their political leaders to catch up with Canadians’ own ambitions for the country and their readiness to take on the world with confidence. Each of us must take responsibility. The Government will do its part to ensure that this minority Parliament works. Working together, we can unite the voices of all Canadians in common purpose. The Government’s actions on behalf of Canadians will be guided by these seven commitments: • to be unwavering in the application of fiscal discipline, the foundation of so much of Canada’s success over the past decade; • to promote the national interest by setting the nation’s objectives and building a consensus toward achieving them; • to pursue these objectives in a manner that recognizes Canada’s diversity as a source of strength and innovation; • to aim for tangible, practical results for Canadians and report to them so that they can hold their governments to account; • to defend the Charter of Rights and Freedoms and to be a steadfast advocate of inclusion; • to demand equality of opportunity so that prosperity can be shared by all Canadians; and • to assert Canada’s interests and project our values in the world. Together, we can move Canada forward. A STRONG ECONOMY Our quality of life, job opportunities and capacity to support our social goals rely on a globally competitive economy. Canada has a solid record of economic achievement. Over the past 10 years, we generated over three million new jobs. Since 1997, we have led all G7 countries in the growth of living standards. And low interest rates have made home ownership easier than it has been in decades. This has not happened by accident. A virtuous circle led to increased confidence, lower interest rates and robust growth of well-paying jobs. The increase in revenues and the recovery of fiscal sovereignty have in turn permitted the Government to reduce and improve the fairness of taxes, and make new social and economic investments. This virtuous circle will continue. We have been successful, but we will not be complacent. The Government will not spend itself into deficit. It will continue to pay down debt. Its objective is to reduce the debt-to-GDP ratio to 25 per cent within 10 years. It will provide transparent, accountable management, treating every tax dollar with respect. The Government will make the difficult decisions among competing priorities and systematically review all expenditures, reallocating from old to new, from past to future. Canada must now elevate its economic performance to the next level. Advancing technology and pervasive global competition demand of Canada a commitment to excellence, the pursuit of greater productivity, and a vision directed outward to the challenges and opportunities the world presents. The Government will pursue a five-point strategy to build an even more globally competitive and sustainable economy. The first element is to invest in people, Canada’s greatest source of creativity and economic strength. We must invest in helping workers to continuously enhance their skills to keep pace with constantly evolving workplace requirements. To that end, the Government will develop a new Workplace Skills Strategy, including steps to enhance apprenticeship systems, and to boost literacy and other essential job skills. This will be complemented by up-to-date training facilities and labour market agreements to be developed in collaboration with the provinces and territories, unions and sector councils. The Government will continue to review the Employment Insurance program to ensure that it remains well-suited to the needs of Canada’s workforce. Efforts to improve the recognition of foreign credentials and prior work experience have yielded too little progress. Looking to the growing contribution that will be required from new Canadians as our population ages, this Government will redouble its efforts, in cooperation with the provinces and professional bodies, to help integrate them into the workforce. To increase access to post-secondary education, the Government will introduce legislation to implement its Learning Bond, an innovative savings vehicle that it announced to help low-income families provide for their children’s post-secondary education. The second element of the economic strategy is to strengthen Canada’s ability to generate and apply new ideas. The Government of Canada has made substantial investments—more than $13 billion since 1997—that have built a strong foundation in basic science and technology, including the Canada Foundation for Innovation, health research and other initiatives to create leading-edge capabilities. It will continue to build on this strength. The National Science Advisor is assisting the Government to ensure that these investments are strategic, focused and delivering results, and is working to bring about a fuller integration of the Government’s substantial in-house science and technology activity. The next challenge is to turn more of Canadians’ bright ideas into dynamic businesses, great jobs and growing export earnings. To that end, the Government will ensure a supply of venture capital, particularly for early-stage businesses—for example, through the venture financing arm of the Business Development Bank of Canada. The Government will develop policies to foster Canadian capabilities in key enabling technologies—such as biotechnology, information and communications, and advanced materials—which will be drivers of innovation and productivity in the 21st century economy. Providing “smart government”—the third element of our economic strategy—aims to make it easier for businesses to do business in Canada. Smart government includes a transparent and predictable regulatory system that accomplishes public policy objectives efficiently while eliminating unintended impacts. This can be a key competitive advantage for Canada. That is why the Government welcomes the just-released report of the External Advisory Committee on Smart Regulation. Smart government also includes providing an up-to-date legislative framework for business. The Government will therefore propose changes to modernize the Competition Act. The fourth element of the Government’s overall economic strategy is a commitment to regional and sectoral development. The Government will do its part to enable the success of important sectors, including automotive, aerospace and other manufacturing, as well as agriculture and other resource-based industries. Canada’s regional economies are a vital source of economic strength and stability. Support for regional and rural economic development will target the fundamentals—skills upgrading, support for research and development, community development, and modern infrastructure such as broadband communication—by employing the regional agencies and tools such as the Atlantic Innovation Fund. The Government’s regional objectives will be complemented by the most fundamental reform of the Equalization program in its 47-year history. The objective is to make more stable and predictable the total payments by the federal government to the less-wealthy provinces in support of key public services. A region of particular challenge and opportunity is Canada’s North—a vast area of unique cultural and ecological significance. The Government will develop, in cooperation with its territorial partners, Aboriginal people and other northern residents, the first-ever comprehensive strategy for the North. This northern strategy will foster sustainable economic and human development; protect the northern environment and Canada’s sovereignty and security; and promote cooperation with the international circumpolar community. Promotion of trade and investment is the fifth pillar of the Government’s economic strategy. Strong investment will be the primary generator of growth and good jobs for the future. The Government will foster investment by attending to the conditions that encourage entrepreneurs and providers of risk capital. These include sound monetary and fiscal policies as well as competitive taxes, efficiently targeted to promote economic growth. Canada has always been a trading nation, but never more so than today. It is therefore vital that we secure and enhance our access to markets, both in North America and the world. To this end, the Government will continue to push for an open, rules-based international trading system and a successful conclusion of the Doha Round of global trade negotiations. Issues such as softwood lumber and BSE underline the importance the Government attaches to obtaining more reliable access to U.S. markets. It will build on the successful Smart Borders initiative and on measures designed to develop a more sophisticated and informed relationship involving business and government officials in the United States. The Government will enhance its capacity to expand international trade and commerce, with a particular focus on North America and emerging markets. To complement its international commerce initiatives, the Government is determined to forge a stronger Canadian economic union, free of the internal barriers that still diminish opportunities and reduce our competitiveness. THE HEALTH OF CANADIANS Canadians have told their governments, year after year, to renew Medicare, to stop bickering and work together to ensure that it will be there for them and their children. Governments have responded. On September 15, all fourteen First Ministers agreed on the Ten-year Plan to Strengthen Health Care. The Plan sets out a clear commitment, shared by all provinces and territories, to achieve tangible results—results for patients. What united all First Ministers was the commitment to a meaningful reduction in wait times for health services because it is key to transforming the health system. The Plan holds all governments to account by establishing a requirement for evidence-based benchmarks, comparable indicators, clear targets and transparent reporting to the public on access to health care. This means that the needs of patients will drive change. The Plan will accelerate reform and ensure better access to key tests and treatments. It will increase the number of doctors, nurses and other health professionals. This will be helped by quicker assessment and integration of those who have received their training abroad. The Plan will improve access to home and community care services and to safe and affordable drugs. The Plan commits to a 10-year track of substantial, predictable long-term funding, closing what has been called the “Romanow Gap.” The Plan creates a Wait Times Reduction Fund, so that Canadians can see tangible progress in key areas such as cancer and heart treatment, diagnostic imaging, joint replacements and sight restoration. The Plan addresses the unique challenges facing the delivery of health care services in Canada’s North, including the costs of medical transportation, and encourages innovative delivery of services to rural Canada. As part of the Plan, governments will, for the first time, set goals and targets for improving the health status of Canadians. The Health Council of Canada will provide an annual report on health status and health outcomes, and will report on progress in implementing the Plan. Funding arrangements will require that jurisdictions comply with the reporting provisions agreed to by First Ministers. Better health for Canadians requires more than just timely access to health care. It requires the promotion of healthy living, addressing risk factors such as physical inactivity and nutrition; the prevention of injury; and integrated disease strategies. The Government will also work with partners to enhance sports activities at both the community and competitive levels. The Government has already appointed a new Chief Public Health Officer for Canada to drive real change. The Government will also proceed with new health protection legislation. And it welcomes the development of the Pan-Canadian Public Health Network, which will strengthen collaboration among public health organizations nationwide. The Network will build capacity and provide coordinated responses to infectious disease outbreaks and other public health emergencies. CHILDREN, CAREGIVERS AND SENIORS For a decade, all governments have understood that the most important investment that can be made is in our children. That is why, even when it was fighting the deficit, the Government established the National Child Benefit—the most significant national social program since Medicare. There is more that must be done to help families help their children. Parents must have real choices; children must have real opportunities to learn. The time has come for a truly national system of early learning and child care, a system based on the four key principles that parents and child care experts say matter—quality, universality, accessibility and development. The Government will put the foundations in place with its provincial and territorial partners, charting a national course that focuses on results, builds on best practices and reports on progress to Canadians. Within this national framework, the provinces and territories will have the flexibility to address their own particular needs and circumstances. As our society ages, Canadian families are caring not only for young children but increasingly for elderly spouses and grandparents as well. The Government recognizes the vital role of Canadians who care for aged or infirm relatives or those with severe disabilities. It will improve its existing tax-based support and will ask Parliament to consult across the country on additional initiatives. Building on previous measures, the Government will assist people with disabilities in becoming more self-reliant by drawing on the upcoming recommendations of the Technical Advisory Committee on Tax Measures for Persons with Disabilities. Canada’s seniors are healthier and living longer than ever before. Many want to remain active and engaged in community life. To help them, the Government has announced the New Horizons program and will explore other means of ensuring that we do not lose the talents and contribution that seniors can make to our society. Canada’s seniors have earned the right to be treated with dignity. As one step, the Government will increase the Guaranteed Income Supplement for Canada’s least well-off seniors. ABORIGINAL CANADIANS We must do more to ensure that Canada’s prosperity is shared by Canada’s Aboriginal people—First Nations, Inuit and Métis. We have made progress, but it is overshadowed by the rates of fetal alcohol syndrome and teen suicide in Aboriginal communities. These are the intolerable consequences of the yawning gaps that separate so many Aboriginal people from other Canadians—unacceptable gaps in education attainment, in employment, in basics like housing and clean water, and in the incidence of chronic diseases such as diabetes. The Canada-Aboriginal Peoples Roundtable held last April was a major step along a new path of partnership and prosperity. The Government and Aboriginal leaders agreed to measurable goals to reduce these gaps and their consequences. What could be more profound than targeting real change in the rate of fetal alcohol syndrome and teen suicide? At their meeting on September 13 of this year, all First Ministers and Aboriginal leaders took action. There, this Government undertook to provide $700 million to encourage greater Aboriginal participation in the health professions, to address chronic diseases such as diabetes, and to create an Aboriginal Health Transition Fund to better adapt existing health care services to Aboriginal needs. The Government is working together with Aboriginal Canadians and provincial and territorial governments to create the conditions for long-term development—learning, economic opportunity, and modern institutions of Aboriginal governance—while respecting historical rights and agreements. The Government and Aboriginal people will together develop specific quality-of-life indicators and a “Report Card” to hold all to account and to drive progress. CANADA’S CITIES AND COMMUNITIES Canadians want their communities, towns and cities to be great places to live—safe, with affordable housing, good public transit, clean air and water, and abundant green spaces. Communities are key to our social goals and our economic competitiveness. They are the front lines in building a better quality of life. Through the New Deal for Canada’s Cities and Communities, and working with the provinces and territories, the Government will make available, for the benefit of municipalities, a portion of the federal gas tax, growing over the next five years. These funds will enable municipalities to make long-term financial commitments needed to help contain urban sprawl and to invest in new sustainable infrastructure projects in areas like transit, roads, clean water and sewers. To address key issues such as urban renewal, immigrant integration and the challenges facing off-reserve Aboriginal Canadians, the Government will expand the partnership approach used to develop the Vancouver and Winnipeg Agreements and proceed to implement its recent agreement with the Government of Ontario to cooperate in service delivery. The Government will also build on the work of the Harcourt Advisory Committee. Shelter is the foundation upon which healthy communities and individual dignity are built. The Government will extend and enhance existing programs such as the Affordable Housing Initiative, the Supporting Communities Partnership Initiative for the homeless, and the Residential Rehabilitation Assistance Program. What makes our communities strong is the willingness of men and women from all walks of life to take responsibility for their future and for one another. We can see this in the number of voluntary organizations and social economy enterprises that are finding local solutions to local problems. The Government is determined to foster the social economy—the myriad not-for-profit activities and enterprises that harness civic and entrepreneurial energies for community benefit right across Canada. The Government will help to create the conditions for their success, including the business environment within which they work. To that end, it will introduce a new Not-for-Profit Corporations Act. What makes our communities work is our deep commitment to human rights and mutual respect. The Government is committed to these values. It will modernize Canada’s Citizenship Act to reaffirm the responsibilities and rights of Canadian citizenship and our values of multiculturalism, gender equality and linguistic duality. It is implementing the Official Languages Action Plan and will continue to promote the vitality of official language minority communities. It will take measures to strengthen Canada’s ability to combat racism, hate speech and hate crimes, both here at home and around the world. And it will table legislation to protect against trafficking in persons and to crack down on child pornography. What makes our communities vibrant and creative is the quality of their cultural life. The Government will foster cultural institutions and policies that aspire to excellence, reflect a diverse and multicultural society, respond to the new challenges of globalization and the digital economy, and promote diversity of views and cultural expression at home and abroad. OUR ENVIRONMENT Our quality of life today, and the legacy we bequeath to future generations, demands fundamental change in the way in which we think about the environment. The Government will work with its partners to build sustainable development systematically into decision making. As the ethic and imperative of sustainability take deeper root worldwide, human ingenuity will turn increasingly to ways to produce and use energy more cleanly and efficiently; to eliminate toxins from our air, water and soil; and to build more sustainable communities. Here lie great new opportunities for the world economy. Canada’s entrepreneurs must aim to be at the leading edge. To that end, the Government will work with the private sector to improve the commercialization of the best new environmental technologies. Major investments funded out of the proceeds of the sale of the Government’s Petro-Canada shares will support their development and deployment. The Government will work to get its own house in order. It will consolidate federal environmental assessments and will work with the provinces and territories toward a unified and more effective assessment process for Canada. By 2006, the Government will implement a new Green Procurement Policy to govern its purchases. It will also introduce legislation that will strengthen the focus on the ecological integrity of Canada’s national parks. Nowhere are the challenges and opportunities of sustainability more evident than in the way in which we use and produce energy. The Government will place increased focus on energy efficiency and energy research and development. It will engage stakeholders in developing comprehensive approaches to encourage increased production and use of clean, renewable energy and to promote greater energy efficiency. This will build on efforts already underway, including support for wind-power production in Canada, stimulated by a quadrupling of the Wind Power Production Incentive. The Government reiterates that it will respect its commitment to the Kyoto Accord on climate change in a way that produces long-term and enduring results while maintaining a strong and growing economy. It will do so by refining and implementing an equitable national plan, in partnership with provincial and territorial governments and other stakeholders. As the Government builds a sustainable society at home, it will continue to pursue multilateral and bilateral approaches to what are ultimately global challenges. For example, it will work with the United States and agencies like the International Joint Commission on issues such as clean air, clean water and invasive species. In 2005, the Government will bring forward the next generation of its Great Lakes and St. Lawrence programs, underscoring its commitment to protect and preserve these internationally significant shared ecosystems. The Government will also move forward on its Oceans Action Plan by maximizing the use and development of oceans technology, establishing a network of marine protected areas, implementing integrated management plans, and enhancing the enforcement of rules governing oceans and fisheries, including rules governing straddling stocks. A ROLE OF PRIDE AND INFLUENCE IN THE WORLD In today’s world, effective international engagement is needed to advance national aspirations. Now that time and distance have lost their isolating effect, it is no longer possible to separate domestic and international policies. Canada’s internationalism is a real advantage, but we must find new ways to express it if we are to effectively assert our interests and project our values in a changing world. Just as Canada’s domestic and international policies must work in concert, so too must our defence, diplomacy, development and trade efforts work in concert. This fall, the Government will release a comprehensive International Policy Statement that will reflect this integration. Parliamentarians and other Canadians will have the opportunity to debate its analyses and proposed directions. Meanwhile, the world does not wait. The new security threats that face Canada demand new approaches immediately. The Government has already responded. In April of this year, it introduced Canada’s first-ever comprehensive National Security Policy, which will ensure a more focused and integrated approach to securing our open society. The Government is now implementing this policy. In this context, the Government is also deepening cooperation with the United States on mutual assistance in the event of major natural or human-caused emergencies. This new context requires us to manage wisely our relationship with the United States, to know our friend better, and to strengthen our economic and security relations. Our relationship must be built on shared values, on mutual respect, and on a strong and independent voice for Canada. Enhancing Canada’s security means that we have to invest more in our military as part of defending ourselves at home, in North America and in the world. We have to earn our way in the world. But ours will never be the biggest military force, so it must be smart, strategic and focused. Canada’s proud tradition as a leader in peacekeeping is being tested today by increasing demands in extremely dangerous and politically complicated situations, often involving failed and failing states. We have seen what extraordinary work Canadian men and women can do in places like Afghanistan, Bosnia and Haiti. We know that Canadians are among the best in the world in meeting the challenge of being soldiers to make the peace, diplomats to negotiate the peace and aid workers to nurture the peace. That is why the Government will be increasing our regular forces by some 5,000 troops and our reserves by 3,000 so that they may be better prepared and equipped to meet these challenges. As Darfur and other situations have shown, sometimes intervention is best achieved by regional forces attuned to their cultural and geographic conditions. In such cases, particularly in Africa, Canada intends to continue playing a role by training regional peacekeepers, to prepare them to conduct challenging security operations within the principles of international humanitarian law. In so many of the world’s trouble spots, establishing order is only the first step. Poverty, despair and violence are usually rooted in failed institutions of basic governance and rule of law. This is where Canada, with its commitment to pluralism and human rights, can make a unique contribution. That is why the Government is establishing the Canada Corps. Its mandate is first, to put our idealism to work by helping young Canadians bring their enthusiasm and energy to the world; second, to bring our skills and ideas to bear by ensuring that experts of all ages and backgrounds—for example, in governance, health, economics, human rights—can get to the places in the world that need them; and third, to coordinate the efforts of government and to work with civil society. The Canada Corps will bring the best of Canadian values and experience to the world. For all that we as Canadians want to achieve, and for all that we want for others, we also need international institutions that work. Dealing with complex issues like the “responsibility to protect” and managing the global commons will require leadership from all continents—from North and South. For that reason, the Government will work to bring about a meeting of G20 leaders to address common and pressing concerns, such as how to improve public health systems, combat terrorism and reform our multilateral institutions. GOVERNING IN COMMON PURPOSE The Government’s agenda for this Parliament is based on a comprehensive strategy to build a prosperous and sustainable 21st-century economy for Canada; strengthen the country’s social foundations; and secure for Canada a place of pride and influence in the world. Supported by a committed and excellent public service, the Government will work diligently in this minority Parliament to address the priority areas it has identified. It will also introduce initiatives in many other areas, including commitments from the last Speech from the Throne, and will build on the work of Parliamentary committees, involve parliamentarians in the review of key appointments, and examine the need and options for reform of our democratic institutions, including electoral reform. The Government invites members from both Chambers to join with it in the same democratic spirit: committed to unity and the inclusion of all regions and all voices, ready to work in common purpose on behalf of Canada. Members of the House of Commons: You will be asked to appropriate the funds required to carry out the services and expenditures authorized by Parliament. Honourable Members of the Senate and Members of the House of Commons: As you carry out your duties and exercise your responsibilities, may you be guided by Divine Providence.

Canada

Honourable Members of the Senate, Members of the House of Commons, Ladies and Gentlemen: As the representative of Her Majesty Queen Elizabeth II, I am honoured to welcome the newly elected members of the House of Commons on the occasion of the opening of the First Session of the Thirty-Ninth Parliament of Canada. Canadians rejoice in the coming eightieth birthday of Her Majesty later this month, and in her more than fifty years of service as Queen of Canada. Since my appointment as Governor General of Canada, I have had the privilege of meeting women and men who each and every day, and each in their own way, reaffirm their attachment to this vast land that we share and where people from around the world have found a home. Women and men of ideas, conviction and action who have an abiding sense of responsibility, solidarity and commitment to their neighbourhoods, to their communities and to their country. And I am moved to see just how strong and vibrant a country we are. I have been particularly struck by the words of our young people and by their wealth of ideas. Young people who are looking to carve out their place and be heard. The new generation of Aboriginal entrepreneurs who are creating new opportunities. Young people in our Canadian Forces who, through their extraordinary efforts, offer a promise of hope for the oppressed. More than ever, our young people represent not only the promise of a brighter future, but also the vitality of our present. I have met with people from our two great linguistic communities and I can attest that our linguistic duality is a tremendous asset for the country. Similarly, Canadian artists from all disciplines have confirmed to me just how important creative expression is to the health of a democratic society. And I have heard from Canadians who feel they often lack a voice. Women who are victims of violence. Families newly arrived in Canada who seek to contribute to our society and our country's collective well-being. Listening to citizens from all walks of life has strengthened my already deep conviction that we are living in a country where everything is possible, where each of us is free to follow his or her dreams but also has a duty to help build our country and prepare it for the challenges that lie ahead. Building a Stronger Canada On January 23, the Canadian people elected a new government. The Government is honoured by the responsibility it has been given for managing the affairs of our great country. Canada is uniquely blessed in the strength and diversity of its people and regions. Through hard work, foresight and good fortune, we have come together to make our vast country one of the most successful the world has ever seen. The distance we have travelled is remarkable. A country once perceived to be at the edge of the world is now at the leading edge of science, business, the arts and sport. Whether it is on the podium in Turin, on the rugged hills of Afghanistan, or in the bustling markets of Asia, Canadians demonstrate time and time again that they are leaders. The Government is proud of what Canadians have accomplished so far, and is inspired by the country's bright prospects. It believes in the capacity of Canadians to seize the enormous opportunities before them and build an even stronger Canada, striving for excellence, anchored by enduring values, and infused with growing confidence that they can make a difference at home and in the world. In support of building a stronger Canada, the Government's agenda will be clear and focused. It will clean up government, provide real support to ordinary working families and strengthen our federation as well as our role in the world. Turning a New Leaf Canadians have chosen change. They want a government that treats their tax dollars with respect. A government that puts ordinary working people and their families first. A government that is accountable. This Government has been given a mandate to lead the change demanded by the Canadian people. Leading change in a minority Parliament means working together. To this end, the Government will look for shared goals and common ideas that will help Canadians build a stronger Canada. It is time to turn a new leaf. Bringing Accountability Back to Government No aspect of responsible government is more fundamental than having the trust of citizens. Canadians' faith in the institutions and practices of government has been eroded. This new government trusts in the Canadian people, and its goal is that Canadians will once again trust in their government. It is time for accountability. To restore this trust, the first piece of legislation the Government will bring forward will be the Federal Accountability Act. This omnibus legislation and the associated Accountability Action Plan will change the current system of oversight and management by strengthening the rules and institutions that ensure transparency and accountability to Canadians. The legislation will ban institutional and large personal donations to political parties; it will ensure that positions of public trust cannot be used as stepping stones to private lobbying; and it will provide real protection for whistle-blowers who show great courage in coming forward to do what is right. The Government will strengthen the capacity and independence of officers of Parliament, including the Auditor General, to hold the Government to account. It will increase the transparency of appointments, contracts and auditing within government departments and Crown corporations. Effective checks and balances are important, but they are not enough. The trust of citizens must be earned every day. The Government will work to earn that trust. Helping Ordinary Working Canadians and Their Families This Government believes that Canadians pay too much in tax. The Government's tax plan will, over time, reduce the tax burden on all Canadians. To this end, the Government will reduce the Goods and Services Tax by one percent. Cutting the GST will help all Canadians deal with the rising cost of living, put money back in people's pockets and help stimulate the economy. Cutting the GST is the best way to lower taxes for all Canadians, including low-income Canadians who need it most. The Government will continue with a responsible approach to lowering taxes for the benefit of Canadians and the Canadian economy, including a further reduction of the GST to five percent. Tackling Crime Canadians have always taken pride in our low crime rates. Safe streets have long characterized Canada's communities -- from villages to towns to cities. Safe communities allow families and businesses to prosper. Unfortunately, our safe streets and healthy communities are increasingly under threat of gun, gang and drug violence. This Government will tackle crime. It will propose changes to the Criminal Code to provide tougher sentences for violent and repeat offenders, particularly those involved in weapons-related crimes. It will help prevent crime by putting more police on the street and improving the security of our borders. It is equally important that we prevent criminal behaviour before it has a chance to take root. To this end, the Government will work with the provinces and territories to help communities provide hope and opportunity for our youth, and end the cycle of violence that can lead to broken communities and broken lives. Providing Child Care Choice and Support Strong families ensure a bright future for Canada. The most important investment we can make as a country is to help families raise their children. This Government understands that no two Canadian families are exactly alike. Each has its own circumstances and needs. Parents must be able to choose the child care that is best for them. The Government will help Canadian parents, as they seek to balance work and family life, by supporting their child care choices through direct financial support. In collaboration with the provinces and territories, employers and community non-profit organizations, it will also encourage the creation of new child care spaces. Ensuring Canadians Get the Health Care They Have Paid For Canadians have paid their taxes to support our system of public health insurance. But all too often, they find themselves waiting too long for critical procedures. That is not good enough. It is time Canadians received the health care they have paid for. The Government will engage the provinces and territories on a patient wait times guarantee for medically necessary services. This guarantee will make sure that all Canadians receive essential medical treatment within clinically acceptable waiting times. A health system that is timely and sustainable will require innovation. The Government will support and enable innovative approaches to health care delivery consistent with the principles of a universally accessible and equitable public health care system embodied in the Canada Health Act. A Canada That Works for All of Us One of Canada's greatest strengths is our federal system of government. The founders of our country had the foresight to build a flexible federal system that would accommodate our diversity and build upon the unique strengths of the different parts of our federation. To remain strong and effective, our federation must keep pace with the evolving needs of Canadian society. Building on the work begun in the last Parliament, this Government will seek to involve parliamentarians and citizens in examining the challenges facing Canada's electoral system and democratic institutions. At the same time, it will explore means to ensure that the Senate better reflects both the democratic values of Canadians and the needs of Canada's regions. All too often, the strength of our federation is compromised by jurisdictional squabbles that obscure accountabilities and prevent governments from working together in the best interests of Canadians. This new government will take a new approach. It is committed to building a better federation in which governments come together to help Canadians realize their potential. To this end, the Government will respond to concerns about the fiscal imbalance and will work to ensure fiscal arrangements in which all governments have access to the resources they need to meet their responsibilities. The Government is committed to an open federalism that recognizes the unique place of a strong, vibrant Quebec in a united Canada. It will work with the government and legislature of Quebec in a spirit of mutual respect and collaboration to advance the aspirations of Quebecers. In the international community, Canada is stronger when we speak with one voice, but that voice must belong to all of us. In a more interdependent world, decisions on international issues increasingly affect not only countries, but also individuals, communities and regions. This is why the Government will facilitate provincial participation in the development of Canadian positions that affect areas of provincial responsibility. The Government recognizes the special cultural responsibilities of the Government of Quebec and will therefore invite Quebec to play a role in the United Nations Educational, Scientific and Cultural Organization. By harnessing the diversity of experience and expertise found within our federation, we can present a strong, united and confident voice to the world. Canada - Strong, United, Independent and Free Canada's voice in the world must be supported by action, both at home and abroad. Advancing our interests in a complex and sometimes dangerous world requires confidence and the independent capacity to defend our country's sovereignty and the security of our citizens. The Government will work cooperatively with our friends and allies and constructively with the international community to advance common values and interests. In support of this goal, it will build stronger multilateral and bilateral relationships, starting with Canada's relationship with the United States, our best friend and largest trading partner. More broadly, this Government is committed to supporting Canada's core values of freedom, democracy, the rule of law and human rights around the world. In this regard, the Government will support a more robust diplomatic role for Canada, a stronger military and a more effective use of Canadian aid dollars. Just as it honours the past efforts of our veterans, the Government stands firmly behind the vital role being played by our troops in Afghanistan today. The dedicated Canadians in Afghanistan deserve all of our support as they risk their lives to defend our national interests, combat global terrorism and help the Afghan people make a new start as a free, democratic and peaceful country. Conclusion The Government's clear and focused agenda reflects its commitment to Canadians. It will not try to do all things at once. Instead, the Government will work diligently to make tangible improvements that contribute to stronger families and safer communities, and a stronger country. During this Thirty-Ninth Parliament, the Government will be bringing forward fiscally responsible budgets and a legislative program that will achieve the results that Canadians expect from their elected representatives. In this work, it will rely on the support and counsel of a dedicated and professional Public Service. In turn, it will give the Public Service the leadership and tools it needs to excel in the service of Canadians. Recognizing the important role of parliamentarians, members of Parliament will be asked to conduct comprehensive reviews of key federal legislation, including the Canadian Environmental Protection Act, the Anti-Terrorism Act and the Bank Act. The Government will act in Parliament to offer an apology for the Chinese Head Tax. Significant international treaties will be submitted for votes in Parliament. Over the course of its mandate, and starting with the clear priorities set out today, the Government will work diligently to build a record of results. It will promote a more competitive, more productive Canadian economy. It will seek to improve opportunity for all Canadians, including Aboriginal peoples and new immigrants. It will work to improve the security of seniors. It will take measures to achieve tangible improvements in our environment, including reductions in pollution and greenhouse gas emissions. This Government recognizes the unique challenges faced by those who make their livelihood from our land and oceans in our vital natural resource and agriculture industries. It will take action to secure a prosperous future for Canadian agriculture, following years of neglect. It will respond to short-term needs, create separate and more effective farm income stabilization and disaster relief programs and work with producers and partners to achieve long-term competitiveness and sustainability. Together, the Government's actions will ensure Canada's future success. With the efforts and contributions of members from both chambers, the Government looks forward to making this Parliament work for the benefit of the Canadian people. Members of the House of Commons: You will be asked to appropriate the funds required to carry out the services and expenditures authorized by Parliament. Honourable Members of the Senate and Members of the House of Commons: May Divine Providence guide your deliberations.

Canada

Honourable Senators, Members of the House of Commons, Ladies and Gentlemen, I would like to address the first words in this chamber to the members of the Canadian Forces, some of whom are present here today. Their commitment and courage in the name of justice, equality and freedom — whose benefits are not accorded to all peoples in the world — are worthy of our utmost respect. The Speech from the Throne is an important moment in our country's democratic life. Through the Speech from the Throne, the Government shares its vision with Canadians. And it is thus that we open the Second Session of the Thirty- ninth Parliament today. Fifty years ago, on October 14, 1957, during her first visit to Canada as its Sovereign, and for the first time in Canadian history, Her Majesty Queen Elizabeth II opened the First Session of the Twenty-third Parliament. This room is filled with history, and we mark history again this year as we celebrate a number of anniversaries. I think, in particular, of the bicentenary of the Abolition of the Slave Trade Act in the British Empire . I also think of the 60th anniversary of the adoption of the Citizenship Act on January 1, 1947. And I think of the 40th anniversary of the Order of Canada , whose one hundredth investiture ceremony we will soon be celebrating at Rideau Hall. And although Canada is a young country, its history is marked by our unwavering willingness — which I was touched to see all across Canada — to be and to continue to be a generous society. A society that is concerned about the well being of others. A society that is protective of the spirit of this bountiful land, a deep respect learned from Aboriginal peoples. A society that is committed to finding solutions to today's challenges. A society that is open to creation and quick to innovate. A society that is filled with young people who have an unprecedented openness to the world. STRONG LEADERSHIP. A BETTER CANADA . Canada is the greatest country in the world, a nation of enormous potential built through the imagination and dedication of ordinary Canadians. Canadians who have worked hard to build a better life for their families. Canadians who have joined with their neighbours to create a society founded on peace and prosperity. Canada is their legacy to us. Canadians expect their government to help them build on this legacy. They want a government that sets clear goals and delivers concrete results. A government that is accountable. A government that puts Canadians and their families first. Our Government has worked hard to meet these expectations. Canadians now have more money in their pockets because taxes have been cut. Families now have real choice in child care through the Universal Child Care Benefit. Canadians now have a government committed to helping them get the medical care they need more quickly. A government that is tackling crime and making neighbourhoods safer. The results are clear: the economy is strong, the government is clean and the country is united. Now is the time to continue building a better Canada . In the next session, our Government will focus on five clear priorities: strengthening Canada 's sovereignty and place in the world; building a stronger federation; providing effective economic leadership; continuing to tackle crime; and improving our environment. STRENGTHENING CANADA 'S SOVEREIGNTY AND PLACE IN THE WORLD Canada is built on a common heritage of values, which Canadians have fought and died to defend. It is a country that continues to attract newcomers seeking refuge and opportunity, who see Canada as a place where they can work hard, raise families and live in freedom. Our Government is resolved to uphold this heritage by protecting our sovereignty at home and living by our values abroad. The Arctic is an essential part of Canada 's history. One of our Fathers of Confederation, D'Arcy McGee, spoke of Canada as a northern nation, bounded by the blue rim of the ocean. Canadians see in our North an expression of our deepest aspirations: our sense of exploration, the beauty and the bounty of our land, and our limitless potential. But the North needs new attention. New opportunities are emerging across the Arctic , and new challenges from other shores. Our Government will bring forward an integrated northern strategy focused on strengthening Canada 's sovereignty, protecting our environmental heritage, promoting economic and social development, and improving and devolving governance, so that northerners have greater control over their destinies. To take advantage of the North's vast opportunities, northerners must be able to meet their basic needs. Our Government will work to continue to improve living conditions in the North for First Nations and Inuit through better housing. Our Government will build a world-class Arctic research station that will be on the cutting edge of Arctic issues, including environmental science and resource development. This station will be built by Canadians, in Canada 's Arctic , and it will be there to serve the world. As part of asserting sovereignty in the Arctic, our Government will complete comprehensive mapping of Canada 's Arctic seabed. Never before has this part of Canada 's ocean floor been fully mapped. Defending our sovereignty in the North also demands that we maintain the capacity to act. New Arctic patrol ships and expanded aerial surveillance will guard Canada 's Far North and the Northwest Passage . As well, the size and capabilities of the Arctic Rangers will be expanded to better patrol our vast Arctic territory. Ensuring our capacity to defend Canada 's sovereignty is at the heart of the Government's efforts to rebuild the Canadian Forces. Canada 's men and women in uniform risk their lives for their country, and deserve the equipment and training required for a first-class, modern military. Our Government will modernize Canada 's military to provide effective surveillance and protection for all of our country, cooperate in the defence of North America , and meet our responsibilities abroad to the United Nations and our allies. Further, recognizing the important role that the Reserves play in this modernization, our Government will work with the provinces and territories to bring forward a comprehensive plan to modernize reservist reinstatement policies. At the same time as our Government rebuilds to meet our future needs, it will continue to improve support for our veterans who have contributed so much to defending Canada in the past. Rebuilding our capabilities and standing up for our sovereignty have sent a clear message to the world: Canada is back as a credible player on the international stage. Our Government believes that focus and action, rather than rhetoric and posturing, are restoring our influence in global affairs. Guided by our shared values of democracy, freedom, human rights and the rule of law, our Government will continue Canada 's international leadership through concrete actions that bring results. A commitment to action means that Canada must make common cause with those fighting for the values we uphold. Our Government will immediately call upon Parliament to confer honorary citizenship on Aung San Suu Kyi . Her long struggle to bring freedom and democracy to the people of Burma has made her the embodiment of these ideals and an inspiration to all of us. Nowhere is Canada making a difference more clearly than in Afghanistan . Canada has joined the United Nations- sanctioned mission in Afghanistan because it is noble and necessary. Canadians understand that development and security go hand in hand. Without security, there can be no humanitarian aid, no reconstruction and no democratic development. Progress will be slow, but our efforts are bearing fruit. There is no better measure of this progress than the four million Afghan boys and two million girls who can dream of a better future because they now go to school. The Canadian Forces mission in Afghanistan has been approved by Parliament until February 2009, and our Government has made clear to Canadians and our allies that any future military deployments must also be supported by a majority of parliamentarians. In the coming session, members will be asked to vote on the future of the Canadian mission in Afghanistan . This decision should honour the dedication and sacrifice of Canada 's development workers, diplomats and men and women in uniform. It should ensure that progress in Afghanistan is not lost and that our international commitments and reputation are upheld. Our Government does not believe that Canada should simply abandon the people of Afghanistan after February 2009. Canada should build on its accomplishments and shift to accelerate the training of the Afghan army and police so that the Afghan government can defend its own sovereignty. This will not be completed by February 2009, but our Government believes this objective should be achievable by 2011, the end of the period covered by the Afghanistan Compact. Our Government has appointed an independent panel to advise Canadians on how best to proceed given these considerations. In our own neighbourhood, the Americas , Canada is back playing an active role. The Canadian model of constitutional democracy and economic openness combined with social safety nets, equitable wealth creation and sharing across regions has much to offer those countries struggling to build a better future. Canada 's efforts in Haiti are a compelling example of how we can work with our neighbours to ensure security and development. Canadians understand that our country has a responsibility to help countries struggling to make a better life for their people — particularly in promoting democratic governance in fragile states. In Haiti and elsewhere, our Government will bring greater focus and effectiveness to Canada 's international assistance to ensure that Canadians' money is well spent. The best hope for fostering development and our common security in the hemisphere and beyond is through bolstering international trade. Through renewed focus on trade and investment arrangements, Canada has already secured a deal with the European Free Trade Association, the first new agreement in more than half a decade. Our Government will keep advancing Canada 's trade interests in the Americas and around the world to open up new markets for Canada 's innovators. STRENGTHENING THE FEDERATION AND OUR DEMOCRATIC INSTITUTIONS Next year we mark important anniversaries spanning our country and its history. We will celebrate the 400th anniversary of the founding of Quebec City . Canada was born in French, reflected in the presence of francophones throughout Canada , and in Parliament's recognition that the Québécois form a nation within our united country. We will also celebrate the 250th anniversary of the establishment of Nova Scotia 's representative assembly, which marks the birth of Canadian parliamentary democracy, and the 150th anniversary of the founding of the Crown Colony of British Columbia. John A. Macdonald, George- Étienne Cartier and the other Fathers of Confederation brought many peoples and regions together to create a federation that has served Canadians well for 140 years. Our Government is committed to strengthening that union: it has concentrated on its national role by reinvesting in neglected federal responsibilities, such as trade, defence, public safety and security. It has put fiscal relations with provinces and territories on a principled basis and increased the level of transfers to support quality health care and social services. Our Government believes that the constitutional jurisdiction of each order of government should be respected. To this end, guided by our federalism of openness, our Government will introduce legislation to place formal limits on the use of the federal spending power for new shared-cost programs in areas of exclusive provincial jurisdiction. This legislation will allow provinces and territories to opt out with reasonable compensation if they offer compatible programs. Our Government will also pursue the federal government's rightful leadership in strengthening Canada 's economic union. Despite the globalization of markets, Canada still has a long way to go to establish free trade among our provinces. It is often harder to move goods and services across provincial boundaries than across our international borders. This hurts our competitive position but, more importantly, it is just not the way a country should work. Our Government will consider how to use the federal trade and commerce power to make our economic union work better for Canadians. Canadians understand that the federation is only as strong as the democratic institutions that underpin it. Our Government believes that Canada is not well served by the Senate in its current form. To ensure that our institutions reflect our shared commitment to democracy, our Government will continue its agenda of democratic reform by reintroducing important pieces of legislation from the last session, including direct consultations with voters on the selection of Senators and limitations on their tenure. In addition, the integrity of our federal voting system will be further strengthened through measures to confirm the visual identification of voters. Our Government supports Canada 's linguistic duality. It will renew its commitment to official languages in Canada by developing a strategy for the next phase of the Action Plan for Official Languages. Our Government remains committed to improving the lives of Canada 's Aboriginal people. The Government will reintroduce legislation to guarantee to people living on reserve the same protections other Canadians enjoy under the Canadian Human Rights Act . Our Government will also present legislation on specific claims, which will finally bring fairness and timely resolution to the claims process. Our Government recently concluded a final settlement on Indian Residential Schools and will launch a commission for truth and reconciliation. The Prime Minister, on behalf of our Government, will use this occasion to make a statement of apology to close this sad chapter in our history. PROVIDING EFFECTIVE ECONOMIC LEADERSHIP FOR A PROSPEROUS FUTURE This is a time of economic uncertainty and volatility in the wider world. While the economic fundamentals of our country are strong, Canada is not immune from this turbulence. Canadians understand these challenges and want a government that is a competent and effective manager of the economy. With Advantage Canada , our Government has laid out a sensible economic plan to secure better-paying jobs and solid growth for Canadians. The Minister of Finance will soon provide a Fall Economic and Fiscal Update, which will outline the next steps in that plan to ensure that Canada has a modern infrastructure, an innovative and entrepreneurial business environment, and a tax system that rewards hard work — all based on a foundation of sound fiscal management. As part of ensuring economic security for Canadians, our Government will bring forward a long-term plan of broad- based tax relief for individuals, businesses and families — including following through on its commitment to a further cut to the GST. To complement this, our Government will support Canadian researchers and innovators in developing new ideas and bringing them to the marketplace through Canada 's Science and Technology Strategy. Our Government will improve the protection of cultural and intellectual property rights in Canada , including copyright reform. Our Government will also take measures to improve the governance and management of the Employment Insurance Account. The bedrock of our workforce is middle-class Canadians and their families. These families worry about the rising costs of higher education and the expense of caring for elderly parents. They worry about affordable housing and the number of homeless people on our streets. Our Government is committed to helping Canadian families meet their needs. The Working Income Tax Benefit will help Canadians get back into the workforce, and the registered disability savings plan will help families care for children with severe disabilities. Our Government will continue to invest in our families and our future, and will help those seeking to break free from the cycles of homelessness and poverty. Our Government will announce an infrastructure program, the Building Canada Plan, to support our long- term growth. By investing in our transport and trade hubs, including the Windsor — Detroit corridor and the Atlantic and Pacific gateways, our Government will help rebuild our fundamentals for continued growth. The result will be safer roads and bridges, shorter commutes, more competitive business, improved cultural infrastructure and a better quality of life for all Canadians. Our Government will stand up for Canada 's traditional industries. Key sectors including forestry, fisheries, manufacturing and tourism are facing challenges. Our Government has taken action to support workers as these industries adjust to global conditions and will continue to do so in the next session. The agricultural sector will benefit from our Government's promotion of biofuels and the new Growing Forward agricultural framework. Our Government will recognize the views of farmers, as expressed in the recent plebiscite on barley, by enacting marketing choice. Together with our Government's strong support for Canada 's supply- managed system, these approaches will deliver stable, predictable and bankable support for farm families. Our mining and resource sectors present extraordinary opportunities across Canada , and our Government will help move forward by providing a single window for major project approvals. With these increased opportunities for employment, our Government will continue to foster partnerships that help Aboriginal people get the skills and training to take advantage of these job prospects in the North and across Canada . TACKLING CRIME AND STRENGTHENING THE SECURITY OF CANADIANS Canada was founded on the principles of peace, order and good government. This is the birthright of all Canadians; yet Canadians feel less safe today and rightly worry about the security of their neighbourhoods and the country. There is no greater responsibility for a government than to protect this right to safety and security. In the last session, our Government introduced important and timely legislation to tackle violent crime. Unfortunately much of this legislation did not pass. That is not good enough to maintain the confidence of Canadians. Our Government will immediately reintroduce these measures with a single, comprehensive Tackling Violent Crime bill to protect Canadians and their communities from violent criminals and predators. This will include measures on the age of protection, impaired driving, dangerous offenders and stricter bail and mandatory prison sentences for those who commit gun crimes. Canadians expect prompt passage of this crucial legislation. Our Government will go further with a Safer Communities strategy to deal with the critical intersection of drug, youth and property crime. Our Government will strengthen the Youth Criminal Justice Act to ensure that young offenders who commit serious crimes are held accountable to victims and their communities. Our Government will introduce tough new laws to tackle property crime, including the serious problem of auto theft. New measures to address elder abuse and to curb identity theft will also be introduced. Our Government will implement the National Anti-Drug Strategy giving law enforcement agencies powers to take on those who produce and push drugs on our streets. In addition to tougher laws, our Government will provide targeted support to communities and victims. It will help families and local communities in steering vulnerable youth away from a life of drugs and crime, and the Anti-Drug Strategy will help to treat those suffering from drug addiction. It will again ask Parliament to repeal the wasteful long-gun registry. Our Government will also ensure effective law enforcement — starting with resources to recruit 2,500 more officers to police our streets. The concern of Canadians in protecting our communities extends naturally to protecting our country against threats to our national security: those who would attack the peaceful pluralism of our society through acts of terrorism. Canada has experienced the tragedy of terrorism before. The report from the public inquiry into the Air India bombing will be an important contribution to safeguarding the lives of Canadians in the future. Our Government will address Canadians directly on the challenge of protecting our free and open society with a statement on national security. The Government will introduce legislation to make sure that Canada has the tools it needs to stop those who would threaten our cities, communities and families, including measures to strengthen the Anti-Terrorism Act and to respond to the Supreme Court decision on security certificates. IMPROVING THE ENVIRONMENT AND HEALTH OF CANADIANS Threats to our environment are a clear and present danger that now confronts governments around the world. This is nowhere more evident than in the growing challenge of climate change. Our Government believes that action is needed now to ensure our quality of life, particularly for those most vulnerable to health threats from the environment — our children and seniors. Climate change is a global issue and requires a global solution. Our Government believes strongly that an effective global approach to greenhouse gas emissions must have binding targets that apply to all major emitters, including Canada . Canada has already engaged the international community at APEC, the G8 and the United Nations and will continue to press for a new international agreement that cuts global emissions in half by 2050. As we pursue a global consensus, Canada is acting even more aggressively at home. Our Government will implement our national strategy to reduce Canada 's total greenhouse gas emissions 60 to 70 percent by 2050. There will be a 20 percent reduction by 2020. Our Government will bring forward the elements from Canada 's Clean Air Act, which had all-party consensus, for parliamentary consideration. This strategy will institute binding national regulations on greenhouse gas emissions across all major industrial sectors — with requirements for emissions reductions starting this year. Our Government will also bring forward the first-ever national air pollution regulations. In so doing, our Government will put Canada at the forefront of clean technologies to reduce air pollution and greenhouse gas emissions. Our Government will also establish a carbon emissions trading market that will give business the incentive to run cleaner, greener operations. At the end of 2005, Canada 's greenhouse gas emissions were 33 percent above the Kyoto commitment. It is now widely understood that, because of inaction on greenhouse gases over the last decade, Canada 's emissions cannot be brought to the level required under the Kyoto Protocol within the compliance period, which begins on January 1, 2008, just 77 days from now. The world is moving on to address climate change and the environment, and Canada intends to help lead the effort at home and abroad. Beyond regulating greenhouse gases and air pollution, our Government has also acted to protect sensitive areas, including a massive expansion of Nahanni National Park, and preserving the Great Bear Rainforest, Point Pleasant Park and Stanley Park. Through our new infrastructure plan, our Government will promote a cleaner environment by investing in public transport and water treatment, and by cleaning up contaminated sites. A new water strategy will be implemented to help clean up our major lakes and oceans and to improve access to safe drinking water for First Nations. In the past, environmental legislation and regulation have had little impact because they have lacked an effective enforcement regime. In the coming session, our Government will bolster the protection of our water and land through tougher environmental enforcement that will make polluters accountable. Environmental protection is not just about protecting nature. It is about the health of Canadians. Recent events have called into question the safety of basic products such as food for our families and toys for our children. Our Government shares the concern of parents about the safety of consumer products and food. Canadians should expect the same standards of quality from imported goods as they do from products made at home. The Government will introduce measures on food and product safety to ensure that families have confidence in the quality and safety of what they buy. CONCLUSION: THE NORTH STAR Canadians can be proud of their country and its achievements. Working together we have built a nation that is prosperous and safe; a land where merit trumps privilege; a place where people from around the world live in harmony; a federation that is united at home and respected abroad. Like the North Star, Canada has been a guide to other nations; through difficult times, Canada has shone as an example of what a people joined in common purpose can achieve. Yet Canada 's greatest strength lies in its energy and determination to move forward and build a better future. Our Government is committed to strong leadership to realize that future. A Canada proud of its leadership in the world and confident in its economic future. A Canada built on a strong federation and a robust democracy. A Canada that is safe for our families and healthy for our children. Canadians, standing on a proud history, look onto a horizon as limitless as the promise of our country. It is up to us to build on the legacy we have inherited, to seize the opportunities of the future, and to bring about an even better Canada for our children. May your deliberations be guided by Divine Providence, may your wisdom and patriotism enlarge the prosperity of the country and promote in every way the well-being of its people.

Canada

Honourable Members of the Senate , Members of the House of Commons, Ladies and Gentlemen: Two hundred and fifty years ago, on October 2, 1758, the first parliamentary assembly of its kind in Canada was held in Nova Scotia . It is worth solemnly remembering in this Chamber the historic significance of that event. Because today, we are free to reach our full potential thanks to the efforts of women and men, young and old, who established democracy in this country, where anything is possible. This country is made up of every hope we cherish, every dream we pursue, every project we realize. Upholding the ideal of democracy that we embody in the world is a responsibility that each of us bears. As the great-great-granddaughter of slaves, born under one of the most brutal dictatorships in history, I know just how precious this legacy is to the citizens of this country. They have again and again expressed their pride in this legacy to me, through their words and deeds, over the past three years. In these uncertain economic times, it is more important than ever that our spirit of solidarity prevails and reaches beyond our borders, so that Canada represents not only a hope of renewal, but also a promise for the future. Today, in this democratic tradition, the representatives of the Canadian people gather for the 40th time in this great nation's history to open a new federal Parliament. For over 140 years, since the era of Queen Victoria, Sir John A. Macdonald, Sir George-Etienne Cartier and the other Fathers of Confederation, the Parliament of Canada has assembled to deliberate upon the great issues of the day. This institution thus represents one of the longest and most unblemished records of peaceful, democratic self-government anywhere on Earth. The people spoke once again in a general election on October 14th, and entrusted this Government with a renewed and strengthened mandate. At the same time, the people also chose to elect a minority Parliament. And in a parliamentary democracy such as ours, the government must always be responsible and accountable to the people's representatives. Our Government is mindful of both the privilege and the responsibility with which we have been entrusted. This is a time of extraordinary global economic challenge and uncertainty. The world's financial system faces pressures not seen for many generations. Governments around the world have taken unprecedented steps to restore confidence in the face of a global economic slowdown. As Canadians watch these developments unfold, they rightly wonder about what they might mean here at home, for their jobs, their savings and their families' well-being. Canadians know that, as Canada is a trading nation in the global economy, these events—while originating outside our borders—will nevertheless reverberate here. In the face of this uncertainty, just as when faced with difficulties before, Canadians will prevail. Canada was founded on the belief that, by joining our strength in confederation, our united country would be able to meet and rise above any challenge set before us. From the explorers and pioneers to the settlers and railroad builders, this vast country was built by people who took tremendous risks and braved unforgiving elements for the prospect of a better future. The dawn of a new century saw new challenges. In a war that ended ninety years ago last week, our young country came of age on battlefields whose names echo across our history—Ypres, Vimy, Passchendaele. The generation that followed overcame the Depression and again confronted the devastation of war. The achievements of these generations are marked not only by monuments to their bravery and sacrifices, but also by their legacy in forging Canada as one of the most peaceful and prosperous nations on Earth. We know that Canadians will face the problems of today with the same spirit of determination and resolve as those who came before us faced the challenges of their generation. And like them, we know that we will emerge stronger than ever. In this time of global economic instability, we can be reassured that the hard work of millions of Canadians has laid a solid foundation for our country. We have pursued policies different from those of many of our trading partners. We have paid down debt and kept spending under control. We have set public pensions on a sound footing and refinanced important programs such as health care and post-secondary education. Our banks are among the strongest and best regulated in the world. Canadian households and businesses have been prudent and avoided taking on the excessive debt witnessed elsewhere. Embarking on its renewed mandate, our Government is committed to providing the strong leadership that Canadians expect. It will protect Canadians in difficult times. It will work with Canadians to secure our future prosperity. It will support Canadian workers and businesses in their pursuit of a better future. And our Government will continue its pursuit of distinctly Canadian policies that will contribute to a better economy. Our Government has a clear approach to Canada 's economic security. It will work with its partners to help address the current international crisis. It will maintain a prudent course for the country's finances. It will take action to support the economy today while building a stronger economy for the future. As our Government dedicates its efforts over the months ahead to supporting the Canadian economy, so too does it rededicate itself to working in partnership with others to achieve this goal. Canadians expect federal and provincial governments to work together to steer us through the current economic turmoil and, ultimately, build a stronger Canada . To this end, First Ministers met on November 10th and will meet again in the New Year. Reforming Global Finance The first order of business must be to put the international financial system on a sounder footing. Just as these troubles began beyond our borders, so will their solution demand that Canada engage its partners and allies around the world. Canada will use its experience in developing a strong model of financial regulation to help lead the world in the repair and strengthening of the international financial system. The Prime Minister and Minister of Finance began this important work on November 15th, joining the leaders of the G20 in Washington, D.C. , to re-examine and renew the rules and institutions that underpin the global financial system. The financial sector exists to serve the economy. Without sound financial institutions, loans would not be available for home ownership. Businesses would be cut off from the credit needed to expand and hire new workers. By choking off financing to the global economy, the credit crisis has dramatically weakened the prospects of growth. Canada will play a leading role to help resolve the crisis, maintain free and open markets, and advance Canada 's interests. The credit crisis has also underlined the dangers of a fragmented financial regulatory system. To further strengthen financial oversight in Canada , our Government will work with the provinces to put in place a common securities regulator. Ensuring Sound Budgeting Canada 's relative success in weathering the global economic turmoil thus far can be attributed in no small measure to our country's solid fiscal fundamentals, the best among all major industrialized countries. A strong fiscal foundation is not an end in itself, but it is the bedrock on which a resilient economy is built. Responsible budgets, significant debt repayment, and declining corporate and personal income taxes have provided an important competitive advantage. As Canada navigates today's economic uncertainties, it is even more important that we keep our sights fixed on responsible fiscal management. The Minister of Finance will provide details on our Government's approach to economic and fiscal management in the Economic and Fiscal Statement to be delivered next week. Ongoing, unsustainable deficits are quite rightly unacceptable to Canadians. These structural deficits must never return. At the same time, in a historic global downturn, it would be misguided to commit to a balanced budget in the short term at any cost, because that cost would ultimately be borne by Canadian families. Hard decisions will be needed to keep federal spending under control and focused on results. Grants, contributions and capital expenditures will be placed under the microscope of responsible spending. Departments will have the funding they need to deliver essential programs and services, and no more. Our Government will engage Parliament and encourage members to take a more active role in scrutinizing spending and suggesting areas for restraint. Our Government is also committed to responsible fiscal management of public sector compensation, and will table legislation to ensure sustainable compensation growth in the federal Public Service. Our Government will ensure that the provinces receive the generous transfer payments planned for health care and social programs. We will ensure that equalization payments also grow, but that they do not grow more quickly than our economy as a whole. Any new measures to support the economy will also be carefully chosen and targeted for maximum benefit. Securing Jobs for Families and Communities Global turbulence is translating into real challenges for Canada . Our Government understands the pressures on ordinary hard-working Canadians and the businesses that provide them with jobs. Canada 's economy will only remain as strong as its workers and families. Our Government will strengthen Canada 's workforce for the future by continuing to support student financial assistance and taking measures to encourage skilled trades and apprenticeships. Our Government will also work with the provinces to make the recognition of foreign credentials a priority, attract top international students to Canada and increase the uptake of immigrant settlement programs. Our Government will also take steps to ensure that Aboriginal Canadians fully share in economic opportunities, putting particular emphasis on improving education for First Nations in partnership with the provinces and First Nations communities. Our Government will support workers facing transition. It will ensure that existing programs and services are as effective as possible in meeting the needs of Canadians. Targeted help will be available to those who need it the most. Our Government has already cut taxes to lower costs for business and help them compete and create jobs. To further reduce the cost pressures on Canadian business, our Government will take measures to encourage companies to invest in new machinery and equipment. The Canadian manufacturing sector, particularly the automotive and aerospace industries, has been under increasing strain. Our Government will provide further support for these industries. Canada 's traditional industries, such as fisheries, mining and forestry, sustain the economic well-being of many regions and communities. Our Government will continue to assist these industries through measures aimed at marketing Canadian products abroad and helping businesses to innovate. Our Government will continue to support Canada 's farmers by ensuring freedom of choice for grain marketing in Western Canada and strongly supporting our supply-managed sectors at home and in international negotiations. Public infrastructure is vital not only to create jobs for today, but also to create the links between communities and regions to help generate jobs for the future. Our Government is committed to expediting our Building Canada plan to ensure that projects are delivered as quickly as possible. Expanding Investment and Trade Canada 's prosperity depends not just on meeting the challenges of today, but on building the dynamic economy that will create opportunities and better jobs for Canadians in the future. As one of our greatest hockey legends has observed, we need ``to skate to where the puck is going to be, not to where it has been.'' Building a more dynamic economy will require new ideas and new investment. Our Government understands that advances in science and technology are essential to strengthen the competitiveness of Canada 's economy. Our Government will start at home, working with industry to apply the best Canadian scientific and technological know-how to create innovative business solutions. It will invest in new world-class research facilities. Our Government will also expand the opportunities for Canadian firms to benefit from foreign investment and knowledge, while taking steps to safeguard consumers and our national security. Our Government will proceed with legislation to modernize our competition and investment laws, implementing many of the recommendations of the Competition Policy Review Panel. Cultural creativity and innovation are vital not only to a lively Canadian cultural life, but also to Canada 's economic future. Our Government will proceed with legislation to modernize Canada 's copyright laws and ensure stronger protection for intellectual property. Both investment and trade matter to Canada 's prosperity. Our Government is committed to seeking out new opportunities for Canadians and to promoting global prosperity through free trade. It will work with the new administration in the United States in addressing shared challenges, especially during the current economic downturn, and seek opportunities to enhance North American competitiveness. New trade agreements will be pursued in Asia and the Americas , as well as with the European Union, to open markets for Canadian firms. Our Government will proceed with legislation to ratify the results of trade negotiations that have been concluded with the European Free Trade Association, Peru , Colombia and Jordan . Our Government will continue to invest in expanding gateways on our Atlantic and Pacific coasts, and in vital border corridors such as the Detroit River International Crossing, to ensure that Canadian goods and services can reach markets in Europe, Asia and the United States . Better positioning Canada to compete for investment and market opportunities will require action at home. A fragmented regulatory environment for internal trade and commerce has for too long restricted the flow of labour and investment across the country. Our Government will work with the provinces to remove barriers to internal trade, investment and labour mobility by 2010. Making Government More Effective Part of a solid economic and fiscal foundation is the sound management of government. To make Canada 's national government more effective, our Government is committed to reform and streamline the way it does business. Our Government will pursue innovative reforms to the administration of programs and services, drawing on the successful experiences of other governments around the world. It will build partnerships with third parties and the private sector to deliver better services at a lower overall cost. Our Government will review all program spending carefully to make sure that spending is as effective as possible and aligned with Canadians' priorities. Our Government will cut the red tape faced by the private and not-for-profit sectors when doing business with the government. Fixing procurement will be a top priority. Simpler and streamlined processes will make it easier for businesses to provide products and services to the government and will deliver better results for Canadians. Military procurement in particular is critical: Canada cannot afford to have cumbersome processes delay the purchase and delivery of equipment needed by our men and women in uniform. Our Government will also strengthen and improve the management of Canada 's federal agencies, boards, commissions and Crown corporations to achieve greater cost-effectiveness and accountability. Securing Our Energy Future Energy is vitally important to our country. Our geography and climate mean that Canadians depend on affordable and reliable energy. The development of our rich energy resources is an important source of wealth and Canadian jobs. Our Government will support the development of cleaner energy sources. The natural gas that lies beneath Canada 's North represents both an untapped source of clean fuel and an unequalled avenue to creating economic opportunities for northern people. Our Government will reduce regulatory and other barriers to extend the pipeline network into the North. These measures will bring jobs to northern Canada and create employment across the country, just as they will bring new energy supplies to markets in southern Canada and throughout the world. Economic development in Canada 's North, led by a new stand-alone agency, is a key element of our Northern Strategy. Nuclear energy is a proven technology, capable of reliable, large-scale output. In Canada and around the world, energy authorities are investing in nuclear power to meet both energy security and climate change goals. Our Government will ensure that Canada 's regulatory framework is ready to respond should the provinces choose to advance new nuclear projects. Tackling Climate Change and Preserving Canada 's Environment Our Government understands that Canada 's economic prosperity cannot be sustained without a healthy environment, just as environmental progress cannot be achieved without a healthy economy. Our Government will continue its realistic, responsible approach to addressing the challenge of climate change. Our Government has committed to reducing Canada 's total greenhouse gas emissions by 20 percent by 2020. We will meet this goal while also ensuring that Canada 's actions going forward remain comparable to what our partners in the United States , Europe and other industrialized countries undertake. We will work with the provincial governments and our partners to develop and implement a North America-wide cap and trade system for greenhouse gases and an effective international protocol for the post-2012 period. To meet the challenge posed by climate change, we will also need to make greater use of technologies that do not emit greenhouse gases. Our Government will set an objective that 90 percent of Canada 's electricity needs be provided by non-emitting sources such as hydro, nuclear, clean coal or wind power by 2020. In support of this ambitious national goal, our Government will continue to provide support for biofuels, wind and other energy alternatives. To ensure protection of our vital resources, our Government will bring in legislation to ban all bulk water transfers or exports from Canadian freshwater basins. Our Government will work with all parties in Parliament to introduce sensible policies that can help consumers and improve our environmental well-being, such as increasing incentives for energy-saving home retrofits. Helping All Canadians Participate Canada is built on a promise of opportunity, the chance to work hard, raise a family and make a better life. Today, it is more important than ever to deliver on this promise, and ensure that all Canadians share in the promise of this land, regardless of cultural background, gender, age, disability or official language. This Government will break down barriers that prevent Canadians from reaching their potential. Many working-age Canadians are faced with the dual pressure of holding down a job and caring for their family. Increasing numbers of Canadians are taking care of elderly parents while also raising young children. Our Government is committed to supporting working families and helping make ends meet. Our Government will improve the Universal Child Care Benefit and take measures to increase access to maternity and parental benefits under Employment Insurance. We will act to help families caring for loved ones with disabilities and to assist Canadians buying their first home. Some Canadians face other barriers to participation in the economy and society, whether in the form of homelessness or debilitating illness. Our Government will extend the Homelessness Partnering Strategy and help more Canadians find affordable housing. It will take creative measures to tackle major heart, lung and neurological diseases and to build on the work of the Mental Health Commission. Keeping Canadians Safe In times of uncertainty as in times of prosperity, Canadians need to be assured that they are safe in their homes and communities. Canadians look to governments to ensure that the justice system is working effectively and that Canadians are safe. Our Government will take tough action against crime and work with partners to improve the administration of justice. Serious offences will be met with serious penalties. Legal provisions will be strengthened in key areas, such as youth crime, organized crime and gang violence. Gun laws will be focused on ending smuggling and stronger penalties for gun crimes, not at criminalizing law-abiding firearms owners. More broadly, Canada 's criminal justice system will be made more efficient. Citizens need to know that justice is served, and that it is served swiftly. Safety and security also mean that Canadians must be assured that the food on their dinner table, the toys they buy their children, and the medicines on which they rely are safe. Our Government will follow through with legislation providing better oversight of food, drug and consumer products. It will strengthen the power to recall products and increase penalties for violators. It will also move quickly to launch an independent investigation of this summer's listeria outbreak and act quickly upon its findings. National security is the most fundamental duty of any national government to its citizens. Our Government will table a national security statement to explain how we intend to balance the new threats and challenges to national security that we face with the need for oversight, accountability and the protection of civil liberties. Contributing to Global Security Our national security depends on global security. Our Government believes that Canada 's aspirations for a better and more secure world must be matched by vigorous and concrete actions on the world stage. Security ultimately depends upon a respect for freedom, democracy, human rights and the rule of law. Where these values are imperilled, the safety and prosperity of all nations are imperilled. Canada must have the capacity and willingness to stand for what is right, and to contribute to a better and safer world. Our Government is transforming Canada 's engagement in Afghanistan to focus on reconstruction and development, and to prepare for the end of our military mission there in 2011. The hard work and heroic sacrifices of Canada 's men and women in the field—military, diplomatic and development—will leave the people of Afghanistan the lasting legacy of a more secure, more peaceful and better governed country. Our Government will also continue to rebuild and arm the Canadian Forces with the best possible equipment. We will renew all of our major air, sea and surface fleets over the next two decades, creating new, high-technology jobs in Canada in the process. Canada 's international assistance will continue to increase and will be spent more effectively in the promotion of development goals. A new, non-partisan democracy promotion agency will also be established to support the peaceful transition to democracy in repressive countries and help emerging democracies build strong institutions. Building Stronger Institutions Canada 's institutions are the cornerstone of our democracy, our freedom and our prosperity. Parliament is Canada 's most important national institution. It is the only forum in which all Canadians, through their elected representatives, have a voice in the governance of the nation. Parliament should be an expression of our highest ideals and deepest values, our greatest hopes and grandest dreams for the future of our children. Our Government believes these ideals can only be achieved if Parliament truly reflects the character and aspirations of the Canadian people. Our Government will introduce legislation to move toward representation by population in the House of Commons for Ontario , British Columbia and Alberta . Legislation will also be introduced to allow for nominees to the Senate to be selected by voters, to serve fixed terms of not longer than eight years, and for the Senate to be covered by the same ethics regime as the House of Commons. The Public Service of Canada is a key national institution. Public servants inspect our food and police our borders. They deliver programs and services to millions of Canadians in every region of this country, from our largest cities to the most remote Arctic communities. Drawing on the recommendations of the Prime Minister's Advisory Committee on the Public Service, our Government is committed to the continued renewal of the public service. Our Government will also take steps to strengthen the Canadian confederation. It will respect the jurisdiction of the provinces and territories and will enshrine its principles of federalism in a Charter of Open Federalism. The federal spending power will be constrained so that any new shared-cost program in an area of exclusive provincial responsibility will require the consent of the majority of the provinces to proceed, and that non-participating provinces can opt out with compensation, provided that they implement compatible programs or initiatives. Conclusion Canadians have renewed their confidence in our Government. They have placed their trust in their representatives. And they have asked us to work together to meet the challenges before our country. Our Government is committed to Canada 's continued success at this time of global economic instability. All its energy will be directed to addressing the challenges Canadian families, businesses and workers face, both today and in the future. It will continue to establish effective policies that give a competitive advantage to this country. It will strengthen the institutions that keep Canadians safe, secure and prosperous. And it will work in partnership—with its allies, with the provinces and territories, with industry and with the millions of Canadian families—to keep Canada the true North, strong and free. Canadians have faced times of uncertainty and renewal before and have always emerged a stronger and more united people. Gathered here in this Chamber, we remember the men and women who went before us and the legacy of freedom and prosperity that they have bequeathed to us. It is now our duty to protect and enhance this legacy for those who will follow us. Honourable Members of the Senate and Commons, yours is a most important task. May Divine Providence guide you in your deliberations.

Canada

Honourable Senators, Members of the House of Commons, Ladies and gentlemen, In these uncertain times, when the world is threatened by a struggling economy, it is imperative that we work together, that we stand beside one another and that we strive for greater solidarity. Today, in our democratic tradition, Canadians expect that their elected representatives will dedicate their efforts to ensure that Canada emerges stronger from this serious economic crisis. Once again, the people�s representatives have gathered to consider the priorities of another parliamentary session. Each Throne Speech is a milestone on the remarkable 142-year Canadian journey. Your predecessors, too, were summoned to this chamber at times of great crisis: as Canada struggled to claim her independence, in the shadow of war, during the depth of the Great Depression and at moments when great policy division tugged the very bonds of this union. Today we meet at a time of unprecedented economic uncertainty. The global credit crunch has dragged the world economy into a crisis whose pull we cannot escape. The nations of the world are grappling with challenges that Canada can address but not avoid. The Government�s agenda and the priorities of Parliament must adapt in response to the deepening crisis. Old assumptions must be tested and old decisions must be rethought. The global economy has weakened since Canadians voted in the last general election. In fact, it has weakened further since Parliament met last month. Our Government has listened to Canadians who are concerned about how the worldwide recession is affecting their jobs, their savings and their communities. Our Government has reached out to Canadians in all regions, in all communities and from all walks of life. Our Government has consulted widely: • with those who work, those who invest, those who create jobs, those who build infrastructure and those who provide non-profit services; • with municipal, provincial and territorial governments, Aboriginal leaders and representatives of communities; • in fact, with everyone whose input might help chart a course through the present storm. Our Government approached the dialogue in a spirit of open and non-partisan cooperation. There is no monopoly on good ideas because we face this crisis together. There can be no pride of authorship�only the satisfaction of identifying solutions that will work for all Canadians. Acting on the constructive thoughts and suggestions that have been received, our Government will tomorrow present Canada �s economic stimulus plan. The plan will protect our economy from immediate threat, while making investments to promote long term growth. The economic stimulus plan will be a plan of action. • Our Government is stimulating the economy, both through direct government action and by encouraging private expenditure. • Our Government is taking immediate action to build Canada through new investment in infrastructure. • Our Government is acting to protect the stability of our financial system. • Our Government is acting to ensure access to credit for businesses and consumers. • Our Government is acting to support Canadian industries in difficulty?including forestry, manufacturing, automotive, tourism, agriculture?and to protect the families and communities who depend on those jobs. • Our Government is acting to protect the vulnerable: the unemployed, lower-income Canadians, seniors, Aboriginal Canadians and others hit hardest by the global economic recession. These actions will be targeted, they will inject immediate stimulus while promoting long-term growth and they will avoid a return to permanent deficits. These actions will protect the jobs of today while readying our economy to create the jobs of tomorrow. Canadians face a difficult year?perhaps several difficult years. In the face of such uncertainty, our Government has developed a clear and focused plan. Our Government will spend what is necessary to stimulate the economy, and invest what is necessary to protect our future prosperity. As Canadians expect, the economy will be the focus of our Government's actions and of the measures placed before Parliament during the coming year. In pursuing measures to support the economy, our Government will also attend to the other important priorities that it set out in the Speech from the Throne to open the 40th Parliament. The present crisis is new, but the imperative of concerted action is a challenge to which Parliament has risen many times in our history. What will sustain us today will be the same strengths of character that have pulled Canada through critical times before: unity, determination and constancy of purpose. Honourable Members of the Senate, Members of the House of Commons: As you unite in common effort and in common cause, may Divine Providence be your guide and inspiration.

Canada

Honourable Senators, Members of the House of Commons, Ladies and gentlemen, We are a country whose citizens do not turn back when confronted by obstacles, whatever they are, and never shrink from lending a helping hand to the most disadvantaged, wherever they may be. Though the effects of the global recession have not fully faded, Canadians are demonstrating a spirit of generosity that is a harbinger of hope to the people of Haiti, the poorest country in the Americas, which has been shaken by a disaster of unprecedented scope. The world we live in remains strong because of the ties of solidarity that we — women, men and young people — forge among ourselves and because of the care we show toward one another. As the Vancouver Winter Olympics and upcoming Paralympics remind us, there are also circumstances when festive hearts and the sharing of a common humanity are our greatest hope. I know Canadians will continue to care, and that spirit of solidarity will redefine their sense of sharing as efforts are made to support the economic recovery. We gather for a new session of Parliament at a time of both great uncertainty and great optimism. Uncertainty because Canadians still feel the lingering effects of a recession that was not of their making. Optimism because our country has weathered the storm better than most and because Canadians over the past year have shown the world as never before both our capacity to care and our capability to act. The agenda our Government laid before Parliament just over one year ago is largely in place. Through Canada's Economic Action Plan, our Government took decisive steps to protect incomes, create jobs, ease credit markets, and help workers and communities get back on their feet. As we begin to see modest improvements in growth and employment, the task before us today is to finish the work begun last year. Jobs and growth remain the top priority. Our Government will complete the second year of Canada's Economic Action Plan — guided by extensive consultations with leaders in business, industry, and everyday working people and their families — and make refinements where necessary. At the same time, Canada is poised to emerge from the recession powered by one of the strongest economies in the industrialized world. Therefore, our attention must also encompass the new measures Canada needs for success in the modern economy. This will require a return to fiscal balance, securing the strong budgetary position that distinguishes our country from so many others. While the task before us is great, the ingenuity, determination and compassion of Canadians are greater. We will ensure that Canada remains the best place in the world to raise a family. We will continue to stand up for those who built this great country. And we will forge ahead in building a Canada that is strong and united in a changing world. Getting the Job Done: Completing Canada's Economic Action Plan Canadians have confronted the challenges of the past year in the same way they have always met adversity — with pragmatism, resourcefulness and the spirit of partnership. From the forest floor to the factory floor, Canadians have rallied in the face of the global recession. Businesses have found new ways to adapt to tighter credit and weaker markets. Workers have shared their jobs to spare colleagues from layoff. Many Canadians, out of work for the first time in their lives, have begun training for a new career. And households across the country have adjusted their finances to account for new realities. Like Canadians themselves, governments across the country have adapted their approaches and joined together in a concerted effort to soften the impact of the recession. Canada's Economic Action Plan is working. Tax cuts and enhanced Employment Insurance benefits are providing direct support to Canadians who paid into government programs over the years and now need help. From coast to coast to coast, almost 16,000 projects are putting Canadians to work while laying the foundation for future prosperity. These projects range from roads and bridges to colleges and universities, from social housing to our cultural and heritage institutions. Communities and industries most affected by the downturn are being supported. Businesses have begun hiring again, with the economy adding more than 135,000 net new jobs since July 2009. This has restored incomes, confidence and hope for the future for families across the country. But even as confidence returns to our economy, it would be a mistake to declare that the recession is completely behind us. Too many Canadians still find themselves out of work and events beyond our borders could yet threaten a fragile recovery. Our Government's top priority is therefore to complete the second year of Canada's Economic Action Plan and to continue creating jobs and growth. Our Government will work with its partners in the provinces and territories to make certain that projects are completed now and over the coming year, when the stimulus is most needed. Our Government understands the real hardships experienced by Canadian families affected by job loss. Recognizing that unemployment continues to cast a long shadow over the recovery, our Government will continue to work on job creation and job protection. And it will help young Canadians looking to enter today's tough job market for the first time to make the transition to work. Planning for Recovery: Returning to Fiscal Balance Canadians understand that the events of the past year have required governments everywhere to run budgetary deficits. They also know that because our Government made the responsible choice to pay down debt in good economic times, Canada's debt levels remain by far the smallest in the G7. And they appreciate that this has allowed our country to enact one of the largest stimulus programs in the world without unduly burdening future generations. At the same time, Canadians live within their means and expect their governments to do the same. Spending designed for a rainy day should not become an all-weather practice. Canadians also realize that a balanced budget is not an end in itself, but the foundation of a strong and resilient economy. In taking responsible steps to reduce the deficit, our Government will not repeat the mistakes of the past. Balancing the nation's books will not come at the expense of pensioners. It will not come by cutting transfer payments for health care and education or by raising taxes on hard-working Canadians. These are simply excuses for a federal government to avoid controlling spending. Our Government's first step toward restoring fiscal balance will be to wind down stimulus spending as economic activity rebounds. It will work with its provincial, territorial and municipal partners to ensure that measures under Canada's Economic Action Plan come to an end by March 31, 2011. And as chair of the G8 and G20 this year, our Government will lead the call for a globally coordinated approach to the withdrawal of economic stimulus. The second step toward restoring fiscal balance will be to restrain federal program spending overall, while protecting growth in transfers that directly benefit Canadians, such as pensions, health care and education. • Our Government will lead by example, introducing legislation to freeze the salaries of the Prime Minister, Ministers, Members of Parliament and Senators. • It will freeze the overall budget of Ministers' offices and calls on Members of both Houses of Parliament to do the same. • It will freeze departmental operating budgets, that is, the total amount spent on salaries, administration and overhead. • It will launch a review of administrative services to improve their efficiency and eliminate duplication. • It will aggressively review all departmental spending to ensure value for money and tangible results. • Our Government will also eliminate unnecessary appointments to federal agencies, boards, commissions and Crown corporations. Building the Jobs and Industries of the Future Industry and ingenuity have been the hallmarks of Canada's economy since the beginning. Aboriginal peoples, voyageurs and pioneers established the backbone of our modern trading nation. Immigrants armed only with dreams and determination travelled west to open the land that would become our breadbasket. Bright minds with bold ideas transformed sound and electricity into the communications network that links our world. But today we face new challenges. Determined new competitors are rising. The relentless pace of technology means that every day there is something newer, faster, better. To succeed in the global economy, Canada must keep step as the world races forward. Our strategy is clear: we must combine the best of our intellectual and natural resources to create jobs, growth and opportunity. • The success of Canada's economy depends on a skilled and educated workforce. Through Canada's Economic Action Plan, our Government will continue to provide enhanced support for skills, apprenticeships and training for Canadian workers. It will make timely information on labour market opportunities available for all Canadians, especially in the area of the skilled trades. It will expand the opportunities for our top graduates to pursue post-doctoral studies and to commercialize their ideas. • Our Government will also work hand-in-hand with Aboriginal communities and provinces and territories to reform and strengthen education, and to support student success and provide greater hope and opportunity. • To fuel the ingenuity of Canada's best and brightest and bring innovative products to market, our Government will build on the unprecedented investments in Canada's Economic Action Plan by bolstering its Science and Technology Strategy. It will launch a digital economy strategy to drive the adoption of new technology across the economy. To encourage new ideas and protect the rights of Canadians whose research, development and artistic creativity contribute to Canada's prosperity, our Government will also strengthen laws governing intellectual property and copyright. • Canada has been a spacefaring nation for nearly 50 years. Our Government will extend support for advanced research, development and prototyping of new space-based technologies, especially in support of Arctic sovereignty. • Low taxes are already helping Canada attract the investment needed to turn ideas into products and services. Our Government will keep tax rates competitive and low, while taking aggressive steps to close unfair tax loopholes that allow a few businesses and individuals to take advantage of hard-working Canadians who pay their fair share. • Our Government will open Canada's doors further to venture capital and to foreign investment in key sectors, including the satellite and telecommunications industries, giving Canadian firms access to the funds and expertise they need. While safeguarding Canada's national security, our Government will ensure that unnecessary regulation does not inhibit the growth of Canada's uranium mining industry by unduly restricting foreign investment. It will also expand investment promotion in key markets. • Ensuring the broadest possible market for Canada's goods and services will require the aggressive pursuit of free trade. Our Government will implement free trade agreements with Peru and the European Free Trade Association and ask Parliament to ratify new agreements with Colombia, Jordan and Panama. Given the disappointing results of the Doha round of multilateral trade negotiations and the rapidly evolving global marketplace, our Government will aggressively diversify opportunities for Canadian business through bilateral trade agreements. It will continue trade negotiations with the European Union, India, the Republic of Korea, the Caribbean Community and other countries of the Americas. Building on the successful negotiation of new or expanded air agreements with 50 countries around the world, our Government will pursue additional agreements to achieve more competition, more choice for Canadians and more economic growth. • Our Government will also build upon the recent agreement that gives Canadian companies permanent access to state and local government procurement in the United States. Canada's strategy for economic success must leverage our considerable strengths, in particular our world-leading financial industry and energy resource endowment. • The unique strength of Canada's financial industry set Canada apart during the global financial crisis. The World Economic Forum, among others, has recognized Canada's banking system as the strongest in the world. Our Government will build upon this advantage to make Canada an even stronger world financial centre. Recognizing the critical importance of sound securities regulation — both to attract investment and crack down on white-collar crime — our Government will act, within the ambit of the Constitution, to create a Canadian securities regulator. • Our energy resource endowment provides Canada with an unparalleled economic advantage that we must leverage to secure our place as a clean energy superpower and a leader in green job creation. We are the world's seventh largest crude oil producer with the second largest proven reserves. We are the third largest natural gas producer, the third largest hydroelectric generator, the largest producer of uranium, and by far the largest supplier of energy resources to the world's largest marketplace. To support responsible development of Canada's energy and mineral resources, our Government will untangle the daunting maze of regulations that needlessly complicates project approvals, replacing it with simpler, clearer processes that offer improved environmental protection and greater certainty to industry. • Our Government will continue to invest in clean energy technologies. It will review energy-efficiency and emissions-reduction programs to ensure they are effective. And it will position Canada's nuclear industry to capitalize on the opportunities of the global nuclear renaissance — beginning with the restructuring of Atomic Energy of Canada Limited. Finally, our strategy for the economy must create the conditions for continued success in the industries that are the foundation for Canada's prosperity and support thousands of communities, both rural and urban. • Our Government will partner with the forest industry to enter new markets and deploy new technologies, while respecting the Softwood Lumber Agreement with the United States. • It will introduce new legislation to reform Canada's outdated system of fisheries management. • It will take steps to support a competitive livestock industry and pursue market access for agricultural products. Our Government will also ensure the freedom of choice for which Western barley farmers overwhelmingly voted, and it will continue to defend supply management of dairy and poultry products. • Small and medium-sized businesses are the engines of the Canadian economy, responsible for the creation of most new jobs. To support them, our Government will continue to identify and remove unnecessary, job-killing regulation and barriers to growth. • It will take further steps to support the competitiveness of Canadian manufacturers. And recognizing the strategic importance of a strong domestic shipbuilding industry, it will continue to support the industry's sustainable development through a long-term approach to federal procurement. • Our Government will also explore ways to better protect workers when their employers go bankrupt. Making Canada the Best Place for Families Regardless of profession or trade, of industry or region, Canadians have always striven toward a common objective — to make a home and nurture a family. For many Canadians, there can be no greater accomplishment than to provide for their children, to contribute to the local community, and to live in a safe and secure country. Our Government shares and supports these aspirations. To help Canadian families to balance work and family life, our Government introduced the Universal Child Care Benefit to provide $100 per month for each child under the age of six. This is direct financial support to working families that gives them the freedom to choose the best child care for them. Our Government will strengthen this benefit for sole-support, single-parent families. Protecting the health and safety of Canadians and their families is a priority of our Government. This commitment was reflected in its decision to secure the H1N1 vaccine for every Canadian. To assure parents that their children's food, medicine and toys are safe, our Government will reintroduce legislation to protect Canadian families from unsafe food, drug and consumer products. Our Government will respect the wishes of Canadians by reintroducing the consumer product safety legislation in its original form. Our Government will continue to strengthen Canada's food safety system. It will ensure that families have the information they need to make informed choices and it will hold those who produce, import and sell goods in Canada accountable for the safety of Canadians. To prevent accidents that harm our children and youth, our Government will also work in partnership with non-governmental organizations to launch a national strategy on childhood injury prevention. Just as we know that parents are in the best position to make decisions for their families, the best solutions to the diverse challenges confronting Canada's communities are often found locally. Every day, the power of innovation is seen at work in communities across this country, as citizens, businesses and charitable groups join forces to tackle local problems. Too often, however, grassroots efforts are hobbled by red tape. Too often, local solutions are denied access to government assistance because they do not fit the bureaucratic definition of the problem. Too often, the efforts of communities falter not on account of a lack of effort or heart, but because of a lack of expertise to turn good ideas into reality. • Our Government will take steps to support communities in their efforts to tackle local challenges. • It will look to innovative charities and forward-thinking private-sector companies to partner on new approaches to many social challenges. • To recognize the enormous contribution volunteers make to Canada, our Government will also establish a prime ministerial award for volunteerism. Our communities are built on the rule of law, the cornerstone of peace, order and good government. The law must protect everyone, and those who commit crimes must be held to account. Canadians want a justice system that delivers justice. We know we can protect ourselves without compromising the values that define our country. Our Government acted decisively to crack down on crime and ensure the safety and security of our neighbourhoods and communities. It introduced laws mandating prison sentences for gun crimes, toughening sentencing for dangerous criminals, raising to 16 from 14 the age of protection from adult sexual predators, and ensuring that criminals serve sentences that reflect the severity of their crimes. Our Government will now focus on the further protection of children, women and victims of white-collar crime. • It will protect the most vulnerable members of society: our children. It will introduce legislation to increase the penalties for sexual offences against children as well as legislation to strengthen the sex offender registry. It will protect children from Internet luring and cyber abuse. • Our Government will also ensure the youth criminal justice system responds strongly to those few who commit serious and violent crimes, while focusing on the rehabilitation of all young offenders. • Our Government will propose laws ensuring that for multiple murderers, life means life and requiring that violent offenders serve their time in jail, not in the luxury of home. It will reintroduce tough legislation to combat the organized criminal drug trade. Our Government will respect the will of Canadians by reintroducing this legislation in its original form. • Our Government will take additional action to address the disturbing number of unsolved cases of murdered and missing Aboriginal women. The Sisters in Spirit initiative has drawn particular attention to this pressing criminal justice priority. • Our Government will also introduce legislation to crack down on white-collar crime and secure justice for victims through tougher sentences. Hard-working Canadians who entrust their retirement savings to others have a right to see that trust honoured. Justice must be effective, swift and true. It must also be fair to victims of crime. • To ensure justice is effective, our Government will introduce legislation to give police investigative powers for the 21st century. Canada's police officers and chiefs have asked for these vital tools to stay ahead of the tactics adopted by today's criminals. • To ensure justice is delivered swiftly, our Government will introduce legislation to improve criminal procedures to cut the number of long, drawn-out trials. • Our Government will also offer tangible support to innocent victims of crime and their families. It will give families of murder victims access to special benefits under Employment Insurance. It will introduce legislation to give employees of federally regulated industries the right to unpaid leave if they or members of their families are victimized by crime. And our Government will introduce legislation to make the victim surcharge mandatory, to better fund victim services. Just as criminals threaten Canadians' personal safety, terrorists threaten our country's security. Our peaceful, prosperous and pluralistic society is one of the safest places in the world to live. Yet Canada faces real, significant and shifting threats. Our Government will take steps to safeguard Canada's national security. • It will make travel by air safer by employing the latest screening practices and detection technologies for passengers and cargo. While the costs of air security must be borne by businesses and individuals who use air transport, our Government will ensure their contribution is invested responsibly and effectively, and delivers measurable results. • It will introduce a new biometric passport that will significantly improve security. • It will modernize the judicial tools employed to fight terrorism and organized crime. • Working with provinces, territories and the private sector, our Government will implement a cyber-security strategy to protect our digital infrastructure. Standing Up for Those Who Helped Build Canada Canadians believe sacrifice and hard work should be recognized. As we strive to create an even better future for our families and communities, our Government will stand up for those who built and defended this country. Superior health care and quality of life mean that Canadians now enjoy one of the longest life expectancies in the world. As more and more Canadians enter their golden years, our Government will seek to enhance their well-being during the retirement that they have earned. This demographic shift poses a challenge to the sustainability of our social programs and our economy. Our Government will meet the demands of the aging population. Our Government has taken numerous measures to assure our senior citizens that Canada's retirement income system is the strongest in the world. Among other measures, our Government has introduced Tax Free Savings Accounts and income splitting for Canada's pensioners. • To support seniors and those planning for retirement, our Government will continue to work with the provinces and territories on options to further strengthen Canada's retirement income system. • In recognition of the contributions seniors make to society, our Government will support legislation establishing Seniors Day. Just as generations of Canadians worked on the home front to build this great country, so too have generations of veterans fought to defend Canada and Canadian values around the world. We are reminded of the bravery and sacrifice of those who serve in our Armed Forces as we celebrate this year's centenary of the Royal Canadian Navy and as we mark the passing of John Henry Foster Babcock, the last surviving Canadian veteran of World War I. A national day of commemoration will be held on Vimy Ridge Day, April 9, to celebrate the contribution his generation made to the cause of freedom. Today, however, a new generation of men and women in uniform continues to stand up for the values and principles Canadians hold dear. In Afghanistan, the Canadian Forces prepare for the end of the military mission in 2011 with the knowledge that — through great sacrifice and with great distinction — their efforts saved Kandahar province from falling back under Taliban control. After 2011, our effort in Afghanistan will focus on development and humanitarian aid. In Haiti, the Canadian Forces have taken the lessons learned in Afghanistan and put them to use in very different circumstances. Their speed and effectiveness in deployment were and are unsurpassed in the world. To serve Canada in the profession of arms is an extraordinary and honourable acceptance of risks, many of which cannot be foreseen, and all of which may have profound personal consequences for those who assume them. Our Government has supported our men and women in uniform not only in words, but by making the investments necessary to rebuild Canada's military. Our Government will continue to stand up for our military and our veterans. • Our Government will change the unfair rules restricting access to benefits under Employment Insurance for military families who have paid into the system for years. • To further commemorate the sacrifices of our armed forces, our Government will bring individuals, groups and businesses together to build community war memorials. • Our Government has established the New Veterans Charter and an ombudsman, expanded the Veterans Independence Program and, in recognition of the gallant service of Allied veterans who fought alongside Canadian troops during the Second World War and the Korean War, reinstated benefits under the War Veterans Allowance Act. Our Government will continue to modernize support systems for Canadian veterans. Honouring those who built this country includes recognizing the contribution of those who make their living on the land and the realities of rural life in Canada. Our Government will continue to support legislation to repeal the wasteful and ineffective long-gun registry that targets law-abiding farmers and hunters, not criminals. Our Government also recognizes the contributions of Canada's Aboriginal people. Too often, their stories have been ones of sorrow. Our Government will continue to build on its historic apology for the treatment of children in residential schools. • After settling 17 specific claims since this Parliament began, it will continue to work to resolve additional claims. • Having made safe drinking water and effective waste-water treatment on-reserve a national priority, our Government will introduce new legislative measures to further this goal. • It is only 50 years ago that Aboriginal people in Canada were granted the right to vote. To further protect the rights of Aboriginal people, particularly women living on-reserve, our Government will take steps to ensure the equitable distribution of real property assets in the event of death, divorce or separation. It will also introduce legislation to comply with a recent court decision in order to address gender inequality under the Indian Act. Strengthening a United Canada in a Changing World Our values as Canadians are rooted in our history and in our institutions. Our parliamentary democracy, which brought together people of many lands, faiths and languages to live in harmony. Our federal system, which recognizes our differences, while advancing our unity. Our official languages. Our northern landscape. We are a country whose story is still being written. Last month, Canadians took pride in the inspired performances of our Olympic athletes at the Winter Games in Vancouver and cheered when Alexandre Bilodeau won our first-ever Olympic gold medal on our own soil. But our athletes did not stop at just one. They surpassed the record for the most gold medals ever won at a Winter Olympics. We are proud of our medallists and the entire Canadian Olympic team. Next week, the Paralympic Games will officially begin and again we will cheer as our athletes take on the world. Our Government will continue to invest in world-class Canadian athletics. A shared understanding of Canadian history unites us as citizens. Two years ago, we celebrated the 400th anniversary of the founding of Quebec City. This year we mark the quadricentenary of the settling of Cupids, Newfoundland and Labrador. Two years hence, our Government will engage millions of citizens and strengthen knowledge and pride in Canada by commemorating the bicentennial of the War of 1812, an event that was key to shaping our identity as Canadians and ultimately our existence as a country. That year Canadians will also celebrate the 60th anniversary of the accession of Her Majesty Queen Elizabeth II, Queen of Canada, and our Government has established a Diamond Jubilee Committee to prepare for this historic occasion. Our Government will also ask Parliament to examine the original gender-neutral English wording of the national anthem. We are a country founded on democracy. Our shared values and experiences must be reflected in our national institutions, starting with Parliament. To reflect the growing number of Canadians living in Ontario, British Columbia and Alberta, our Government will follow through on its commitment to address their under-representation, consistent with the fundamental, democratic, constitutional principle of representation by population in the House of Commons. It will propose legislation to increase voter participation by expanding advance voting in elections. Our Government also remains committed to Senate reform and will continue to pursue measures to make the upper chamber more democratic, effective and accountable. Our Government recognizes the Public Service of Canada as a critical national institution. Our Government will continue to support the renewal of the Public Service and ensure it is ready for the changes required by the aging of its own and the wider Canadian labour force. We are a bilingual country. Canada's two official languages are an integral part of our history and position us uniquely in the world. Building on the recognition that the Québécois form a nation within a united Canada, and the Roadmap for Canada's Linguistic Duality, our Government will take steps to strengthen further Canada's francophone identity. It will also continue to respect provincial jurisdiction and to restrict the use of the federal spending power. We are a country with an Aboriginal heritage. A growing number of states have given qualified recognition to the United Nations Declaration on the Rights of Indigenous Peoples. Our Government will take steps to endorse this aspirational document in a manner fully consistent with Canada's Constitution and laws. We are a country of immigrants. Our identities are bound up in the stories of ancestors from hundreds of lands. To share these stories, our Government will introduce legislation to establish Pier 21 in Halifax — the site where so many began their Canadian journey — as Canada's National Museum of Immigration. It will continue to work with the provinces to strengthen recognition of foreign credentials through the Pan-Canadian Framework for the Assessment and Recognition of Foreign Qualifications. To better protect would-be immigrants, our Government will take steps to shut down unscrupulous immigration consultants. Our Government will also introduce legislation to speed up the revocation of citizenship of those who have concealed their war crimes. We are a country of refuge. For those victimized by disaster in their homeland or facing persecution by their own governments, Canada is a beacon. When disaster struck in Haiti, our Government accelerated the adoption process for Haitian orphans. And it is allowing Haitians temporarily in Canada to extend their stays. To remove the years of uncertainty often faced by refugees in genuine need, while closing off avenues for those simply seeking a back door into the country, our Government will propose comprehensive reforms to the refugee system. It supports the establishment of a National Monument to the Victims of Communism and it will support legislation to establish a national Holocaust memorial. We are a northern country. Canadians are deeply influenced by the vast expanse of our Arctic and its history and legends. Our Government established the Northern Strategy to realize the potential of Canada's North for northerners and all Canadians. • It will create a world-class High Arctic Research Station. • The Joint Review Panel on the Mackenzie Gas Project has completed its report. Our Government will reform the northern regulatory regime to ensure that the region's resource potential can be developed where commercially viable while ensuring a better process for protecting our environment. • It will continue to give northerners a greater say over their own future and take further steps toward territorial devolution. • Our Government will continue to vigorously defend Canada's Arctic sovereignty. It will continue to map our northern resources and waters. It will take action to increase marine safety and reduce pollution from shipping and other maritime traffic. • Our Government will also work with other northern countries to settle boundary disagreements. We are a country of unparalleled natural beauty. To further protect and preserve the diversity and health of our natural environment, our Government will bolster its Action Plan on Clean Water. And it will build on the creation of more than 85,000 square kilometres of national parks and marine conservation areas as part of its national conservation plan. We are a country that stands up for what is right in the world. Canadians want their Government to do what is right, not what is popular. They want their country to carry its share of the work in international affairs, not just talk about it. And they want their Government to make only those commitments it intends to keep. In the debate among nations, our Government will pursue a foreign policy that responds to changing times but remains anchored in Canadian values and an enlightened view of sovereignty that recognizes that national interests are often interconnected. • Through our leadership this year of the North American, G8 and G20 summits, our Government will advocate greater investment in maternal and child health in developing countries. It will continue to push for stronger financial market regulation, modelled after Canada's world-leading practices. And it will oppose trade protectionism in all its guises. • Our Government will use its voice to speak on behalf of Canada's commitment to global security and human rights. • Recognizing the danger posed by the proliferation of nuclear materials and technology to global peace and security, our Government will support the initiatives of President Obama and participate fully in the landmark Nuclear Security Summit in Washington in April. Nowhere is a commitment to principled policy, backed by action, needed more than in addressing climate change. Our Government has advocated for an agreement that includes all the world's major greenhouse gas emitters, for that is the only way to actually reduce global emissions. And it has pursued a balanced approach to emissions reduction that recognizes the importance of greening the economy for tomorrow and protecting jobs today. The Copenhagen Accord reflects these principles and is fully supported by the Government of Canada. Together with other industrialized countries, Canada will provide funding to help developing economies reduce their emissions and adapt to climate change. Here at home, our Government will continue to take steps to fight climate change by leading the world in clean electricity generation. And recognizing our integrated continental economic links, our Government will work to reduce emissions through the Canada-U.S. clean energy dialogue launched last year with President Obama's administration. Conclusion Honourable Members of the Senate and Members of the Commons, you are charged with a most important task — to give voice to the values, concerns and aspirations of Canadians. This is a year when the eyes of the world are on Canada. A year in which our athletes are excelling here at home at the Olympic and Paralympic Games. A year in which Canada will host world leaders at the North American, G8 and G20 summits. A year in which Her Majesty Queen Elizabeth II will celebrate Canada Day with Canadians. A year in which Canadians are leading the way in humanitarian efforts in Haiti, just as they are standing for freedom — at great cost — in Afghanistan. And it is a year during which the Canadian economy is emerging from recession as one of the strongest and most resilient in the developed world. These are all things of which Canadians can be justifiably proud. They remind every Canadian that our citizenship is more than a contract to pay taxes in exchange for government services. To be Canadian is to show the world that people drawn from every nation can live in harmony. To seek peace, but stand on guard for rights, democracy and the rule of law. To be resolute in confronting a global crisis and ambitious in planning for a more prosperous future. The future to which Canadians aspire will not arrive by chance. Grand visions for a nation's future will come to nothing if not balanced by the means to pay for them. To realize the hopes Canadians hold for themselves and their families, the economy must remain our Government's single most urgent priority. Hope is borne on the wings of prosperity. That is why tomorrow our Government will present a budget focused on jobs and growth — now and for the future. Honourable Members, let us join together to build a stronger Canada and a stronger economy. As you set about this vital work, I pray that Divine Providence guide you in your deliberations.

Canada

Honourable Senators, Members of the House of Commons, Ladies and gentlemen, I begin by congratulating all parliamentarians on this opening day of the Forty-first Parliament of Canada on my own behalf and on behalf of Her Majesty Queen Elizabeth II, Queen of Canada, who sends her congratulations and warm good wishes. Many of you are returning to your duties as Members of the House of Commons, and over one hundred of you are about to take your places as elected representatives for the first time. Together, you have been entrusted with a profound responsibility: to serve the public interest on behalf of all Canadians. In the months since my installation as Governor General, I have had the privilege of meeting with Canadians in their communities, and at Rideau Hall and La Citadelle. It has been an honour to answer this unique call to service, and I want to share with you something of what I have learned in my travels across this remarkable country of ours. I have learned that, regardless of age or affiliation, all Canadians want to help create a better future for this country. Each of us aspires to a Canada where everyone can succeed and contribute, where excellence and opportunity coexist. I have met with Canadians from all walks of life and discovered this common ground. In 2017, we will celebrate the 150th anniversary of Confederation, and I invite all Canadians to imagine ways to build a smarter, more caring nation as we approach this wonderful milestone. I believe that in order to achieve our vision, we must work together to support families and children, to reinforce learning and innovation, and to encourage philanthropy and volunteerism. Each of us can answer the call to service in our own way and, together, continue this bold experiment that we call Canada. Canadians have expressed their desire for a strong, stable national government in this new Parliament. With this clear mandate, our Government will deliver on its commitments. It will implement the next phase of Canada’s Economic Action Plan to build on the progress already made. It will continue to focus on jobs and growth. It will bring the federal budget back into balance. It will invest in our system of universal health care. It will support the communities and families that work so hard to care for each other. Our Government will defend the rights of law-abiding citizens, and it will promote Canadian values and interests at home and abroad. Our Government will be here for all Canadians—for individuals, for families and for all regions of the country—as together we move Canada forward. Here for jobs and growth Jobs and growth will remain our Government’s top priority. Through Canada’s Economic Action Plan, our Government took direct action to create jobs and protect Canadians during the global recession. On Monday, as our first order of business, our Government will reintroduce our Budget, in order to implement the next phase of Canada’s Economic Action Plan—our low tax plan for jobs and growth. We will get back to work on the things that matter most to Canadians: good jobs, security for our families and a prosperous future. Our Government’s plan builds on five years of hard work to create the right conditions for growth and job creation: a stable, predictable, low-tax environment; a highly skilled and flexible workforce; support for innovation and new technologies; and wider access to markets abroad. This approach has allowed Canada to meet the challenges of the global recession. The next phase of our Government’s plan is designed to help us stay on track during the recovery. Since 2006, Canadians have benefited from significant, broad-based tax cuts. These cuts have given families the flexibility to make the choices that are right for them. They have freed businesses to grow and succeed, creating the jobs on which Canadians depend. Our Government will continue on this path by introducing new tax credits for individuals and families, and by keeping taxes low to create jobs. It will also complete work already underway with the Government of Quebec to reach an agreement on tax harmonization no later than September 15, 2011. However, there is more to be done. The global economy remains fragile, and risks to our recovery persist. As well, Canada’s workforce is aging, and it will no longer grow as it has in the past. This demographic challenge will impact our economic future and put long-term pressures on our pension and health systems that must be addressed. In the years ahead, our prosperity will also depend on making sure that all Canadians have the skills and opportunities to contribute, to innovate and to succeed. Our Government’s plan will provide assistance for workers who want to learn new skills and seize opportunities. It will remove barriers for older workers who want to continue their careers. It will lay the foundation for long-term growth by helping a new generation gain the critical skills they will need to thrive in the workforce. The success of Canada’s job-creating businesses demands both hard work and good ideas, and we must create the right conditions for both to be rewarded. Our Government will introduce and seek swift passage of copyright legislation that balances the needs of creators and users. In order to improve Canada’s productivity, enhance our economic competitiveness and increase our standard of living, our Government will continue to make targeted investments to promote and encourage research and development in Canada's private sector and in our universities, colleges and polytechnics. It will look for ways to support innovation while ensuring that federal investment in research and development is effective and maximizes results for Canadians. It will also release and implement a Digital Economy Strategy that enhances digital infrastructure and encourages Canadian businesses to adopt digital technologies and provide digital-skills training for their employees and new hires. In addition, our Government will continue to cut red tape for small businesses so that they can focus their attention on growing their businesses and creating jobs. This will be achieved while maintaining the highest standards to protect our environment and the health and safety of Canadians. Our Government will also continue opening new markets for Canadian businesses in order to create good new jobs for Canadian workers. Since 2006, we have signed free trade agreements covering eight countries, and negotiations covering some fifty more are underway. Our Government will aim to complete negotiations on a free trade agreement with the European Union by 2012. It will also seek to complete negotiations on a free trade agreement with India in 2013. In all international forums and bilateral negotiations, our Government will continue to stand up for Canadian farmers and industries by defending supply management. The United States is our most important trading partner, ally and friend. Our Government will work with President Obama and his administration to deliver on the Shared Vision for Perimeter Security and Economic Competitiveness. We will strengthen our collaboration to streamline and secure our border and enhance regulatory cooperation, ensuring that people and goods can flow freely and safely between our two countries. Our Government also understands the importance of attracting foreign investment to our economy. Foreign investment helps Canadian companies grow by introducing new technologies and practices—launching pads to strengthen growth and innovation here at home. It provides new opportunities to connect our firms to the world. Our Government will continue to welcome foreign investment that benefits Canada. Our Government will also move forward with willing partners to establish a new national securities regulator, subject to the Supreme Court’s decision on the extent of federal jurisdiction. Here to eliminate the deficit Nearly three years ago, the world faced an unprecedented financial crisis. Drawing on strong fundamentals and the values of the hard-working Canadians and firms that refused to let difficult times define them, our Economic Action Plan helped Canada emerge quickly from recession. Working closely with provinces, territories and communities, our Government moved swiftly to deliver a targeted, time-limited stimulus program that created and protected jobs right across the country. Hard work, determination and responsible choices allowed us to make these extraordinary investments when times were tough, while avoiding the high debt levels that threaten other countries. We must now take that same approach to future growth. We must eliminate the deficit and return to balanced budgets to ensure that our economy can continue to grow and create jobs and that the federal government will have sufficient fiscal flexibility for future choices. Our Government had committed to achieving this by 2015. In order to accelerate the return to a balanced budget and to eliminate the deficit one year earlier, over the next year we will undertake a Strategic and Operating Review of government spending led by a new Cabinet subcommittee established for this purpose. This review will be focused on reducing the cost of government, while keeping taxes low and preserving transfers to individuals and provinces for essential things like pensions, health and education. Our Government will also complete its stimulus package as promised and continue specific measures to restrain the growth of government expenditures. Our Government’s plan will put us on a strong footing to resume paying down the federal debt, further reduce taxes on families and continue investing in priorities. Here for hard-working families There is no greater priority for Canadians than caring for their loved ones. Canadians believe that their parents and grandparents have worked hard and deserve a secure retirement. They want their children and grandchildren to grow up with every opportunity to lead happy, healthy lives. Many Canadian families struggle to realize these goals. That is why our Government’s low-tax plan will permanently enhance the Guaranteed Income Supplement for some 680,000 of Canada’s most vulnerable seniors. This increase—the largest in a quarter century—will help these seniors make ends meet. At the same time, our Government will continue to help Canadians save for their retirement, and will work with provincial and territorial partners to implement the Pooled Registered Pension Plan. Our Government’s plan also recognizes the tremendous time and resources required of family caregivers. Many individuals and families have added responsibilities in caring for infirm parents or relatives. These family caregivers make special sacrifices, often leaving the workforce temporarily and forgoing employment income. The new Family Caregiver Tax Credit will support those who care for a dependent family member who is infirm. In addition, our Government will remove the cap on eligible expenses that caregivers can claim under the Medical Expense Tax Credit. Our Government will also support parents in providing their children with opportunities to grow personally and discover their creative passions by establishing a Children’s Arts Tax Credit. Canadians want and expect their health care system to be there when they and their families need it most. Canadians want better results from the health care system, at the same time as an aging population is putting unprecedented pressure on the system’s ability to deliver. Our Government is committed to respecting provincial jurisdiction and working with the provinces and territories to ensure that the health care system is sustainable and that there is accountability for results. It will maintain the six percent escalator for the Canada Health Transfer, while working collaboratively with provincial partners to renew the Health Accord and to continue reducing wait times. As has been done before, our Government will enter into a separate agreement with the Government of Quebec regarding the implementation of the renewed Health Accord. Here to stand on guard for Canada Canadians are united by core values, a shared history and a sense of common purpose. Our Government will join Canadians in celebrating our heritage, in promoting our values and in standing for what is right on the world stage. In an uncertain global environment, our Government will also continue to pursue a stable, principled foreign policy that advances Canada’s interests. The Canadian Armed Forces play a crucial role in defending our sovereignty and national security. As the Canadian mission in Afghanistan transitions to training, diplomacy and development, our Government joins Canadians in honouring those who gave their lives and in recognizing the sacrifice and achievements of all the men and women, both military and civilian, who have served and continue to serve in Afghanistan. Our Government will continue to recognize and support all veterans. Today, as North Africa and the Middle East are being transformed by their people, the Canadian Armed Forces are standing tall with our allies to protect civilians in Libya. Our Government will hold a parliamentary debate on the future of this important mission. As part of our ongoing efforts to promote human rights, our Government will create a new Office of Religious Freedom to help protect religious minorities and to promote the pluralism that is essential to the development of free and democratic societies. We will also take action to strengthen our national sovereignty. Our Government is committed to protecting the integrity of our immigration system. It will introduce measures to address marriage fraud—an abuse of our system that can victimize unsuspecting Canadians and vulnerable immigrants. Our Government will also reintroduce legislation to combat human smuggling, which can place migrants in dangerous conditions and undermine trust in Canada’s immigration system. Our Government has made Canada’s North a cornerstone of its agenda. The strongest expression of our sovereignty comes through presence and actions, not words. Our Government will continue to exercise leadership in the stewardship of northern lands and waters. It is also committed to working with the Northwest Territories and the private sector to complete the Dempster Highway—by linking Inuvik to Tuktoyaktuk—thereby realizing Prime Minister Diefenbaker’s vision of connecting Canada by road from sea to sea to sea. Canada’s natural environment shapes our national identity, our health and our prosperity. Our Government has expanded protected lands and marine areas to an unprecedented extent, so that current and future generations can continue to enjoy them. In this, the 100th anniversary year of our national parks system, our Government will create significant new protected areas. It will work with provincial, regional, municipal, Aboriginal and community stakeholders toward establishing an urban national park in the Rouge Valley of eastern Toronto. Looking to the future, our Government will engage a broad range of stakeholders on the development of a National Conservation Plan, to move our conservation objectives forward and better connect all Canadians with nature. Our Government is committed to developing Canada’s extraordinary resource wealth in a way that protects the environment. It will support major new clean energy projects of national or regional significance, such as the planned Lower Churchill hydroelectricity project in Atlantic Canada. It will engage the provinces, territories and industry on ways to improve the regulatory and environmental assessment process for resource projects, while ensuring meaningful consultation with affected communities, including Aboriginal communities. Beyond our natural heritage, Canadians also cherish our shared history. Anniversaries are an important part of how a society marks its collective progress and defines its goals for the future. A key milestone next year will be the bicentennial of the War of 1812. We will remember how those of diverse backgrounds and various regions came together to fight for Canada, ensuring the independent destiny of our country in North America. We will also celebrate the 200th anniversary of the Selkirk Settlement, which marks the founding of Manitoba and the early days of the modern West. Next year we will observe Her Majesty’s Diamond Jubilee, celebrating her six decades of service as Queen of Canada. And Canadians look forward, in just a few weeks’ time, to welcoming Their Royal Highnesses The Duke and Duchess of Cambridge on their first Royal Tour since their marriage this spring. Here for law-abiding Canadians The Government of Canada has no more fundamental duty than to protect the personal safety of our citizens and defend against threats to our national security. Our Government will move quickly to reintroduce comprehensive law-and-order legislation to combat crime and terrorism. These measures will protect children from sex offenders. They will eliminate house arrest and pardons for serious crimes. They will give law enforcement officials, courts and victims the legal tools they need to fight criminals and terrorists. Our Government will continue to protect the most vulnerable in society and work to prevent crime. It will propose tougher sentences for those who abuse seniors and will help at risk youth avoid gangs and criminal activity. It will address the problem of violence against women and girls. Our Government has always believed the interests of law-abiding citizens should be placed ahead of those of criminals. Canadians who are victimized or threatened by crime deserve their government’s support and protection, and they should have the right to take reasonable steps to defend themselves and their property when the police cannot be there to assist them. Our Government will reintroduce legislation to clarify and strengthen laws on self-defence, defence of property and citizen’s arrest. Our Government will also continue to implement its response to the Air India Report. Here for communities and industries In addition to guarding the interests of our nation as a whole, our Government will continue taking action to address the needs and aspirations of every region of the country. Local communities are best placed to overcome their unique challenges, but government can help create the conditions for these communities—and the industries that sustain them—to succeed. Canada’s rural communities are rich in history and culture, and generations of rural Canadians have worked hard and played by the rules. They should not be the target of unfair laws. Our Government will act on its promise to introduce legislation to end the wasteful and ineffective long-gun registry. Canada’s traditional industries remain crucial to our economy. Our Government has always stood behind Canada’s agricultural, forestry, fishing, mineral, manufacturing and energy sectors—and will continue to support them as they innovate and grow. It will also introduce legislation to ensure that western farmers have the freedom to sell wheat and barley on the open market. Canada’s Aboriginal peoples are central to Canada’s history, and our Government has made it a priority to renew and deepen our relationship. The contribution of Canada’s Aboriginal peoples will be important to our future prosperity. Concerted action is needed to address the barriers to social and economic participation that many Aboriginal Canadians face. Our Government will work with Aboriginal communities, provinces and territories to meet this challenge. It will help open the door to greater economic development by providing new investments in First Nations Land Management. It will promote access to clean water and the deployment of clean energy technology in Aboriginal and northern communities. Building on the work of the National Panel on First Nation Elementary and Secondary Education, our Government will engage with partners to make concrete, positive changes to give First Nations children a better education so that they can realize their dreams. We will also expand adult basic education programming in the territories to help to increase education and employment levels. Our Government will also introduce legislation to ensure that people living on reserve have the same matrimonial real property rights and protections as other Canadians. Canada’s diverse communities are connected by shared values and aspirations, and by the willingness to lend a hand. This has been markedly evident in the response of ordinary Canadians to recent and devastating floods and wildfires. Our Government recognizes the resolve and courage shown by Canadian communities in the face of adversity and will stand by them in their times of need. Here for integrity and accountability In these and all other measures our Government will pursue, we will provide the principled, accountable leadership and good, clean government that Canadians deserve. On first taking office, our Government introduced major new accountability legislation as its first act in the Thirty-ninth Parliament, and it will now move forward on its long-standing commitment to democratic reform. Reform of the Senate remains a priority for our Government. Our Government will reintroduce legislation to limit term lengths and to encourage provinces and territories to hold elections for Senate nominees. Canadians rightly expect fairness and accountability in the full range of government institutions that serve them. Our Government will reintroduce legislation to restore fair representation in the House of Commons. It will take steps to phase out direct taxpayer subsidies to federal political parties over the next three years. It will support transparency for First Nations communities by requiring their chiefs and councillors to publish their salaries and expenses. Our Government will also support the efforts of the Public Service to modernize the way it works so that it can continue to provide the highest standard of service to Canadians. In filling the two upcoming vacancies on the Supreme Court of Canada, our Government will engage parliamentarians through the transparent process first used in 2006. Our Government will also ensure that citizens, the private sector and other partners have improved access to the workings of government through open data, open information and open dialogue. Conclusion As Canadians, we take pride in our history and look forward to our future as the true North, strong and free. From our earliest days, we have always come together to advance our common purpose, each of us ready to do our part to move Canada forward. Building on the careful investments and decisive actions of the past five years, our Government will move swiftly to deliver the next important phase of the Economic Action Plan. Our Government will reflect the courage Canadians show in meeting the challenges of today and their determination to rise to those they see on the horizon. Members of the House of Commons, you will be asked to appropriate the funds required to carry out the services and expenditures authorized by Parliament. Honourable Senators and Members of the House of Commons, let the work of our great democracy support Canadians as they go about fashioning a twenty-first century destiny limited only by their ambition and imagination. May Divine Providence guide you in your deliberations and make you equal to the trust bestowed upon you.

Canada

Honourable Senators, Members of the House of Commons, Ladies and gentlemen, Let us begin this day together by honouring in silent reflection those whose lives were tragically taken at Lac- Mégantic. I come before you today as one proud Canadian among a vast nation of these, sincere in congratulation on this opening day of the Second Session of the Forty-first Parliament of Canada. I bear the happy wishes and deep affection of Her Majesty Queen Elizabeth II, Queen of Canada, whose family has this year been blessed with the birth of Prince George. Parliamentarians, you gather today with the high confidence and higher expectation of Canadians. Remember that our nation has embraced a unique set of indelible qualities that must guide your deliberations in this Parliament. Consider this: we are inclusive. We are 35 million people gathered from every part of the world. We welcome the contribution of all those who inhabit this land - from the first of us to the latest among us. This year, we celebrate the 250th anniversary of the Royal Proclamation. This extraordinary document is part of the legal foundation of our country. It recognized the rights of Aboriginal people in Canada for the first time and established the basis of their relations with the Crown. Consider this: we are honourable. People of peace, we use our military power sparingly; but when we do so we do so with full conviction, gathering our forces as men and women who believe that the freedoms we enjoy cannot be taken from us. This clarity focuses our might in terrible times. And wherever and whenever we unleash that might, we raise our grateful voices and our prayers to honour those who have stood in harm's way for us. Consider this: we are selfless. Our survival has been sustained by humility and acceptance of our mutual interdependence. Giving lies in our very nature, certain in our hearts that none but the gift passed from an open hand will multiply as those we help better themselves, those they love and, at length, the country they call home. Consider this: we are smart. We deplore self-satisfaction, yearning rather for self-improvement. We love learning and cherish our right to it. We are united, prosperous and free precisely because we ensure that Canadians have opportunities to learn, excel, advance, and thus to contribute. Consider this: we are caring. Our abiding concern for the common good of our neighbours - in each community - makes us responsive. We do not abandon our fellows to scrape by in times of distress or natural disaster. Inspired by our common bond, we come swiftly and resiliently to the aid of those in need. Today, as we contemplate our 150th anniversary, the eyes and ears and expectations of Canadians turn toward this Parliament, in trust that those who stand here in their place will relentlessly advance and uphold ideas that are inclusive, honourable, selfless, smart and caring at every turn without fail. Let us not disappoint. And with that spirit and direction, let us turn now to the present. Two and a half years ago, Canadians gave our Government a strong mandate: a mandate to protect jobs and our economy; a mandate to keep taxes low; a mandate to make our families and communities safe. Despite ongoing uncertainty and instability from beyond our shores, our Government remains focused on these priorities. We made tough choices - the right choices for Canadian families. The results are clear: more Canadians have good jobs than ever before; families are paying lower taxes; our financial house is in order. As the world looks to recovery, a rare opportunity now lies before us as Canadians: the opportunity to build on our ingenuity, our immense natural wealth, and our values and stability; the opportunity to secure the future, for our generation, and our children's generation. It is the opportunity to lead the world in security and prosperity - not for the sake of doing so, but so that Canadian families who work hard, pay their taxes and play by the rules can get ahead. This is Canada's moment; together we will seize it. And as we do, we draw inspiration from our founders, leaders of courage and audacity. Nearly 150 years ago, they looked beyond narrow self-interest. They faced down incredible challenges - geographic, military, and economic. They were undaunted. They dared to seize the moment that history offered. Pioneers, then few in number, reached across a vast continent. They forged an independent country where none would have otherwise existed. In the words of Thomas D'Arcy McGee: "I see in the not remote distance one great nationality bound, like the shield of Achilles, by the blue rim of ocean. I see it quartered into many communities, each disposing of its internal affairs, but all bound together by free institutions...'' With hard work, sacrifice and common sense, those Canadian men and women built this country. In so doing, they founded a constitutional democracy, among the most enduring history has known. As we look to the 150th anniversary of our Confederation, we are reminded that ours is a rich inheritance: a legacy of freedom; the birthright of all humanity and the courage to uphold it; the rule of law, and the institutions to protect it; respect for human dignity and diversity. Guided by these values, we Canadians - Aboriginal, French, English, people from all corners of the globe - strive together for our families and a brighter future. We are on the cusp of a moment that is uniquely Canada's. Just as our founders dared, so too must we. We must seize this moment to secure prosperity, for Canadians now, and the generations to follow. 1. Creating Jobs and Opportunities for Canadians Balanced Budgets and Reducing the Cost of Government Creating jobs and securing economic growth is and will remain our Government's top priority. When disaster struck the world economy, our Government's decisive and pragmatic leadership navigated Canada through the worst global recession in a generation. Even before the recession hit, our Government was prepared. It maintained budget surpluses and paid down billions from the national debt. It lowered taxes for Canadians and job-creating businesses. During the downturn, our Government's Economic Action Plan took the steps necessary to safeguard our economy. It protected Canadian jobs. It invested in infrastructure and productivity. And it controlled spending, while maintaining growing transfers that support health care, education and retirement. In spite of continuing risks from beyond our shores, our Government is leading the world by example. It secured the commitment of the world's largest economies to put in place credible plans to achieve financial sustainability. And it set clear targets to bring our own deficit down. Canada now leads the G-7 - in job creation; in income growth; and in keeping debt levels low. Canada is now among only a few countries in the world with a triple-A credit rating. By taking decisive action Canada has stayed strong where others have faltered. But we cannot be complacent. The global economy still faces significant risks from factors that we do not control. We must stay the course. And sound management remains our Government's guide. Canadian families know they cannot prosper by continually spending more than they earn. Our Government is no different. • Last year's deficit was less than forecast. Our Government will balance the budget by 2015. • And it will go further. Our Government will enshrine in law its successful and prudent approach. Our Government will introduce balanced-budget legislation. It will require balanced budgets during normal economic times, and concrete timelines for returning to balance in the event of an economic crisis. • Our Government has already set an ambitious debt-to-GDP target of 25 per cent by 2021. And it will reduce that ratio to pre-recession levels by 2017. Just as our Government manages debt, so too is it tackling spending. Every day, Canadian families make tough choices about how to spend their hard-earned money. Guided by this example, our Government will continue reducing the size and cost of Government to ensure that taxpayers get value for money. • Our Government will freeze the overall federal operating budget, which will continue to restrain hiring. • Our Government will make further targeted reductions to internal government spending. • Our Government will reform the way the federal system manages spending. • Our Government will review federal assets; when it is in the best interest of Canadians, they will be sold. • Our Government recognizes the value of a lean, competent and committed public service. Public Service pay and benefit levels will be reasonable, responsible, and in the public interest. • Our Government has already reformed federal government pension plans, to ensure that parliamentarians and public servants pay their fair share. It will reform disability and sick-day entitlements and work with employees to get them back to work as soon as possible. • Our Government will amend the Public Service Labour Relations Act to ensure that the Public Service is affordable, modern and high-performing. • Our Government will increase performance accountability in the Public Service to provide better service to Canadians, at a reduced cost, and to better recognize dedicated and effective employees. • And we will make government more efficient and responsive to Canadians - by, for example, moving from 63 different email systems to one. Jobs for Canadians Canadians want good, well-paying, stable jobs. And our country needs Canadians working. Canadians know that businesses create jobs. So our Government lowered their tax burden and cut red tape. Canada now has the best job creation record in the G-7 - one million net new jobs since the depths of the recession. These are overwhelmingly full-time, well-paying, private sector jobs. But our Government is not stopping here. Canada has one of the best-educated workforces in the world. But there are too many people without jobs and too many jobs without people. • To address this job creation gap, our Government is implementing the Canada Job Grant. It will increase employment by ensuring Canadians are able to fill job vacancies. • Our Government will take further steps to see that those traditionally under-represented in the workforce, including people with disabilities, youth, and Aboriginal Canadians, find the job-training they need. • Our Government will work with provinces and territories on a new generation of labour market agreements to more effectively connect Canadians with disabilities to employers and in-demand jobs. • Canada's youth unemployment rate is already much lower than many advanced countries. But it remains too high. Our Government will redirect federal investments in youth employment to provide real-life work experience in high-demand fields. • Our Government recognizes the tremendous potential of Canada's First Nations, Métis and Inuit populations to strengthen the growing Canadian economy. It will continue working with First Nations to develop stronger, more effective, and more accountable on-reserve education systems. • In a dynamic economy, workers must be able to use their skills, wherever in Canada they choose to work. Provincial borders should not be employment barriers. Our Government will work with provinces and territories to improve credential recognition and enable the free movement of skilled workers. • Our Government will ensure that Canadians are aware of the opportunities offered by the skilled trades, and will assist apprentices with the cost of their training. • Our Government will complete reforms to the Temporary Foreign Worker Program to ensure that Canadians always have the first chance at available jobs. • And our Government will continue to create the conditions for new and better jobs for Canadians across all sectors of our economy. Trade From the days of the coureurs des bois and the Hudson's Bay Company, Canada has been a trading nation. Today, with one in five Canadian jobs dependent on exports, our prosperity hinges on opening new markets for Canadian goods, services and investment. This is why our Government launched the most ambitious trade agenda in Canadian history. In less than seven years, Canada has concluded new free-trade agreements with nine countries and our Government is negotiating further agreements involving more than 60 others. • The Government will soon complete negotiations on a comprehensive economic and trade agreement with the European Union. This agreement has the potential to create 80,000 new Canadian jobs. • Our Government is also committed to expanding trade with emerging markets in Asia and the Americas through our engagement in the Trans-Pacific Partnership and active negotiations with Japan, South Korea, and India. • To further promote the success of Canadian exporters, our Government will launch a comprehensive new plan to assist Canadian businesses as they expand abroad. • The United States remains Canada's biggest and best customer. Our Government will continue implementing the Beyond the Border and Regulatory Cooperation Action Plans to speed the flow of people, goods and services between our two countries. • Here at home, our Government will continue to work to remove barriers to trade between provinces and territories that cost jobs, inconvenience Canadians, and defy common sense. For instance, our Government will work with British Columbia and Ontario, and other willing jurisdictions, to set up a cooperative regulatory system for securities and capital markets. • And our Government will amend the Importation of Intoxicating Liquors Act to allow Canadians to take beer and spirits across provincial boundaries for their own use. Resource Development Since Canada's earliest days, our economy has been built on our abundant natural resources. Directly and indirectly, the natural resource sector employs 1.8 million Canadians, many in skilled, high-paying jobs. Resource development generates 30 billion dollars annually in revenue that supports health care, education and programs Canadians cherish. Canada's energy reserves are vast - sufficient to fuel our growing economy and supply international customers for generations to come. However, for Canadians to benefit fully from our natural resources we must be able to sell them. A lack of key infrastructure threatens to strand these resources at a time when global demand for Canadian energy is soaring. We must seize this moment. The window for gaining access to new markets will not remain open indefinitely. Now more than ever, our future prosperity depends on responsible development of these resources. At the same time, our Government has taken action to ensure that Canada's resources do not fall under foreign government control. • Our Government will continue to ensure that our natural resource sectors remain open to foreign investment when it is market-oriented and in the long-term interests of Canadians. • Canada's natural wealth is our national inheritance and our Government will ensure that the jobs and opportunities it brings are available to all Canadians. In particular, Canada's Aboriginal peoples must have every opportunity to benefit. Our Government believes, and Canadians expect, that resource development must respect the environment. Our Government's plan for responsible resource development includes measures to protect against spills and other risks to the environment and local communities. Our Government will: • Enshrine the polluter-pay system into law; • Set higher safety standards for companies operating offshore as well as those operating pipelines, and increase the required liability insurance; • Re-introduce the Safeguarding Canada's Seas and Skies Act, to protect our oceans and coasts; and • Act on advice from the Expert Panel on Tanker Safety, to create a world-class tanker safety system in Canada. Farms, Fisheries, Forestry Canada was built on the work of farmers, fishermen, and foresters. They work hard to feed our families and sustain rural communities. Our Government will continue to protect and promote Canada's traditional industries. • Our Government has given farmers marketing freedom and is helping them adapt and innovate. It will continue to develop new markets around the world for Canadian products, while supporting supply management. • Our Government has supported fishermen by ensuring proper management of fish stocks and by opening new markets worldwide. It will continue to be open to solutions, supported by fishermen, that strengthen the economic competitiveness of this traditional pillar of our coastal economy. • Forestry remains essential to Canada's rural economy, supporting almost 200,000 jobs across the country. Our Government secured and extended the softwood lumber agreement with the United States. And our Government will continue to support innovation and pursue new export opportunities for Canadian companies. Infrastructure Infrastructure investment creates jobs, supports trade, drives productivity and contributes in a fundamental way to growth and long-term prosperity. For Canadians balancing the pressures of work and daily life, investment in our roads, bridges and transportation networks means less congestion, shorter commutes and more time with family. That's why, in Economic Action Plan 2013, our Government launched the new Building Canada Plan, the largest long-term federal commitment to infrastructure in Canadian history. • Over the next decade, our Government will invest 70 billion dollars in federal, provincial, territorial and community infrastructure. Projects such as building subways in the Greater Toronto Area, replacing Montréal's Champlain Bridge, building a new Windsor-Detroit crossing and constructing Vancouver's Evergreen Line will create jobs across our country. Shipbuilding and Manufacturing • Our Government will work in partnership with industry to ensure that all major military purchases create high-quality jobs for Canadian workers. Our Government's National Shipbuilding Plan will create 15,000 well-paying, skilled jobs over 30 years for Canadians and produce much-needed new ships for the Royal Canadian Navy and the Canadian Coast Guard. • Canada's automotive and aerospace industries are also key parts of our economy. That's why our Government renewed the Automotive Innovation Fund and improved the Strategic Aerospace and Defence Initiative. Both have a proven track record of generating results for Canadians - jobs, prosperity and increased foreign investment. • To foster Canadian productivity and global competitiveness, our Government provided 1.4 billion dollars in tax relief to manufacturing companies investing in modern machinery and equipment. And our new Advanced Manufacturing Fund will support new products and production methods. Science and Technology Our Government's leadership in science and technology helps Canadian business remain competitive while creating high-paying jobs. Since 2006, our Government has invested more than 9 billion dollars to support science, technology and innovative companies operating at the outer limits of knowledge. Canada now leads G-7 countries in post-secondary research investment. • Transformation of the National Research Council, doubling the Industrial Research Assistance Program, and the new Venture Capital Action Plan are all helping to promote greater commercialization of research and development. • Building on this strong foundation, our Government will release an updated Science, Technology and Innovation Strategy. • Our Government will continue making targeted investments in science and innovation chains from laboratory to market in order to position Canada as a leader in the knowledge economy. • And our Government will continue to promote Canada as a world-class destination for international students. Small Business and Tourism Canada's spectacular beauty attracts visitors from across the globe to every region of our country. These visitors create jobs and sustain local economies. Our Government will continue to work with industry partners to promote Canada as a top destination for tourism. Our Government has reduced the red tape burden on small and medium-sized businesses. There are now fewer regulations and the cost of red tape has been reduced by nearly 20 million dollars annually. • Our Government will introduce legislation to enshrine the One-for-One Rule in law: for every new regulation added, one must be removed. • The Canada Revenue Agency will cut additional red tape and help businesses navigate the tax system. • And, following our Government's return to balanced budgets, it will look at ways to provide further tax relief to job-creating small businesses. 2. Supporting and Protecting Canadian Families Keeping Taxes Low Canadians work hard for their money. And we know families are better placed to make spending decisions than governments. That is why our Government has lowered taxes, year after year - for families, for businesses, for each and every Canadian. For example, our Government: • Cut the GST, from seven to six to five per cent; • Created Tax Free Savings Accounts, which now benefit more than eight million Canadians; • Established a 5,000-dollar tax credit for first-time home buyers; • Reduced the lowest personal income tax rate and increased the basic personal exemption; • Introduced income splitting for seniors; • Brought in arts and fitness tax credits for our children; and • Froze Employment Insurance premiums for the next three years, meaning that employees and employers will save 660 million dollars next year alone. Overall, the federal tax burden is at its lowest level in half a century. As a result of our Government's low-tax plan, the average Canadian family now pays 3,200 dollars less in taxes every year. Our Government has a proven record of cutting taxes for Canadian families. We have delivered on our promises. And, once the budget is balanced, our Government is committed to greater tax relief for Canadian families. Defending Canadian Consumers Canadian families work hard to make ends meet, and every dollar counts. While companies will look out for their bottom line, our Government is looking out for everyday Canadians. When Canadians make decisions about how to spend their money, they must be assured of a voice, a choice, and fair treatment. For example, although Canadians are among the most digitally connected in the world, we also pay some of the highest wireless rates in the developed world. As families know - especially families with teenagers - the monthly bills add up. Our Government has already taken action to achieve greater competition. Canadians know that competition is good for everyone. Competition lowers prices and keeps businesses from becoming complacent. As a result, wireless rates have fallen nearly 20 per cent since 2008. But there is much more work to do. • Our Government will take steps to reduce roaming costs on networks within Canada. • Our Government believes Canadian families should be able to choose the combination of television channels they want. It will require channels to be unbundled, while protecting Canadian jobs. • Our Government will continue enhancing high-speed broadband networks for rural Canadians. And our Government will take additional action to protect Canadian consumers. Canadians are tired of hidden fees. They deserve to know the real cost of paying by debit or credit card. And they should not be charged more in Canada for identical goods that sell for less in the United States. Our Government will: • End "pay to pay'' policies, so customers won't pay extra to receive paper bills; • Expand no-cost basic banking services; • Work with the provinces and territories to crack down on predatory payday lenders; • Empower consumers by requiring disclosure of the cost of different payment methods; and • Take further action to end geographic price discrimination against Canadians. Supporting Victims and Punishing Criminals Our Government believes that the justice system exists to protect law-abiding citizens and our communities. For too long, the voices of victims have been silenced, while the system coddled criminals. Our Government has worked to re- establish Canada as a country where those who break the law are punished for their actions; where penalties match the severity of crimes committed; where the rights of victims come before the rights of criminals. • Our Government will introduce a Victims Bill of Rights to restore victims to their rightful place at the heart of our justice system. • Our Government will focus on protecting the most vulnerable of all victims, our children. Recent tragic deaths, including those of Amanda Todd, Rehtaeh Parsons, and Todd Loik, have shocked Canadians. Our Government will introduce legislation giving police and prosecutors new tools to effectively address cyberbullying that involves criminal invasion of privacy, intimidation and personal abuse. This legislation would create a new criminal offence prohibiting the non-consensual distribution of intimate images. • Canadians are rightfully alarmed when violent offenders found not criminally responsible for their actions are released into our communities. Our Government will re-introduce legislation to ensure that public safety comes first. • But we must do even more to protect our children. Child predators should never be let off with only a single sentence for multiple crimes against children. Canadians demand that those who prey on our children pay the full price for every devastated life. Our Government will end sentencing discounts for child sex offenders. • It is also unacceptable that dangerous and violent offenders are released into our communities before serving their full sentences. Our Government will end the practice of automatic early release for serious repeat offenders. • But for the worst of all criminals, even this is not enough. Canadians do not understand why the most dangerous criminals would ever be released from prison. For them, our Government will change the law so that a life sentence means a sentence for life. • Aboriginal women are disproportionately the victims of violent crime. Our Government will renew its efforts to address the issue of missing and murdered Aboriginal women. • Canadians also know that prostitution victimizes women and threatens the safety of our communities. Our Government will vigorously defend the constitutionality of Canada's prostitution laws. • Finally, our Government recognizes the daily risks taken by police officers and their service animals. It will bring forward Quanto's law in honour of them. Safeguarding Families and Communities Families are the cornerstone of our society. Families raise our children and build our communities. As our families succeed, Canada succeeds. Our Government understands the daily pressures ordinary Canadian families face. And it is working to strengthen families, not replace them. That's why our Government took money from bureaucrats and lobbyists and gave it to the real experts on child care - mom and dad. Our Government's Universal Child Care Benefit provides 1,200 dollars a year to parents to help with the costs of raising kids. Our Government will also support hard-working Canadian families in other ways. • Every day, parents make choices about what goes on the dinner table. Our Safe Food for Canadians Act was a significant milestone in strengthening Canada's world-class food safety system. Our Government will work with the provinces and territories to further strengthen food inspection regimes. • Our Government will consult with Canadian parents to improve the way nutritional information is presented on food labels. • Our Government is also committed to ensuring that drug labels are written in plain language, and that the potential side effects of medication are accurately indicated. To help identify potentially dangerous drugs, and ensure the quick recall of unsafe drugs, it will introduce new patient safety legislation. This will include new powers to require reporting of adverse drug reactions. Our Government will also: • Build on our caregiver tax credit by working with employers to better accommodate Canadians caring for older family members; • Help seniors quickly access information about programs and services they need and use in their communities; • Make adoption more affordable for Canadian families; • Renew investments in health research to tackle the growing onset of dementia, and related illnesses; • Prevent employers and insurance companies from discriminating against Canadians on the basis of genetic testing; • Collaborate with injury prevention organizations, to reduce the injury rate in Canada; and • Work with the provinces and territories and with the private and not-for-profit sectors to encourage young Canadians to be more physically active. Canadian families expect safe and healthy communities in which to raise their children. They want to address poverty and other persistent social problems, access safe and reliable infrastructure, and enjoy a clean and healthy environment. Our Government will: • Re-introduce and pass the Respect for Communities Act to ensure that parents have a say before drug injection sites open in their communities; • Expand its National Anti-Drug Strategy to address the growing problem of prescription drug abuse; • Close loopholes that allow for the feeding of addiction under the guise of treatment; • Act on the opportunities presented by social finance and the successful National Call for Concepts for Social Finance; • Build on the successful Housing First approach and its renewed Homelessness Partnering Strategy to help house vulnerable Canadians; • Protect Canada's rich natural heritage by unveiling a new National Conservation Plan to further increase protected areas, focusing on stronger marine and coastal conservation; • Complete, by 2015, its work to protect wilderness lands in Nááts'ihch'oh, Bathurst Island and the Mealy Mountains; • Work with communities, non-profit organizations, and businesses to create and protect more green space in our urban and suburban areas; • Take further action to improve air quality nationwide; and • Build on its record as the first government to achieve an absolute reduction in greenhouse gas emissions by working with provinces to reduce emissions from the oil and gas sectors while ensuring Canadian companies remain competitive. Since before Confederation, Canada has relied on railways for the movement of goods and passengers. It is no different today. New economic opportunities still require rail to link Canadian goods to waiting markets. • Our Government has already amended the Railway Safety Act to further enhance the safety of rail transportation. • As efforts to clean up and rebuild Lac-Mégantic demonstrate, railway companies must be able to bear the cost of their actions. Our Government will require shippers and railways to carry additional insurance so they are held accountable. • And we will take targeted action to increase the safety of the transportation of dangerous goods. The first responders and ordinary Canadians who came together to confront the recent disasters in Lac-Mégantic and Alberta showed courage under the most dire circumstances. The Government has always stood with communities in times of crisis and recovery. • Our Government will continue to support the citizens of Lac-Mégantic and affected communities in Alberta as they move forward. • Building community resilience can mitigate the worst impacts of natural disasters and other emergencies before they happen. Our Government will work with provinces and territories to develop a National Disaster Mitigation Program, focused on reducing the impact of natural disasters. 3. Putting Canada First Supporting Our Armed Forces Government has no higher obligation than the protection of national sovereignty and the security of citizens. And Canadians know that you cannot earn respect by projecting weakness. Serious countries have serious capabilities. Look at the paintings that adorn this room - scenes of the Great War. They remind us of this, and of the profound sacrifices made by our men and women in uniform. These heroes are the pride of our country and the backbone of our history. After a decade of darkness, our Government has been living up to our promise to give the Canadian military the tools it needs to get the job done. Soldier for soldier, sailor for sailor, airman for airman, the Canadian Armed Forces are once again the best in the world. No longer does Canada have to hitch a ride with our allies. Our serving men and women can now carry out their vital missions. The Royal Canadian Air Force is flying new heavy-lift C-17 and C-130J transport aircraft, and operating Chinook helicopters. New tanks, artillery and other equipment have proven their worth in combat. Canadian workers at Canadian shipyards will build new ships for the Royal Canadian Navy and the Canadian Coast Guard. And our Government will complete our plan to replace Canada's fleet of fighter jets. Building on these successes, our Government will renew our Canada First Defence Strategy. Now and in the future, Canada's Armed Forces will defend Canada and protect our borders; maintain sovereignty over our Northern lands and waters; fight alongside our allies to defend our interests; and respond to emergencies within Canada and around the world. To be effective, our military must have more teeth and less tail. Our Government will: • Put front-line capability before back-office bureaucracy; • Respond to emerging threats to our sovereignty and economy posed by terrorism and cyber-attacks, while ensuring Canadians' fundamental privacy rights are protected; • Incorporate a strong role for our military reserves, who are an essential link between the Armed Forces and Canadian communities; and • Assist employers of reservists who are required to deploy on missions vital to the security of all Canadians. As our Government takes these steps, it will always keep faith with those who have defended Canada with pride. Our veterans have stood up for us; we will stand by them. Our Government has made unprecedented investments to support our veterans. Our Government has: • Increased support through its enhanced Veterans Charter; • Ensured dignified funerals for our injured veterans; • Reduced red tape so veterans can access the benefits they need; and • Invested almost five billion additional dollars in benefits and programs. Our Government has worked to help returning veterans re-establish themselves. We will: • Reach out to homeless veterans and help give them the support they need; and • Build on our successful "Helmets to Hardhats'' program to place veterans in good jobs. Canada's Northern Sovereignty We are a northern country. We are a northern people. Canada's greatest dreams are to be found in our highest latitudes. They are the dreams of a North confident and prosperous, the True North, strong and free. Our Government is securing our Northern sovereignty; promoting prosperity for Northerners; protecting our Arctic environmental heritage; and giving the people of the North a greater say in their own affairs. Our Government has made great strides by: • Opening the Canadian Armed Forces Arctic Training Centre; • Expanding the Canadian Rangers, our eyes and ears in the North; • Creating the Canadian Northern Economic Development Agency; • Mapping Canada's Arctic seabed to assert our sovereignty; • Investing in health care, education, and affordable housing for Northerners; and • Concluding a historic Devolution Agreement with the Northwest Territories and negotiating one with Nunavut. But the eyes of the world increasingly look enviously to our North. Our Government will not rest. • Our Government will fulfill Prime Minister Diefenbaker's historic vision by completing the Dempster Highway to the Arctic Ocean, linking Canada from sea to sea to sea. • Our Government has established the Canadian High Arctic Research Station. This world-class science and technology research facility will open in time for the 150th anniversary of Confederation. • With the arrival of our Government's new Arctic Offshore Patrol Ships, Canada's first deep water Arctic port at Nanisivik will be operational. • Our Government recognizes that the future prosperity of the North requires responsible development of its abundant natural resources. Northerners must benefit from this treasure. Our Government will work alongside Inuit, First Nations, territorial governments and industry to ensure that Northerners are well trained to take their full place in this new economy. • Our Government will also continue to defend the seal hunt, an important source of food and income for coastal and Inuit communities. • The story of the North is the story of Canada. In order to tell that story for Canada's 150th year, our Government will continue efforts to solve one of the most enduring mysteries of our past. We will work with renewed determination and an expanded team of partners to discover the fate of Sir John Franklin's lost Arctic expedition. Promoting Canadian Values Canada stands for what is right and good in the world. This is the true character of Canadians - honourable in our dealings, faithful to our commitments, loyal to our friends. Confident partners, courageous warriors and compassionate neighbours. Canada does not go along to get along. Our Government defends Israel's right to exist as a Jewish state, the lone outpost of freedom and democracy in a dangerous region. And our Government stands opposed to those regimes that threaten their neighbours, slaughter their citizens, and imperil freedom. These regimes must ultimately be judged not by their words, but by their actions. Canada seeks a world where freedom - including freedom of religion, the rule of law, democracy and human dignity are respected. Our Government will continue to promote these fundamental values around the world, including through the newly established Office of Religious Freedom. And Canadians know that freedom and prosperity march together. • Our Government will help the world's neediest by partnering with the private sector to create economic growth in the developing world. • Tax dollars spent on foreign aid must achieve real results. Our Government's international aid will continue to be focused, effective and accountable. Canadians also know that free and healthy societies require the full participation of women. Canada has taken a leadership role in addressing the health challenges facing women, infants and children in the world's poorest countries. These efforts are saving millions of lives. • In particular, Canada recognizes the courageous and inspiring example set by Malala Yousafzai in risking her life promoting education for young women. She faced down evil and oppression and now speaks boldly for those who are silenced. Recognizing her heroism, our Government will, on behalf of all Canadians, bestow honorary citizenship on this remarkable young woman. • Sadly, millions of women and girls continue to be brutalized by violence, including through the inhumane practice of early and forced marriage. This barbarism is unacceptable to Canadians. Our Government will take steps to ensure that it does not occur on our soil. It is the reality of our country that Canadians of very different origins live and work side by side, together. New Canadians work hard to learn our languages, our values, and our traditions, and in turn, are welcomed as equal members of the Canadian family. Our Government inherited a broken immigration system, and has worked hard to fix it. Our Government has: • Cut the backlog of applications by almost half; • Eliminated the backlog for economic immigrants; • Cut the right-of-landing fee in half; • Lowered wait times for skilled workers coming to Canada; • Increased protection for genuine refugees; • Reduced the number of fraudulent asylum claimants and deported more than 100,000 illegal immigrants; and • Remained on track to meet our goal of reuniting families faster. But there is still more our Government can and will do. • We know that a job is the best path to social integration. Our Government will introduce a new model to select immigrants based on the skills Canadian employers need. • Our Government will reform the Immigrant Investor Program so that these investors make a real contribution in exchange for the security and pathway to citizenship that Canada provides. Canadians understand that citizenship should not be simply a passport of convenience. Citizenship is a pledge of mutual responsibility and a shared commitment to values rooted in our history. • Our Government will not hesitate to uphold the fundamental rights of all Canadians wherever they are threatened. • To strengthen and protect the value of Canadian citizenship, our Government will introduce the first comprehensive reforms to the Citizenship Act in more than a generation. 2017: Anniversary of Confederation As we look confidently to the future, we draw great strength from our past. Beginning with our Aboriginal peoples, Canada's story is one of risk, sacrifice, and rugged determination. From the founding of New France, to the fight for Canada in the War of 1812; from the visionary achievement of Confederation, to our victory at Vimy Ridge, Canadians have repeatedly triumphed over long odds to forge a great country, united and free. It is a story we recall with wonder and recount with pride. A story of how different provinces founded a federation in which our distinct strengths advance our unity. A federation in which Canada's two national languages position us uniquely in the world; where francophones thrive and celebrate a unique culture, in solidarity with fellow Canadians. Our Government has recognized the Québécois as a nation within a united Canada. It will work with the Government of Québec to ensure our common prosperity. And our Government will continue to respect the division of jurisdiction at the heart of the Constitution adopted at Confederation. Canada's Confederation is worth celebrating. As we approach our historic 150th anniversary in 2017, our Government will join with Canadians in honouring this momentous milestone by: • Marking the 150th anniversaries of the Charlottetown and Québec Conferences; • Celebrating the 200th birthdays of two of our greatest Fathers of Confederation, Sir George-Étienne Cartier and Sir John A. Macdonald; • Commemorating the centennial of the First World War and the 75th anniversary of the Second World War, and the enormous sacrifices made by Canadians and our Allies in both; • Re-dedicating the National War Memorial to the memory of all men and women who fought for our country; • Building a Memorial to the Victims of Communism, to remember the millions who suffered under tyranny; • Marking the end of Canada's mission in Afghanistan by honouring the service of our men and women in uniform, including those who made the ultimate sacrifice combating the spread of terrorism; • Honouring the proud history of our Canadian Armed Forces by restoring military traditions; • Strengthening the Cadet and Junior Ranger programs; • Establishing the Canadian Museum of History to share the story of Canada with pride; • Supporting the Pan and Parapan American Games and the FIFA Women's World Cup in 2015, showcasing Canadians' proud, competitive and united spirit under the maple leaf; and • Working with Canadians to support community projects, local celebrations, and other initiatives to commemorate this historic occasion. The coming anniversary of Confederation is also a time to mark the contribution of Canada's First Nations, Métis and Inuit communities, who have had a defining role in shaping our country. • Our Government will continue our dialogue on the treaty relationship and comprehensive land claims. • And our Government will continue to work in partnership with Aboriginal peoples to create healthy, prosperous, self-sufficient communities. The road to 2017 is a fitting time to strengthen our institutions and democratic processes. • The Government continues to believe the status quo in the Senate of Canada is unacceptable. The Senate must be reformed or, as with its provincial counterparts, vanish. The Government will proceed upon receiving the advice of the Supreme Court. • And, the Government will propose changes to Canada's elections laws to uphold the integrity of our voting system. Legislation will be introduced in time for implementation prior to the next federal election. Conclusion Honourable Members of the Senate and Members of the Commons, as the dawn of our Confederation approached in the 1860s, our founding Prime Minister Sir John A. Macdonald said of Canada's future that he saw ''a great nation - great in thought, great in action, great in hope, and great in position.'' His vision has come to pass. Today, Canada is a model for the world. Admired for our freedom. Respected for our principles. Envied for our openness, compassion and peaceful pluralism. As we approach the 150th anniversary of our great land, we look to the future. A future we will face true to our character, the character of a determined and enterprising people: Canadians, whose shops and small businesses spur the growth of our towns and cities; who work factory shifts and drive taxicabs to help their families get ahead; who take the same pride in raising their children as they do in being citizens of the best country on earth. These are the quiet, unsung Canadians who are building our country. It is from them that we draw the inspiration to face an uncertain and unstable world. It is for them that we will seize the moment before us. Members of the House of Commons, you will be asked to appropriate the funds required to carry out the services and expenditures authorized by Parliament. Honourable Senators and Members of the House of Commons, you are the holders of a profound trust reposed in you by Canadians. May you be equal to that trust in all things and may Divine Providence guide you in your deliberations.

Canada

Honourable Senators, Members of the House of Commons, Ladies and gentlemen, As the representative of Her Majesty The Queen, I am pleased to be here to deliver the Speech from the Throne. A warm welcome to those of you who are returning to your duties as parliamentarians, including those who are returning after an absence. Know that your experience is valued. Welcome also to the 197 members who are newly elected. Your enthusiasm and fresh ideas will serve your country well. I call on all parliamentarians to work together, with a renewed spirit of innovation, openness and collaboration. As governor general, I have seen first-hand what a great country Canada is—from coast to coast to coast. And I also know this: We can be even better. How? By being smart, and caring—on a scale as never before. The times we live in demand nothing less. Canada succeeds in large part because here, diverse perspectives and different opinions are celebrated, not silenced. Parliament shall be no exception. In this Parliament, all members will be honoured, respected and heard, wherever they sit. For here, in these chambers, the voices of all Canadians matter. Let us not forget, however, that Canadians have been clear and unambiguous in their desire for real change. Canadians want their government to do different things, and to do things differently. They want to be able to trust their government. And they want leadership that is focused on the things that matter most to them. Things like growing the economy; creating jobs; strengthening the middle class, and helping those working hard to join it. Through careful consideration and respectful conduct, the Government can meet these challenges, and all others brought before it. By working together in the service of all Canadians, the Government can make real change happen. It will do so in the following ways. GROWTH FOR THE MIDDLE CLASS First and foremost, the Government believes that all Canadians should have a real and fair chance to succeed. Central to that success is a strong and growing middle class. The Government will, as an immediate priority, deliver a tax cut for the middle class. This is the fair thing to do, and the smart thing to do for Canada’s economy. The Government has also committed to provide more direct help to those who need it by giving less to those who do not. The new Canada Child Benefit will do just that. And recognizing that public investment is needed to create and support economic growth, job creation and economic prosperity, the Government will make significant new investments in public transit, green infrastructure, and social infrastructure. To give Canadians a more secure retirement, the Government will work with the provinces and territories to enhance the Canada Pension Plan. The Employment Insurance system will be strengthened to make sure that it best serves both the Canadian economy and all Canadians who need it. To create more opportunities for young Canadians, especially those from low- and middle-income families, the Government will work with the provinces and territories to make post-secondary education more affordable. And to support the health and well-being of all Canadians, the Government will begin work with the provinces and territories to develop a new Health Accord. The Government will undertake these and other initiatives while pursuing a fiscal plan that is responsible, transparent and suited to challenging economic times. OPEN AND TRANSPARENT GOVERNMENT Second, the Government is committed to open and transparent government. The trust Canadians have in public institutions—including Parliament—has, at times, been compromised. By working with greater openness and transparency, Parliament can restore it. To make sure that every vote counts, the Government will undertake consultations on electoral reform, and will take action to ensure that 2015 will be the last federal election conducted under the first-past-the-post voting system. To restore public trust and bring an end to partisanship, the Government will follow through on its commitment to reform the Senate by creating a new, non-partisan, merit-based process to advise the Prime Minister on Senate appointments. And to give Canadians a stronger voice in the House of Commons, the Government will promote more open debate and free votes, and reform and strengthen committees. Also notable are the things the Government will not do: it will not use government ads for partisan purposes; it will not interfere with the work of parliamentary officers; and it will not resort to devices like prorogation and omnibus bills to avoid scrutiny. A CLEAN ENVIRONMENT AND A STRONG ECONOMY Third, the Government will prove to Canadians and to the world that a clean environment and a strong economy go hand in hand. We cannot have one without the other. Protecting the environment and growing the economy are not incompatible goals; in fact, our future success demands that we do both. Last week, first ministers met ahead of the international climate change talks—a first step in an important and ongoing process. Working together, the Government will continue to provide leadership as Canada works toward putting a price on carbon and reducing carbon pollution. To encourage economic growth, the Government will make strategic investments in clean technology, provide more support for companies seeking to export those technologies, and lead by example in their use. And as part of efforts to restore public trust, the Government will introduce new environmental assessment processes. Public input will be sought and considered. Environmental impacts will be understood and minimized. Decisions will be informed by scientific evidence. And Indigenous peoples will be more fully engaged in reviewing and monitoring major resource development projects. DIVERSITY IS CANADA’S STRENGTH Fourth, the Government’s agenda reflects that Canada’s strength is its diversity. Canadians elected a government to bring us together, not to set us against one another. Canada is strong because of our differences, not in spite of them. As a country, we are strengthened in many ways: by our shared experiences, by the diversity that inspires both Canada and the world, and by the way that we treat each other. Because it is both the right thing to do and a certain path to economic growth, the Government will undertake to renew, nation-to-nation, the relationship between Canada and Indigenous peoples, one based on recognition of rights, respect, co-operation and partnership. Among other measures, the Government will work co-operatively to implement recommendations of the Truth and Reconciliation Commission of Canada, will launch an inquiry into missing and murdered Indigenous women and girls, and will work with First Nations so that every First Nations child receives a quality education. The Government will make it easier for immigrants to build successful lives in Canada, reunite their families, and contribute to the economic success of all Canadians. In response to a pressing international need, and underscored by Canadians’ desire to help, the Government will welcome 25,000 new Canadians from Syria, to arrive in Canada by the end of February 2016. In gratitude for the service of Canada’s veterans, the Government will do more to support them and their families. The Government will support CBC/Radio-Canada, encourage and promote the use of Canada’s official languages, and invest in Canada’s cultural and creative industries. SECURITY AND OPPORTUNITY Fifth, the Government is committed to providing greater security and opportunity for Canadians. Canadians are open, accepting, and generous people. We know that helping those in need strengthens our communities and makes them safer, more prosperous places to live. The Government will strengthen its relationship with allies, especially with our closest friend and partner, the United States. Internationally, the Government will focus its development assistance on helping the world’s poorest and most vulnerable. To contribute to greater peace throughout the world, the Government will renew Canada’s commitment to United Nations peacekeeping operations, and will continue to work with its allies in the fight against terrorism. To keep Canadians safe and be ready to respond when needed, the Government will launch an open and transparent process to review existing defence capabilities, and will invest in building a leaner, more agile, better-equipped military. And to expand economic opportunities for all Canadians, the Government will negotiate beneficial trade agreements, and pursue other opportunities with emerging markets. Recognizing that Canada is, fundamentally, a safe and peaceful country, the Government will continue to work to keep all Canadians safe, while at the same time protecting our cherished rights and freedoms. To that end, the Government will introduce legislation that will provide greater support for survivors of domestic violence and sexual assault; that will get handguns and assault weapons off our streets; and that will legalize, regulate and restrict access to marijuana. CONCLUSION The agenda outlined today is an ambitious one, but it is not one forged in isolation. Rather, it is the result of conversations with Canadians, who told the Government—plainly and honestly—what they need to be successful. Canadians are confident people. We know who we are, and we know what kind of country we want to live in. We know the greatness that Canada is capable of, and we know that our success is not only about doing well for ourselves, but also about leaving an even better, more peaceful and prosperous world for our children. As you consider the important work that lies ahead, remember that Canadians have placed their trust in you. It is now your sacred responsibility to help build that better world. By focusing on growing our middle class, on delivering open and transparent government, on ensuring a clean environment and a strong economy, on building a stronger Canada, and on providing greater security and opportunity, the Government will make real change happen. It will prove that better is not only possible—it is the inevitable result when Canadians work together. Members of the House of Commons, you will be asked to appropriate the funds required to carry out the services and expenditures authorized by Parliament. Honourable Members of the Senate and Members of the House of Commons, may Divine Providence guide you in your deliberations and make you faithful custodians of the trust bestowed upon you.

Canada

Members of the House of Commons, Ladies and gentlemen, It is my pleasure to address this first session of Canada’s 43rd Parliament. I would like to welcome the 98 new members of this assembly and to welcome back returning members. Your predecessors first sat in Parliament in November 1867. Canada was barely five months old. On the scale of world history, we are still very young. Yet much has happened in the world since then. We have matured, and we are here — strong and free. There has been no civil war, no foreign armies marching on our soil. There have been agreements and differences along the way, and lots of arguments, yes, most of them delivered with much eloquence in this very chamber. There are many reasons for our stability. First, the millions of us, whether we are from here or chose to come and live here, we share the same desire. We wish to live freely and in peace and harmony. This quest is a bedrock of our nation and informs almost everything we do. We may differ in many ways, yet we move forward as if we were one people, looking for equal opportunities and common ground. This is not by accident, but by choice. It is who we are. And remember, as well, that our fortunes have relied often on the knowledge and the strategies of the Indigenous Peoples — what I call Indigenous genius, that allowed this nation to thrive. Their deep understanding of our natural world, their intense sense of community, should continue to affect what we do here. For the good of our communities and the future of our children. Kkidji mkwènimaganiwiwatch missiwè anichinapèk achitch nigan abinoudjichak kè pimadiziwatch. Reconciliation must continue. The second bedrock of our stability is our parliamentary system. Your work is vital, because through it, we decide what we really want as a nation. The network of laws and traditions that define what it means to be Canadian safeguards our way of life and paves the way for the future we desire. Your role in the democratic process is a privilege and a responsibility. I know that you embrace it, respecting the wishes and protecting the rights of us all. Because we serve every single Canadian. Canadians of all genders, faiths, languages, customs or skin colours. It is perhaps the most noble undertaking we are entrusted with. And we share the same planet. We know that we are inextricably bound to the same space-time continuum and on board the same planetary spaceship. If we put our brains and smarts and altruistic capabilities together, we can do a lot of good. We can help improve the lives of people in our communities, diminish the gaps and inequities here and elsewhere, and have a better chance at tackling serious and pressing issues like climate change, poverty, inequalities and human rights, because global issues know no borders, no timeline and truly need our attention. I am certain that by working together, no challenges are too big. I am convinced that anyone can rise to any occasion if they are willing to work with others, to reach a higher goal and to do what is right for the common good. OPENING This fall, Canadians went to the polls. And they returned a minority Parliament to Ottawa. This is the will of the people, and you have been chosen to act on it. And so we open this 43rd Parliament with a call for unity in the pursuit of common goals and aspirations. Here in this beautiful chamber, we recognize that Canada’s Senate is increasingly non-partisan, and measures will be taken to help it continue along that path. We are joined by the dedicated public servants who have vowed to work tirelessly on behalf of the people. Canadians have sent a clear message: from young people to seniors, they want their Parliamentarians to work together on the issues that matter most to them. In this election, Parliamentarians received a mandate from the people of Canada which Ministers will carry out. It is a mandate to fight climate change, strengthen the middle class, walk the road of reconciliation, keep Canadians safe and healthy, and position Canada for success in an uncertain world. These are not simple tasks. But they are achievable if you stay focused on the people who sent you here. Moms and dads. Grandparents and students. New Canadians, business owners, and workers. People from all walks of life. Every one of them expects their Parliamentarians to get to work, and deliver on a plan that moves our country forward for all Canadians, including women, members of visible and linguistic minorities, people with disabilities, and members of the LGBTQ2 communities. While your approaches may differ, you share the common belief that government should try, whenever possible, to make life better for Canadians. That includes better healthcare and affordable housing. Lower taxes for the middle class and those who need it most. Investments in infrastructure, public transit, science and innovation. Less gun violence, and a real plan to fight climate change while creating good, well-paying jobs. These are but a few areas where this Parliament can make a real difference in the lives of Canadians. And as much as they have instructed you to work together, Canadians have also spoken clearly about the importance of their regions and their local needs. The Government has heard Canadians’ concerns that the world is increasingly uncertain and that the economy is changing. And in this context, regional needs and differences really matter. Today’s regional economic concerns are both justified and important. The Government will work with provinces, territories, municipalities, Indigenous groups, stakeholders, industry, and Canadians to find solutions. With dialogue and cooperation, all regions of this country can overcome the challenges of today, and realize their full potential in the modern economy. As the Government pursues an ambitious plan to move Canada forward, Parliamentarians can draw inspiration from Canadians themselves. Canadians have elected you to do important work, and they model — in actions big and small — how you can be effective Parliamentarians. Neighbours helping neighbours. Putting community first. Finding common ground, forging bonds, and working together. It is in that distinctly Canadian spirit of collaboration that the Government and this Parliament will build on the progress of the last mandate, and deliver a better Canada for all Canadians. FIGHTING CLIMATE CHANGE Canada’s children and grandchildren will judge this generation by its action — or inaction — on the defining challenge of the time: climate change. From forest fires and floods, to ocean pollution and coastal erosion, Canadians are living the impact of climate change every day. The science is clear, and it has been for decades. A clear majority of Canadians voted for ambitious climate action now. And that is what the Government will deliver. It will continue to protect the environment and preserve Canada’s natural legacy. And it will do so in a way that grows the economy and makes life more affordable. The Government will set a target to achieve net-zero emissions by 2050. This goal is ambitious, but necessary — for both environmental protection and economic growth. The Government will continue to lead in ensuring a price on pollution everywhere in this country, working with partners to further reduce emissions. The Government will also: •help to make energy efficient homes more affordable, and introduce measures to build clean, efficient, and affordable communities; •make it easier for people to choose zero-emission vehicles; •work to make clean, affordable power available in every Canadian community; •work with businesses to make Canada the best place to start and grow a clean technology company; and •provide help for people displaced by climate-related disasters. The Government will also act to preserve Canada’s natural legacy, protecting 25 percent of Canada’s land and 25 percent of Canada’s oceans by 2025. Further, it will continue efforts to reduce plastic pollution, and use nature-based solutions to fight climate change — including planting two billion trees to clean the air and make our communities greener. And while the Government takes strong action to fight climate change, it will also work just as hard to get Canadian resources to new markets, and offer unwavering support to the hardworking women and men in Canada’s natural resources sectors, many of whom have faced tough times recently. STRENGTHENING THE MIDDLE CLASS Canada’s experience proves that economic growth is the surest way to maintain a good quality of life for citizens. Over the past four years, Canada has seen tremendous growth. And through it all, the Government has worked to ensure that all Canadians benefit from Canada’s economic success — cutting taxes, reducing poverty, and creating over a million jobs. And in this new mandate, the Government will provide even greater support to the middle class and the most vulnerable Canadians by pursuing tax fairness, continuing to invest in people, and growing the economy. As its first act, the Government will cut taxes for all but the wealthiest Canadians, giving more money to middle class families and those who need it most. The Government will also act on housing. After drastically reducing poverty across the country in the last mandate, the Government will continue its crucial investments in affordable housing. It will also make it easier for more people to buy their first home. The Government will give families more time and money to help raise their kids, and make before and after school care more accessible and affordable. It will cut the cost of cell and wireless services by 25 percent. It will strengthen the pensions that so many seniors rely on, and increase the federal minimum wage. Understanding that an educated Canada is a successful Canada, the Government will give more support to students, be they new graduates struggling with loan repayment, or be they heading back to school mid-career to learn new skills. The Government will also continue delivering on an economic agenda that will grow a modern Canadian economy. This means moving forward with the new NAFTA to maintain a strong and integrated North American economy. On this and other trade agreements, those in the supply management sectors will be fully and fairly compensated, with many farmers in the dairy sector receiving their first cheques this month. To ensure fairness for all in the new digital space, the Government will review the rules currently in place. The Government will remove additional barriers to domestic and international trade for businesses and farmers, continue with ambitious investments in infrastructure, and reduce red tape so that it is easier to create and run a start-up or small business. And the Government will pursue a responsible fiscal plan to keep the economy strong and growing. WALKING THE ROAD OF RECONCILIATION Every single person in Canada deserves a real and fair chance at success — and that must include Indigenous people. In 2015, the Government promised a new relationship with Indigenous Peoples — one that would help deliver a better quality of life for their families and communities. Real progress has been made over the past four years, including the elimination of 87 long-term drinking water advisories, equity in funding for First Nations K-12 education, the passage of historic legislation to protect Indigenous languages and affirm Indigenous jurisdiction over child and family services, and the completion of the National Inquiry into Missing and Murdered Indigenous Women and Girls. But we know there is still much work to do. Reconciliation with Indigenous people remains a core priority for this Government, and it will continue to move forward as a partner on the journey of reconciliation. Indeed, when Indigenous people experience better outcomes, all Canadians benefit. Among other things, the Government will: •take action to co-develop and introduce legislation to implement the United Nations Declaration on the Rights of Indigenous Peoples in the first year of the new mandate; •continue the work of eliminating all long-term drinking water advisories on reserve by 2021, and ensure safe drinking water in First Nations communities; •co-develop new legislation to ensure that Indigenous people have access to high-quality, culturally relevant health care and mental health services; •continue work to implement the Truth and Reconciliation Commission’s Calls to Action, and the National Inquiry into Missing and Murdered Indigenous Women and Girls’ Calls for Justice, in partnership with First Nations, Inuit, and Métis peoples; •work with Indigenous communities to close the infrastructure gap by 2030; •continue to move forward together to ensure that Indigenous Peoples are in control of their own destiny and making decisions about their communities; •take new steps to ensure the Government is living up to the spirit and intent of treaties, agreements, and other constructive arrangements made with Indigenous Peoples; •ensure that Indigenous people who were harmed under the discriminatory child welfare system are compensated in a way that is both fair and timely; and •continue to invest in Indigenous priorities, in collaboration with Indigenous partners. The path to reconciliation is long. But in its actions and interactions the Government will continue to walk it with First Nations, Inuit, and Métis peoples. KEEPING CANADIANS SAFE AND HEALTHY Wherever they live — in small rural communities or in big cities; in the foothills of the Rockies or the fishing villages along our coastlines; in the Far North or along the Canada-US border — all Canadians want to make Canada a better place for themselves, their children, and their communities. But there are challenges in making that better future a reality. Year after year, headline after headline, Canadians have seen firsthand the devastating effects of gun violence. Too many lives lost, too many families shattered. It is time to show courage, and strengthen gun control. The Government will crack down on gun crime, banning military-style assault rifles and taking steps to introduce a buy-back program. Municipalities and communities that want to ban handguns will be able to do so. And the Government will invest to help cities fight gang-related violence. We are on the eve of the 30th anniversary of the horrific killing of 14 women at l’École Polytechnique in Montréal, a day when all Canadians pause to remember and honour those women who were killed because of their gender. And we take stock of the harm that gender-based violence continues to do to Canadian society. The Government will take greater steps to address gender-based violence in Canada, building on the Gender-Based Violence Strategy and working with partners to develop a National Action Plan. Ensuring a better quality of life for Canadians also involves putting the right support in place so that when people are sick, they can get the help they need. The Government will strengthen health care and work with the provinces and territories to make sure all Canadians get the high-quality care they deserve. It will: •Work with provinces, territories, health professionals and experts in industry and academia to make sure that all Canadians can access a primary care family doctor; •Partner with provinces, territories, and health professionals to introduce mental health standards in the workplace, and to make sure that Canadians are able to get mental health care when they need it; and •Make it easier for people to get the help they need when it comes to opioids and substance abuse. Canadians have seen the widespread harm caused by opioid use in this country. More needs to be done, and more will be done. Too often, Canadians who fall sick suffer twice: once from becoming ill, and again from financial hardship caused by the cost of their medications. Given this reality, pharmacare is the key missing piece of universal health care in this country. The Government will take steps to introduce and implement national pharmacare so that Canadians have the drug coverage they need. Finally, the Government will continue to recognize its solemn duty to those who choose to serve in the Canadian Armed Forces. In the last mandate, the Government invested more than $10 billion to deliver better outcomes for Canada’s veterans. And in this new Parliament, the Government will build on that work by improving mental health care supports, and helping ensure that every homeless veteran has a place to call home. POSITIONING CANADA FOR SUCCESS IN AN UNCERTAIN WORLD Canadians expect their leaders to stand up for the values and interests that are core to Canada’s prosperity and security — democracy, human rights, and respect for international law. Canadians expect the Government to position Canada and Canadians for success in the world. As a trading nation, the Government will seek out opportunities for Canadian commerce, ingenuity, and enterprise. As a coalition-builder, the Government will build partnerships with like-minded countries to put Canada’s expertise to work on a global scale, in areas like the promotion of democracy and human rights, the fight against climate change and for environmental protection, and the development and ethical use of artificial intelligence. As an ally, the Government will contribute to multilateral efforts to make the world more safe, just, prosperous, and sustainable. The Government will renew Canada’s commitment to NATO and United Nations peacekeeping. It will stand up for the rules-based international order when that order is put in question, particularly when it comes to matters of trade and digital policy. And it will continue to ensure that Canada’s voice is present at the UN, notably on the UN Security Council. Finally, as a compassionate partner, the Government will provide targeted resources for international development assistance, including investments in education and gender equality. It will help the world’s poorest and most vulnerable people live better lives and become strong partners for Canada in turn. CONCLUSION Parliamentarians: Canadians are counting on you to fight climate change, strengthen the middle class, walk the road of reconciliation, keep Canadians safe and healthy, and position Canada for success in an uncertain world. And with goodwill, humility, and a willingness to collaborate, you can do just that. You can raise the bar on what politics is like in this country. After all, the Government knows it needs to work with other Parliamentarians to deliver results. The mandate of this recent election is a starting point, not the final word. The Government is open to new ideas from all Parliamentarians, stakeholders, public servants, and Canadians — ideas like universal dental care are worth exploring, and I encourage Parliament to look into this. Whether it’s fighting money laundering or making parental benefits tax-free, there are good ideas across parties, and this Government is ready to learn from you and work with you in the years ahead. Some believe that minority governments are incapable of getting things done. But Canada’s history tells us otherwise. Canada’s Parliament is one of the most enduring and vital institutions in the democratic world. It has delivered a tremendous way of life for the Canadian people — through crisis and prosperity, through majority and minority governments. On December 31, 1966, Prime Minister Lester B. Pearson welcomed Canada’s centennial New Year and lit the Centennial Flame in front of the Parliament buildings for the first time. In his remarks he said: “Tonight we begin a new chapter in our country’s story. Let the record of that chapter be one of co-operation and not conflict; of dedication and not division; of service, not self; of what we can give, not what we can get. Let us work together as Canadians to make our country worthy of its honoured past and certain of its proud future.” In this 43rd Parliament, you will disagree on many things. But you will agree on a great many more. Focus on your shared purpose: making life better for the people you serve. Never forget that it is an honour to sit in this Parliament. Prove to Canadians that you are worthy holders of these seats, and worthy stewards of this place. Members of the House of Commons: you will be asked to appropriate the funds to carry out the services and expenditures authorized by Parliament. Honourable Members of the Senate and Members of the House of Commons: as you carry out your duties and exercise your responsibilities, may you be guided by Divine Providence.

Canada

Honourable Senators, Members of the House of Commons, Ladies and Gentlemen, Every day on our shared planet, millions face hardships that test the human spirit. Extreme weather, wildfires, poverty, conflicts, discrimination and inequalities. Rarely though, has all of humanity faced a single common insidious enemy. An invisible enemy that respects no borders, thrives anywhere, hits anyone. To overcome a pandemic requires the work and resolve of every order of government, every community, and every one of us. We don’t decide when hardship comes, but here in Canada, we have decided how we wanted to address it. We have adapted in remarkable ways. We Canadians did our part. We changed our habits, postponed our plans, switched to teleworking or had to completely reinvent our work, all this, while caring for one another. We owe an immense debt to those who served and still serve on the frontlines, to health care personnel and essential workers, women and men in uniform, volunteers and leaders, everywhere in the country. There has been a lot of suffering and we all mourn those who have passed. We trust science to lead the fight until a safe and effective vaccine becomes available. But until then, we must keep our guard up, using the tools that are available to us now — such as testing, treatments and physical distancing measures. Like a reed in high winds, we might sway but we will not break. Because our roots are firmly in place, our goals clear, and because we have hope — the hope that lifts the soul on dark days and keeps us focused on the future. Canadians have lived through uncertain times before and have always prevailed because determination, concern for others, courage, and common sense define our nation. We must bring all those qualities to bear once again and continue to work for the common good, and for a better, safer and more just society. This is who we are and what will see us through to brighter days. Opening For over 150 years, Parliamentarians have worked together to chart Canada’s path forward. Your predecessors met when Confederation was only a few months old, setting the course for a young country. They stood united through Canada’s toughest days, leading the nation through wars and depression. And as they did, each Parliamentarian was called to meet their times. Today, Canadians expect you to do the same. They expect you to work together on their behalf and meet this crucial moment. Less than a year ago, we gathered here for a Throne Speech to open the 43rd Parliament. Since then, our realities have changed. And so must our approach. This pandemic is the most serious public health crisis Canada has ever faced. Over 9,000 Canadians have died in six months. For our neighbours in the United States, this figure is over 200,000. Globally, it’s nearly a million. But these aren’t just numbers. These are friends and family. Neighbours and colleagues. The pandemic is the story of parents who have died alone, without loved ones to hold their hand. It is the story of kids who have gone months without seeing friends. Of workers who have lost their jobs. The last six months have laid bare fundamental gaps in our society, and in societies around the world. This pandemic has been hard for everyone. But for those who were already struggling, the burden has been even heavier. For parents — and especially moms — who are facing impossible choices between kids and career. For racialized Canadians and Indigenous Peoples who are confronted by systemic barriers. For young people who are worried about what their future will hold. For seniors who are isolated, frightened, and most at risk. And for workers who, while earning the lowest wages in the most precarious sectors, have been on the frontlines of the pandemic. We must address these challenges of today. But we also cannot forget about the tests of the future. The world came into this pandemic facing the risks and consequences of climate change. A lesson that COVID-19 has taught us, is that we need to match challenges with decisiveness and determination. On all of these fronts — health and the economy, equality and the environment — we must take bold action. The Government will meet these challenges. The Government’s approach will have four foundations. The first foundation of this plan is to fight the pandemic and save lives. The second foundation of the Government’s plan is supporting people and businesses through this crisis as long as it lasts, whatever it takes. Effectively dealing with the health crisis is the best thing we can do for the economy. Government action has already helped Canadians stay safe, and buffered the worst economic impacts. The third foundation is to build back better to create a stronger, more resilient Canada. To do this, we must keep strengthening the middle class and helping people working hard to join it, and continue creating jobs and building long-term competitiveness with clean growth. We must also keep building safer communities for everyone. The fourth and final foundation of this plan is to stand up for who we are as Canadians. We cannot forget what has made us a country that is welcoming. A country that celebrates two official languages. That achieves progress on gender equality, walks the road of reconciliation, and fights discrimination of every kind. This is our generation’s crossroads. Do we move Canada forward, or let people be left behind? Do we come out of this stronger, or paper over the cracks that the crisis has exposed? This is the time to remember who we are as Canadians. This is the opportunity to contain the global crisis and build back better, together. Protecting Canadians from COVID-19 The first foundation of the Government’s approach is protecting Canadians from COVID-19. This is priority number one. It is the job of the federal government to look out for all Canadians and especially our most vulnerable. We need to work together. Beating this virus is a Team Canada effort. Over the last six months, Canadians have stood united and strong. Their actions embody what has always been the purpose of the federal government: bringing Canadians together to achieve common goals. Personal protective equipment has been shipped across the country. Members of the Canadian Forces were there in long-term care homes. Close to 9 million Canadians were helped with the Canada Emergency Response Benefit and over 3.5 million jobs were supported by the wage subsidy. The Government will continue to have people’s backs just like Canadians have each other’s backs. Through the first wave, contact tracing and testing ramped up across the country. The surge this fall further reinforces what we already know — that we must do even more. The federal government will be there to help the provinces increase their testing capacity. Canadians should not be waiting in line for hours to get a test. At the same time, the Government is pursuing every technology and every option for faster tests for Canadians from coast to coast to coast. As soon as tests are approved for safe use in Canada, the Government will do everything it can to see them deployed. The Government will also create a federal Testing Assistance Response Team to quickly meet surge testing needs, including in remote and isolated communities. Local public health authorities are the backbone of our nation’s efforts to stop outbreaks before they start. As members of the communities they protect, they know the devastating economic impact a lockdown order can have. To prevent small clusters from becoming major outbreaks, communities may need to enact short-term closure orders. To make that decision easier for the public health authorities, and to help ease the impact that science- and evidence-based decisions can have on local businesses in the short term, the Government will work to target additional financial support directly to businesses which have to temporarily shut down as a result of a local public health decision. This will ensure that decisions are made with the health of Canadians as the first priority. The Government will also continue to work on what communities need more broadly. The Government has already invested over $19 billion for a Safe Restart Agreement with provinces and territories, to support everything from the capacity of health care systems to securing PPE. To address the challenges faced by provinces and territories as they reopen classrooms, the federal government invested $2 billion in the Safe Return to Class Fund, along with new funding for First Nations communities. This is money to keep kids — and staff — safe in the classroom, whether that’s by helping schools buy cleaning supplies or upgrade ventilation. These commitments build on federal investments to support people who are most at risk and those who care for them, including with the federal wage top-up for personal support workers. People on the frontlines who have been looking after seniors do vital work and the Government will continue to have their backs. At the same time, the Government will continue to support Canadians as they take action to keep each other safe. Already, people are doing their part by wearing masks. That’s important, and we can build on that commitment. Working with private sector partners, the federal government created the COVID Alert app. Canadians living in Ontario, Newfoundland and Labrador, New Brunswick, and Saskatchewan now have an extra tool to keep themselves and others safe. The Government hopes all the others will sign on so that people in all parts of the country can both do their part and be better protected. The Government will also continue to work on getting Canadians the PPE they need. This spring, the Government issued a call, and thousands of Canadian businesses and manufacturers responded. From shop floors to companies big and small, Canada’s dynamic businesses met the challenge as their workers stepped up. And in less than six months, Canadians are now manufacturing almost all types of PPE. The Government will continue building that domestic capacity, while securing supply chains to keep Canadians safe and create jobs. Canadians are pulling together, whether that’s with PPE manufacturing, through the COVID Alert app, or by wearing a mask. In the same way, Canadian researchers and scientists are pitching in to the Team Canada effort with their knowledge and expertise. Vaccine efforts In the long run, the best way to end this pandemic is with a safe and effective vaccine. Canada’s vaccine strategy is all about ensuring that Canadians will be able to get a vaccine once it is ready. There are many types of potential candidates. Canada is exploring the full range of options. The Government has already secured access to vaccine candidates and therapeutics, while investing in manufacturing here at home. And to get the vaccines out to Canadians once they’re ready, the Government has made further investments in our capacity for vaccine distribution. From the Vaccine Task Force that provides the best advice on vaccine purchasing and roll-out, to the Immunity Task Force looking at how COVID-19 is affecting vulnerable populations, Canada’s top scientific minds are guiding the Government every step of the way. Helping Canadians through the pandemic The medical and scientific fight against this virus is crucial. And so are the livelihoods of every single Canadian, worker, and family. So the second foundation of the Government’s approach is supporting Canadians through this crisis. The economic impact of COVID-19 on Canadians has already been worse than the 2008 financial crisis. These consequences will not be short-lived. This is not the time for austerity. Canada entered this crisis in the best fiscal position of its peers. And the Government is using that fiscal firepower, on things like the Canada Emergency Response Benefit and the Canada Emergency Wage Subsidy, so that Canadians, businesses, and our entire economy have the support needed to weather the storm. Canadians should not have to choose between health and their job, just like Canadians should not have to take on debt that their government can better shoulder. Creating jobs People losing their jobs is perhaps the clearest consequence of the global economic shock that Canadians — like those in other countries — have faced. The CERB helped people stay healthy at home while being able to keep food on the table. The CEWS helped people keep their jobs, or be rehired if they had been laid off. But there is still more to be done. Unemployment is in the double digits, and underemployment is high. Women, racialized Canadians, and young people have borne the brunt of job losses. Canadians need good jobs they can rely on. To help make that happen, the Government will launch a campaign to create over one million jobs, restoring employment to previous levels. This will be done by using a range of tools, including direct investments in the social sector and infrastructure, immediate training to quickly skill up workers, and incentives for employers to hire and retain workers. One way the Government will create these jobs is by extending the Canada Emergency Wage Subsidy right through to next summer. The Government will work with businesses and labour to ensure the program meets the needs of the health and economic situation as it evolves. Another example of how the Government will create jobs is by significantly scaling up the Youth Employment and Skills Strategy, to provide more paid work experiences next year for young Canadians. Now, more than ever, Canadians must work together — including by eliminating remaining barriers between provinces to full, free internal trade — to get the economy back up and running and Canadians back to work. Supporting workers and their families With the job losses that Canadians have faced, it became clear early on that many people would need help until they could find work once again. But existing income support systems were not designed to handle this unprecedented situation. That’s why the Government moved quickly to create the Canada Emergency Response Benefit as a temporary program to help millions of Canadians get through a very difficult time. With the economic restart now well underway, CERB recipients should instead be supported by the Employment Insurance system. For people who would not traditionally qualify for EI, the Government will create the transitional Canada Recovery Benefit. Over the coming months, the EI system will become the sole delivery mechanism for employment benefits, including for Canadians who did not qualify for EI before the pandemic. This pandemic has shown that Canada needs an EI system for the 21st century, including for the self-employed and those in the gig economy. Women in the Economy Women — and in particular low-income women — have been hit hardest by COVID-19. This crisis has been described as a She-cession. Many women have bravely served on the frontlines of this crisis, in our communities or by shouldering the burden of unpaid care work at home. We must not let the legacy of the pandemic be one of rolling back the clock on women’s participation in the workforce, nor one of backtracking on the social and political gains women and allies have fought so hard to secure. The Government will create an Action Plan for Women in the Economy to help more women get back into the workforce and to ensure a feminist, intersectional response to this pandemic and recovery. This Plan will be guided by a task force of experts whose diverse voices will power a whole of government approach. It has been nearly 50 years since the Royal Commission on the Status of Women outlined the necessity of child care services for women’s social and economic equality. We have long understood that Canada cannot succeed if half of the population is held back. Canadians need more accessible, affordable, inclusive, and high quality childcare. Recognizing the urgency of this challenge, the Government will make a significant, long-term, sustained investment to create a Canada-wide early learning and childcare system. The Government will build on previous investments, learn from the model that already exists in Quebec, and work with all provinces and territories to ensure that high-quality care is accessible to all. There is broad consensus from all parts of society, including business and labour leaders, that the time is now. The Government also remains committed to subsidizing before- and after-school program costs. With the way that this pandemic has affected parents and families, flexible care options for primary school children are more important than ever. The Government will also accelerate the Women’s Entrepreneurship Strategy, which has already helped women across Canada grow their businesses. Supporting businesses As the Government invests in people, it will continue to support job-creating businesses. Small businesses are the lifeblood of communities and the backbone of the economy. The Government introduced a range of supports for Canadian businesses, from help with payroll through the Canada Emergency Wage Subsidy to assistance with expenses through interest-free loans. COVID-19 has caused businesses across the country, both large and small, to rethink their approaches. Entrepreneurs and owners are looking at more digital options, more creative solutions, and more climate-friendly investments. The Government will help businesses adapt for the future and thrive. This fall, in addition to extending the wage subsidy, the Government will take further steps to bridge vulnerable businesses to the other side of the pandemic by: Expanding the Canada Emergency Business Account to help businesses with fixed costs; Improving the Business Credit Availability Program; And introducing further support for industries that have been the hardest hit, including travel and tourism, hospitality, and cultural industries like the performing arts. Fiscal sustainability This COVID-19 emergency has had huge costs. But Canada would have had a deeper recession and a bigger long-term deficit if the Government had done less. With interest rates so low, central banks can only do so much to help. There is a global consensus that governments must do more. Government can do so while also locking in the low cost of borrowing for decades to come. This Government will preserve Canada’s fiscal advantage and continue to be guided by values of sustainability and prudence. There are two distinct needs. The first is to help Canadians in the short term, to do whatever it takes, using whatever fiscal firepower is needed to support people and businesses during the pandemic. The best way to keep the economy strong is to keep Canadians healthy. The second need is to build back better, with a sustainable approach for future generations. As the Government builds a plan for stimulus and recovery, this must be done responsibly. In the longer term, the Government will focus on targeted investments to strengthen the middle class, build resiliency, and generate growth. The Government will also identify additional ways to tax extreme wealth inequality, including by concluding work to limit the stock option deduction for wealthy individuals at large, established corporations, and addressing corporate tax avoidance by digital giants. Web giants are taking Canadians’ money while imposing their own priorities. Things must change, and will change. The Government will act to ensure their revenue is shared more fairly with our creators and media, and will also require them to contribute to the creation, production, and distribution of our stories, on screen, in lyrics, in music, and in writing. This fall, the Government will release an update to Canada’s COVID-19 Economic Response Plan. This will outline the Government’s economic and fiscal position, provide fiscal projections, and set out new measures to implement this Throne Speech. This update will make clear that the strength of the middle class, and the wellbeing of all Canadians, remain Canada’s key measures of success. Building back better — a resiliency agenda for the middle class As we fight for every Canadian and defend everyone’s ability to succeed, we also need to focus on the future, and on building back better. This forms the third foundation of the Government’s approach. Around the world, advanced economies are realizing that things should not go back to business as usual. COVID-19 has exposed the vulnerabilities in our societies. The Government will create a resiliency agenda for the middle class and people working hard to join it. This will include addressing the gaps in our social systems, investing in health care, and creating jobs. It will also include fighting climate change, and maintaining a commitment to fiscal sustainability and economic growth as the foundation of a strong and vibrant society. Addressing gaps in our social systems Central to this is recognizing that one of the greatest tragedies of this pandemic is the lives lost in long-term care homes. Elders deserve to be safe, respected, and live in dignity. Although long-term care falls under provincial and territorial jurisdiction, the federal government will take any action it can to support seniors while working alongside the provinces and territories. The Government will work with Parliament on Criminal Code amendments to explicitly penalize those who neglect seniors under their care, putting them in danger. The Government will also: Work with the provinces and territories to set new, national standards for long-term care so that seniors get the best support possible; And take additional action to help people stay in their homes longer. The Government remains committed to increasing Old Age Security once a senior turns 75, and boosting the Canada Pension Plan survivor’s benefit. The Government will look at further targeted measures for personal support workers, who do an essential service helping the most vulnerable in our communities. Canada must better value their work and their contributions to our society. COVID-19 has disproportionately affected Canadians with disabilities, and highlighted long-standing challenges. The Government will bring forward a Disability Inclusion Plan, which will have: A new Canadian Disability Benefit modelled after the Guaranteed Income Supplement for seniors; A robust employment strategy for Canadians with disabilities; And a better process to determine eligibility for Government disability programs and benefits. Over the last six months, it has become clearer than ever why Canadians need a resilient health care system. The Government will ensure that everyone — including in rural and remote areas — has access to a family doctor or primary care team. COVID-19 has also shown that our system needs to be more flexible and able to reach people at home. The Government will continue to expand capacity to deliver virtual health care. The Government will also continue to address the opioid epidemic tearing through communities, which is an ongoing and worsening public health crisis. Additionally, the Government will further increase access to mental health resources. All Canadians should have the care they need, when they need it. We will all be stronger for it. The same goes for access to the medicine that keeps people healthy. Many Canadians who had drug plans through work lost this coverage when they were laid off because of the pandemic. So this is exactly the right moment to ramp up efforts to address that. The Government remains committed to a national, universal pharmacare program and will accelerate steps to achieve this system including: Through a rare-disease strategy to help Canadian families save money on high-cost drugs; Establishing a national formulary to keep drug prices low; And working with provinces and territories willing to move forward without delay. In addition to good health infrastructure, Canadians also need strong, safe communities to call home. The Government has banned assault-style firearms. The Government will also continue implementing firearms policy commitments, including: Giving municipalities the ability to further restrict or ban handguns; And strengthening measures to control the flow of illegal guns into Canada. Women’s safety must be the foundation on which all progress is built. The Government will accelerate investments in shelters and transition housing, and continue to advance with a National Action Plan on Gender-Based Violence. To keep building strong communities, over the next two years the Government will also invest in all types of infrastructure, including public transit, energy efficient retrofits, clean energy, rural broadband, and affordable housing, particularly for Indigenous Peoples and northern communities. In the last six months, many more people have worked from home, done classes from the kitchen table, shopped online, and accessed government services remotely. So it has become more important than ever that all Canadians have access to the internet. The Government will accelerate the connectivity timelines and ambitions of the Universal Broadband Fund to ensure that all Canadians, no matter where they live, have access to high-speed internet. And to further link our communities together, the Government will work with partners to support regional routes for airlines. It is essential that Canadians have access to reliable and affordable regional air services. This is an issue of equity, of jobs, and of economic development. The Government will work to support this. Strong communities are places where everyone has a safe, affordable home. No one should be without a place to stay during a pandemic, or for that matter, a Canadian winter. This week, the Government invested more than $1 billion for people experiencing homelessness, including for this fall. In 2017, the Government announced that it would reduce chronic homelessness by 50 percent. The Government has already helped more than a million people get a safe and affordable place to call home. Given the progress that has been made, and our commitment to do more, the Government is now focused on entirely eliminating chronic homelessness in Canada. At the same time, the Government will also make substantial investments in housing for Canadians. The Government will add to the historic National Housing Strategy announced in 2017 by increasing investments to rapid housing in the short term, and partnering with not-for-profits and co-ops in the mid- to long-term. For the middle class, the Government will also move forward with enhancements to the First-Time Home Buyer Incentive, including in Canada’s largest cities, so families can afford to buy their first home. Housing is something everyone deserves, and it’s also a key driver of the economy. Construction projects create jobs, and having a home is critical so people can contribute to their communities. Just like everyone deserves a home, everyone deserves to be able to put nutritious food on the table. The pandemic has made that harder for Canadians. The Government will continue to work with partners — including directly with First Nations, Inuit, and Métis Nation partners — to address food insecurity in Canada. The Government will also strengthen local food supply chains here in Canada. The Canadian and migrant workers who produce, harvest, and process our food — from people picking fruit to packing seafood — have done an outstanding job getting good food on people’s plates. They deserve the Government’s full support and protection. The Government will also ensure that those in Canada’s supply managed sectors receive full and fair compensation for recent trade agreements. Farmers keep our families fed, and we will continue to help them succeed and grow. A stronger workforce This pandemic has revealed gaps in health, housing, and food supply. And it has also laid bare inequalities Canadians face in the workforce. We have an opportunity to not just support Canadians, but grow their potential. Working with the provinces and territories, the Government will make the largest investment in Canadian history in training for workers. This will include by: Supporting Canadians as they build new skills in growing sectors; Helping workers receive education and accreditation; And strengthening workers’ futures, by connecting them to employers and good jobs, in order to grow and strengthen the middle class. From researchers developing vaccines, to entrepreneurs building online stores, this pandemic has reminded us of the power of the knowledge economy, and how vital it is for our future. Canadians are leading, and they should have government services that keep up. The Government will make generational investments in updating outdated IT systems to modernize the way that Government serves Canadians, from the elderly to the young, from people looking for work to those living with a disability. The Government will also work to introduce free, automatic tax filing for simple returns to ensure citizens receive the benefits they need. Government must remain agile, and ready for what lies ahead. Taking action on extreme risks from climate change Climate action will be a cornerstone of our plan to support and create a million jobs across the country. This is where the world is going. Global consumers and investors are demanding and rewarding climate action. Canadians have the determination and ingenuity to rise to this challenge and global market opportunity. We can create good jobs today and a globally competitive economy not just next year, but in 2030, 2040, and beyond. Canadians also know climate change threatens our health, way of life, and planet. They want climate action now, and that is what the Government will continue to deliver. The Government will immediately bring forward a plan to exceed Canada’s 2030 climate goal. The Government will also legislate Canada’s goal of net-zero emissions by 2050. As part of its plan, the Government will: Create thousands of jobs retrofitting homes and buildings, cutting energy costs for Canadian families and businesses; Invest in reducing the impact of climate-related disasters, like floods and wildfires, to make communities safer and more resilient; Help deliver more transit and active transit options; And make zero-emissions vehicles more affordable while investing in more charging stations across the country. A good example of adapting to a carbon-neutral future is building zero-emissions vehicles and batteries. Canada has the resources — from nickel to copper — needed for these clean technologies. This — combined with Canadian expertise — is Canada’s competitive edge. The Government will launch a new fund to attract investments in making zero-emissions products and cut the corporate tax rate in half for these companies to create jobs and make Canada a world leader in clean technology. The Government will ensure Canada is the most competitive jurisdiction in the world for clean technology companies. Additionally, the Government will: Transform how we power our economy and communities by moving forward with the Clean Power Fund, including with projects like the Atlantic Loop that will connect surplus clean power to regions transitioning away from coal; And support investments in renewable energy and next-generation clean energy and technology solutions. Canada cannot reach net zero without the know-how of the energy sector, and the innovative ideas of all Canadians, including people in places like British Columbia, Alberta, Saskatchewan, and Newfoundland and Labrador. The Government will: Support manufacturing, natural resource, and energy sectors as they work to transform to meet a net zero future, creating good-paying and long-lasting jobs; And recognize farmers, foresters, and ranchers as key partners in the fight against climate change, supporting their efforts to reduce emissions and build resilience. The Government will continue its policy of putting a price on pollution, while putting that money back in the pockets of Canadians. It cannot be free to pollute. This pandemic has reminded Canadians of the importance of nature. The Government will work with municipalities as part of a new commitment to expand urban parks, so that everyone has access to green space. This will be done while protecting a quarter of Canada’s land and a quarter of Canada’s oceans in five years, and using nature-based solutions to fight climate change, including by planting two billion trees. The Government will ban harmful single-use plastics next year and ensure more plastic is recycled. And the Government will also modernize Canada’s Environmental Protection Act. When the Prairie Farm Rehabilitation Administration was closed by a previous government, Canada lost an important tool to manage its waters. The Government will create a new Canada Water Agency to keep our water safe, clean, and well-managed. The Government will also identify opportunities to build more resilient water and irrigation infrastructure. At the same time, the Government will look at continuing to grow Canada’s ocean economy to create opportunities for fishers and coastal communities, while advancing reconciliation and conservation objectives. Investing in the Blue Economy will help Canada prosper. The Canada we’re fighting for This is a fight for Canadians today and Canada tomorrow. So we must never forget the values that make us who we are. The fourth and final foundation of the Government’s approach is defending Canadian values and ensuring they are lived experiences for everyone. Canada is a place where we take care of each other. This has helped Canada weather the pandemic better than many other countries. Canada must continue to stand up for the values that define this country, whether that’s welcoming newcomers, celebrating with pride the contributions of LGBTQ2 communities, or embracing two official languages. There is work still to be done, including on the road of reconciliation, and in addressing systemic racism. Reconciliation Throughout the pandemic, the Government has made it a priority to support Indigenous communities, which has helped contain the spread of COVID-19 and kept people safe. That is something the Government will continue to do. The Government will walk the shared path of reconciliation with Indigenous Peoples, and remain focused on implementing the commitments made in 2019. However, the pandemic has shown that we need to keep moving forward even faster on a number of fronts including by: Expediting work to co-develop distinctions-based Indigenous health legislation with First Nations, Inuit, and the Métis Nation, and a distinctions-based mental health and wellness strategy; Accelerating work on the National Action Plan in response to the National Inquiry into Missing and Murdered Indigenous Women and Girls’ Calls for Justice, as well as implementation of the Truth and Reconciliation Commission’s Calls to Action; And continuing to close the infrastructure gap in Indigenous communities, working on a distinctions-basis with First Nations, Inuit, and the Métis Nation to accelerate the government’s 10-year commitment. The Government will also: Make additional resiliency investments to meet the clean drinking water commitment in First Nations communities; And support additional capacity-building for First Nations, Inuit, and the Métis Nation. The Government will move forward to introduce legislation to implement the United Nations Declaration on the Rights of Indigenous Peoples before the end of this year. Addressing systemic racism For too many Canadians, systemic racism is a lived reality. We know that racism did not take a pause during the pandemic. On the contrary, COVID-19 has hit racialized Canadians especially hard. Many people — especially Indigenous people, and Black and racialized Canadians — have raised their voices and stood up to demand change. They are telling us we must do more. The Government agrees. The Government pledged to address systemic racism, and committed to do so in a way informed by the lived experiences of racialized communities and Indigenous Peoples. The Government has invested in economic empowerment through the Black Entrepreneurship Program, while working to close the gaps in services for Indigenous communities. Important steps were taken with the release of Canada’s Anti-Racism Strategy for 2019-2022, the creation of an anti-racism secretariat, and the appointment of the first-ever Minister focused specifically on diversity and inclusion. This is all good, but much more needs to be done for permanent, transformative change to take shape. The Government will redouble its efforts by: Taking action on online hate; Going further on economic empowerment for specific communities, and increasing diversity on procurement; Building a whole-of-federal-government approach around better collection of disaggregated data; Implementing an action plan to increase representation in hiring and appointments, and leadership development within the Public Service; And taking new steps to support the artistic and economic contributions of Black Canadian culture and heritage. Progress must also be made throughout the policing and justice systems. All Canadians must have the confidence that the justice system is there to protect them, not to harm them. Black Canadians and Indigenous Peoples are overrepresented in the criminal justice system. That has to change. The Government will take steps to ensure that the strong hand of criminal justice is used where it is needed to keep people safe, but not where it would be discriminatory or counterproductive. The Government will: Introduce legislation and make investments that take action to address the systemic inequities in all phases of the criminal justice system, from diversion to sentencing, from rehabilitation to records; Move forward on enhanced civilian oversight of our law enforcement agencies, including the RCMP; Modernize training for police and law enforcement, including addressing standards around the use of force; Move forward on RCMP reforms, with a shift toward community-led policing; And accelerate work to co-develop a legislative framework for First Nations policing as an essential service. Protecting two official languages Our two official languages are woven into the fabric of our country. The defence of the rights of Francophones outside Quebec, and the defence of the rights of the Anglophone minority within Quebec, is a priority for the Government. The Government of Canada must also recognize that the situation of French is unique. There are almost 8 million Francophones in Canada within a region of over 360 million inhabitants who are almost exclusively Anglophone. The Government therefore has the responsibility to protect and promote French not only outside of Quebec, but also within Quebec. In this vein, 51 years after the passage of the Official Languages Act, the Government is committed to strengthening this legislation among other things, taking into consideration the unique reality of French. A welcoming Canada Immigration remains a driver of Canada’s economic growth. With other countries rejecting global talent that could help their economy, Canada has an opportunity as we recover to become the world’s top destination for talent, capital, and jobs. When people choose Canada, help build Canada, and make sacrifices in support of Canada, we should make it easier for them to formally become Canadian. Earlier this year, the Government announced measures to grant permanent residency to people who, although not Canadian citizens, had cared for the most vulnerable in long-term care homes and other medical facilities. The Government will continue to bring in newcomers and support family reunification. We know that there is an economic and human advantage to having families together. As part of both the short-term economic recovery and a long-term plan for growth, the Government will leverage the advantage we have on immigration to keep Canada competitive on the world stage. Canada in the world We must take action on all of these priorities at home. But we must also address the world in which we live. COVID-19 has accelerated the existing trends toward a more fragmented global order. It remains in Canada’s interest to create and maintain bilateral and multilateral relationships to advance peace and economic prosperity. The Government will invest more in international development while supporting developing countries on their economic recoveries and resilience. Canada will also support work to ensure that people around the world have access to a vaccine. We cannot eliminate this pandemic in Canada unless we end it everywhere. The Government will also continue to stand up for human rights and the rule of law. It is unacceptable that any citizen be arbitrarily detained. Michael Kovrig and Michael Spavor must be brought home. This is something for which all Canadians stand united. The Government will continue to fight for free trade, including by leading the Ottawa Group to reform the World Trade Organization. Our likeminded allies and partners are investing to make sure their societies emerge stronger. This Government’s plan does that as well. Conclusion Taken together, this is an ambitious plan for an unprecedented reality. The course of events will determine what needs to be done when. But throughout, protecting and supporting Canadians will stay the top priority. And the core values that have driven the Government since day one remain the same. In 2015, Canadians asked their government to deliver real change on everything from middle class jobs to climate change. In 2019, the people chose a Parliament that would keep moving forward on these shared goals. And in 2020, Canadians expect nothing less. It is no small task to build a stronger, more resilient country. It will take hard work. It will require a commitment to finding common ground. Parliamentarians, Canadians have placed a trust in you to guide this country forward. They have placed their faith in you to work together to meet whatever challenges we face. Remember that we are here today because of the generations of Canadians who came before us. We are here because of the women and men — our parents, grandparents, and great-grandparents — who had the courage to reach for a better future. Today, it is our turn. Our moment to build a stronger and more resilient Canada for everyone. Members of the House of Commons, you will be asked to appropriate the funds to carry out the services and expenditures authorized by Parliament. Members of the Senate and Members of the House of Commons, may you be equal to the profound trust bestowed on you by Canadians, and may Divine Providence guide you in all your duties.

Canada

It is a privilege for me to exercise the prerogative of Her Majesty the Queen and open the 48th Parliament. On 17 September the people of New Zealand voted for the fourth time under the MMP electoral system. Negotiations since then have resulted in the formation of a third term Labour-led government with a majority in the House on confidence and supply. All parties involved in this process were looking forward to making a contribution to the new Parliament. It was therefore a tragedy to learn of the untimely death of Mr Rod Donald MP, the co-leader of the Green Party. Mr Donald had been instrumental, not only in building support for the electoral system by which New Zealanders now choose governments, but also in the Green Party making such a strong contribution to Parliament in recent years. He will be sorely missed. My government's overall objective for the next three years is to continue New Zealand's transformation to a dynamic, knowledge-based economy and society, underpinned by the values of fairness, opportunity and security. In the last six years my government has sought to lay the foundations for this transformation. A great deal has been achieved. My government has implemented a framework for growing a higher value economy. It has invested heavily in education and skills development. It has refocused our system of social assistance. It has supported creative New Zealanders. Ours is now a country more confident of its economic future and more secure in its sense of identity. In the past six years New Zealand has enjoyed economic growth above the rate of our major trading partners. We have seen a significant decline in poverty levels and we have recorded the lowest crime rate in 22 years. Unemployment has been reduced to the lowest rate in the OECD. Solid progress is being made towards the goal of eliminating child poverty. Honourable Members, Over recent years, my government has set about developing a distinctive New Zealand way of responding to the challenges and opportunities of the 21st century. This is an approach founded on New Zealanders’ creativity and innovation, on valuing both inspiration and aspiration, and on seeing our size and place in the world not as a limitation, but as offering opportunities to succeed. The New Zealand way is much more than the clichés of ‘number eight wire’ or ‘punching above our weight’. It is based on the belief that as a confident, diverse, inclusive Pacific nation, we can work together to find new opportunities and market our best ideas profitably to the world. This approach will continue to be applied to a range of policies and programmes aimed at lifting the quality of life and standard of living for all New Zealanders. My government believes that the talents of all must be deployed in the drive to transform our nation. It is important to build a broad consensus about the way ahead. Divisions within the community, perceived or otherwise, must not be allowed to get in the way of the transformation of New Zealand, to a prosperous, confident 21st century nation. My government intends to work - as it has over the last six years - in partnership with people from across sectors and communities to advance New Zealand’s interests. Honourable members, The strong economic growth of the last six years has seen the emergence of significant skill shortages in key sectors of the economy. In more recent years, growth has been led by domestic demand. That has been further fuelled by bank lending based on offshore borrowing. This in turn has helped to keep the New Zealand dollar at high levels for much longer than in any previous cycle since the dollar was floated. That has further increased consumption and inflationary pressures, translating into the need for tighter monetary policy. Breaking this cycle is not going to be easy. It certainly means that significant fiscal loosening – either by way of large expenditure increases above those already signalled or by way of significant tax cuts - cannot be considered. The government will continue to maintain over the short to medium term a firm fiscal stance with substantial operating surpluses. In these circumstances, the most effective contribution my government believes it can make to improving economic performance is to place even greater emphasis on the importance of savings, productivity, education and skills, science and innovation, and export growth. The KiwiSaver scheme will be established in 2007 and legislation to that end will be submitted to Parliament early next year. Work will continue on relevant taxation regimes to ensure that they are conducive to the promotion of savings, while also paying appropriate attention to the maintenance of the tax base. New Zealand is not aiming to compete with the low-cost manufacturing giants of China and India. The security of the New Zealand economy in the 21st century will come from the ability of our firms to be part of a high skill, high productivity, and high wage economy. New Zealand's transformation demands the move to new business models of higher value and more sophisticated products. Particular attention will be paid to the promotion of productivity growth. Over recent years New Zealand’s GDP growth rates have been above the OECD average. But this has been achieved primarily by more people working, and by people working more hours than in most comparable countries. The emphasis must now switch to producing more per worker, or, in other words, lifting productivity growth rates. This will require a wide range of policy initiatives. The review of the structure of corporate taxation, as referred to in the agreements with New Zealand First and United Future, and supported by the Progressives, will also be designed to take a wide-ranging look at our current system of corporate taxation with an emphasis on practical signals to lift productivity. My government believes that science and innovation are critical to driving our prosperity. As part of this, a multi-year funding path for research, science, and technology will be developed. A greater proportion of research investment will be moved into longer term funding arrangements. Compliance costs will be reduced by acknowledging the trust that research organisations with proven track records have earned. Key areas of national research excellence will be identified, and then, for each area, my government will set out how it intends to maintain and develop long-term capability. Particular attention will be paid to the commercialisation of innovation. This will involve acceleration of the commercialisation of research generated from within the public sector, more support at the seed and pre-seed stages, and better addressing capital market or funding gaps. The agreement with New Zealand First commits my government to preparing for 2007 to be a specially designated “Export Year”. The work of New Zealand Trade and Enterprise will be refocused more on exporting, especially of higher value goods and services, with a client-centred approach and a stronger presence in key offshore markets. My government will continue to advocate for a fair and open global trading environment. That means taking an active role in the Doha Development Round negotiations of the World Trade Organisation, especially to secure fairer rules for agricultural trade. Bilateral and regional trade agreements which are consistent with WTO rules and agreements will be advanced. Negotiations are under way with China, Malaysia, and ASEAN. The backbone of the New Zealand economy will continue to be our primary industries. The Hon Jim Anderton, as leader of the Progressive Party in the coalition government will take responsibility for the agriculture, forestry and fishing portfolios with the objective of ensuring that these sectors lead the way in improving productivity and in innovation. The agreement with the Green Party includes a commitment to developing a ‘buy kiwi made’ initiative to promote local goods and services to both the public and private sectors. New Zealand First is also supporting this initiative. Honourable members, New Zealand's growing economy relies on strong foundations. The foundations of a 21st century economy must include world class education, infrastructure, healthcare, and social services. Education lies at the heart of my government’s vision for economic and social development. It is my government’s intention that by July 2007 funding will be provided for 20 hours of free early childhood education for three and four year olds attending licensed, teacher-led services. Ensuring that all young children have the best possible start in life with quality education is essential. Over the next three years, around 1300 extra primary teachers will need to be employed in Year 1 classes to implement a 1:15 teacher-pupil ratio for new entrant classes. The highly successful numeracy and literacy initiatives in our schools will be extended to reinforce the gains that have been made in the last few years in the foundation skills of young students. At the secondary level, my government will work for full implementation of the School Staffing Review Group and the Ministerial Taskforce on Secondary Teacher Remuneration. Over recent years there has been a significant increase in participation in post compulsory education and training. This has included the establishment and development of the Modern Apprenticeship scheme, and much higher numbers enrolled in industry training. My government's goal is to have all 15-19 year-olds in some form of work, training or other income generating activity. My government will continue to invest in these areas, in particular through funding an additional 5,000 Modern Apprentices by 2008, and continuing to work towards the target of 250,000 people in industry training overall. Even with the significant increase in participation, the number of skilled graduates and of those with trade and technical skills has not been able to keep pace with the growing demand in the economy. There is also a concern among some businesses that young people emerging from education and training are insufficiently prepared for the labour market. My government is determined to improve the quality and relevance of tertiary education in New Zealand. While the general standard of tertiary education here is high, some high profile examples have demonstrated that a system which puts too great a concentration on increasing participation can lead, in some instances, to poorly designed courses and misuse of public money. Changing the system to prevent such outcomes will require a significant adjustment in parts of the tertiary sector. The introduction of interest free student loans, which will be legislated for before Christmas, will also ensure that young people find it easier financially to acquire tertiary qualifications. Over the next three years, eligibility for student allowances will also be extended, in accordance with my government’s own policy and its agreements with other parties. Honourable Members, Another key foundation for our growing economy is modern infrastructure. In this regard, New Zealand not only faces major challenges with respect to energy and transport policy and delivery, but also in ensuring that our ICT infrastructure is capable of supporting a dynamic 21st century economy and society. It seems very likely that while the present high oil prices will fluctuate, there will not be a return to the low prices of the previous decade or more. This makes having efficient transport infrastructure more important that ever. My government will continue to invest heavily in that, including in public transport. During this term my government will explore a wide range of potential energy scenarios in order to develop a National Energy Strategy. Priority will be given to renewable energy sources. A more aggressive approach will be taken with respect to energy efficiency, in order to reduce the growth in demand, while also meeting the needs of households and businesses. This will be developed in co-operation with the Green Party. Measures will include increased support for solar water-heating, the introduction of a Home Energy Rating Scheme, improved building standards, use of passive solar design systems, and other mechanisms to achieve a sustainable path forward. Progress will continue on the completion of Auckland’s roading network in the next ten years with attention being paid to ensuring a smooth flow of projects and flexibility around their management. The preferred solution to Wellington’s western corridor issue will be advanced as identified in the agreement with United Future. Along with such investment, increased funding will be provided to encourage more people to switch to public transport. With respect to ICT, my government will be advancing policies to ensure that the telecommunications sector becomes more competitive and that we achieve faster broadband uptake in line with our competitors. Honourable Members, New Zealand's transformation must be based on opportunity and security for all. Unlocking the potential of all New Zealanders is an imperative, not an ideal, in a dynamic modern economy. Over the last six years my government has transformed our system of social assistance so that it is focused on assisting people to find sustainable employment. The social welfare system will continue to provide a base of security for all New Zealanders, alongside the provision of opportunities for work. During this term further action will be taken to encourage and support those on Sickness and Invalids Benefits to participate in the workforce. Further development will also be undertaken on the evolution of the new benefit structure focused on providing work opportunities for all New Zealanders. My government has also prioritised lifting living standards for families. Working for Families represents the biggest boost for families on low incomes in over thirty years, and the biggest offensive on child poverty New Zealand has seen for decades. The decision to have children, and to raise a family, must not prevent New Zealanders sharing in the success of a growing economy. Starting next year, my government will provide additional targeted tax relief to many families with children, as well as additional support for childcare. It will mean tax relief for every low and middle income family with children in New Zealand, as well as for many larger families on higher incomes. My government is also committed to supporting New Zealanders find a better work-life balance. From 2007, all workers will be entitled to four weeks’ annual leave. My government will continue to ensure that we have a fair system of industrial relations. In line with the support agreements with other parties, the minimum wage will continue to be increased, with a view to the adult rate being set at $12 per hour by the end of 2008 if economic conditions permit. Initiatives will also be taken to remedy the difficulties which have arisen with the Employment Relations Act provisions relating to vulnerable workers. Honourable members, Along with providing opportunities for all New Zealanders, my government is committed to ensuring security for those who need it. Decent health care, superannuation, and the social security system are central to our people’s sense of security. My government’s priorities in health are to focus on primary health care through the continued roll out of accessible and affordable primary services; the implementation of preventative health care services; and increasing elective surgery numbers through initiatives such as the orthopaedics and cataracts projects. Special attention will be paid to children. My government will work actively with other parties towards the objective of free primary health care for all under six year olds. Access to Well Child checks for pre-school children will also be extended. A free “School Ready” check for all children before starting school will be implemented, including access to immunisations, and hearing and vision checks. All newborn children will be provided with a free hearing test, and there will be significant investments in improving dental services for children and young people over the next three years. As part of the agreement with United Future, my government will develop a long-term medicines strategy to ensure quality pharmaceutical usage in the health sector. Measures will be taken to strengthen the health sector workforce. Particular attention will be paid to the aged care sector. My government will continue to focus on the security and well being of older New Zealanders. In line with the agreement with New Zealand First, next year’s annual adjustment to the rate of New Zealand Superannuation will lift the married couple rate to 66 per cent of the net, average, ordinary time weekly wage. Work will also be undertaken to investigate ways to improve options for senior citizens who may be eligible for foreign pensions as well as New Zealand Superannuation. Ways to give better recognition to veterans of active overseas service will also be investigated. The other element of the agreement with New Zealand First on senior citizens commits my government to developing a Senior’s Card to identify the holders’ eligibility to a range of entitlements. Many superannuitants will be eligible for the extended rates rebate scheme to be introduced from 1 July next year. The mandatory over 80 driving licence test, a cause of so much stress to older people, will also be abolished. Honourable members, Providing security for all New Zealanders, young and old, also requires a continued focus on reducing crime. Progress has been made on reducing the rate of crime and increasing police crime resolution rates. Now, pursuant to the agreement with New Zealand First, my government is committed to providing funding over the next three Budgets for an additional 1000 police staff. Early intervention has the potential to achieve long term reductions in crime. Subject to positive evaluation, my government will expand successful early intervention programmes. It will support and further develop Youth Offending Teams. Further resources will be put into residential rehabilitation, and new initiatives to discourage youth involvement in criminal gangs will be developed. The home detention system will be reviewed. A range of legislation will be introduced into the House covering an independent prison complaints authority, reforming pre-trial processes, improving Family Court procedures, overhauling the coronial system, and amending the Privacy Act. Honourable Members, I have outlined so far the government's priorities across the economy, education, healthcare, and social services. Underpinning each of these priorities is an approach founded on a distinctly New Zealand way of working. This approach aims to be inclusive, forward looking, and focused on lifting the aspirations and developing the abilities of all New Zealanders. This is critical to our nation's success. Honourable Members, one of the most distinctive features of the emerging New Zealand way is our sense of national identity, confidence, and creativity. New Zealanders are holding their own alongside the best writers, musicians, and artists anywhere in the world. Our communities now fully embrace and support their creative members. We New Zealanders expect to see our stories and perspectives reflected on our airwaves, on film screens, in our literature, and throughout the creative spectrum. My government will continue to support the creative sectors, knowing that they are helping to profile New Zealand very positively in the wider world, and that they play a critical role in nation building. New Zealand has also gained enormous benefit from the many achievements of our sportsmen and women. My government will continue to work with the sports sector to build on its achievements and to increase participation of New Zealanders in physical activity. In this regard my government will support the Department of Conservation putting increased emphasis on opportunities for physical recreation in the outdoors. New Zealand's sense of national identity is also underpinned by our position as an independent and principled player on the world stage. My government will continue to ensure that New Zealand contributes positively to the resolution of the many challenges our world faces. Resourcing for our diplomatic, aid, and defence infrastructure is being significantly increased to that end. My government is also committed to maintaining the quality of our environment and the preservation of New Zealand’s unique biodiversity. Clean air, open space, and good water quality are seen as part of our birthright. Yet our reality does not always conform to this ideal. A vision and strategy for ensuring long term water quality and management will be developed. National policy statements and national environmental standards will be used to achieve the desired goals. My government will continue to implement the New Zealand Waste Strategy and provide extra funding for the Contaminated Sites Remediation Fund. My government will also continue to work with local authorities to improve the working of the Resource Management Act. Recent amendments to the Act should lead to significant improvements, and my government will ensure that the potential gains are achieved. Climate change is a big threat to New Zealand’s land-based industries. The evidence worldwide of the adverse impact of human activity on climate is now overwhelming. My government believes it is important for New Zealand to move with the mainstream of international opinion in finding solutions to this problem. Honourable Members, One of the most distinctive features of contemporary New Zealand is our increasingly diverse population. As New Zealand moves forward, we must address needs across a range of communities and ethnicities. Social solidarity will be critical to our country’s success. My government will continue to promote tolerance and understanding between all those who make up our nation. The New Zealand way has always been to move forward together, recognising the independence of individuals, while pooling our collective talent for the good of our economy and society. The place of Maori in contemporary New Zealand has been a matter of much controversy in recent times. My government seeks to encourage rational and informed dialogue on the role of the Treaty of Waitangi, and on the rights and responsibilities of the Crown and Maori, and, indeed, of all New Zealanders. It is time to recognise the emergence of a new, dynamic, confident Maoridom. It is time to lift aspirations, celebrate and encourage success, and not dwell on past failure. Pride in the achievements of all New Zealand communities and peoples must be seen as a cornerstone of the New Zealand way. Success for Maori will come from utilising the many opportunities now available. Implementation of the Maori Fisheries Act, the acceleration of the registration of Maori Land Court Orders in the land transfer system, the expansion of the Maori Business Facilitation Service, the acceleration of the Treaty settlement process, and the continued expansion of educational opportunities will all assist. My government is also working to conclude agreements on foreshore and seabed issues with both Ngati Porou and Te Whanau a Apanui over the coming period. These agreements will demonstrate that the Foreshore and Seabed Act does both protect the interests of the general population and recognise the special interests of Maori where those can be demonstrated to exist. As well my government will be setting a final date for the lodging of historical Treaty claims by 1 September 2008 with the objective of having claims settled by 2020. Honourable Members, The election result has given my government the opportunity to build on the New Zealand way of working that has emerged over the last six years. With the announcement of the final vote count on 1 October it was clear that the Labour Party held the largest number of seats. With other parties committed to discussing the formation of a government first with the party with the largest number of seats, negotiations were able to commence. This led to the Prime Minister being able to inform me some two weeks later that she was in a position to form a government with a secure majority in the House on confidence and supply. The Labour-led government is a minority one, thus continuing what is now emerging as a normal feature of our political system. It rests on three layers of agreements. The first is a coalition agreement with the Progressive Party. As with previous Labour-led coalition agreements, this provides for the maintenance of distinctive political identities in government and Parliament, and a commitment to focus on building a prosperous, safe, and sustainable New Zealand. The Progressives are keen to bring to the government in this term their vision for both economic growth and greater ecological sustainability in agriculture, forestry and fisheries, as they see that as essential to preserving the natural capital upon which these industries rely. Improving the fisheries management framework through a network of marine protected areas is a key priority for them. In agriculture the twin challenges of increasing irrigation and avoiding nutrient build up in waterways are issues the Progressives intend addressing. The biosecurity portfolio held by Hon Jim Anderton will continue to make an important contribution to ensuring the protection of our natural resource base, and will support the continuing economic development of the primary sectors. The Progressives will also be continuing to pursue their key policy priorities around the misuse of drugs, better skills training and more support for families and senior citizens. The second layer of agreements comprises the two confidence and supply agreements with New Zealand First and United Future respectively. These provide for positive votes in support of the government on confidence and supply. The leaders of those two parties, Rt Hon Winston Peters and Hon Peter Dunne, hold ministerial portfolios outside Cabinet. They are bound by the conventions of collective responsibility with respect to those portfolios, but not otherwise. There is also a list of detailed policy matters for action or development in both confidence and supply agreements. The third layer is a co-operation agreement with the Green Party. As with the agreements with New Zealand First and United Future, provision is made for consultation on the broad outline of the legislative programme, on key legislative measures on which support is being sought, on major policy issues, and on broad budget parameters. The Green Party will have full involvement in the detailed development and implementation of policy proposals for an enhanced energy efficiency programme and a ‘buy kiwi made’ programme. There will also be co-operation on two other levels of issues. These agreements are an expression of my government’s desire to continue with the broad and inclusive approach which New Zealanders opted for when they replaced the winner-takes-all attitudes of the first past-the-post system with MMP. Of necessity, the longstanding constitutional conventions associated with the consequences of the old electoral system are evolving to respond to the challenges of MMP. The fact that we have enjoyed stable minority government for the last six years, and can look forward to a further three, is a tribute to the adaptability of our constitution. Honourable Members, My government is deeply conscious of the honour bestowed on it in taking office again. Its mission is to lead the economic and social development of our proud, independent South Pacific nation. It seeks to work alongside a broad cross section of New Zealanders to achieve the best results for New Zealand. I wish you well in your deliberations. You have been charged by your fellow New Zealanders with great responsibilities. I am sure you will do your best to fulfil them.

New Zealand

Honourable Members of the House of Representatives. It is a privilege for me to exercise the prerogative of Her Majesty the Queen and open the 49th Parliament. E nga mana, e nga reo, e nga rangatira ma, tena koutou, tena koutou, tena koutou katoa. Just over four weeks ago New Zealanders elected a new Parliament. The outcome of the election clearly demonstrated New Zealanders' desire for a new government and, in the view of my government, a desire for a fresh approach to our country's challenges. Within two weeks of that election, negotiations between political parties enabled the formation of a new National-led Government that commands the votes of 69 Members of this Parliament on confidence and supply. Those confidence and supply agreements are held with the ACT Party, the Maori Party and the United-Future Party. These agreements will form the basis of constructive and mana-enhancing working relationships and will enable my Government to govern in an effective, stable and inclusive manner. Beyond these agreements, my Government anticipates co-operating with other parties in Parliament on issues of mutual interest. Honourable members. The driving goal of the new Government will be to grow the New Zealand economy in order to deliver greater prosperity, security and opportunities to all New Zealanders. It will be going for growth because it believes in the power of economic growth to deliver higher incomes, better living conditions and, ultimately, a stronger society for New Zealanders. My Government knows that only a strong economy will guarantee financial security for families, well paid jobs in New Zealand for our young people, and larger superannuation payments for our older people. In pursuing this goal of economic growth my Government will be guided by the principle of individual freedom and a belief in the capacity and right of individuals to shape and improve their own lives. My government believes that building a stronger economy in the term of this Parliament will not be without considerable challenges. These are extraordinarily difficult times for the country and the world. The world is experiencing what is now being described as the worst financial crisis since the Great Depression of the 1930s. Global credit flows have dried up, financial institutions have fallen over, sharemarkets have plunged and economies worldwide are falling into recession. The New Zealand economy has been in recession this year and economic growth in 2009 is forecast to be low. Asset values are falling and unemployment is predicted to rise. The Government will run an operating deficit this year and is likely to do so for some years to come. My government believes that in such challenging times our country can not afford its Parliament to be distracted from the issues that matter. So my government will not seek to involve itself in decisions that are best made by New Zealanders within their own homes and their own communities. The new Government's vision is not to dictate the way in which New Zealanders should live their lives, but instead to ensure they have the opportunities they need to make the best choices for themselves. My government will therefore, in representing the will of New Zealanders, remain resolutely focused on the issues that matter, pre-eminent of which will be the need to strengthen the economy to ensure future economic growth. Honourable members. My government is concerned that in recent years, New Zealand's productivity growth has been poor, our after-tax wages have slipped further and further behind those in Australia, and record numbers of people have departed our shores to live permanently overseas. New Zealand's economy has slipped further behind those of other OECD countries. It is the view of my Government that if New Zealand's past ten years were to be described as the decade of missed opportunities, then the next ten years must be the decade of maximized opportunities. My Government intends to embrace New Zealand's clear opportunities for improved economic performance and to use them to deliver better wages and living conditions for all New Zealanders. It commits to, amongst other steps, an ongoing programme of personal tax reductions; a step-up in infrastructure investment; a reduction in government bureaucracy in favour of frontline services; an across-the-board commitment to lifting productivity growth and a renewed effort to lift education standards. In recognition of the current financial crisis, my Government will move quickly to provide much-needed fiscal stimulus to the flagging economy, in the form of personal tax reductions and a step-up in infrastructure investment. My Government is today tabling a Bill to reduce personal taxes from 1 April 2009. Its intention is to pass this new tax legislation by Christmas and it believes this tax reduction will equip New Zealanders with some much needed extra cash in tough economic times. Personal taxes will be further reduced from 1 April 2010 and from 1 April 2011. As a result, by 1 April 2011 around 80% of New Zealand taxpayers will end up paying no more than 20c in tax for every additional dollar that they earn. This programme of tax reduction is a central part of the economic plan of my Government, because it believes in encouraging New Zealanders to get ahead under their own steam, and it views personal tax reductions as an essential step in ensuring that can happen. In addition to this tax programme, my Government will urgently set about tackling the infrastructure blockages evident in New Zealand's economy. This will involve a stepped-up programme of Crown infrastructure investment, with many overdue projects brought forward. This infrastructure programme will in the short-term create much-needed jobs and economic stimulus, while in the medium-term it will help unclog the arteries of the New Zealand economy and improve economic productivity. Of particular focus will be the development of new roading and public transport projects, the improvement and expansion of school property in a 21st Century school-building programme and the accelerated roll-out of an ultra-fast broadband network across New Zealand. The development of this ultra-fast broadband network will be critically important to New Zealand's growth prospects, as it will provide New Zealanders with high-speed, real-time Internet connections to the world, and will give rise to new enterprise and innovation. In this area of infrastructure investment, as in others, my Government will work constructively with the private sector in order to maximize the impact of public investments. In parallel with this commitment to infrastructure investment, my Government will undertake a two-step reform of the Resource Management Act. The first stage of this reform will be focused on improving the consent process and will include amendments to streamline and simplify the Act, including priority consenting for projects of national significance. The second stage of this reform will focus on improving decision-making around infrastructure, water and urban design. The goal of both stages of reforms will be to reduce the costs, delays and uncertainties in current law that my Government believes are holding back development and job creation. My Government is acutely aware that despite the measures I have just outlined, the enormity of the economic challenges that New Zealand faces today are such that unemployment is forecast to rise in the months ahead. It believes that the economic crisis will not be averted by cutting government spending and social support, but rather by backing the everyday New Zealanders who, through their hard work and resilience, will power New Zealand through this recession. In what may be particularly tough times, my Government is determined to 'stay the course' with New Zealanders, by giving those who have lost their jobs the support they need to get back on their feet. Before Christmas my Government will announce the details of its transitional relief, 'Re-Start', package to help those New Zealanders worst hit by redundancy. This package will be carefully targeted and designed to help people who have worked hard and who have big aspirations for the future but who will be, through no fault of their own, coping with a big financial blow. In this area, as in all others, my Government intends that its actions reflect the belief that New Zealand is a country built on a sense of fairness and a sense of our obligations to each other. It is confident that as the steps I have just outlined are taken, the country will be able to push through this downturn and onto a longer-term pathway to stronger growth. In the short-term, my Government is committed to shoring-up the liquidity of the financial system. It will continue to support the retail deposit and wholesale banking government guarantees currently backing our financial sector. Its intention is to continue those guarantees for as long as - but no longer than - they are needed to ensure the effective operation of our banking system. The new Government notes that of the $14 billion of assets in the New Zealand Superannuation Fund, less than 25% is currently invested in New Zealand. It believes this Fund should be used to invest in our country's future growth and to underwrite our future prosperity. My Government will therefore set a target of at least 40% of the Super Fund to be invested in New Zealand. In addition, it will take steps to ensure that saving is a more affordable choice for more New Zealanders by reducing the minimum employee contributions to Kiwisaver to 2% of an employee's gross salary. My Government also wishes to address the issue of New Zealand's low productivity growth and intends to lead by example,by carefully examining public spending. It will require that public agencies focus taxpayers' money on the frontline services they have a right to expect and that public spending is scrutinized to ensure sure it is deployed to good effect. My Government is concerned that for the past several years the number of people employed in the public service has grown at a rate that has not been matched by a commensurate increase in the level of services provided to the public. Its focus therefore will be on improving services to the public and not on increasing the number of public servants engaged in government administration. To that end, it will halt the growth in government bureaucracy and ensure that resources are focused on the provision of frontline services. My Government recognises that the public accounts leave little room for new spending over the next few years. It will work hard to make the most out of every dollar, so as to deliver high-quality public services and to protect the vulnerable from the sharp edge of a recession. Furthermore, in order to help businesses and employers through this downturn and onto a stronger growth pathway, it will focus on reducing the regulatory and compliance demands that get in the way of productivity growth. In addition to the reforms to the Resource Management Act I outlined earlier, my Government will undertake a regulatory review programme. This review will identify and remove inefficient and superfluous regulation and it will ensure that regulations are used sparingly and effectively. As signaled in its confidence and supply agreement with the ACT Party, the Government will undertake a review of the Emissions Trading Scheme (ETS). My Government believes that New Zealand as a responsible international citizen, and as a country that values our clean, green environment, must act to reduce greenhouse gas emissions and to confront global climate change. In this area, as in others, it will pursue an appropriate balance between meeting our environmental responsibilities and taking up our economic opportunities. The purpose of the ETS review will therefore be to ensure the reduction of emissions in ways that result in the least cost to New Zealand's society and economy. My Government acknowledges that efforts to reduce emissions at home must be matched by efforts to reduce emissions abroad. It will honour its Kyoto Protocol obligations and it will work to achieve further global alliances that build on the goals agreed to at Kyoto. In approaching future international climate change negotiations it will work with fellow countries on finding a pragmatic way to include large emitters like China, the United States, India and Brazil. My Government will also advocate firmly in international negotiations for the appropriate recognition of New Zealand's unique agricultural-emissions-profile. This push will be buttressed by increased public investment in research and development to reduce greenhouse gas emissions from livestock. Honourable members. An unwavering focus on lifting education standards will be a critical aspect of the Government's plans for strengthening New Zealand's economy. It will work to modernise New Zealand's school system to ensure it responds to the varied needs of our young people and that it prepares them for the demands of tomorrow's employers. Of particular concern to my Government is the long tail of underachievement that it sees in our schools, with as many as one in five young New Zealanders leaving school without the skills and qualifications they need to succeed. Steps will be taken across the board to confront this problem. In early childhood education particular focus will be given to ensuring early childhood providers respond to the needs of New Zealand families and that children from less privileged homes are better engaged in pre-school education. In primary schools, the introduction of National Standards in literacy and numeracy and the new requirement that every pupil's progress be assessed against these standards will ensure that problems are identified early and confronted. In addition, parents will be better informed about their children's literacy and numeracy progress through a new requirement that National Standards results be reported in Plain English. These steps will be critical parts of my Government's intended crusade to improve literacy and numeracy standards throughout New Zealand's school system. In secondary schools, many students will get more out of their education as a result of my Government's 'Trades in Schools' policy. This will include the development of specialised Trades Academies, expanded opportunities for school-based apprenticeships and enhanced trades and technology-based learning opportunities. At the senior end of secondary school the newly elected Government will introduce a Youth Guarantee. This will provide 16 and 17 year olds with an entitlement to free school-level education at a wider range of institutions including polytechnics, wananga and private training establishments. In tertiary education, my Government will work to streamline the bureaucracy, ensure course quality, and to respond better to employers' and students needs. In recognition of chronic workforce shortages, it will introduce voluntary bonding schemes, based on student-loan write-offs, for graduates in hard-to staff areas across a range of professions, including doctors, nurses, midwives, vets, and teachers. Honourable members. I have outlined today a number of steps my Government will take to strengthen the New Zealand economy both for today and for the years ahead. My Government has made it clear that its plans for the economy set the foundation for a wider set of aspirations. The new Government is committed to improving the lives of New Zealanders across a range of fronts, and its policies will reflect this. In particular, it will address the frustrations shared by many New Zealanders who have conveyed to my Government their concerns at the high and climbing levels of violent crime throughout the country. My Government has a number of policies and approaches for reducing violent crime and making our communities safer. Criminal gangs and the "P" trade they support will not be tolerated. Youth offenders will be targeted earlier and more effectively through a new and expanded range of interventions and Youth Court sentences, including 'Fresh Start' programmes incorporating military-style training and intensive mentoring. Sentencing, parole and bail laws will be strengthened to ensure that sentencing decisions reflect my Government's view that public safety should be paramount and that parole is a privilege, not a right. Additional police officers will be recruited and a greater proportion will be deployed to South Auckland. Police will be given new and enhanced powers. These will include the ability to issue on-the-spot-protection orders to protect victims of domestic violence and the ability to take DNA from offenders at time of arrest. Victims of crime will be provided with enhanced rights, support and follow-up services from the Government. New focus will be brought to rehabilitation within prisons, with enhanced provision of drug and alcohol services and the introduction of compulsory work programmes for prisoners. Honourable members. My Government is also committed to improving the efficiency and effectiveness of the public health system. It observes that in recent years a significant increase in public health spending has not been matched by improved or increased health services to New Zealanders. My Government intends to reduce surgery waiting lists, to cut wasteful bureaucracy, and to address the health workforce crisis. As highlighted in its agreement with United Future, my Government will make better use of the private sector to deliver public health services, including reducing elective surgery waiting lists. It will also give health professionals a greater say in the running of the health system and it will require District Health Boards to work more collaboratively to improve patients care. The Government's welfare policies, like all its policies, will help people to help themselves. They will reflect its belief that paid work is the route to independence and well-being for most people, and that it is the best way to reduce child poverty. In this area, as in all areas of social policy, my Government will establish new relationships with the non-government and voluntary groups that are so important to the functioning of a healthy society. By working more closely with these groups and turbo-charging their efforts, my Government will tap into the resources, ideas and collective goodwill of New Zealand communities. Honourable members. My Government is impatient to see Maori standing strong, economically independent and fulfilling the complete promise of their potential. For New Zealand to move forward as a nation, the settlement of historical Treaty grievances will be vitally important. My Government is committed to the expeditious completion of final, durable settlements of historical grievances. Accordingly it will devote fresh energy to this important area. This will be essential to reaching its medium-term goal of achieving just and durable settlement of all historical Treaty claims by 2014. In addition to these ongoing settlement negotiations, and in accordance with the confidence and supply agreement with the Maori Party, my Government will undertake a review of the Seabed and Foreshore legislation to ascertain whether it adequately maintains and enhances mana whenua. If repeal is necessary it will ensure there is appropriate protection in place to ensure all New Zealanders enjoy access to the foreshore and seabed, through existing and potentially new legislation. My Government's confidence and supply agreement with the Maori Party further sets out its intention to establish a group to consider constitutional issues including Maori representation. In addition to a consideration of these issues, it will give New Zealanders the chance to have their say on the Mixed Member Proportional representation system that has formed the basis of this country's parliamentary elections since 1996. This will take the form of a binding referendum, and if a majority of voters decide they want to consider other electoral systems, the new Government will offer them a choice of a range of systems to replace it. My Government will repeal the Electoral Finance Act. This reflects a concern on the part of my Government that this piece of legislation can be viewed as placing a yoke on free speech and thereby eroding the democratic principles that underpin our country. As an interim measure it will return to the Electoral Act 1993, with the parts of the Electoral Finance Act dealing with donations added in. It will then work across the Parliament to create durable and effective electoral law that enjoys the support of the New Zealand public. Honourable members. My Government will ensure that New Zealand exercises a free, independent foreign policy that reflects the best interests of New Zealand. It will have a bipartisan approach to foreign policy and it will be driven by a considered evaluation of New Zealand's evolving international interests. This will include an ongoing commitment to trade liberalization and the pursuit of bilateral, regional and world-wide free trade agreements. In the course of this Parliamentary term other matters, and other measures, will be laid before you. That is as it should be. While I do not seek to lay out all aspects of the new Government's proposals today, it has made it very clear that at all times strengthening the economy will be front and centre of its priorities. For it is this growth agenda upon which my Government's vision for New Zealand rests. It aspires to see New Zealanders becoming more prosperous, to see them taxed less and paid more. It wishes to see our people living in safer communities, and to ensure that they have access to world-class educational opportunities and improved health services. Without economic growth my Government's objectives will be compromised, with stronger economic growth, its objectives will be realized more fully. My Government will aim to raise New Zealander's sights, and encourage them to set their aspirations higher - for themselves and for their country. Honourable members. In going for growth my Government will be acutely conscious of the fact that it is in the interests of no New Zealanders, and to the detriment of us all, to allow an underclass to develop in New Zealand. It will take seriously its duty to protect our most vulnerable citizens. It will take seriously the importance of the obligations and ties we each, as citizens and as communities, have to each other. Most importantly, it will seek to give all New Zealanders the confidence that this is a country where you can get ahead - and that the State, through its agencies and through this Parliament, should reward rather than discourage effort. My Government views economic growth as the platform upon which a stronger New Zealand will be built. It views political leadership from this Parliament as essential to achieving that goal. But it is It is under no illusion about who the real builders of a stronger economic future will be. The true builders of that future are not sitting in this Chamber today. The true builders of that future are the millions of New Zealanders working in the homes, the businesses, the industries of our country. It is they who make this country strong. It is they who have placed their trust in us their Parliament. And it is they, our fellow New Zealanders, that my Government will ever seek to serve.

New Zealand

Honourable Members of the House of Representatives. It is my privilege to exercise the prerogative of Her Majesty the Queen and open the 50th Parliament. Following the General Election in November, negotiations between political parties have resulted in the formation of a National-led Government with a majority in the House on confidence and supply. Confidence and supply agreements have been signed between the National Party and, respectively, the ACT Party, the Maori Party, and the United Future Party. These agreements will enable the Government to operate in an effective, stable and inclusive manner. Beyond these agreements, my Government anticipates co-operating with other parties in Parliament on issues of mutual interest. Honourable Members. The driving goal of my Government is to build a more competitive and internationally-focused economy with less debt, more jobs and higher incomes. A strong economy in turn provides the resources necessary to protect the vulnerable in society, maintain the rule of law, provide high-quality public services, look after the environment, and provide opportunities for young people. Good progress has been made already, despite some very testing times. New Zealand has experienced three challenging years, including a major recession, the worst global financial crisis since the Great Depression, and a devastating series of earthquakes that destroyed whole parts of Christchurch. But in the worst of times we have seen the best of New Zealanders, as they have risen to these challenges. The economy is recovering, having grown in eight of the past nine quarters, and 63,000 more people are employed now compared to two years ago. This recovery is forecast to continue. Looking forward, the biggest risk to the New Zealand economy is from the European debt crisis. The outcome of this crisis is uncertain and, as a result, the economic outlook for the whole world has deteriorated. However, New Zealand is in a relatively good position to deal with any fall-out in the near term, and my Government is firmly focused on improving New Zealand’s longer-term productivity and competitiveness. Honourable Members. My Government has a comprehensive policy agenda, and a substantial legislative programme that it intends to put before the House in the forthcoming session. My Government intends to return to an operating surplus in the 2014/15 financial year and start to reduce net core Crown debt as a proportion of GDP. This will be achieved through tight fiscal discipline, including new operating allowances of only $800 million in each of the next two Budgets. As agreed with the ACT Party, legislation will be introduced to limit the growth in core Crown operating spending, with some adjustments, to a rate no faster than the combination of population growth and inflation. Once in surplus, a KiwiSaver auto-enrolment exercise will be initiated. My Government will maintain a new, lower cap on the number of staff in core government administration. It will be focused on achieving results, seeking new and better ways to deliver public services, and continuing to contain and reduce costs. Particular attention will be paid to the recommendations of the Better Public Services Advisory Group. My Government will extend the mixed ownership model, under which Air New Zealand currently operates, to four State-owned enterprises – Meridian Energy, Mighty River Power, Genesis Power and Solid Energy – and will reduce its stake in Air New Zealand. In each case, the Crown will retain at least 51 per cent of the company, and New Zealanders will be at the front of the queue for shares. Proceeds from extending the mixed ownership model will go into a new fund – the Future Investment Fund – to pay for capital projects that help grow the economy and improve public services. As agreed with the United Future Party, legislation will be introduced to limit any sale of public assets – that is, of State-owned enterprises and Air New Zealand – to no more than 49 per cent of the shares in the company, together with a limit on ownership by a single entity. Honourable Members. My Government believes in a more active welfare system which supports people who can work, back into work, and does not trap them in a life of limited income and limited choices. Legislation will be introduced to reform the current system of benefits. New benefit categories will be created, and a greater proportion of beneficiaries will be required to make themselves available for work. Changes will also be made to clamp down on beneficiaries whose recreational use of drugs affects their ability to work, and those who commit benefit fraud. As agreed with the Maori Party, a separate appropriation and governance structure will be established for Whanau Ora. The Government will introduce changes to support disengaged young people back into education or training. It will also have a more hands-on approach with 16- and 17-year-old beneficiaries, and with 18-year-old teen parents, including wrap-around support from third parties, and an expectation that they will be in some form of education or training. As agreed with the Maori Party, a Ministerial committee on poverty will be established to improve the co-ordination of government activity in alleviating the effects of poverty. Honourable Members. My Government believes that high-quality education is vitally important. It provides the opportunity for children from all backgrounds to make the most of their lives, and is an essential requirement for a skilled and productive workforce. The Government’s focus will be squarely on raising achievement, in particular for those groups of students who have historically underperformed. The Government will work to lift participation rates in early childhood education, with a target of 98 per cent of new entrants in school having previously attended an early childhood centre. Performance measurement and accountability in schools will be strengthened. In addition, the Government will work to improve the quality of initial teacher education, introduce more effective appraisals of teachers and principals, and reform and strengthen the Teachers Council. $1 billion from the Future Investment Fund will be invested over the next five years to build new schools and modernise existing buildings, including with new, 21st Century teaching spaces. It will be easier for schools to employ trades specialists to deliver courses, and to set up trades or service academies. As agreed with the ACT Party, the Government will allow for the formation of charter schools in areas where educational underachievement is most entrenched. Tertiary education providers will be funded in a way that takes into account their performance against indicators of achievement. It will continue to drive better value for taxpayers from the interest-free student loan scheme, including an expanded campaign to recover overdue debt from borrowers living overseas. Honourable Members. My Government believes that a competitive economy, trading successfully with the world, is the best way to build sustainable economic growth that creates jobs and grows incomes. The Government will restructure and expand Industrial Research Ltd into an advanced technology institute to work alongside the high-tech manufacturing and services sector. It will also invest in a series of national science challenges, in areas where science can address some of the most important longer-term challenges to New Zealand’s development. The Government will continue its programme of investment in modern infrastructure. On current forecasts, $12 billion will be invested over the next 10 years in new State highways. The most immediate priorities will be the construction of the Waterview Connection and the completion of Auckland’s Western Ring Route. KiwiRail’s Turnaround Plan will continue to be supported and there will be an investigation into the use of Clifford Bay as a new sea freight terminal. Ultra-fast broadband and the Rural Broadband Initiative will continue to be rolled out. A Crown-owned company will be established to invest in irrigation and water storage, drawing on the Future Investment Fund. The Government has set aside $5.5 billion in the Canterbury Earthquake Recovery Fund to pay for its share of rebuilding essential local infrastructure in Christchurch and its surrounds. It will provide certainty to affected homeowners in Canterbury by finishing the red zone classification process. It will continue to release land for residential subdivision and ensure there is an adequate supply of land to rebuild on. My Government will allow for choice in accident insurance covered through the Work Account, including an expansion of the Accredited Employer Scheme. It will consider the feasibility of introducing choice into accident insurance covered through the Motor Vehicle Account and the Earners’ Account. Legislation will be introduced to implement a new “starting-out wage”, set at 80 per cent of the adult minimum wage, to ensure young people are not priced out of the job market. Legislation will also be introduced to extend flexible working arrangements and to improve collective bargaining. The Government will progress legislation to overhaul securities law and to criminalise anti-competitive behaviour. It will introduce tougher consumer credit legislation to target loan sharks and protect consumers. Honourable Members. My Government believes that balanced and sensible management of our resources will protect the environment while promoting stronger economic growth. The Government will continue to advance the Fresh Start for Fresh Water programme, and will introduce new environmental reporting systems. Legislation will be introduced to set a six-month time limit for the consenting of medium-sized projects, and to improve the Resource Management Act as part of the second phase of reforms. As agreed with the ACT Party, legislation will be introduced to ensure there is only one resource management plan in each district. The Government will also introduce legislation to amend the Emissions Trading Scheme. This will include moving to full obligation in three equal steps for the energy, transport and industrial sectors. It will also introduce offsetting for pre-1990 forest land owners to enable greater flexibility of land use. My Government will encourage oil and gas exploration with a competitive new system for processing permits. It will also progress legislation to better manage the environmental effects of activities in New Zealand’s Exclusive Economic Zone, and will introduce legislation to reflect the updated Liability for Maritime Claims Protocol. As agreed with the United Future Party, legislation will be introduced to stop helicopter hunting on the conservation estate involving the shooting of game animals from helicopters and the herding and hazing of game animals as part of the hunt. The Game Animal Council Bill will be progressed. Honourable Members. My Government will continue to maintain an independent and bipartisan foreign policy. It will further focus New Zealand’s aid efforts on the Pacific, and will campaign to win New Zealand a seat on the United Nations Security Council for a two-year term starting in 2015. The Defence White Paper and Capability Plan initiatives will be implemented, and legislation will be introduced to ensure the three services of the Defence Force are able to work together more effectively. The Government will continue to pursue high-quality trade agreements, ensuring as it does that New Zealand’s best interests are always served. There will be a comprehensive programme of Government-led trade delegations to China, India, and the Association of Southeast Asian Nations. Honourable Members. My Government will continue to deliver high-quality public services. It will work with local primary care networks throughout the country to provide free after-hours general practitioner visits to children under six. A comprehensive after-hours telephone health advice service will be developed. The Government’s target is that 95 per cent of all eight-month-old children will be fully immunised with three scheduled vaccinations. It will also roll out a nation-wide rheumatic fever programme targeting vulnerable communities. Alcohol and drug treatment services for young people will be expanded, as will specialist mental health services for young offenders. The Voluntary Bonding Scheme will be extended. More people will get elective surgery, and waiting times will be reduced for cancer treatment, first specialist appointments, diagnostic tests, elective surgery, and for people waiting in emergency departments. As agreed with the Maori Party, further work will be done on plain packaging and other anti-smoking initiatives. My Government will continue to ensure that State houses are located in the areas of greatest need, and are going to families who need them most, for the duration of their need. It will work to increase the supply of social housing, including progressing options for iwi housing providers. The current home insulation and clean heating programme will continue, with a specific focus on low-income households, as agreed with the Maori Party. Every State house built before 1978 that can be insulated, will be insulated. My Government will introduce legislation to strengthen sentencing, parole and bail laws. It will be harder for those accused of the most serious offences to get bail, the penalties for child pornography will be increased, and Civil Detention Orders will be introduced. The Search and Surveillance Bill will be progressed, as will the Victims of Crime Reform Bill. The penalties for breaching a protection order will be doubled, and funding will be available for security improvements in the homes of family violence victims. My Government will continue to progress the review of constitutional arrangements. It will also continue to make the full and final settlement of historical Treaty of Waitangi claims a priority. Over the course of the forthcoming Parliamentary session, other measures will be laid before you. Honourable Members. The fact that this is the 50th Parliament gives us cause to celebrate. New Zealand can boast of an unbroken parliamentary democracy stretching back to the 1850s, and universal suffrage from 1893. My Government is privileged to have won the trust and good will of New Zealanders for a second Parliamentary term. It will seek to earn anew that trust and good will every day over the next three years.

New Zealand

Honourable Members of the House of Representatives. Following the General Election, a National-led Government has been formed with a majority in the House on confidence and supply. Confidence and supply agreements have been signed between the National Party and, respectively, the ACT Party and the United Future Party. A Relationship Accord and confidence and supply agreement has been signed with the Māori Party. These agreements will enable the Government to operate in an effective, stable and inclusive manner. Honourable Members, the Government has a comprehensive policy agenda and a substantial legislative programme that it will put before the House in the forthcoming session. The Government is focused on returning to surplus and its long-term fiscal objective remains to reduce net core Crown debt to 20 per cent of GDP by 2020. Around $1 billion of the operating allowance in each Budget will be used to increase spending, with the remainder set aside for tax reductions and further debt repayment, depending on economic and fiscal conditions at the time. ACC levies will be reduced in 2015, and more reductions are expected from 2016, as the three levy accounts are now fully funded. The Government’s plan to build a more productive and competitive economy, supporting more jobs and higher incomes, is set out in the Business Growth Agenda. This contains around 350 individual initiatives. These initiatives will be progressed, and more will be added, in this term of Parliament. The Government will continue to pursue high-quality trade agreements, including negotiations with Korea and the Trans-Pacific Partnership, while ensuring that New Zealand’s best interests are always served. More investment will be made in New Zealand Trade and Enterprise, to expand the number of businesses it works with and increase its international footprint. The Government will continue to provide the environment and incentives to increase business-led research and development, with a goal of raising this to 1 per cent of GDP by 2018. More funding will be provided for the R&D grant programme. The Government will also establish a Food Safety Science and Research Centre, as well as four additional Centres of Research Excellence, with one of the Centres focused on Maori research. The Government will progress legislation to increase flexibility and fairness in the labour market, extend flexible working arrangements and improve collective bargaining. The enforcement of New Zealand’s minimum employment standards will be strengthened, and paid parental leave extended from 14 weeks to 18 weeks by 2016. Legislation to improve health and safety at work will be progressed. The Government will complete the implementation of the Financial Markets Conduct Act, and will progress legislation to strengthen competition laws, and improve the accounting and audit industries. The overhaul of Inland Revenue’s business systems and information technology will continue, which among other things will make tax compliance faster and easier for businesses. Net migration to Australia has dropped considerably and the unemployment rate in New Zealand is lower than that across the Tasman. The Government will arrange job fairs for New Zealand employers in Sydney, Melbourne and Brisbane, to recruit skilled expatriate New Zealanders to return home and work in areas where there are shortages. Job fairs will complement the Government’s skills training programme here in New Zealand, which involves strengthening and improving foundation learning, vocational training and tertiary education. Additional investment will be made this term in training more engineers, creating 2,000 more places in Maori and Pasifika Trades Training, and launching three ICT Graduate Schools. The Government will continue its programme of investment in modern infrastructure. In this term of Parliament, a number of projects in the Roads of National Significance programme will be completed, including the Waterview Tunnel, the Tauranga Eastern Link and the Mackays to Peka Peka route north of Wellington. The Government will progress the remainder of the Roads of National Significance programme, together with a package of state highway projects in Auckland and across the regions. New funding will be allocated for urban cycleways. The Ultra-Fast Broadband programme will be extended to reach 80 per cent of New Zealanders. In addition, $150 million will be set aside to improve mobile coverage and broadband connectivity in rural and remote areas. Honourable Members, the Government believes that balanced and sensible management of our natural resources can meet environmental responsibilities while creating economic opportunities. The Government will continue to encourage petroleum and mineral exploration while adhering to strong environmental and safety provisions. This approach includes investment in new data acquisition projects such as aeromagnetic surveys and petroleum basin analysis. Investment in regional water infrastructure will continue, to help these projects get underway. New water storage and irrigation projects can make land more productive and boost exports, while at the same time providing positive environmental outcomes. The Government is committed to improving water quality and the way fresh water is managed. Water reform will continue through advancing the recommendations of the Land and Water Forum. The Government will also introduce a requirement for dairy cattle to be excluded from waterways by 1 July 2017. Coupled with this, the Government has set aside $100 million to voluntarily buy and retire areas of selected farmland next to important waterways to create an environmental buffer. Legislation will be introduced to amend the Resource Management Act to provide more certainty, timeliness and cost-effectiveness around resource allocation decisions. The Environmental Reporting Bill will also be progressed. The Government will introduce legislation to improve the responsible use, management and conservation of New Zealand’s ocean environment. This legislation will allow for a wider range of marine protected areas, including recreational fishing parks in the Hauraki Gulf and Marlborough Sounds. The Government will work with international partners to put in place a comprehensive new global agreement on climate change by the end of 2015. It will also continue to participate in international research programmes, with particular emphasis on the Global Research Alliance on agricultural greenhouse gases. The Government will invest additional funding to encourage and support new forest planting, and will continue to focus on managing New Zealand’s emissions. Honourable Members, the Government will continue to deliver high-quality public services. It will remain focused on getting results, seeking new and better ways to deliver public services, and continuing to contain and reduce costs. The Government has 10 priority goals and targets in the areas of long-term welfare dependency, supporting vulnerable children, boosting skills and employment, reducing crime and improving interaction with government. Good progress is being made on these targets, and two of them – in the areas of crime reduction and educational achievement – will be made more challenging. The Government is committed to helping more people get off a benefit and into work. It will work to reduce the number of people receiving a benefit and reduce the lifetime costs of the welfare system. Legislation will be introduced to extend the Youth Service approach to 19-year-old sole parents, and to many other 18- and 19-year-old beneficiaries who need more support, or who are at risk of long-term welfare dependence. As agreed with the Māori Party, ongoing investment will be made in Whānau Ora. The Government will continue to have a focus on poverty, especially child poverty, and will coordinate cross-government activity in this area through the Ministerial Committee on Poverty. The Government will also have a focus on housing in this Parliamentary term. More special housing areas will be created – and therefore more new housing developed – as a result of Housing Accords signed between the Government and local councils. Changes to the Resource Management Act will assist housing supply in the longer term. The new KiwiSaver HomeStart Grant will be introduced next year to double the support a first home buyer can get if they are buying or building a new home, which will encourage the supply of more affordable new housing. House price limits around the country will be increased. Legislation will also be introduced to allow first home buyers to withdraw their KiwiSaver member tax credit to put towards a deposit. The Government’s extended home insulation scheme will make another 46,000 low-income households warmer and healthier. The Government will continue working to ensure that vulnerable New Zealanders have access to good quality housing, whether those houses are owned by Housing New Zealand or by community housing providers. The Government sees community housing providers playing a greater role in the provision of social housing over this term of Parliament. The Government will extend free doctor’s visits and prescriptions to children under 13. More will be invested in lifting the number of elective surgical procedures, particularly hip and knee operations, and in creating new, primary care multi-disciplinary teams to help people in pain from bone, muscle and joint conditions. A new cancer treatment target will be introduced, for 90 per cent of patients to receive their first cancer treatment within 62 days of being referred by their GP. And the Government will invest extra funding to allow hospices to expand their care and services across the wider health system. As agreed with the United Future Party, the implementation of the National Medicines Strategy will continue, including the enhanced role of pharmacists in medicines management and primary care. The Government will extend the Enabling Good Lives approach so that disabled people have more choices, controls and flexibility over support and funding in their everyday lives. The Government will this term implement its initiative to raise teaching quality and school leadership to deliver a better education to every student. This will keep the best teachers in the classroom, and establish new teaching and leadership roles to spread best practice across communities of schools. The Government will also provide more in-class support to special needs students, by funding up to 800,000 more teacher aide hours each year. More funding will be supplied to support deaf and hearing-impaired children, and a contestable fund will be established for schools to establish or enhance Asian language programmes. The Government will continue its work to lift participation rates in early childhood education, with a target of 98 per cent of new entrants in school having previously attended an early childhood centre. The Government also has a target of 85 per cent of 18-year-olds achieving a minimum of NCEA Level 2. Significant investment will be made in new schools and classrooms, including major projects in Auckland and Christchurch. As agreed with the ACT Party, the Government will further develop the model, and expand the trial, of Partnership Schools to improve educational outcomes for disadvantaged students. The Government will continue to focus on crime prevention. The crime rate is at a 35-year low, and violent crime, youth crime and re-offending are all declining. Across law and order agencies, a stronger response will be developed to prevent family violence, including a focus on gangs and gang lifestyles. The Government will progress legislation to address cyber-bulling, organised crime and online child abuse. It will progress the Parole Amendment Bill, introduce a Public Protection Order Bill, and intends to progress reform of the Privacy Act. Every publicly managed prison will be made a working prison by 2017, so prisoners can take part in a 40-hour week of rehabilitation and reintegration activities. Specialist after-care will be delivered for those released or paroled prisoners who have undertaken a drug treatment programme while in prison. Honourable Members, the Government recognises that Māori face unique opportunities and challenges in maximising their economic potential. This is reflected in the creation of a new ministerial portfolio of Maori Development. Reforms to Te Ture Whenua Māori Act will be progressed, so Maori land can be governed effectively and profitably for all its owners. The Government will also continue to resolve outstanding Treaty of Waitangi settlements, and intends for all willing iwi to have deeds of settlement by 2017. Starting next year, New Zealand will take its place on the United Nations Security Council for a two-year term. This will be a challenging time for the Security Council and New Zealand is determined to make a positive contribution and in particular to represent the perspective of small states. The Government is committed to a strong security and intelligence community which operates within a clear legal framework and with the security of New Zealanders at its heart. Under legislation passed last year, a review of the intelligence and security agencies, their legislation, and their oversight, will commence by 30 June 2015. The Government has already commenced work on a review of settings in relation to foreign terrorist fighters taking part in, or returning from, conflict zones. The rapid rise of the Islamic State of Iraq and Levant poses international, regional and local risks which the Government will respond to in a responsible way. As has been well-signalled, the Government will put a possible change of New Zealand’s flag to a public vote this term. There will be no presumption of change, but there will be a very open process which will welcome and encourage full public input and debate. Honourable Members, the Government is continuing to stand beside the people of Canterbury as good progress is made on the earthquake rebuild. The rebuild will continue to occupy a great deal of Government attention in this term of Parliament. Big strides will be made this term on anchor projects and horizontal infrastructure. Next year, the Canterbury Earthquake Recovery Authority will be brought into the Department of Prime Minister and Cabinet, and a transition plan developed to hand over CERA’s responsibilities and powers in an orderly way. Honourable Members, over the course of the forthcoming Parliamentary session, other measures will be laid before you. The Government is privileged to have won the trust and goodwill of New Zealanders for a third Parliamentary term, and will seek to re-earn that trust and goodwill every day over the next three years.

New Zealand

Honourable Members of the House of Representatives. It is my privilege to exercise the prerogative of Her Majesty the Queen and open the 53rd Parliament. In the October election, New Zealanders elected a majority Government for the first time under our Mixed Member Proportional electoral system. The Government not only enjoys the confidence of a clear majority of members in the House of Representatives, it is also privileged to have the confidence of a majority of New Zealanders who voted in the general election. The Labour Government took Office when I swore in the Prime Minister the Right Honourable Jacinda Ardern. New Zealanders voted for stability and certainty at the election. They have placed huge trust and responsibility in the Labour Government by providing it with a majority mandate to implement the policies it set out during the campaign, while responding to the issues that will inevitably arise, and bringing to bear the same values and strong leadership established in its first term. To add further stability to the New Zealand Government, the Labour Party has agreed to work together with the Green Party of Aotearoa New Zealand through a Cooperation Agreement. This agreement commits the Government to working in the best interests of New Zealand and New Zealanders, working to honour Te Tiriti o Waitangi, and working together on specific policy areas where the Green Party can continue to add expertise and where both parties can achieve mutual gains that advance the goals of the Government. The Labour Government takes office at a time of unparalleled international crisis. It faces the greatest public health emergency since the global flu pandemic a century ago. The ensuing economic shock represents the largest global downturn since the Great Depression. The health risk posed by the pandemic is greater now than it was when we first closed our borders. The global economic outlook continues to worsen. New Zealand will not be immune to these deteriorating conditions. In this year of crisis, protecting New Zealand and the lives and livelihoods of New Zealanders has been the urgent and abiding consideration. It remains so. But that does not mark the full extent of what a government can do, and it does not mark the full extent of what this government means to do. Crises do not form an orderly line waiting to be addressed. Three of the country’s longest-standing and hardest issues demand continued and determined action: affordable housing and homelessness, child poverty, and the global climate crisis. On each of these areas there is a need to do more and go further. Problems that are decades in the making are not easily or quickly solved. But this Government is committed to relentlessly pursuing progress. The government means to build on the foundations laid in the first term. New Zealand must continue to tackle these issues, at gathering scale, at gathering speed, and with gathering effect. The Labour Government will have three overarching objectives: • To keep New Zealanders safe from COVID-19 • To accelerate our economic recovery • To lay the foundations for a better future The scale and pace of the recovery offers an opportunity to reshape the way things are done in New Zealand, to innovate and improve our position and our economy. New Zealand’s success in fighting the virus means we are better positioned for recovery than many other countries. Already we have seen employment, export and growth numbers that are better than expected. The programme outlined today seeks to make the most of our head start. Keeping New Zealanders Safe from COVID-19 The first objective of the Government will be to keep New Zealanders safe from COVID. In keeping New Zealanders safe, we protect jobs, livelihoods, and strengthen our economy. A strong health response has given the New Zealand economy the best chance at coming back stronger. The Government remains committed to a strategy of elimination, but will always remain open to evolving ways of achieving it. No system is perfect. That is why we look to continually improve. As we learn more about the virus and other countries’ experiences, and as new technologies are developed, there will be opportunities to improve our response. Our response has never been static and we will continue to innovate and learn. The Government will retain and enhance the multiple lines of defence to keep COVID at bay and stamp it out with minimal disruption to the economy and to our everyday lives. The first layer of defence is our border. With COVID cases increasing around the world, in a growing number of countries, the risk of travelers arriving at the border with COVID increases. The Government will continue to strengthen border protections. Testing, infection control procedures, and professional and quality staffing will remain cornerstones of the response. For those countries where the virus is successfully managed, the Government will look for opportunities for freer travel. Planning for quarantine free travel zones is currently underway with the Cook Islands, Niue and Australia. We will look to continue to advance these opportunities, but with safety as our priority. We will continue to welcome New Zealanders home. We will also create opportunities for businesses to access the skills they need. The Government will ensure that up to 10 percent of places in our managed isolation facilities are used by people granted exceptions to enter New Zealand to contribute to accelerating our recovery. The Government will continue to enhance the next layer of defence, our contact tracing and testing systems, to ensure in the event of cases entering the community it can quickly circle the virus and stamp it out. This will involve investment in ongoing technical enhancements to the COVID Tracer App and looking for ways to increase the use of technology. We have expanded the surveillance testing programme to provide extra protection against pathways for infection. This term we will look for opportunities to take advantage of developments in technology to expand the reach of our early warning system. Finally, the Government is working to deliver effective and free vaccines to New Zealanders as soon as they are available and safe to administer. Recent news of the progress in vaccine development is welcome and a bright spot on the horizon. This will be a central focus for the Government next year. The Government is working hard to secure supply for New Zealand and to design an immunisation programme to support distribution in New Zealand. New Zealand also has an important role in supporting Pacific countries with access to a COVID-19 vaccine and their rollout of their immunisation programmes. New Zealand's obligations to the Pacific are a core part of the Vaccine Strategy. We are hopeful that 2021 will be the year of the COVID vaccine. Accelerating the Recovery The Government’s COVID recovery plan is already underway. It will now be accelerated as the plans for recovery set out in Labour’s election manifesto are implemented. The New Zealand economy has held up better than expected. Aggressive action to eliminate the virus; strong and early efforts to save jobs and support businesses; and innovative and nimble responses from our businesses have positioned the economy well. But the global picture is bleak. The ongoing impact of COVID on the global economy is the most significant risk to our future growth. The virus’ spread abroad will have a downstream impact on our exporters and impact economic activity domestically. New Zealand will be cushioned from that slump by the Government’s five point economic plan to foster jobs and growth: • $42 billion of infrastructure investment to future proof the economy • Training and job creation opportunities to support workers and businesses • Support for small business to grow and thrive • Programmes to bolster our exports • And policies that prepare New Zealand for the future by making the most of our competitive advantage in renewable energy and waste reduction. Investing in infrastructure is at the core of the Government’s economic plan. As we begin this term, we already have a record $42.2 billion on the books for infrastructure investment over the next four years in roads and rail, schools and hospitals, houses and energy generation. Waka Kotahi NZ Transport Agency will receive $9.6 billion to invest in new roads and public transport projects that reduce congestion and travel times, support businesses, open up new areas for housing, and increase choice, including safer options for walking and cycling. $3.8 billion is being spent on education facilities, including building new schools and classrooms for 100,000 students and starting the planned upgrade of around 180 schools right across the country over the next 10 years. $3.6 billion has been committed to health, including new hospital facilities in Dunedin, Christchurch, New Plymouth, Auckland and Counties Manukau. Kainga Ora will invest $9.8 billion across the next four years and the Government is on track to deliver a total of 18,000 public and transitional homes. The Three Waters programme will see a $710 million investment to initiate an overhaul of the nation’s drinking, waste and stormwater infrastructure. These investments in housing, transport, schools and hospitals will help future proof our economy as well as create jobs. It also provides a pipeline of work that will provide businesses with confidence and certainty to invest in capacity to undertake these projects. In addition, over 150 smaller community infrastructure projects will roll out over the coming months and across the term. The Government will invest in community projects like pools and stadiums, local fire stations and surf clubs, and libraries, art galleries, marae and museums –facilities across the country that bring people together to provide support and strengthen communities. Improving our planning system is also a priority. It will create jobs by making it easier to deliver construction projects while protecting our environment and building the right thing in the right place. The current system is too costly, takes too long, and has not adequately protected the environment. The Government will ensure that New Zealand’s resource management system is fit for the future by repealing and replacing the Resource Management Act. The Randerson review provides a sound platform for the Government to advance this work. In the first six months of 2021 the Government intends to release an exposure draft of key elements of the first bill. Also vital to the recovery is our investment in trades training and apprenticeships. Education is the greatest enabler in our society and one of the biggest levers we can use to improve the productivity of the economy. In the early stages of our COVID response the Government focused heavily on growing training and apprenticeships. It launched a comprehensive support package for apprentices and their employers, assuring job security for existing apprentices and creating openings for new ones. Already thousands of New Zealanders have embraced the opportunity to take up a trade and train for free. These New Zealanders are acquiring new skills and exciting prospects, and at the same time addressing the need to build the workforce that will be required to carry the vast workload of the coming infrastructure projects. The Government will also complete the reform of the vocational education system. As the country rebuilds and more people are looking to retrain, it’s now more important than ever that we have a vocational education system that’s responsive to the needs of industry and learners. The Government recognises the need to welcome skilled people from overseas to support New Zealand’s economy, and will work alongside industry to help provide for that but it will, as a priority and a starting point, seek to develop New Zealand workforces to meet those skills needed here at home. With many New Zealanders looking for work, we need to do all we can to fill existing job opportunities. While unemployment is lower than expected, the economic fallout has had an impact. The Government will remain focused on creating opportunities for people to get back into work. History shows that significant economic events have a disproportionate impact on women, Māori and Pacific communities, and our focus will ensure our recovery responds to that. The Government will reinstate the Training Incentive Allowance to assist sole-parents, disabled people and their carers with the costs of getting a degree level tertiary qualification. It will continue the successful Mana in Mahi and He Poutama Rangatahi programmes which are providing skills and qualifications to unemployed young people. It will also continue to rollout Tupu Aotearoa's expansion across the regions and provide wraparound support for Pacific communities to secure sustainable employment and educational pathways for Pacific peoples of all ages. The government will lift abatement thresholds to ensure that people are not punished by transitioning from a benefit to paid work. It will also support those at risk of long-term unemployment through funding up to an additional 40,000 New Zealanders into work through the Flexi-wage programme. As well as creating jobs, the Government will remain focused on growing the incomes and wages of New Zealanders, especially those earning the least. It will increase the minimum wage to $20 per hour next year, extend Living Wage guarantees to cleaning, catering and security guards who the public service pays through contractors, implement Fair Pay Agreements to set minimum standards for pay and conditions, and extend sick leave provisions. The Government will leverage our successful COVID response to position New Zealand globally as a safe and secure place to trade with, to invest in, and eventually, to visit again. The Government will pursue high quality and comprehensive trade agreements that diversify our trade relationships. It will continue to open new opportunities, including through trade deals with the EU and the UK, and the Agreement on Climate Change, Trade, and Sustainability; and by expanding the CPTPP and the Digital Economic Partnership Agreement. The Government will continue to progress our trade relationship with the United States, including into new areas such as digital and green technology. An important milestone has been accomplished with the conclusion of the China FTA Upgrade, which will provide access into new services markets in China, including e-commerce. The New Zealand Government will continue to support New Zealand exporters doing business with China. The Pacific regional trade and development agreement PACER Plus will enter into force in December this year. The agreement positions Pacific countries to better engage in international trade. It will make trade easier, will grow jobs, boost sustainable economic growth and contribute to a safer and more prosperous Pacific. In the Indo-Pacific region, the Government will work to implement the signing of RCEP; and through chairing APEC in 2021, New Zealand will lead on the world stage to drive initiatives for strong regional economic recovery. The Government will work with industry through Industry Transformation Plans to support the transition and grow high-value export firms. It will continue its investment in innovation, including through the research and development tax credit programme. It will work to implement the primary sector roadmap Fit For a Better World to accelerate the productivity, sustainability and inclusiveness of the primary sector. It will work to support our tourism sector in its transition to a sustainable, low carbon, high skill and high wage industry. It will expand the Innovative Partnerships programme and New Zealand Trade and Enterprise’s dedicated international investment attraction team to attract companies to invest and establish in New Zealand. Small businesses are at the heart of New Zealand’s economy and the recovery. The Government will continue to support small businesses with practical support. That will include tackling barriers to innovation and growth as identified by the Small Business Council’s Small Business Strategy. The Government has already extended the Small Business Cashflow Scheme for a further three years and extended the interest-free period for another year, and will investigate permanent financing for smaller businesses. The Government will regulate Merchant Service Fees to reduce costs on retailers, and will support small businesses to digitise through digital training or short-courses as part of a new Digital Training programme. The new Minister for the Digital Economy and Communications will work with the technology sector, including through the Digital Technologies Industry Transformation Plan, to help speed growth in jobs and incomes in that important sector. New Zealand’s COVID-19 recovery provides an opportunity to reshape our economy and prepare for the future through investment in energy and waste projects. The Government is committed to the shift away from fossil fuels in order to build a new low-carbon future. It is a shift that will create jobs, improve the environment, and enhance New Zealand’s global brand which our exporters trade on. This term the Government will lay the foundation for the electrification of New Zealand’s economy by bringing forward our 100% renewable electricity target to 2030, prohibit the building of new thermal baseload electricity, investigate dry year storage options such as pumped hydro, and invest in emerging technologies like green hydrogen. It will remove barriers to renewable energy generation through a National Policy Statement and also investigate regulatory or market barriers to the uptake of solar micro-generation on residential and commercial buildings. The Government will invest in electrifying and decarbonising industrial and process heat, including by preventing the installation of new low and medium temperature coal-fired boilers, and supporting businesses to replace fossil fuels in industrial heat processes by connecting to the grid. The Government will implement the recommendations of the Prime Minister’s Chief Science Advisor by phasing out hard to recycle single-use plastic items and supporting the development of alternatives through a Plastics Innovation Fund. It will also invest in waste infrastructure and projects to enable more efficient recycling, and work with industries to establish regulated product stewardship schemes for priority products. This economic plan is underpinned by continued responsible management of the Government books. As a consequence of the wider economic outlook and fiscal constraints, it is more important than ever to ensure a balanced approach. This requires investing in our priorities while ensuring that all Government spending decisions are made with particular consideration for the sustainability of the Crown’s long-term fiscal position. The Government will continue to ensure vital public services are supported, while keeping a lid on debt. Investments to accelerate the recovery will be prioritised. Ensuring our health and education systems continue to be supported will also be a priority. This will include implementing the Government response to the Health and Disability System review. The efforts of many hardworking and committed health professionals and the health of New Zealanders are hampered by a system that needs fundamental reform. Initial decisions on policy will be taken in 2021. Laying the foundations for a better future The Government has marked out the need and importance of taking a broader view of success. Wellbeing will continue to be a priority for Government this term with a focus on reducing child poverty, tackling climate change, and addressing housing. New Zealand’s response to COVID would be insufficient if it were to simply return us to the way we were before the virus. Recovering and rebuilding entails determined and connected action by government. That action can, and will, be used to reshape the economy to be more productive, more sustainable, and more equitable. Over the next term it will place a particular focus on sustainability, and pursuing carbon neutrality. The Government will respond to the first set of Climate Budgets recommended by the Climate Commission, which will set the total emissions permitted for the next fifteen years. The Government will take steps to decarbonise the transport fleet. It will introduce vehicle emissions standards for imported vehicles and incentivise and accelerate the uptake of electric and other low emission vehicles, including by increasing the Low Emissions Vehicles Contestable Fund. In line with the direction set out in the latest Government Policy Statement, it will prioritise investment in public transport, walking and cycling so users have a more accessible, affordable and reliable service, and implement region-specific plans to increase the number of people using public transport and walking and cycling. Supporting the use of public transport is a key element to reducing New Zealand’s transport emissions. Given the importance of public transport to New Zealand’s future transport system, it will require only zero emissions buses to be purchased by 2025, and aim to decarbonise the public transport bus fleet by 2035. New Zealand’s farmers and growers are creative, innovative and constantly looking to improve their practices. They are taking steps to improve freshwater quality, protect biodiversity and reduce emissions. This will create real value for our exports and is a core part of our New Zealand brand. The Government will bolster these efforts through increased investment in world leading research that helps us reduce emissions and will support farmers to use integrated farm plans to simplify processes, reduce compliance costs and meet reporting requirements in a coherent way. The economic impact of COVID will have a disproportionate effect on those least equipped to deal with it. That will require a continued focus and determination in reducing inequality and addressing child poverty. Progress has been made, but there remains much to do. The Government will continue the work from last term that has already seen improvements to the weekly income of around 85,000 sole parents by an average of $100 a week. The Government will continue the overhaul of the welfare system, building on the changes already made, including the indexing of benefits to increases in the average wage. It will extend the Free and Healthy Lunch programme to cover 200,000 students and will add 20 more mobile dental clinics to improve access for children and young people to free oral health care. It will roll out mental health support to all primary and intermediate school age students, and continue to roll out nurses in secondary schools. It will continue to tackle the prevalence of rheumatic fever by expanding the Healthy Homes Initiative to every DHB around the country to ensure more homes are warm, dry and safe. A focus on housing will be a priority for this Government. Earlier in the year house prices were predicted to fall. Instead they have increased. Globally, low interest rates are having a similar effect. And the situation has rapidly evolved. While it is pleasing to see that efforts to stimulate the economy and support jobs and growth in the wider economy have been effective, the perverse impact on housing affordability will require the Government to continue its focus on this issue. The Government has set out the parameters of what it is prepared to consider during the election campaign. This will not change. But there is room to do more to support both the supply and demand side of housing to see outcomes that are more productive and fair. The Government will review its housing settings with a view to implementing policies that improve access to the housing market for first home buyers. The Government will continue to focus on homelessness and implementing the Homelessness Action Plan. The Government will review and enhance the Tenancy Tribunal, Tenancy Services’ Compliance and Investigations team, regulate property managers, and increase funding to proactively monitor compliance with the Healthy Homes Standards. In each of these areas, climate, child poverty, and housing, the Government will be guided by its values, and by its commitment to the wellbeing of people, looking beyond GDP to find our measure of success. As part of this focus on wellbeing and creating a fairer New Zealand we will continue to strengthen social inclusion in New Zealand. This is about supporting our diversity and creating a New Zealand where all people feel safe, have equal access to opportunities and do not experience discrimination. This is important as we prepare to receive and respond to the report of the Royal Commission of Inquiry into the Terrorist Attack on Christchurch Mosques on 15 March 2019. Wellbeing might not be as readily reckoned as GDP, but that does not mean it cannot be measured and tracked. Imbalances and deprivation can be recognised and remedied and this Government is determined to do so. Significant levels of government investment in a time of crisis can be a powerful tool for change and it’s a tool that is being used. The way we choose to govern is also a tool for change. Māori-Crown relations The Government will strengthen the Māori-Crown relationship to ensure that the Crown can grow to be a better Treaty Partner and work in true partnership with Māori. It will continue to work to settle historic Treaty of Waitangi claims. It recognises the importance of te reo Māori as a taonga and the responsibility it has to protect it. Te Ao Māori plays a large part not just in defining who we are as a nation, but in setting us apart from the rest of the world. As such the Government will make Matariki a public holiday, creating a holiday that distinctly recognises and celebrates Te Ao Māori. The Government will ensure Oranga Tamariki partners with iwi, hapū, and Māori organisations to find appropriate solutions for children in need, and will strengthen Māori housing outcomes through collaborative partnerships, home-ownership models, and papakāinga provision. It will support Whānau Māori enterprise and opportunities through a progressive procurement policy. It will continue to invest in Whānau Ora and support other agencies to implement the Whānau Ora model to get better outcomes for Māori, continue whānau-centred pathways to break the cycle of Māori reoffending, work with other Māori organisations like Te Kōhanga Reo, and look at ways we can expand the Whānau Ora model into communities. A Government for all New Zealanders New Zealand has entrusted the government with the responsibility of bringing the country through a crisis. Nothing in the programme set out today will come easily. But our opportunities and potential greatly outweigh our problems. In this pandemic we have shown our willingness and capacity to do what must be done. We have more freedoms, are a more open economy and have saved more lives than nearly every other country we normally compare ourselves to. We can rightfully be proud of our success to date as a nation, as a team. But we cannot afford to be complacent, nor stand still. We must keep going. It is the Government’s aim to achieve change alongside consensus. That is why it has committed to being a Government that will govern for all New Zealanders. That does not mean that it can or will represent the views of every New Zealander all of the time. But it does mean it will have a focus on the things that matter most. It means it will be listening to New Zealanders, being pragmatic, doing the things it said it would do and focusing on lasting change. We can recover and we will recover. But that is not enough. We can be better than we were. This government’s mission is to make it so.

New Zealand

After Her Excellency the Governor-General made a speech to the House in the Legislative Council Chamber today, she handed me the text of the speech, and I now lay this on the Table of the House. To the chiefs, Members of Parliament, and all New Zealanders, hearty greetings to you all. Honourable Members of the House of Representatives. It is my privilege to exercise the prerogative of His Majesty the King and open New Zealand's 54th Parliament. In October's 2023 general election, New Zealanders voted for change – not just a change of government, but a change of policies and a change of approach. Following constructive negotiations to form a strong and stable government, a coalition between the New Zealand National Party, ACT New Zealand and the New Zealand First Party was agreed with a commitment to deliver that change. This is the first time since New Zealand's Mixed Member Proportional electoral system came in nearly 30 years ago, that there has been a three-way coalition government. It took office on Monday last week when I swore in the Prime Minister, the Right Honourable Christopher Luxon, and the ministry. The Government enjoys the confidence of a clear majority of members in the 123-seat House of Representatives, but it is the people outside Parliament who will be the Government's priority in decisions made over the next three years. The new Government is committed to delivering; to getting things done. It wants people to see demonstrable, measurable results that make their lives easier, and help them to get ahead. The Government will work alongside local government, businesses, community groups and iwi, believing that all of us can achieve more by working together, and that co-operation will enable greater reach into communities, particularly those with high needs, to effect change. The Government's aim is to improve outcomes for all New Zealanders, while leading a unified and confident country. The Government will encourage independence and reward hard work, while retaining a comprehensive safety net for those in need of support. The new Government will show its respect for New Zealanders by spending public money carefully and with a clear purpose. The Government has many priorities and among them are rebuilding the economy to ease the cost of living, delivering tax relief and increasing prosperity for all New Zealanders. The Government will restore law and order and personal responsibility so Kiwis feel safer where they live and work. It will deliver public services so they are more efficient, effective and responsive to all who need and use them. The Government will also strengthen New Zealand's democracy. Its policy programme will be extensive and ambitious, reflecting the amount of change necessary to provide hope and opportunity for more New Zealanders, and for this great nation to realise more of its potential. Economy To lift New Zealand's productivity and economic growth, and in order to increase opportunities and prosperity for all New Zealanders, managing a strong economy will be a key focus for the next three years. Restoring discipline to government spending will help the Government achieve its fiscal plan and ensure that public money is being spent effectively, using rigorous cost benefit analysis, where applicable. The Government will reduce Core Crown expenditure as a proportion of the overall economy – with savings in government agencies targeted to deliver tax relief for hard-working, low-and-middle-income workers. These savings will be informed by the increase in back-office head counts in each agency since 2017, but Ministers will be expected to work with individual chief executives to achieve their respective savings targets. With the Official Cash Rate hitting its highest point since 2008, creating stress and worry for many mortgage holders and businesses, the Reserve Bank Act's dual mandate has patently not worked at containing inflation. The Government will amend it within 100 days so monetary policy is quickly returned to having a single focus on price stability. Red tape is adding costs to businesses that get passed on to consumers. A new government department, reporting to the Minister for Regulation, will be established to assess and improve the quality of new and existing legislation and regulation. A Regulatory Standards Bill will be passed to ensure regulatory decisions are based on principles of good law-making and economic efficiency. As part of restoring fiscal discipline, the Government has already axed the expensive Lake Onslow pumped hydro scheme, and the Government will also stop work on Industry Transformation Plans, the costly Income Insurance Scheme, Auckland's Light Rail project, and Let's Get Wellington Moving. Cost of living Overwhelmingly, the public's main concern is the high cost of living. Reducing wasteful spending will contribute to taking pressure off inflation. Tax relief targeted at middle and lower-income workers will be of practical help to households. It will meet the Government's objectives of encouraging people into employment, and people enjoying more take-home pay in return for their effort. The Government will provide income tax relief to compensate for the increase in the cost of living, increase Working for Families tax credits, introduce the FamilyBoost tax credit to support young families with the cost of childcare, and widen eligibility for the independent earner tax credit. These changes will see a median wage earner better off by at least $50 a fortnight - and more for many with children. Mortgage interest deductibility for rental properties will be restored. To further help with the cost of living, the Government will cancel planned fuel tax increases by freezing them for three years, while also removing the Auckland Regional Fuel Tax. Funds raised from the Emissions Trading Scheme will be paid back to taxpayers through a climate dividend. They will no longer be used to unnecessarily subsidise the climate initiatives of profitable companies that should be making these investments themselves. The Government will re-write the Credit Contracts and Consumer Finance Act to protect vulnerable consumers, without unnecessarily limiting access to credit. A select committee inquiry will be held into banking competition and the Government will explore options to strengthen the powers of the Grocery Commissioner to improve competitiveness in the sector. Law and order Honourable members, New Zealanders are wearied and worried by brazen offending, particularly against retailers. All New Zealanders are paying for this offending but those working in fear are bearing the highest personal cost. The explosion in gang numbers is concerning communities everywhere. The Government believes a good education is the best way for young people to have better life opportunities than the mayhem and brutality offered by gangs and criminal offending. To support Police and ensure New Zealanders are safer, the Government will train no fewer than 500 new frontline Police within the first two years. The Government will introduce legislation to provide Police with additional powers to tackle gangs. That legislation will: • Ban gang patches and insignia in public places Give Police the power to issue dispersal notices requiring gang members to immediately leave a public area • Allow Police to issue Consorting Prohibition Notices to stop known gang offenders committing serious offences • Give Police power to issue Firearms Prohibition Orders making it illegal for a gang member with serious convictions to enter certain premises where firearms are present, and give Police increased search powers for people who are subject to such an Order. Too often, sentences do not reflect the gravity of offending so the Sentencing Act will be amended to ensure appropriate consequences for offenders. This will include making gang membership an aggravating factor in sentencing. The "three strikes" rule for serious repeat criminals will be restored, with a tighter definition of offences that qualify as strikes. To deter young people from a life of crime, the Government will create a new Young Serious Offender category and establish Young Offender Military Academies to help young offenders turn around their lives. Additionally, over the term of this Parliament, the Government will increase the number of trained Youth Aid officers and will consider a Youth Justice Demerit Point system. Funding will be increased for the Department of Corrections to ensure there is sufficient prison capacity and, where appropriate, prison officers will be equipped with body cameras and protective equipment. Firearms legislation will be reviewed, including rewriting the Arms Act 1983 for greater protection of public safety and to simplify regulatory requirements. The Firearms Registry will be reviewed to see whether it is improving public safety. Public services While spending on public services has increased in recent years, and the head count in government departments has grown, the delivery of public services has, in too many cases, declined. This decline is seen in measures that matter to individuals, and to our country. Targets will be set for important measures - like wait times in hospitals and waiting times for cancer treatment. These will help focus resources on the Government's priorities, which are achieving better results in the things that matter to New Zealanders' daily lives. The pay of public sector chief executives and their deputies will be linked to outcomes to encourage high performance and ensure accountability. Education Education is essential for opening up young people's life opportunities, but current school achievement rates are worryingly poor. For example, half of Year 10's do not meet the basic literacy and numeracy standards the OECD says are needed to succeed in further learning, and in life. This Government will not stand by as cohorts of young people see their life horizons shrink because of a lack of schooling. The Government will require every primary and intermediate class to be taught an hour of reading, an hour of writing and an hour of maths, every day, because a good grasp of the basics is the essential foundation on which to build further education. To help teachers, the curriculum will be rewritten with clear requirements on what needs to be covered each school year in reading, writing, maths and science, and the curriculum will be focused on academic achievement, not ideology. Student progress will be regularly assessed. Cellphones will be banned in classes. Every child will be taught to read using a structured literacy approach. Partnership schools will be reintroduced and state schools will be allowed to become partnership schools. Further options to increase school choice and expand access to integrated and independent schools will be explored. In tertiary education, Te Pūkenga will be disestablished with control over polytechnics restored to the regions they serve. The first-year fees-free policy for tertiary education will be replaced with a final-year fees-free-policy, but not before 2025. Health The health system and the health workforce have been under enormous pressure and more support is required for the frontline. To encourage more graduate nurses and midwives to stay in New Zealand, the government will establish a system to pay their student loan repayments, up to $4,500 year for five years, in exchange for them agreeing to work here for at least five years. To further boost the health workforce, the Government will increase the number of doctors, psychiatrists and clinical psychologists being trained. The Government will undertake a cost benefit analysis on the proposed third medical school, based at Waikato University. To support the health workforce in hospital emergency departments, security will be increased. Cancer patients have better survival rates in Australia than in New Zealand. To help narrow that gap and to improve management of breast, ovarian, bowel, and prostate cancer, the Government will invest $280m over four years to fund 13 cancer treatments recommended by the New Zealand Cancer Control Agency. Free breast cancer screening will be extended up to 74 years of age. Pharmac will be required to take the voice of patients into account in making decisions, and its funding model will be reformed. Approvals for new medicines will be made easier by requiring Medsafe to approve within 30 days new pharmaceuticals approved by at least two overseas regulatory agencies recognised by New Zealand. To support mothers and babies, a new entitlement will be introduced to enable every mother of a new baby to have three days in-patient post-natal care. The Government will fund the Gumboot Friday/I am Hope charity with $6 million a year, ensure Plunket is adequately funded to do its job properly, allow appropriately qualified pharmacists to prescribe certain treatments, and permit the sale of cold medication containing pseudoephedrine. The Māori Health Authority will be disestablished. There will be no co-governance of public services and emphasis will shift to the frontline rather than the back office. Services will be delivered on need, using a range of effective providers, including iwi and community groups who have the best reach into the communities they serve. Welfare and work Honourable Members, Having 11 per cent, or one in nine New Zealanders of working age on a main benefit, means too many people are dependent on the effort of their fellow citizens instead of being self-supporting. The Government will encourage those who are able to work, to do so. The Government will uphold New Zealanders' rights and expect individuals to demonstrate that they understand their responsibilities. The welfare system will be focussed on helping get Jobseekers who are assessed as being able to work, into jobs. There will be sanctions for those who refuse to do their bit. 90-day trials for all businesses will be brought back to encourage employers to give workers a go. The Fair Pay agreement legislation will be repealed because employers and their teams are best able to negotiate for their own circumstances. Seniors Turning to superannuation, the age of entitlement for New Zealand Superannuation will remain at 65. The universal winter energy payment will be maintained. The Building Act and resource consent system will be amended to make it easier to build granny flats or other small structures up to 60sqm. Housing Successive governments have struggled to make housing more affordable for more New Zealanders, with house prices and rents rising particularly quickly over the last six years. The Government will require councils in major towns and cities to zone for 30 years of housing demand because getting more houses built is essential to having a more affordable housing market. The Natural and Built Environment and Spatial Planning Acts will be repealed and replaced with genuine reform that will make it easier to build. The Medium Density Residential Standards rules will become optional for councils, with councils required to ratify any use of the measures, including in existing zones. Turning to social housing, the performance of Kāinga Ora is a concern. There will be a review of its finances, procurement, development and asset management practices. The lives of some neighbours of some Kāinga Ora properties are being made miserable because of inadequate action against anti-social behaviour by some Kāinga Ora tenants. Under the new Government, there will be appropriate consequences for tenants who engage in repeated anti-social behaviour. Infrastructure and Transport Honourable members, New Zealand has a significant infrastructure deficit and needs to improve the way it funds, procures and maintains infrastructure. The Government will set up a National Infrastructure Agency. It will coordinate government funding, connect domestic and offshore investors with New Zealand infrastructure projects, and improve funding, procurement and delivery. As part of amending the Resource Management Act 1991, the Government will make it easier to consent new infrastructure including for renewable energy, building houses, and enhancing the primary sector – including fish and aquaculture, forestry, pastoral, horticulture and mining. There will be a fast-track one-stop-shop established for the consenting and permitting process for regional and national projects of significance. The Government will deliver marine farming permits of longer duration to provide investment certainty, and remove regulations that impede the productivity and potential of the seafood sector. The Government will partner with local government to create long-term City and Regional deals so there is an agreed, visible pipeline of priority projects underway across the country. Public/Private partnerships, tolls and other funding mechanisms will be considered to speed infrastructure delivery. As promised, the Government will repeal the Three Waters legislation and restore council ownership and control with stronger central government oversight, and strict rules for water quality and ongoing investment. The Government will invest in better transport infrastructure including progressing 13 new Roads of National Significance, with a focus on unlocking land for new housing developments and easing congestion in Auckland, Christchurch, Wellington, Hamilton and Tauranga. The Government commits to a four-lane highway alternative for the Brynderwyns in Northland, and it will investigate the use of private finance to accelerate construction. The Government will establish a Regional Infrastructure Fund with $1.2 billion in capital funding over the Parliamentary term. Major public transport upgrades will be delivered to reduce congestion in Auckland and provide people with more options for moving around the city. There will also be upgrades to transport infrastructure in Ashburton, Queenstown, Otago and Southland. Primary sector / Emissions As mentioned earlier, across government, red tape will be cut in order to get things moving and to remove costs that have been imposed for little or no gain. Cutting red tape will unleash the investment in renewable energy that is needed for the country to meet its emissions reduction targets, aid primary sector production and improve the productivity of small businesses. The Government will reduce the regulatory burden on farmers, who are spending an increasing amount of their time on paperwork. The implementation of new Significant Natural Areas will cease and existing Significant Natural Areas will be looked at as part of the reform of the Resource Management Act. The National Policy Statement for Freshwater Management 2020 will be replaced to ensure a local approach, allowing district councils more flexibility in managing environmental limits. The Government will lift the effective ban on gene editing and genetic modification and encourage the use of these technologies. This will mean the advantages of technological progress, for example in reducing the production of methane by farm animals, will be available in New Zealand, just as it already is in many other countries. The ban on live animal exports will be reversed, while ensuring the highest standards of animal welfare. By December 31 this year, the Government will end the clean car discount scheme and, with it, so-called ute tax which has been particularly unfair on the rural sector and tradespeople. The Government is committed to New Zealand meeting its greenhouse gas emissions targets. To encourage more renewable energy production, the Government will fast track consents. Consents will no longer be required for upgrading transmission lines and infrastructure. The Government will undertake a cost benefit analysis on investing in a nationwide electric-vehicle charging network. The provision of more charging stations will encourage more people into electric vehicles, which will help reduce New Zealand's greenhouse gas emissions from transport. To further reduce emissions, by 2030 the Government will implement a fair and sustainable pricing system for on-farm agricultural emissions. As part of the Emissions Trading Scheme, 100 per cent recognition of on-farm sequestration will be introduced. The Government will limit the conversion of productive farmland to forestry for carbon farming purposes. Citizenship The Government believes in equal citizenship with all citizens sharing the same rights and obligations. The Government will work to improve outcomes for all New Zealanders with public services delivered to people according to their need, and not advance policies that seek to ascribe different rights and responsibilities based on race or ancestry. A Treaty Principles Bill will be introduced and supported to a select committee for the public to have their say. Waitangi Tribunal legislation will be amended to refocus the scope, purpose and nature of the tribunal's inquiries back to the original intent of that legislation. The Government will also review legislation – except where it relates to full and final Treaty settlements - that includes reference to the principles of the Treaty of Waitangi. Reference to the principles will be replaced with words that explain what Parliament intends, in the context of that legislation, or will be removed. Foreign Affairs/Trade Finally, the Government should not – and will not – focus its efforts only within New Zealand's borders. The world is increasingly complex and contested. There are risks to be managed, but also opportunities for New Zealand to make the most of, to ensure our country makes more of its potential. This requires New Zealand to have an active foreign, defence and trade policy agenda: • that enhances our security • that signals that New Zealand is open for business and outwardly engaged • that makes us a participant in major global and regional developments, not a spectator, and • that sees us working tirelessly to grow trade and prosperity. The coalition Government is committed to getting offshore and raising our profile on the world stage. The Prime Minister, Minister of Foreign Affairs and other Ministers will strengthen relationships with key partners, advance New Zealand's interests and promote our businesses offshore. The Government will be bold in defending New Zealand's interests, and vigilant in the protection of the values of democracy, freedom, and security. Honourable members. Perhaps New Zealand's strong sporting traditions help New Zealanders to be generous in defeat, and humble in victory. Whatever the reasons, few countries in the world change governments as smoothly as New Zealand does. It is something of which New Zealand, as a nation, can be justifiably proud. It has put the Government in a good position to start on its 100-day plan of action. The 100-day plan is a forerunner of three years of action because New Zealanders voted for change, and the Government will be tireless in executing it. It has started work and will hold itself accountable for delivering results that make a positive difference.

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