Council of European Union : Speech by Donald Tusk, President of the European Council, at the event to launch the introduction of the euro in Lithuania

European Council

The President

PRESS

EN

SPEECH

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PRESSE 8

PR PCE 8

Vilnius, 14 January 2015

Speech by Donald Tusk, President of the European Council, at the event to launch the introduction of the euro in Lithuania

It is a pleasure to speak at this special dinner, marking this very important occasion. And it is an honour to do so in the Palace of the Grand Dukes of Lithuania - here in the Renaissance Great Hall that reminds us of the long, remarkable history of this country. It is a history which I understand and love as much as the history of my own country.
But first I want to say a brief word on the week that has just passed. These days we are living history. We are facing many challenges. At home and abroad.
Among the most serious is the dreadful act of aggression against ordinary citizens in Ukraine yesterday - and the continuous sense of threat that is a fact of life there.
But in a real test we also discover our inner strength.
We witnessed an impressive display of unity in Paris last Sunday. One of the largest peaceful demonstrations in support of freedom and tolerance in Europe in decades.
It reminded me of the 'Baltic Way' of August 1989, when some 2 million people held hands in support of liberty.
During the march from 'Republic' to 'Nation', I felt proud when I knew that the madmen who attacked Charlie Hebdo achieved the opposite of what they wanted.
Instead of dividing French society, they united all of us. Instead of exposing our weakness, they revealed our strength. Instead of silencing free speech, they amplified it a thousand times.
As I walked down Boulevard Voltaire - next to the French president, the German Chancellor, the Palestinian leader - I recalled Voltaire's famous words: "I disagree with what you say, but I will defend to the death your right to say it."
However, the purpose of our gathering tonight is to congratulate Lithuania on becoming a member of the eurozone.
On January 1st, you took a historic step closer to the heart of Europe. The other 18 members welcome you warmly. You now hold the world's second most widely-used currency in your pockets. Your country has taken a step that will help increase trade and foreign investment. It will make it easier for your citizens to travel and for other Europeans to visit you, and to spend their
euros here.

Preben Aamann - Spokesperson of the President - T [phone] - M [phone]

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You will no longer be a country on the outside looking in to the eurozone. Your finance minister is sitting with his peers in the Eurogroup, your governor has joined the Governing Council of the European Central Bank. He will for example participate in its important monthly meeting next week.
Your banks will now be supervised from Frankfurt, as part of a broader mechanism to guard against the cost of banking failure. One that protects your banks, but also your tax-payers.
Of course, sharing a single currency is not just about the obvious benefits. It also entails discipline and obligations. There are strict rules on spending and debt - rules that are not new, but which take on a greater meaning once inside the eurozone.
But you know well how to handle this. During the economic crisis after 2009, you showed the rest of Europe how to overcome tough times. With resolve, with self-discipline, with hard work.
You have impressed many. There is no doubt that you are a very welcome addition to the club. Euro membership also entails solidarity - solidarity with each other in times of need.
Let's face it: our currency union has just gone through the worst years of its short history. But it survived. And the lessons have been drawn.
I saw that as Polish Prime-minister around the table of the European Council, where leaders took the decisions to tame the crisis.
It was sometimes surprising for those of us outside: in fact, even the euro's founding members who have used it for fifteen years only discovered during the crisis what it really means to share a currency.
What happens in one country can affect all the others: economically and politically. That is why we all have to practise solidarity.
We must also realise that we are not yet at our destination. This is important. You are joining a currency union that is not yet fully complete. Next month, leaders will take up an unfinished discussion on how to improve the governance of the Economic and Monetary Union.
Looking at the European economy as a whole, it is clear we have much to do to get it moving forward again.
Sound public finances and a commitment to reforms are the foundation. Adding to that, we now focus on investment, both public and private.
We also continue the work on Europe's single market, for e-commerce, and certainly also in energy.
When energy can flow freely across our Union, we are safer.
As you well know, it requires not just common rules, but also hardware: gas pipelines, electricity grids.
Leaders will decide further steps on an energy union in March.
I am conscious of what part of Europe I am standing in, so let me say a further word about Ukraine. The matter is never far from my mind. We will support Ukraine and its government, also financially. The more we help the 'new Ukraine', the better our own future is going to be. This includes direct humanitarian aid. Ukrainians must know and see that Europe is with them.
Here in Lithuania, you feel the consequences of Russia's policy and actions more than most others in our Union. As I have said before: the European Union's policy towards the east is not a policy against Russia. It is a policy in support of our eastern neighbours. To help them become modern,

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prosperous democratic societies. Today, this also means a policy in support of respect for borders, and peace in Europe.
We will not find a long-term solution for Ukraine without a firm, consistent and united European strategy towards Russia.
Regarding sanctions, leaders agreed in December to stay the course. Whether they are strengthened, lifted or maintained, depends on Russia and its willingness to implement the Minsk agreement. The ball is in the Kremlin's court.
Clearly, Lithuania joining the euro is also a step of geo-political importance. It not only sends the markets and global business community a message of confidence in our common currency. It also reminds our neighbours that the European Union is a political, as well as an economic project. That we are a family.
For my part, I am proud to see the sword and shield of the Vytis on a currency that can be used in every Baltic state as well as in Paris, Berlin or Rome.
And I will look out for it every time I buy a coffee or a newspaper in Brussels or in any euro country, and smile for you.
Thank you very much and congratulations.

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