Brussels, 28/09/2005 (Agence Europe) - The German Chancellor Gerhard Schröder (currently holding consultations with Angela Merkel's CDU/CSU to look into possibilities of forming a broad coalition in Berlin), took pains on Tuesday to reassure all those who, like the President of the European Commission José Manuel Barroso, are concerned at the negative impact which a prolonged political crisis in Germany could have on current major EU dossiers, particularly the adoption of the financial perspectives 2007-2013. Germany is fully committed to European construction and will continue to support the project of integration, whatever government finally emerges from the elections of 18 September, said Mr Schröder at the "Europa-Forum", which was organised in Strasbourg on Tuesday by the television channels WDR, SWR, ORF and Phoenix, in collaboration with the European Commission and the European Parliament. Germany will have a "stable" government which will be "capable of taking action", the Chancellor pledged. Mr Schröder joked: "certain people in Brussels asked us to hurry up (a reference to the comments made by Mr Barroso the day before the elections: EUROPE 9030). Others, in Brussels, wanted the others to win before the elections (a reference to an interview with the Commissioner Neelie Kroes, in which she came out in favour of Angela Merkel). Unfortunately, as certain people in Brussels will now see, the German electorate are doing as they please and are not yet quite used to following the electoral recommendations of the Commission". The formation of coalition governments in the Netherlands and Austria took three or four months, he pointed out, adding: "I assure you that we will be quicker. There is no reason for concern". The EU is going through a difficult phase, but I'm sure that it will come out of it even stronger, as long as all the Member States show political goodwill, the Chancellor continued. "The challenges are large and multiple", he explained: -the EU must find a solution to the constitutional crisis. The European Constitution "is certainly not perfect, but it is a very good compromise which can and will move Europe forward decisively". "This magnificent project- and I am not embarrassed to use this word- cannot be abandoned", said the Chancellor; -the EU must reach agreement quickly on the budgetary framework 2007-2013. The compromise put forward in June by the Luxembourg Presidency was "good and fair" and any possible agreement under the UK Presidency must be "very close" to this proposal. Mr Schröder had this advice for the UK Presidency: "Put the (Luxembourg) package back on the table and relegate your reservations to second place. If you do this, we will be able to adopt it within hours"; -the EU must reinforce its international competitiveness whilst at the same time improving the social dimension of the single market. On this last point, "the union must clearly reject all experiments which may lead to the destruction of the European social model", said Mr Schröder. Tony Blair's idea of holding a special European summit to discuss the future of European social model is a good one, "but it does not go far enough". We need to debate not only the European social model, but also all other aspects of a future modernisation of European economies and companies, said the Chancellor, who feels that the Anglo-Saxon social models are "inappropriate". "This kind of debate also includes the question of the EU's capacity for institutional action, and that of its budget. Only a political debate on the objectives and missions of the European Union can have any sense" and "the main thing for me is that we keep the objective of political union", he insisted. On the Union's external policy, the Chancellor pleaded for Turkish accession, as long as it continues with its reforms and respects the criteria for accession. The prospect of the accession of Balkan States must also be taken seriously, because the benefit in terms of stability and security for the whole of the European continent will far outweigh the financial cost, he said. However, "the enlargement of the European Union has its limits. These limits are to be found where the Union's absorption capacity ceases", he said, adding: "I do not believe that an abstract definition of these limits is possible, but we will have to decide by looking at the situation very closely, on a case-by-case basis".