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European Commission President von der Leyen meets with German Chancellor Merz on Europe Day; leaders focus on competitiveness, innovation funding and trade agreements

May 9, 2025 Press Release 4 min read

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May 9, 2025 (press release) –

“Check against delivery”

Herzlich willkomen, Herr Bundeskanzler, lieber Friedrich,

es ist eine Freude, dass du so früh die Reise nach Brüssel zu den Institutionen angetreten bist, und dass am Europatag. Das spricht für sich selbst.

We had an excellent exchange, and we both agreed on an urgency mindset. For example, in competitiveness, a key priority of this Commission. We agreed that a crucial point is to close the innovation gap. This requires adequate funding, and it requires a conducive environment that promotes free research and innovation. We also agreed that a reliable and affordable energy is critical. For that we need to massively invest in grids, interconnectors and storage. We do not lack energy, we lack the capacity to store it and the grid. Next priority is one deep and fluid capital market. Our companies need access to European capital, wherever in Europe their entry point is. We agreed that now is the time to make progress. Before the summer, we are expecting a push forward. We also must simplify and speed-up – both at European and at national level, because simplification is key for our competitiveness. That is the aim of our multiple omnibus initiatives. We need to make sure that we move forward swiftly in the Council and in parallel, gold-plating at national level also disappears.

Germany proves the point: a global powerhouse, with close ties to European and foreign markets. Europe is now also more attractive than ever. Countries from all over the world are eager to work, trade and partner with us. From Mercosur to Mexico, from Switzerland to South Africa, from India to Indonesia. We have 76 trade agreements – and the number is growing. We would welcome to count the US among them. That is why we put a zero-for-zero offer on the table. We are ready to eliminate tariffs on industrial goods. We are working intensively on a negotiated solution to the US tariffs. A solution that is balanced, fair and mutually beneficial; one that strengthens both sides of the Atlantic. But if negotiation fails, we will act. This is why we are currently consulting on a list of possible rebalancing measures. In other words, all options are on the table.

We discussed Ukraine. First and foremost, I think, it is important that the 30 days ceasefire that has been proposed now by President Trump and President Zelenskyy is accepted and subsequently implemented. At the same time, we also agreed that we have to bring Ukraine into a position of strength. This includes further support – economically, militarily and politically. And we underlined both that we want to reach a just and lasting peace. But we also need additional defence spending in Europe. I welcome Friedrich's initiative to substantially increase German defence spending. As part of our “Readiness 2030”, we agreed on the need to conclude SAFE. With SAFE we will ensure 150 billion euro in EU-backed loans. These loans will finance purchases from European manufacturers – and Germany certainly has a strong defence industry to offer.

Finally, we also discussed migration. I cannot say it enough: Migration is a common European challenge that requires a common European solution. It is with that spirit that we agreed the Pact on Migration and Asylum. Now it is important to implement the Pact – to make it a reality. This comes along with investment and a lot of hard work. Therefore, I am pleased to announce that we will provide an additional EUR 3 billion. It is the result of the midterm review. With the Pact, we will have: Stronger external borders, better ways to prevent secondary movements, faster asylum procedures. So far for the internal work. On the external dimension: The second pillar of our migration policy are partnerships with neighbouring countries, and those partnerships deliver. This year the illegal arrivals are down by 30%. Finally, Member States need to increase returns. Only 20% of the migrants with a negative asylum decision are returned to their home countries. In March, the Commission presented a proposal on returns. Now the Member States and the EP have to play their role. All in all, we have proven that together we can overcome the challenges of irregular migration. And I believe that we can continue to do so if we work hand in hand, in full respect of our commonly agreed legislation.

To conclude, a message that would please Robert Schuman: The Eurobarometer shows that support for the European Union among citizens is at its highest level ever. This is a privilege, but also a huge responsibility. People place their trust in us when we tackle and solve the big problems. They do not care which level is responsible, whether it is regional, national, or European. That is why we must work together to address the big challenges.

Lieber Friedrich, die Tatsache, dass du den Europatag gewählt hast, spricht Bände. Das ist ein enorm wichtiges Signal, denn damit machst du auch sehr klar: Europapolitik ist für dich Chefsache. Ich wünsche Dir von Herzen einen erfolgreichen Start und freue mich auf die exzellente Zusammenarbeit.

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