German Chancellor Angela Merkel said Wednesday that the signing of the long-awaited EU Reform Treaty in Lisbon sets the stage for a more effective European Union, DPA reported. "This day marks a historic success, a success for Europe," she told parliament a day before leaders of the EU's 27 states put their signatures to the document in the Portuguese capital. Merkel said the treaty, designed to make the bloc more effective and transparent, lays the basis for a European Union of the 21st century. Germany planned to start the ratification process next year and complete it by May 2008, she said. She hoped other countries would follow suit so that the treaty, designed to replace the constitution rejected by French and Dutch voters, could come into effect in 2009. The chancellor also referred to the EU's vanguard role in curbing greenhouse gas emissions and spoke of a "stoney path" ahead. "The real work begins after the Bali conference," she said in reference to the international climate meeting currently taking place in Indonesia to work out a framework to replace the Kyoto Protocol that expires in 2012. She spoke of the necessity for the EU to pay greater attention to the needs of its citizens and levelled a warning in the direction of French President Nicolas Sarkozy. "There cannot be a Europe of closed societies," she said in reference to the French leader's proposal for a "Club Med" of states on the rim of the Mediterranean Sea. Merkel will join other EU leaders for the signing of the Reform Treaty in Lisbon. Following that they travel to Brussels for a summit dealing with globalization, security policy and foreign affairs. The chancellor said the summit would issue a declaration on globalization, setting out the EU's position in the race to gain the upper hand in international competitiveness. In order for the EU to have a greater say in global affairs it needed to adopt a more forceful approach in security and foreign policy, she said. For this approach to be effective, the EU needed "to have the will to take action as well as the necessary funds," she added. She said a more assertive EU role should not be seen as competition to NATO but as a contribution towards a stronger Western Alliance. The chancellor expressed regret at the failure of the recent talks over the future status of the breakaway Serb province of Kosovo. Kosovo has threatened to declare independence if a negotiated settled is not achieved. Merkel said the EU had a key role to play in this regard, and its members needed to work closely together for the future peaceful development of Kosovo.