Federal Chancellor of the Federal Republic of Germany, Friedrich Merz, and President of the European Commission, Ursula von der Leyen. President von der Leyen, a warm welcome, Mr. Chancellor. It was a great pleasure, Friedrich, that you set off so early on your journey directly to Brussels to the institutions, and on Europe Day — that speaks for itself.
We had an excellent exchange. In exchange, both agreed on the need for an urgency mindset. Topics raised, for example, competitiveness — a key priority for the Commission — for increasing competitiveness. We discussed different points. The first is that it is crucial to close the innovation gap that we have. This requires adequate funding, but it also requires a conducive environment guaranteeing freedom.
Second, a difficult topic: energy prices. We have structurally too high energy prices. We need to lower them. For that, we need to invest massively in interconnectors, in grids, and in storage. We do not lack energy. We have a lot of energy production, specifically low-carbon energy. But we lack the capacity to store it and the grid. We also looked at the topic of the capital market. We need a deep and liquid, functioning capital market for the whole European Union.
A complete, deep, and liquid capital market. Another topic: for the summer, we are expecting a big push forward on that topic. And finally, a topic that we also agree on: we must simplify and speed up.
For the Council, in parallel, planning at national level disappears. The internal market and external conditions are also crucial. Germany proves the point: a global powerhouse with close European and especially foreign markets. Europe today is more attractive than ever. Currently, from all over the world, countries, trade partners.
Zero for zero offer on both sides of the Atlantic. We are ready to eliminate all tariffs on industrial goods, as you know. This is beneficial for the strength on both sides of the Atlantic. And if negotiations fail, we will act accordingly, consulting rebalancing lists. In other words, all instruments and options stay on the table.
Ukraine and Trump. President Zelensky. We support Ukraine's position. Strength includes further support economically, militarily, and politically.
On the topic of additional defense spending in the European Union, we welcome the Chancellor's initiative and the substantial increase in German defense spending as part of our readiness 2030. We agreed on the need to conclude instruments for safe procurement in the defense industry. Finally, migration — we cannot talk enough about migration. It is a common European challenge and needs a common European solution.
The result will be stronger external borders. The dimension of partnership with neighboring countries, neighboring European Union partners, to deliver illegal arrivals down.
We need an effective asylum decision, being returned to home countries. The Commission proposed, presented a proposal on return in March. For us, it is very important that now the member states and the European Parliament play their role. All in all, we have proven that together we can agree on legislation. We conclude. Robert Schuman would have been happy to see that today, that support among citizens is at the highest level. We are responsible for regional challenges.
Dear Friedrich, the fact that you chose Europe Day speaks volumes. It is an enormously important signal, because it also makes very clear that European policy is a top priority for you. I wish you all the best for a good start and look forward to our excellent cooperation.
Yes, thank you very much, Madam President, dear Ursula, ladies and gentlemen. Thank you very much for coming. I am delighted that today, on May 9, 2025, as Chancellor, on the third day of my term of office, I am able to make an inaugural visit to the European institutions. I have the privilege, as Chancellor of the Federal Republic of Germany, of belonging to a European institution for the second time in my life — this time the European Council. I began my political career, as many of you know, in the European Parliament over 35 years ago. That is why this is a bit like coming home to Brussels, coming home to Europe. I am looking forward to it.
I know that it is important in Europe that we work together, and that in particular Germany plays an active, strong role in the European Union. And the German federal government is determined to do so, because the challenges we face are so great that we all know we can only overcome them together. And if you look at the founding documents of European policy, you will read exactly this speech by the former French foreign minister Robert Schuman, who pointed out 75 years ago today that the integration of the coal and steel industries was not an economic policy project, but a deeply political one, in order to overcome what was then called the hereditary enmity between Germany and France — and to do so with the help of joint supervision of the key industries of the time, namely coal and steel.
And so today we find ourselves in this long continuity of the joint integration of industries across the European single market, whose history I have witnessed at close quarters here in Brussels and in Strasbourg, and which I was allowed to help shape. I feel myself to be part of the continuity of this political development, and I also feel obliged to carry it forward. The President has already mentioned it: the European single market is not yet where it should be. I therefore read the report by Enrico Letta with great approval and understood it as a work order, just as I did the report by Mario Draghi on strengthening the competitiveness of the European Union. I believe these are the most important documents we have, after the Doorn report from the mid-1980s, as the basis for our work in this European Union.
You have already mentioned the key points. I would like to explain them briefly from my perspective, and from the German perspective. Strengthening the competitiveness of European industry is the central project for the coming years that we have set ourselves together. That means improving the framework conditions under which European industry can be successful is a central task. And that includes rolling back the European regulation that has grown far too large. I am very grateful that we agree that, for example, with the Omnibus legislation, we will now proceed very systematically to reduce and roll back European bureaucracy. This will receive the support of the German federal government. We will also make proposals as to how we can go further beyond this, because the postponement is at most a first step. The complete repeal of certain directives is the next logical step that must follow. I always like to cite, in this context, the CSDDD directive, that is, the European Supply Chain Directive. We will repeal the national law in Germany, and I also expect the European Union to follow this step and really repeal this directive. But it is only one example of many, because we really need a fundamental modernization and improved framework-setting in the European Union.
I would also like to address the key word of the capital market union once more in this context. In my view, we in Europe have talked far too long about liability issues and far too little about the integration of capital markets. This must now follow quickly. I am in agreement with the French head of state on this. You know that this week I was not only in Paris, but also in Warsaw. By the way, I am the first Chancellor of the Federal Republic of Germany who not only made his inaugural visit on the first full day of his term of office in Paris, but also in Warsaw on the same day. The signal was important to me, as was the offer, that we will now move forward together not only with our largest neighbor in the west, but also with our largest neighbor in the east.
All of this is taking place against the background of a whole series of conflicts. The greatest of these is the war in Ukraine. I am very grateful that, at least among the very large majority of the heads of state and government of the European Union, we agree that we stand firmly on Ukraine's side and that we will continue to support Ukraine in its fight against Russian aggression. This includes moving forward together in trade policy. This is the challenge we have faced at the latest since the change of government in America. You know this; it is public. I had a longer telephone call with President Trump yesterday evening. We also discussed these two topics, the war in Ukraine. We support the American president's initiative to call for a 30-day ceasefire, which should then begin today. It will also be a test of how seriously Putin is really interested in such talks and such agreements — not only for today, which is being celebrated in Moscow at this very hour as Victory Day, but also to give the opportunity beyond this weekend to come to real peace negotiations within a 30-day ceasefire. The ball is now in Moscow, nowhere else. It is in Moscow. We in Europe agree. We agree with Ukraine. And it is a proposal from the United States of America that we share and support. Now the ball is exclusively in Moscow, starting on Monday, to prove that this government in Moscow is serious about peace in Ukraine.
The trade policy topic will keep us busy. I want to say this explicitly again here. We strongly support a rapid ratification of the Mercosur agreement. I agree with the Commission President that Europe should also look for further trading partners around the world. There are many around the world who, precisely in these difficult times, are interested in concluding trade agreements with Europe together. And this also includes the United States of America. I congratulated President Trump yesterday on his agreement with the United Kingdom, but he cannot do this with other European states. We are all members of the European Union, and those who are members of the European Union have completely transferred their trade policy responsibilities to the EU Commission or to the European Union. That means the next trading partner for the United States of America is not Germany, France, or Poland, but Europe, the European Union. And I very much hope that we can also make progress here, at least in the short term in lowering existing tariffs, and in the long term also in a trade agreement. I am one of those who still regret today that TTIP did not come about. We should have done that. Today we know how valuable it could have been. That is unfortunately spilled milk, but now we must look to the future. And the trade agreements we conclude include not only tariffs, but also technological standards — a topic, I find, that is frequently underestimated. I would like to see us also offer the Americans a far-reaching mutual recognition of technological standards, because there is great potential there for opening up markets that, in my impression, we are not making enough use of at present.
Yes, ladies and gentlemen, last but not least, also the defense capability of the European Union as a whole. I keep trying to point out that, yes, it is of course also about financial resources. The EU proposes to expand the possibilities here within the framework of the Fiscal Compact. We have already made use of this mechanism in Germany with our national debt rules. We have amended the Basic Law. We have expanded the possibility of defense financing above 1% of GDP, independent of the debt brake. That is an option, but money alone is not the answer. What must apply for Europe is that we need simplified standards. We need simplified systems, adapted standards, and above all, we need common production volumes. With the money we currently spend separately, we could achieve much higher efficiencies in a European single market of the defense industry if we produce common production volumes. So simplification, standardization, and production volumes are, in my view, really the conditions for success. Without that, it makes no sense to simply talk about money. I agree with the institutions on this. I look forward to the discussions with the Commission and in the European Council. And I want to say explicitly that a day like today is of course also a day of joy — 75 years of the Schuman Plan, 75 years of the development of the European Union — but it is much more a work order for all of us to ensure that this European Union also has success in the future as the great project of the European continent for peace, freedom, and prosperity. And I will work on that as Chancellor of the Federal Republic of Germany in Germany, but also and especially with the European partners and with the European institutions. Thank you very much.
Yes, thank you very much for the question, Thomas Gutschker from the FAZ. I will answer my questions in German.
Mr. Chancellor, you said earlier in the press conference that the rejections at the German borders that you have ordered are in line with European law. Now, European law provides that, as a rule, the state must examine where an asylum application is filed and who is responsible — a rule from which you are now deviating. Could you please explain why you believe this deviation is permissible and how you will justify it to the EU Commission in a time, as the President has explained, when the numbers have clearly fallen, both for irregular entries and for asylum applications filed in Germany? And a question for the President of the Commission: Do you share the Chancellor's assessment that the rejections are carried out in line with European law? And if not, will you examine the initiation of infringement proceedings against Germany? Thank you very much.
First of all. Yes, Mr. Gutschker, I would like to answer this very clearly. These are two different levels. The one level is that we in Europe fundamentally have the possibility of carrying out border controls, and that we make use of this right again and again. I would add, however, that I am a sustainable and lasting advocate of the European single market and also of the Schengen area. I also want to say this to all heads of state and government in the European Union who may have concerns these days that restrictions will be imposed here. We want to avoid under all circumstances that there are restrictions on cross-border traffic, on passenger traffic across the internal borders. This is a great achievement of the single market and also of the Schengen area, and we want to keep it.
However, we also have in Europe the rule in the Dublin Regulations that those who apply for asylum must do so in the country of first entry, and that is by definition, as a rule, not Germany. Apart from Switzerland, we have no European external borders, and Switzerland belongs to the Schengen area. So applying for an asylum procedure — and this is independent of whether it is under European or German asylum law — at a German-European internal border is generally not possible. And in this respect, the previous federal government already had these rejections. We are continuing them. We know that this is only possible for a limited period of time, and that is why I promised the Polish Prime Minister in particular during my visit the day before yesterday in Warsaw that we will of course not leave the securing of the European external borders to those alone who have European external borders. These European external borders are not Polish external borders or those of others, but they are common European external borders whose protection we Germans, who have no European external borders apart from Switzerland, are just as obliged to protect as all others. We are taking on this responsibility. We also know, however, that we can only solve the problem of irregular migration, for the most part, in administrative enforcement within the member states themselves. And that is why the Federal Minister of the Interior has my full support for the orders he issued yesterday in Berlin. This corresponds exactly to what we consider right in substance and legally permissible.
To add to the answer: member states can introduce border controls on internal borders within the framework of rules, time-limited and closely coordinated. The Commission understands. Yesterday, the Commissioner for Home Affairs in Germany has closely coordinated with neighboring countries. We understand that Germany is connecting neighboring countries and discussing that. What is the dilemma that we have at the moment? The dilemma is that we are still working with what we call the old legal framework. The legal framework has its deficiencies; we know that. This is the reason why we agreed on the new Pact on Asylum and Migration topics — a unified approach to conditions of entry in the European Union, a screening mechanism, etc. Second, we need to find a fine balance in the European Union between responsibility and solidarity. That is the dilemma we are in.
