Only through offering a new vision for these new times will social democrats be able to renew themselves and create a more just and prosperous Europe.

The crisis of the SPD in Germany is matched by a crisis of European social democracy as a whole. Only a third of the member states of the European Union are currently governed by social-democratic parties. Instead of benefiting politically from the current economic and financial crisis, social democracy has been seen as an accomplice in bringing about the very conditions that made this crisis possible.

The fundamental changes that took place after the fall of the Berlin wall and the end of the cold war, especially the speeded-up and intensified forms of globalisation, have posed serious challenges to all social-democratic parties in Europe. The increase in cross-border and transnational investment and financial transactions, the internationalisation of capital, and the free movement of goods, services and capital across the globe have undermined traditional instruments for regulating our national economies and social security systems.

The aim of achieving an equilibrium between capital, labour and social policy in society has always been at the core of social-democratic politics. However in the last two decades even social-democratic governments have been advocating deregulation, privatisation and market-oriented policies. Small government, self-responsibility and free markets were the credo of the day. This led to a muddled political identity and lack of credibility, a massive loss of support from traditional voter groups, and, consequently, to a loss of political power.

However, the need for social-democratic ideas and policies is still there. The current crisis has shown the need for a regulative role of the state in the market, and the stabilising effect of our social welfare systems. We need a strong European social democracy for a strong and social Europe that can be an example to the world. We have to improve co-operation between the social-democratic parties of Europe, and work together to find answers to the social questions of the twenty-first century. Social democrats have to once more tell a story that people can believe in – a story of hope, opportunity, and a future that can be shaped for the better. Defending the status quo is not enough.

Climate change, the emergence of new global and regional powers, and the future of our energy supply in the face of diminishing resources and rising costs, are only some of the challenges we face. We have to re-think the way we work, and how we organise our economy and society. We have to lead the way into a third industrial revolution, based on renewable energies, sustainable development and social progress.

Social democracy needs to reassert its identity, and to become a marketplace for new and leftist ideas, inspired by the range of political parties on our side of the spectrum, and focusing on looking for ways in which government, society and economy can function under the framework of globalisation, while still adhering to the principles of solidarity, justice and prosperity for all.
We have to overcome narrow national thinking, and grasp the chance that a new and more democratic European Union offers us under the Treaty of Lisbon. We have to renew the vision for Europe. Cultural diversity, social integration, gender equality, economic development and political involvement should be the guiding principles for a Europe united by the will of its people. The citizens of Europe should not merely accept this political union as project of the ruling class of politicians and bureaucrats, but actively participate in it. We want a Europe that lives on the enthusiasm, the ideals and the energy of its people.

If the social-democratic parties of Europe can offer their people a convincing concept for a strong, prosperous and successful Europe that leads the way into a new era of economic growth, environmental consciousness and social advancement, we will be able to once more spearhead the progress of our continent.