Germany and the UK are performing well economically. Both are forecast to grow by about 2 per cent this year. Our countries lead the way in Europe on jobs – in each country employment reached a record level in 2013.

This validates the tough decisions we have taken to consolidate our public finances and reform our economies. And since the crisis, both countries have introduced measures to ensure the financial sector never again jeopardises our public finances.

But we must also acknowledge the risks. Some countries, such as the UK, still have to undertake substantial fiscal adjustments to ensure the future sustainability of public finances. Others must keep up the pace of structural reforms to boost growth and provide for ageing populations. Germany has undertaken significant reform, but there is no room for complacency.