BERLIN, December 31 (RIA Novosti) – Germany’s Chancellor Angela Merkel believes reforms implemented by EU countries to tackle the debt crisis are bearing fruit, but warns there are tough times ahead.
"The reforms we have introduced are beginning to take effect, but we still need a lot of patience. The crisis is far from over," she says in her New Year’s address due to be televised later on Monday.
Merkel stresses that lessons remain to be learned from the 2008 financial crisis, and emphasizes the state's role. "In the social market economy, the state is the guardian of order, and the public must be able to place its trust in it."
In an address infused with the twin values of courage and compassion, Merkel notes that in 2012 Germany recorded its lowest unemployment rates for 20 years, but cautions that the economic climate in 2013 will be more difficult.
Merkel also stresses that the German government has every intention of delivering on its promises, particularly that of greater investment in education and research. "For our country, research means jobs. If we can do something that others cannot, we preserve and create prosperity."
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