She explained on Friday that:

"The subject of my talk today is the prospects for a deepened strategic partnership between the EU and India, which is oriented towards meeting the global challenges we both face."

"The prospects are certainly bright. The EU and India share the same concerns and the same basic approach to addressing them."

"On that note perhaps it is worth addressing head on the misconception that, because the EU is India’s most important donor, investor and trade partner, we are no more than an economic unit. Nothing could be further from the truth – although the EU’s principal strength lies in its economic power we are increasingly wielding the political weight necessary to protect our interests on the world stage. We are a unique and multi-faceted entity with growing capacity to project our power on a range of global challenges from climate change to non-proliferation to inter-cultural dialogue."

She continued:

"The most recent institutional changes introduced by the Lisbon Treaty signed just last month by the EU’s 27 leaders show just how global our ambitions are. Once the new Treaty is ratified – hopefully over the next year – it will bring greater coherence to the EU’s external policies and our capacity to act internationally."

"And it will thus increase our ability to respond to the global challenges we all face."

"As global powers, the EU and India both have a responsibility to take the lead in the international effort to tackle pressing global challenges such as addressing climate change and global poverty; guaranteeing energy security; fighting terrorism and organised crime; dealing with mass migration; and succeeding in a more competitive economic environment."

The External Relations Commissioner went on to outline several issues that she suggested should be the focus of EU-India partnership in the year ahead.

These included effective multilateralism, energy security and climate change, and security.

Speaking with regard to the first point, Ms Ferrero-Waldner observed that:

"Globalisation presents us with no alternative to multilateral co-operation on a basis which reflects the realities of today’s world. The EU believes we can protect Europe more effectively by being active in the world and making the international system more open and inclusive to others. This perspective informs our approach to external policy not only bilaterally, but also at the UN and the international financial institutions."

"The EU is committed to more effective and more inclusive multilateral governance. India is a natural partner for us in this effort and it is time for increased EU-India cooperation in this area."

"We already have a strong shared approach on global trade issues. At the recent EU-India Summit, India and the EU again reaffirmed their commitment to the rules-based multilateral trading system and stressed that the Doha multilateral trade negotiations are our shared trade policy priority."

"On a bilateral level you may remember that Prime Minister Manmohan Singh recently stated that he hoped the EU-India Free Trade Agreement would be agreed in 2008. Concluding this FTA will undoubtedly be a very important step in the development of the EU-India Strategic Partnership. We too hope the negotiations will proceed as quickly as possible towards a broad-based trade and investment agreement."

She continued:

"As you see, there is no shortage of global challenges to keep the EU and India occupied in the year ahead."

"2007 was an excellent year for EU-India relations with our cooperation growing ever stronger. We announced the establishment of a European Business and Technology Centre in Delhi and we renewed our Science and Technology Co-operation Agreement with India. We also signed a Memorandum of Understanding for EUR260 million of assistance on education, health and the implementation of the EU-India Joint Action Plan."

"2008 gives us the opportunity to build on this progress and deepen our cooperation still further: in trade, building effective multilateral institutions, tackling climate change and fighting the many security challenges we face."