I extend to you my heartfelt wishes for a Happy New Year!

The year 2005 has passed. It was very successful year for our country. All the tasks and plans set in 2005 have been accomplished and reflected in real life. Azerbaijan achieved more progress. Both economic and political reforms have been successfully continued. Our international relations have been strengthened; Azerbaijan has managed to enhance its positions in the world. It has managed to build very fruitful relations with all countries, friendly countries on both bilateral and multilateral basis. These ties allow Azerbaijan to further enhance its positions in the international arena, and strengthen its place within the global community.

Our most difficult and painful problem is finding ways for settlement of the Armenia-Azerbaijan conflict over Nagorny Karabakh. Positive steps have been taken towards this too. In 2005, the United Nations put this issue on its agenda. At the same time, the Council of Europe in early 2005 adopted a very worthwhile resolution, according to which Armenia has been recognized as a country-aggressor. OSCE sent to the occupied lands its fact-finding mission, which has confirmed the facts of Armenians’ illegal settling there. In addition, the European Union and other international organizations have increased their efforts towards solving the problem. All this factors allow us to assert that we can approach the fair solution to the problem only on the base of the international law norms.

As you know, the talks are now being held within the framework of the Prague process, and the Prague process means step-by-step resolution. Azerbaijan’s stance has always been that solution to the problem can be found only on the base of a step-by-step process, and that territorial integrity of Azerbaijan is not and will never be a subject of negotiations. This is our stance of principle, and the talks are built on these criteria. Our cause is just cause. Azerbaijan will never change its position on this issue. We stand for resolution of this problem on the base of the international law norms.

At the same time, Azerbaijan has to strengthen its military potential. As you are aware, it has been one of priorities of my policy. Material and technical basis of our army is being enhanced. In 2005, military expenditures rose 70% as compared with 2004. In 2006, it will rise 100% comparing that in 2005. Our military spending is going to reach $600 m in 2006 that however, is not the limit. Of course, the military spending will rise with increasing our economic potential. Whereas we are at war, as our lands are under occupation, the attention and care for army should be a priority for every citizen. I assumed this responsibility as the President of the country, and Supreme Commander-in-Chief, and will do my best to ensure preparedness of our army, and strengthening its material and technical basis.

We all are well aware that for every country, economic potential plays a key role in ensuring all-round development and maximum defense of its national interests. This sphere was in a focus of particular attention in 2005. The new economic strategy of Azerbaijan has been realized since 2003. This strategy has allowed us to achieve great economic progress in Azerbaijan for a very short period of time.

Azerbaijan’s economy grew 26% i.e. the country’s Gross Domestic Product made up 26% in 2005. This is an indicator having no analogues in the world, so, Azerbaijan ranks first in the world in this field. I can say for comparison that the GDP growth in developed countries is about 2-3%, in CIS member countries it averages 7%, while in Azerbaijan the figure is 26%. Industrial production has increased by 33%, incomes of population rose some 30%. Average monthly salary in Azerbaijan has reached $140. Over the last two years, 340 thousand jobs have been created in Azerbaijan that demonstrates that all our plans, the programs we declared are based on reality, and implemented successfully.

One of the troubling problems in Azerbaijan is poverty. The poverty rate reduced from 49% in 2004 to 40% in 2005, and is expected to reach 29% in early 2006. Of course, 29% is also a large figure. I want nobody to live in poverty in Azerbaijan. Meanwhile, this existing dynamics show we are on the right path. Azerbaijan’s economy is ever-growing and will raise its growth rate in the future.

The Baku-Tbilisi-Ceyhan oil pipeline bearing the name of tour people’s national leader Heydar Aliyev is to start operating in 2006. Also the Baku-Tbilisi-Erzurum gas pipeline will be commissioned. It will lead to huge inflow of extra funds that will help in faster solving of all social problems in Azerbaijan.

As you know, solving social problems is our most important problem, our budget is socially oriented. I have to note that in 2006, budget spending will rise 70% as compared with 2005 as our budget will make up $4 billion. Therefore, social expenditures should rise. In 2005, 130 general schools were built in Azerbaijan. This is an unprecedented figure. Today, new schools, medical and diagnostic centers, roads, water and gas pipelines, as well as power station are being constructed in Baku and the regions. All this is a sign of development, its manifestation. Due to this, due to the work done, the people of Azerbaijan will be living much better, Azerbaijan will achieve more progress; and every citizen of Azerbaijan must and will do feel these positive changes in his everyday life. This is our main goal. The figures I have given, which reflect the macroeconomic situation, should definitely play their role in life of every citizen; every citizen must feel it. This is what I am striving for.

I believe we should continue this course through 2006. There is no alternative to this policy, and I do not doubt that Azerbaijan will turn into a rich state very soon.

The year 2005 marked enhancing positive tendencies in socio-political sphere, as well. Stability and socio-political order were safeguarded in Azerbaijan. In 2005, Azerbaijan conducted parliamentary elections, which were of great importance of the country’s future. The parliamentary elections reaffirmed that the people of Azerbaijan is devoted to its choice. Various forces, various circles attempted to use these elections to achieve their own goals. Supported by people, however, the power in Azerbaijan has managed to strengthen and defended the national interest of Azerbaijan in full measure. The results of the parliamentary elections fully reflect the will of the Azerbaijani people, and again demonstrate their great support for our policy.

I hope that both in 2006 and in the following years, socio-political situation in Azerbaijan will be positive, and unity between the people and the power will be strengthened. This is an extremely important point in development of any country. Development exists where unity between power and people exists. Otherwise, countries appear to be in very hard situation. Recent history of countries of the regions shows that no development and stability are possible where there is an abyss between power and people. In Azerbaijan, there are confidence, love and unity between people and power.

Supported by people I was elected the President in 2003. I sated then that I will dedicate my life to my people. Ever since until now I have been and will try to serve worthily my people for Azerbaijan to get stronger, become powerful, for the state independent of Azerbaijan to be eternal and irreversible. We should achieve further strengthening the national interests of Azerbaijan. Progress is seen in all this directions.

I can not proudly that Azerbaijan is pursuing independent policy in full sense of the word. This policy meets national interests of the Azerbaijani people. Thanks to this policy Azerbaijan becomes a leading state in the region. This policy popularizes Azerbaijan as a young independent country all over the world.

I hope what has been done and the outstanding work will make us even stronger. Azerbaijan will reinforce its state independence, occupy firmer place in the region, the people of Azerbaijan, citizens of Azerbaijan will be living better, in tranquility, peace and welfare. This is my goal. I don’t have any other one. I work for people, for its prosperity, I serve my people. I stated a lot of times that all the officials led by the President are people’s servants. Our duty is to serve the people, be nearby, and take care of them. I have been doing and will do my best on this path, and nobody can make me turn off that.

Dear friends!

Dear brother and sisters!

Today is also the World Azerbaijanis’ Solidarity Day. I cordially congratulate you on this occasion. I wish Azerbaijanis throughout the world happiness, and call them for unity and solidarity.

Dear friends!

Again, I wish a Happy New Year, good health, success and happiness.

Thank you.