[Weekly Compilation of Presidential Documents Volume 40, Number 51 (Monday, December 20, 2004)]
[Pages 2946-2949]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks Following Discussions With Prime Minister Silvio Berlusconi of 
Italy and an Exchange With Reporters

December 15, 2004

    President Bush. There will be two opening statements, and then we'll 
take two questions per side. Thank you for coming.
    Silvio, it's great to welcome you back to our country. I think it's 
fitting that one of

[[Page 2947]]

the first world leaders to have visited after our elections is my friend 
Silvio Berlusconi. He is a close personal friend. He is a friend of the 
United States of America.
    I told the Prime Minister I look forward to working with him over 
the next 4 years to make the world a better place for all, that I've got 
work to do in Europe. He gave me some very good advice about my upcoming 
trip. But he always gives me good advice, and I'm proud to have his 
advice.
    We talked about peace between Israel and the Palestinian Authority. 
I think there's a very good chance that we can achieve that peace. I 
look forward to working toward that end. The Prime Minister had good 
advice on that subject as well.
    He expressed his concerns about the relationship between the dollar 
and the euro. I told him we're going to take this issue on seriously 
with the Congress. The best thing that we can do from the executive 
branch of Government in America is to work with Congress to deal with 
our deficits. One deficit is a short-term budget deficit. Another 
deficit is the unfunded liabilities that come with Social Security and 
some of the health programs for the elderly. I told the Prime Minister 
that Social Security reform will be at the top of my agenda. I 
campaigned on the issue. I look forward to working with Members of 
Congress to resolve this long-term, unfunded issue so that the world 
financiers can take comfort in the fact that this Government will 
address one part of the budget deficit. There's a trade deficit. That's 
easy to resolve; people can buy more United States products if they're 
worried about the trade deficit.
    But we've had a good visit. And I'm proud my friend is here.
    And finally, we discussed our mutual desire to spread freedom and 
peace. I want to thank the Prime Minister for his understanding about 
the need for the free world to succeed in Afghanistan and Iraq. He's the 
kind of man, when he gives you his word, he keeps his word, which is the 
sign of an impressive, strong leader.
    So thank you for coming.
    Prime Minister Berlusconi. Thank you, Mr. President, for your kind 
words. Thank you for the friendship you showed to me, to my Government, 
and my country.
    And my behavior and the behavior of my Government is based on the 
fact that we share the same values. We appreciate strongly the fact that 
America has taken on the responsibility of defending and spreading peace 
and democracy all over the world. And we appreciate the fact the United 
States do that with sacrifices and a lot of suffering. So we fully share 
the work carried out by the American administration. And the political 
agenda, the program which has been announced for the next 4 years, is 
something we fully agree on.
    We share the same opinion as to the need of reforming the United 
Nations in order to make it an institution which will be able to tackle 
the problems affecting this century and the multilateralism which has to 
take into account results to be achieved and complete facts. We agree on 
the fact that we have to continue the fight and the war on terror 
together. And we agreed on the fact that it is now the appropriate time 
to solve the Middle East issue.
    And in particular, I agree on the way in which we keep on and carry 
on our relationship. It's a very frank, direct, straightforward, and 
spontaneous way, full of truth. And I think this was the deepest reason 
why President Bush succeeded so much, especially vis-a-vis the 
Americans. It is not politics. There is no politics which makes people 
say things which people do not believe in or think. President Bush tells 
me and all of the others always what's in his mind. And it is very 
positive that ``yes'' means really ``yes'' to him and ``no'' means 
``no.'' And I want to reassure President Bush that we'll do any possible 
effort to strengthen the relationship between the United States of 
America and Europe. Because I agree with him: The West is only one.
    President Bush. Welcome. Anybody representing AP here? Oh, you are, 
Terry [Terence Hunt, Associated Press]. Go ahead.

Upcoming Iraqi Elections

    Q. Iraq's Defense Minister says that Iran and Syrian intelligence 
agents are supporting Al Zarqawi and that Iran is trying to sway the 
January 30 elections. Do you believe

[[Page 2948]]

these charges are accurate, sir? And is there anything the United States 
can do besides simply telling Iran and Syria to refrain?
    President Bush. We have made it very clear to the countries in the 
neighborhood, including the two you mentioned, that we expect there to 
be help in establishing a society in which people are able to elect 
their leaders and that we expect people to work with the Iraqi Interim 
Government to enforce border, to stop the flow of people and money that 
aim to help these terrorists. We've made that very clear, and we'll 
continue to make it clear.
    We have made it clear that for the good of the area, that there 
ought to be a peaceful country where the different religions can come 
together under the TAL which has been passed, the go-by for what a new 
constitution should look like. And we will continue to make it clear to 
both Syria and Iran that--as will other nations in our coalition, 
including our friend the Italians--that meddling in the internal affairs 
of Iraq is not in their interests.
    You want to call on somebody from the Italian press?

[At this point, an interpreter translated President Bush's remarks into 
Italian.]

    The President. I'll be more polite to the translator from now on. 
[Laughter] Want to call on somebody from the----

Dollar-Euro Relationship

    Q. You said you've discussed the euro-dollar ratio, and therefore, 
you discussed your relations between the two economic blocs. Can you say 
something more in detail about what you talked about and if there is, in 
the future, the possibility of a better balance between the euro and the 
dollar in terms of the exchange rate?
    The President. The policy of my Government is a strong dollar 
policy.
    Interpreter. I'm sorry, sir. I didn't hear you. [Laughter]
    The President. She might not agree with it. [Laughter] We believe 
that the markets should make the decision about the relationship between 
the dollar and the euro. Therefore, to the extent that the Federal 
Government is involved with strengthening--making the conditions such 
that a strong dollar will emerge, we'll do everything we can in the 
upcoming legislative session to send a signal to the markets that we'll 
deal with our deficits, which, hopefully, will cause people to want to 
buy dollars.
    Independently, the Federal Reserve, under the leadership of Alan 
Greenspan, raised the interest rates yet again, a signal to the world 
markets that the Chairman is also aware of the relative currency 
valuations between the euro and the dollar.
    I'm not that generous yet. We love April [April Ryan, American Urban 
Radio Networks], but there's a limited number of questions.
    Holland [Steve Holland, Reuters].

Social Security Reform

    Q. Sir, you're going to this conference today. Some Democrats call 
the private accounts in Social Security a risky scheme. What happens if 
people lose money on their investments? Does the Government bail them 
out?
    President Bush. Look, Steve, this is the issue about addressing the 
long-term liability issue. This is the Social Security issue. Like many 
nations in Europe, there's an issue with Social Security systems. Baby 
boomers are getting ready to retire, and there's not enough workers to 
sustain that which--that which has been promised. And so the fundamental 
question I placed before the Congress is: We have a problem; let's work 
together to deal with it.
    I believe there's a consensus beginning to grow, that members of 
both political parties understand now is the time to address this 
problem. I believe one way to help make sure the system meets the needs 
of a younger generation is to allow younger workers to take some of 
their own taxes and invest in a personal savings account--under certain 
conditions. The people in our country have heard this notion, so-called 
``risky scheme'' adjectives in the 2000 campaign and the 2004 campaign. 
I took the message to them. They realize, like I realize, now is the 
time to deal with the problem. And I look forward to working with both 
members--members of both parties to solve this problem.

[[Page 2949]]

    But let me just give you one--this is a chance now to kind of start 
laying the groundwork for future questions. The great desire for people 
in Congress is for me to negotiate with myself. You notice I said the 
great desire for Members of Congress, not members of the press. And 
therefore, I will continue to articulate principles that I think are 
important and reach out to members of both parties to fashion a plan 
that solves the problem.
    Prime Minister Berlusconi. The problem of Social Security is common 
to all of the Western world. And this is, luckily, due to the fact that 
we live longer because of the better standard of living and because of 
the discoveries made by medicine. In Europe, all governments are dealing 
with reforming Social Security systems, but one thing is for sure, that 
it needs to be done. That is, we have to extend the working life of the 
people.
    I'm one of the strongest believers in that, because at my age, I'm 
convinced that one--at my age, you can keep on working pretty well. 
[Laughter] And you can tap on the experience you've kind of piled up 
over your working life.
    President Bush. You look like a baby boomer. [Laughter]
    Prime Minister Berlusconi. I thank you very much. It's medicine as 
well. Also credit medicine. [Laughter]
    President Bush. Final question. Do you want to call on somebody?
    Prime Minister Berlusconi. I want to say something. We have already 
reformed our Social Security system in Italy. And this is one of the 24 
reforms through which we are modernizing our country. And I've just said 
to President Bush that at the end of its term, my Government will have 
completed many more reforms than all of the previous governments in the 
Italian Republic.
    President Bush. Very good.
    A final question from the Italian press?

Proposed Joint Italian-U.S. Helicopter Production

    Q. Did you debate the possibility that the President of the United 
States will soon fly on Italian helicopters? [Laughter]
    President Bush. No, I appreciate that----
    Prime Minister Berlusconi. The Italian helicopters almost completely 
made, manufactured, in the United States.
    President Bush. With U.S. parts. I've got the message, yes. 
[Laughter]
    Prime Minister Berlusconi. I can only say that I've been flying 
these helicopters for 30 years, and I'm still here.
    President Bush. And you never crashed. [Laughter] That's a good 
start. [Laughter]
    The Prime Minister brought up the issue. I'm very familiar with it. 
As you know, we delayed a decision until later on in the spring. I'm 
very aware of the joint venture. I understand the nature of U.S. jobs 
that will be created in this venture, and I assured him the venture will 
be treated fairly.
    Thank you for coming. Happy holidays. Happy holidays.

Note: The President spoke at 11:57 a.m. in the Oval Office at the White 
House. A reporter referred to Defense Minister Hazim Qutran al-Khuzai 
al-Shalan of the Iraqi Interim Government; and senior Al Qaida associate 
Abu Musab Al Zarqawi. Prime Minister Berlusconi spoke in Italian, and 
his remarks were translated by an interpreter.