Berlin Address

Last year, when Köhler chose to concentrate on domestic education issues, his speech caused barely a ripple.

This time round, he cast his net wider and took the opportunity to warn of the dangers of globalization, the "growing rift" between Germany's haves and the have-nots, and the need for greater regulation of international financial markets.

Although Köhler was generally viewed as a neo-liberal when he assumed office in 2004, many saw Monday's talk as further proof of a perceived swing to the left.

Ten years after then President Roman Herzog gave the very first Berlin Address and famously told the country that it needed to "jolt itself into action," Horst Köhler echoed his predecessor's plea for greater German openness and focused heavily on the issue of globalization and its consequences.

The risks of globalization

"Does globalization ultimately endanger our entire social model?" he asked. "The pressure of global competition is putting much to the test. … A large part of humanity continues to live in deepest poverty. This has two main causes: not being able to share sufficiently in globalization -- mainly because of a lack of economic power and good governance -- and being disadvantaged by states and private players who pursue their own interests with no regard for others.

"Those who live at the expense of others will at some stage be left standing alone," he admonished.

But in keeping with the traditionally optimistic spirit of the presidential speeches, his message was broadly upbeat.

"Globalization is simply life," he said. "It has to be shaped through day-to-day work and imagination, through untiring efforts and cheerful enthusiasm. It can change the world for the better."

A social conscience

Köhler pulled more of a punch when it came to Germany, raising many points underlying the Social Democrats' new party agenda.

Referring to many people's fear of social destitution, he said Germany needed to take better care of its workforce.

"Germany is not an effective and future-oriented state based on social justice at present," he said, pointing out that the country was witnessing a creeping divide between the rich and the poor.

"The inequality in the distribution of income in Germany has increased. … Job security has diminished and people's working lives are subject to change and flux. ... Although Germany's broad middle class continues to do quite well, there is an increasing fear of social decline and many people from low-income and less well-educated backgrounds cannot advance without assistance," he said.

Continuing the social theme, he reiterated the thrust of last year's argument and said the country needed to improve school performance.

"Germany's education system is not performing as well as those of some other Western industrialized states," he argued.

In a further echo of Social Democratic values, he went on to call for greater regulation of global financial markets and proposed the International Monetary Fund Europe increase the involvement of emerging economies and developing countries in its decision-making.

It was time, he said, that Europe played a greater role on the international stage.

"I believe that the world expects more of us Europeans than we are currently offering," he said. "The world would be poorer without the European perspective on things. And it is therefore our duty to share this perspective with others."