'When America and Europe stand together, no problem can stand against us'

The following is an edited extract of President Bush's speech yesterday in Brussels:

The following is an edited extract of President Bush's speech yesterday in Brussels:

On this journey to Europe I follow in some large footsteps. More than two centuries ago, Benjamin Franklin arrived on this continent to great acclaim. An observer wrote: "His reputation was more universal than Leibnitz or Newton, Frederick or Voltaire, and his character more beloved and esteemed than any or all of them." The observer went on to say: "There was scarcely a peasant or a citizen who did not consider him as a friend to humankind."

I have been hoping for a similar reception - (laughter) - but Secretary Rice told me I should be a realist (laughter).

I appreciate the opportunity to speak to the peoples of Europe. For more than 60 years, our nations stood together to face great challenges of history. Together, we opposed totalitarian ideologies with our might and with our patience. Together, we united this continent with our democratic values. And together we mark, year by year, the anniversaries of freedom - from D-Day to the liberation of death camps to the victories of conscience in 1989. Our transatlantic alliance frustrated the plans of dictators, served the highest ideals of humanity and set a violent century on a new and better course. And, as time goes by, we must never forget our shared achievements.

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Yet our relationship is founded on more than nostalgia. In a new century, the alliance of Europe and North America is the main pillar of our security. Our robust trade is one of the engines of the world's economy.

Our example of economic and political freedom gives hope to millions who are weary of poverty and oppression. In all these ways our strong friendship is essential to peace and prosperity across the globe - and no temporary debate, no passing disagreement of governments, no power on earth will ever divide us.

Today, America and Europe face a moment of consequence and opportunity. Together we can once again set history on a hopeful course - away from poverty and despair and towards development and the dignity of self-rule; away from resentment and violence and towards justice and the peaceful settlement of differences.

Seizing this moment requires idealism: we must see in every person the right and the capacity to live in freedom.

Seizing this moment requires realism: we must act wisely and deliberately in the face of complex challenges.

And seizing this moment also requires co-operation, because when Europe and America stand together, no problem can stand against us. As past debates fade, as great duties become clear, let us begin a new era of transatlantic unity.

Our greatest opportunity and immediate goal is peace in the Middle East.

After many false starts and dashed hopes and stolen lives, a settlement of the conflict between Israelis and Palestinians is now within reach. America and Europe have made a moral commitment: we will not stand by as another generation in the Holy Land grows up in an atmosphere of violence and hopelessness.

America and Europe also share a strategic interest: by helping to build a lasting peace we will remove an unsettled grievance that is used to stir hatred and violence across the Middle East.

Our efforts are guided by a clear vision. We are determined to see two democratic states, Israel and Palestine, living side by side in peace and security. The Palestinian people deserve a government that is representative, honest and peaceful. The people of Israel need an end to terror and a reliable, steadfast partner for peace. And the world must not rest until there is a just and lasting resolution of this conflict.

All the parties have responsibilities to meet. Arab states must end incitement in their own media, cut off public and private funding for terrorism, stop their support for extremist education and establish normal relations with Israel. Palestinian leaders must confront and dismantle terrorist groups, fight corruption, encourage free enterprise and rest true authority with the people.

Only a democracy can serve the hopes of Palestinians and make Israel secure and raise the flag of a free Palestine. A successful Palestinian democracy should be Israel's top goal as well. So Israel must freeze settlement activity, help Palestinians build a thriving economy and ensure that a new Palestinian state is truly viable, with contiguous territory on the West Bank. A state of scattered territories will not work. As Palestinian leaders assume responsibility for Gaza and increasingly larger territory, we will help them build the economic and political and security institutions needed to govern effectively . . .

Next month in London, Prime Minister Blair will host a conference to help the Palestinian people build the democratic institutions of their state . . . I have asked Secretary Rice to attend the conference and to convey America's strong support for the Palestinian people as they build a democratic state . . .

In the long run, we cannot live in peace and safety if the Middle East continues to produce ideologies of murder and terrorists who seek the deadliest weapons . . . Lasting, successful reform in the broader Middle East will not be imposed from the outside; it must be chosen from within.

Governments must choose to fight corruption, abandon old habits of control, protect the rights of conscience and the rights of minorities. Governments must invest in the health and education of their people and take responsibility for solving problems instead of simply blaming others. Citizens must choose to hold their governments accountable . . .

Our challenge is to encourage this progress by taking up the duties of great democracies . . . We must expect higher standards from our friends and partners in the Middle East. The government of Saudi Arabia can demonstrate its leadership in the region by expanding the role of its people in determining their future. And the great and proud nation of Egypt, which showed the way towards peace in the Middle East, can now show the way towards democracy in the Middle East . . .

Across the Middle East - from the Palestinian Territories to Lebanon, to Iraq, to Iran - I believe that the advance of freedom within nations will build the peace among nations. And one reason for this belief is the experience of Europe. In two world wars, Europe saw the aggressive nature of tyranny and the terrible cost of mistrust and division. In the Cold War, Europe saw [ that] the so-called stability of Yalta was a constant source of injustice and fear.

And Europe also saw how the rise of democratic movements like Solidarity could part an Iron Curtain drawn by tyrants. The spread of freedom has helped to resolve old disputes, and the enlargement of NATO and the European Union have made partners out of former rivals. America supports Europe's democratic unity for the same reason we support the spread of democracy in the Middle East - because freedom leads to peace. And America supports a strong Europe because we need a strong partner in the hard work of advancing freedom in the world.

The full text of Mr Bush's speech may be read on the White House website: www.whitehouse.gov/news/