Germany's Future

"The classical division between inner and foreign policy is outdated," wrote Angela Merkel in an op-ed piece, published in the German business daily Handelsblatt on Firday, Dec. 28.

"We must make sure that we -- as European and Atlantic partners -- show solidarity for each other and that we don't let anybody drive a wedge between us."

In her article, which was both a look back at 2007 and a view to the upcoming new year, the Chancellor stressed Europe's role in helping to decide the fate of the Serbian breakaway province of Kosovo.

"Europe has a responsibility to find a solution," she wrote. "The solution must offer clarity for the entire region and provide the opportunity for stability and security, thereby creating the foundation for a positive future."

She cautioned against further hesitation by the European Union, noting that all past attempts at resolving negotiations between Serbia and Kosovo's Albanian majority had failed.

Both the United States and a number of EU countries have indicated they will recognize an expected unilateral declaration of independence by Kosovo Albanians, after the failure of almost two years of UN-sponsored negotiations on the southern Serbian province's status.

Serbia, in turn, has threatened to reject any offer of membership in the European Union if the 27-member block recognized the secessionist province as an independent state

Tense relations with Russia

The chancellor also referred to NATO's tense relations with Russia and spoke of the need to avoid opening up more rifts between the two sides.

She appealed to both parties to use the time between now at the NATO summit in Romania in April 2008 to move closer to resolving the most important issues, including those of special interest to Russia.

These include the planned US missile shield in Poland and the Czech Republic as well as well as Russia's decision to suspend compliance with the Conventional Forces in Europe arms control treaty.

"NATO and the United States in particular have gone a far way to towards addressing Moscow's concerns in the past few months," Merkel said.

The chancellor said she saw Russia as a partner as well as a neighbour and hoped that relations would become closer and grow in importance, stressing, however, the need for a society based on law and justice.

"The development of stable constitutional and democratic structures remains essential," she wrote, noting that she would also discuss the issue with the new Russian president.

Iran and the world

On a broader scale, Merkel said heading off the prospect of a nuclear-armed Iran remained a "vital interest" for the world community.

She wrote that Iran's nuclear program is still "one of our biggest security policy concerns," and said Iran's refusal to suspend its uranium enrichment activities -- as demanded by the United Nations Security Council and the nuclear watchdog agency IAEA -- was dangerous.

"The unbearable rabble-rousing of the Iranian president (Mahmoud Ahmadinejad) against Israel also speaks volumes," she said in the article.

Focusing on climate change, Merkel urged German citizens and the industry to do everything in their power to protect the environment. She noted that the new energy and climate package passed by the German government at the beginning of December was the "most comprehensive scheme to reduce greenhouse gases in the world."

Merkel said it was now up to consumers and the industry to put the measures into action, and pointed out that the demand for climate-protecting innovations would further anchor Germany's role as a technology leader.

In domestic matters, she said more economic reforms were on the way for the country in 2008.