Full Text June 7, 2011: President Obama on the Official Visit of Germany’s Chancellor Angela Merkel: “A Partnership Between Our Peoples”

POLITICAL SPEECHES & DOCUMENTS

On June 7, 2011, President Obama and First Lady Michelle Obama welcomed Chancellor Angela Merkel of the Federal Republic of Germany to the White House. During the Germany Official Arrival Ceremony the President spoke of the strong alliance between our two countries.

Remarks by President Obama and Chancellor Merkel in Official Arrival Ceremony

South Lawn

9:36 A.M. EDT

PRESIDENT OBAMA:  Good morning, everybody.  Chancellor Merkel, members of the German delegation — on behalf of Michelle and myself, it is our great pleasure to welcome you back to the White House.  And on behalf of the American people, it is our great honor to welcome you back in the United States.  (Applause.)

Today marks the first official visit and State Dinner for a European leader during my presidency.  It’s only fitting.  The transatlantic alliance is the cornerstone — is the heart — of our efforts to promote peace and prosperity around the world.  And Germany — at the heart of Europe — is one of our strongest allies.  And Chancellor Merkel is one of my closest global partners.

Our alliance, at its core, is a partnership between our peoples.  The generations of German Americans who helped build a strong America.  The Americans who, during a long Cold War, helped to defend a free Germany.  And citizens of both our countries — entrepreneurs, innovators, students, scientists, and soldiers — who work together, and forge the future, every day.

At a time when some have asked whether the rise of new global powers means the decline of others, this visit reaffirms an enduring truth.  Our alliances with nations like Germany are more important than ever.  Indeed, they’re indispensable to global security and prosperity.

As two of the largest and most dynamic economies, the United States and Germany can show that the prosperity we seek is best achieved when nations invest in our greatest resource — our people and their ability to compete and innovate in the 21st century.

As members of the most successful alliance in human history, our commitment to our common defense is also a pillar of global security, from completing our mission in Afghanistan to preventing terrorist attacks to achieving our vision of a world without nuclear weapons.

And finally, as people around the world imagine a different future, the story of Germany and our alliance in the 20th century shows what’s possible in the 21st.  Wars can end.  Adversaries can become allies.  Walls can come down.  At long last, nations can be whole and can be free.

Madam Chancellor, the arc of our lives speaks to this spirit.  It’s obvious that neither of us looks exactly like the leaders who preceded us.  (Laughter and applause.)  But the fact that we can stand here today as President of the United States and as Chancellor of a united Germany is a testament to the progress, the freedom, that is possible in our world.

Chancellor Merkel, to the members of the German delegation — we are honored to have all of you here — as allies, as partners, but most of all, as dear friends.  So, herzlich willkommen.  (Applause.)

CHANCELLOR MERKEL:  (As translated.)  Mr. President, dear Barack, dear Michelle, Mr. Vice President, members of both Cabinets, guests of honor, my fellow countrymen, ladies and gentlemen — thank you very much for this very warm and very moving reception that is overwhelming.  I am indeed delighted — and I say this on behalf of all of the members of my delegation — to be back in Washington, D.C., again.

About 20 months ago — and this was almost 20 years after the fall of the Berlin Wall — I had the great honor and privilege to address both houses of Congress, a wonderful moment.  And I’m certain this day today shall be another such unforgettable moment.

Mr. President, receiving the Presidential Medal of Freedom from you tonight is something that I consider to be not only an exceptionally gracious gesture of appreciation, and I see this as a gesture of appreciation for the whole of this united Germany.  It is also a testimony of the very, very close ties that bind our two countries together.

We Germans know that America has always been a true friend to us.  Our friendship has grown and matured throughout the decades, and every day it is filled with new life.  More than 600,000 Americans are working for German companies here in the United States, and the reverse is also true — more than 600,000 Germans work for American companies in Germany.

There are many and diverse exchange programs at schools and universities, and they help us to win over numerous young people to serve as bridge builders between our two countries.  Seventeen million members of the Armed Forces of the United States — and their families — have lived in Germany ever since the Second World War.  And they have served their country with honor and distinction and rendered an inestimable service to their country and to us.  The more than 50,000 American soldiers who are currently stationed in Germany are more than welcome every day.

I could mention many more examples of the close ties that bind our two countries together, but let me underline one thing in particular.  When Germany and Europe were divided by the war and barbed wire, America consistently stood on the side of freedom and resolutely stood by us Germans as we made our way towards unity and freedom, and this we shall never forget.  (Applause.)

Today, we are just as closely linked to each other by the bonds of friendship as we were those 20 years ago.  We are standing on a firm foundation, and standing and supported by this firm foundation we tackle the current challenges we both face.  Germany and the United States are partners, sharing responsibility for a peaceful and stable Afghanistan.  We are pulling in the same direction trying to keep Iran from following its course of developing a nuclear forces capability.  In North Africa, we support the struggle for freedom.  And in the Middle East, we support efforts to fill the peace process with new life.  Together, we mastered the aftershock of the global economic and financial crisis.

Yes, Germany and the United States do share the same values — democracy and freedom, rule of law, and the universality of human rights.

And it is for this very reason that a close partnership with the United States is just as much part and parcel of Germany’s raison d’être as is European integration.  Both belong together.  Both are and remain the pillars of German foreign policy.

(Speaking English.)  Mr. President, dear Barack, in Berlin in 2008, you spoke to more than 200,000 people.  And in your address, you said America has no better partner than Europe.  And now it’s my turn to say Europe and Germany have no better partner than America.  Thank you.  (Applause.)

END
9:52 A.M. EDT

Remarks by President Obama and Chancellor Merkel in a Joint Press Conference

East Room

11:41 A.M. EDT

PRESIDENT OBAMA:  Please, everyone, have a seat.  Good morning again.  It is an honor to welcome my good friend and partner Chancellor Merkel back to the White House.  We had a wonderful dinner last night, one on one — although, as you saw again this morning, Angela’s English is much better than my German.

Michelle and I are very much looking forward to hosting the Chancellor and Professor Sauer at tonight’s state dinner, where I’ll have the privilege of presenting Angela with the Medal of Freedom.

As I said earlier, Germany is one of our strongest allies.  We see our partnership in the drive of our workers and businesses who sustain the largest trade relationships in the world.  We see it in the students and teachers, the scientists and researchers who are unlocking new innovations, including the clean, renewable energy sources that we need to combat climate change and create the industries of the future.

We see our partnership in the courage of our service members who stand shoulder to shoulder in Afghanistan — where Germans serve under Americans and Americans serve under Germans.  Chancellor Merkel, I want to thank you and the German people for your strong commitment to this vital mission, and our hearts go out to the wounded warriors and all the families, American and German and others, whose loved ones have given their lives to keep us safe.  We remember and honor them all.

We see our partnership in the skill of our diplomats who prevent the spread of deadly weapons and stand up for democracy in Europe and beyond; and in the passion of our development experts as they work to avert suffering in countries like Sudan.

This is the essence of our alliance — two peoples, bound by common values and committed to the security, the prosperity, and the dignity not just of our own citizens, but those far beyond our borders.  And that’s also the essence of my partnership with Chancellor Merkel.

Angela, I believe this is our tenth meeting together.  That doesn’t include the many phone calls and video conferences that we seem to have at all hours of the day and night.  There’s hardly any global issue where we don’t consult one another.  I’ve said before I always value Angela’s pragmatic approach to complex issues, her intelligence, her frankness.  I trust her.  And as she’s said herself, it’s just fun to work together.  And it has been, again, fun today, even as we’ve addressed some very urgent challenges.

Germany is one of our largest trading partners, and we discussed how to keep our economies growing and create the jobs that our people need.  As Angela mentioned in her remarks at the opening ceremony, hundreds of thousands of American jobs are supported by our exports to Germany; hundreds of thousands of Americans work for German companies that have chosen to invest in America.  I’m pleased that billions of dollars more in German investment is making possible new plants — steel in Alabama, manufacturing in Tennessee — all of which go to create thousands of new American jobs.

The Chancellor and I discussed the need to eliminate regulations and barriers so we can unleash even more trade and investment, including in the area of electric vehicles, where both our countries are leaders and where the possibilities of American-German cooperation are enormous.  And of course, I very much appreciated the Chancellor’s views on the financial situation in Europe, which we agree cannot be allowed to put the global economic recovery at risk.

With regard to security, we discussed our progress in Afghanistan, where we’ve broken the Taliban’s momentum, trained Afghan forces, and are now preparing to turn a corner in our efforts.  We’re scheduled to begin the transition to Afghan lead.  And I reiterated that we’ll begin reducing American forces this summer, even as we join with Germany and our NATO allies in supporting Afghans in their political and economic efforts to forge a lasting peace.

I thanked the Chancellor for her support for the principles that I laid out last month as the basis for negotiations between Israelis and Palestinians.  And I want to commend Angela for her personal efforts to bring the parties back to the negotiating table.  Just as we agree that both sides will need to make difficult choices, we agree that unilateral actions — such as Palestinians seeking a vote on statehood at the U.N. General Assembly — should be avoided.

We agreed that Iran’s continuing nuclear program, and its refusal to engage in any meaningful talks with the international community, remain a very serious concern.  So we agreed that if the International Atomic Energy Agency this week determines again that Iran is continuing to ignore its international obligations, then we will have no choice but to consider additional steps, including potentially additional sanctions, to intensify the pressure on the Iranian regime.

Finally, we discussed the historic changes underway in North Africa and the Middle East.  With regard to Libya, I’d note that Germany’s deployment of additional resources and personnel to Afghanistan has allowed other NATO allies to increase their support for the mission to protect the Libyan people.  The Chancellor and I have been clear — Qaddafi must step down and hand power to the Libyan people, and the pressure will only continue to increase until he does.

And following our agreement with our G8 partners in Deauville, the Chancellor and I discussed our support for political and economic reform across the Middle East and North Africa, especially in Tunisia and Egypt.  The United States and Germany are the two largest donors of assistance — largest donors of assistance to the region, and we agree that this historic moment must not be squandered.

Along with the entire world, we have an enormous stake in seeing that these transitions to democracy succeed.  And given the Chancellor’s own remarkable life story — and her experience helping to heal the wounds of the past and build a united Germany — I very much appreciate her leadership and her partnership in this effort.

So, again, I’m very grateful to the Chancellor for being here.  I’m confident that the great alliance between our nations is going to remain an indispensable pillar of a world that’s more secure and more prosperous and more just.  And I very much appreciate the personal friendship that I enjoy with the Chancellor.  So, Angela.

CHANCELLOR MERKEL:  (As translated.)  Well, ladies and gentlemen, Mr. President, dear Barack, I would like to use this opportunity to thank you most warmly for this wonderful reception.  I’m saying this also on behalf of the members of my delegation.

This reception I say to the White House is welcome that I see as a testimony of our very close friendship, of our partnership.  If we remind ourselves of the fact that every fifth American today rightly points and perhaps also with a certain degree of pride to his German ancestry or her German ancestry, we can safely say that we, indeed, share common roots.  And if we look at the names that loom large in American history, Frederick Steuben, but many leading leaders of the German — of the American business community, Guggenheim, Steinway, Strauss, Singer — all of these German names.  So that is a broad foundation on which we can build.

And we are still grateful that so many Germans found asylum and a safe place to live during the Second World War in the United States.  We have a broad-based exchange of students.  We have cooperation in science.  We work in air and space with the ISS.  We share a lot of successes.  I mentioned the 50,000 soldiers — American soldiers — that are present today in Germany are very welcome, indeed, in my country.

Let me say this on a personal note.  Without the United States of America, I would in all probably not be able to stand here before you today.  Overcoming the Cold War required courage from the people of Central and Eastern Europe and what was then the German Democratic Republic, but it also required the steadfastness of Western partner over many decades when many had long lost hope of integration of the two Germanys and Europe.  Many perhaps didn’t even want this anymore.  But the then-President George Herbert Walker Bush said German unity, European unity, is indeed something that deserves our support.

So there are a lot of tasks that we have in common, a lot of challenges that we need to meet together.  We’re doing this in this spirit of freedom, of shared values.  We want to bring these values to bear on the international agenda.  We’re dealing and — ever since the month of January with these issues, the Arab Spring in Syria, in Tunisia, in Egypt, in Libya.  That is a very great challenge.

But if I remember — let me take you back perhaps to the period after the Second World War when, through the Marshall Plan, Germany was able to get back on its feet again.  I see this also as our common task, as a task of the Europeans and of the Americans and the Germans to support this change, to make it possible for these young people to have a perspective for the future.

We talked about this.  We talked about Germany in particular with its experience and vocational training schemes, offering an alliance for jobs, for training and education.  We’re working together with the Egyptians and the Tunisians on this with our foundations.  Building up institutions, for example, is something that we want to do.

I said that we after all opened up an office in Benghazi that will serve as a clearinghouse for training schemes, for example, for the security forces, the police there on the ground, and we will also, through an additional commitment to Afghanistan, lend a contribution to mastering the common challenges.

We talked about economic issues in the G20.  We worked very closely together, and I believe we have been able to make a lot of progress there and be successful.  The situation in the Euro group in Europe obviously is also of very great interest over here.  Finance ministers talked about these issues, but we, too, talked about this at some length.  And I said, yet again, for Germany, Europe is not only indispensable, it is part and parcel of our identity.  We’ve always said German unity, European unity and integration, that’s two parts of one and the same coin.  But we want, obviously, to boost our competitiveness.

We are very much aware — very well aware of the fact — both of us, I think — that we are in a tough competition with the emerging economies.  So Europe needs to be competitive and we also need to be competitive if we wish to remain an interesting economic partner for the United States.  This has to be done on the basis of strength, of competitiveness.  So this is why the Germans are pursuing a policy of a competitive Europe, and this is — and it is also an approach of solidarity, so we need to show solidarity to the countries that need it, but they also need to come to enhance competitiveness.

We talked about the Middle East peace process.  I think this was a very important initiative to point out yet again that the United States of America, just as Germany and the European Union, wish to promote a further development of the peace process.  We’re saying this to both countries:  We want a two-state solution.  We want a Jewish state of Israel and alongside a independent Palestinian state.  Unilateral measures are not helping at all to bring about this cause, and we agree that we wish to cooperate very closely on this, because as we both say, time is of the essence.  And looking at the changes in the Arab area and the Arab region, it would be a very good signal indeed if it came out that talks between the parties are again possible.

The commitment we take in Afghanistan shows that we’re very close.  We’re very grateful for the close cooperation in the north of Afghanistan; that has turned out excellently.  We share the opinion that in Afghanistan we wish to approach an — the matters in the sense of an integrated security approach, a network security approach.  It was said we want to build up not only the military side of it, but the civil side of it.  We wish to go in together, out together.  Afghanistan will need our support, however, in the long run.  So we will not abandon them.

Barack, thank you very much again for the very friendly talks, for this very warm atmosphere, for making it possible to have this exchange of views in a very candid manner.  I think even though we make look differently than our predecessors we have a lot in common, I think, and we have a lot to discuss.

Thank you.

PRESIDENT OBAMA:  I’ll start off with Steve Holland of Reuters.

Q    Thank you, Mr. President.  You both face economic troubles.  Mr. President, how worried are you about the threat of a double-dip recession?  What specific policies are you considering to help head it off?  And abroad, do you expect Germany to fund another bailout for Greece?

And Chancellor Merkel, is Europe concerned about the possibility of the U.S. defaulting on its debt?  Thank you.

PRESIDENT OBAMA:  I’m not concerned about a double-dip recession.  I am concerned about the fact that the recovery that we’re on is not producing jobs as quickly as I want it to happen.

Prior to this month we had seen three months of very robust job growth in the private sector.  And so we were very encouraged by that.  This month you still saw job growth in the private sector, but it had slowed down.  We don’t yet know whether this is a one-month episode or a longer trend.

Obviously we’re experiencing some headwinds, gas prices probably being most prominent.  It has an enormous impact on family budgets and on the psychology of consumers.  And so we are taking a range of steps to make sure that we’ve got an energy policy that can bring some stability to world oil prices.

But the overall trend that we’ve seen over the last 15 months — 2 million — over 2 million jobs created over the past 15 months — a rebounding of the manufacturing sector in the United States that’s exemplified by the recovery of the Big Three automakers here — all indicates that we have set a path that will lead us to long-term economic growth.

But we’ve still got some enormous work to do.  And as long as there are some folks out there who are unemployed, looking for work, then every morning when I wake up, I’m going to be thinking about how we can get them back to work.

Some of the steps that we took during the lame duck session, the payroll tax, the extension of unemployment insurance, the investment in — or the tax breaks for business investment in plants and equipment — all those things have helped.  And one of the things that I’m going to be interested in exploring with the members of both parties in Congress is how do we continue some of these policies to make sure that we get this recovery up and running in a robust way.

We then have a set of long-term competitiveness challenges that aren’t so different from what Germany or any advanced country is having to go through in the 21st century, where we have emerging markets who are becoming more competitive themselves.  And we’re going to have to step up our game.

So making sure that our school systems are working well and we’ve got the best-trained workers in the world; making sure that we’re investing in infrastructure so that we can attract businesses to our shores; making sure that we reform our tax system so it’s less complex, more transparent, and is encouraging of business investment; and getting a hold — getting a handle on our deficit in a way that’s balanced and sensible.

So we’re going to have some days where things aren’t going as well as we’d like.  There are going to be some times where we’re surprised with better economic data than we expected.  We are on the path of a recovery, but it’s got to accelerate.  And that’s going to require a continuation of a lot of the steps that I’ve already discussed.

With respect to the European situation, I have had extensive discussions with Angela about the situation there.  It’s a tough situation and I think we all acknowledge it.

Greece’s debt is significant, and it is taking some difficult steps to improve its situation.  But they’re under the gun from the international capital markets, and as part — as a member of the euro zone, they necessarily are going to be looking to other members of the euro zone to help them figure out a path forward.

Germany is going to be a key leader in that process.  And the politics of it are tough.  You recall how difficult it was for us to make investments in our own auto industry or to make sure that we didn’t have a financial meltdown here.  Well, imagine if you’re having to make those same decisions with 27 other countries with respect to somebody else’s economic problems.  That gives you some sense of how tough the politics are.

But I am confident that Germany’s leadership, along with other key actors in Europe, will help us arrive at a path for Greece to return to growth, for this debt to become more manageable.  But it’s going to require some patience and some time, and we have pledged to cooperate fully in working through these issues both on a bilateral basis but also through international and financial institutions like the IMF.

CHANCELLOR MERKEL:  Well, in Europe we are very well aware of responsibility for the global economy.  Barack just outlined what the Americans are doing in order to generate growth and combat unemployment, which is what we’re doing in Europe as well.

Through the global financial and economic crisis, we’ve seen how interdependent we are.  And the stability of the euro zone is therefore an important factor of stability for the whole of the global economy.  So we do see clearly our European responsibility and we’re shouldering that responsibility together with the IMF.

We’ve seen that the stability of the euro as a whole will also be influenced if one country is in trouble.  And that is what this assistance is all about.  There are actually — there’s actually a ban on bailouts in the treaties underpinning the stability and growth pact.  But if a country is in danger and thereby endangers the euro as a whole, it is in each and every country’s vested interest to see to it that this common currency area is not endangered.  And we will act in such a way, however, that sustainability is guaranteed, as I said previously.

As far as the situation in the United States is concerned, I think each and every one ought to deal with his or her own problems.  We in Europe have our hands full already with what we need to do, and I’m absolutely convinced that as we shoulder our responsibility and meet our responsibility, so will the United States of America.

Q    (Off-mic) — of her accomplishments in the past, or is it as well an expression of the expectations that you would have for the future?  And if so, where do you see areas globally where the Chancellor and Germany can do more?

(As translated.)  And Madam Chancellor, addressed to you, Germany is after all actually being praised in America through its economic might, its progress.  Does this mean, however, also that it entails certain enhanced responsibilities and where you have to live up to responsibilities, or do you think Germany needs to do more in the future?

PRESIDENT OBAMA:  With respect to the Medal of Freedom, it certainly is a recognition of the Chancellor’s remarkable career.  I think not only has she been an excellent steward of the German economy and the European project, but she represents the unification of Europe through her own life story and the capacity to overcome the past and point towards a brighter future.

So the extraordinary work that she’s already done I think would by itself merit the Medal of Freedom.  Fortunately she’s going to be around quite a bit longer.  And so she’s going to be doing outstanding work in the future.  Her leadership will be critical on economic issues of the sort that we just discussed in the euro zone.  And I very much compliment her on the courage with which she approaches some of these very difficult political issues, at some significant political costs to herself.

On the international stage, there’s no issues that we don’t coordinate closely with Germany.  And our work in Afghanistan, our work together with NATO, the approach that we’ve taken with respect to the Middle East and the Arab Spring, our approaches to development issues and how we help the poorest countries find their place in the international economy, these are all going to be areas where I think Angela’s leadership will be welcomed and will be absolutely critical for us to be able to achieve the kind of more peaceful and prosperous world that we want to see.

So she’s not finished yet; she’s got a lot more work to do.  I know sometimes she probably wouldn’t mind a couple of days off, but she’ll have to wait for that.

CHANCELLOR MERKEL:  Well, I believe when you see me standing here before you today and receiving this prestigious award of the Medal of Freedom, it will perhaps also be a moment where one needs to look back to 1989 and German unification, and what actually happened there.

If you like, Germany entered into a qualitatively new phase.  We were all of a sudden a reunited country, a country with all rights, but also with all the obligations.

If I think back to the beginning of the ‘90s, we were struggling for a decision that would enable us to send ships on the Adria, taking part in reconnaissance missions.  And if you compare this to where we are today, you see the road that we have traveled in the direction of assuming more international responsibility.  Military missions — participating in military missions are part and parcel of that — on the Balkans, in UNIFIL, in Afghanistan, in combating piracy, and in many other areas.

But what’s also important in this context — and that’s an approach that we both share, Barack and I — is that we need to combine military and civil engagement.  And so I think we live up to our international responsibilities.  The world is full of problems that we need to address.  That’s a reality and you cannot have enough partners that work together with you in a coordinated way, and this is why this cooperation is so extremely important for our common future.

I’m saying this also as someone who comes from Europe.  The changes in North Africa are changes that happen on our doorstep.  Those are our immediate neighbors and we have a choice.  Either this works out well or we have an enormous refugee problem.

And so it’s not only out of charity that we help people.  There’s not only a moral obligation.  But we have also a vested interest in seeing to it that this continent, this region, comes on its feet.

Q    Thank you, Mr. President, Chancellor Merkel.  Mr. President, you called Chancellor Merkel one of your closest global allies, but you have differed in approach on a couple of key issues — Libya and the global economic recovery over the years.  In Libya, do you believe more German military involvement in that operation would bring it to a faster, more decisive conclusion?  And did you ask Chancellor Merkel for such a commitment?

And on the European economic question, did you ask her specifically to drop her insistence that the private sector become involved in the Greek debt bailout, which is holding up that and which you’ve blamed the European sluggishness for America’s own stalled recovery?

Chancellor Merkel, if I could ask you, do you believe NATO was mistaken in getting involved militarily in Libya?  And if not, why are you not more directly involved militarily there?  And what more can you do to promote an accelerated European economic recovery?  Thank you.

PRESIDENT OBAMA:  Well, first of all, with respect to Libya, I think it is important to note that this is a NATO operation that’s fully integrated, which means you have German personnel who are involved actively in these activities in their NATO role.  As I indicated before, Germany has stepped up and taken additional responsibilities in Afghanistan that have freed up resources for us to be able to conduct our operations in Libya.

Chancellor Merkel and I share the belief that Qaddafi needs to step down for the sake of his own people.  And with respect to the pace of operations and participation, I think if you look at where we were three months ago and where we are now — or two months ago and where we are now — the progress that has been made in Libya in significant.

Our goal there was to protect the Libyan people from a potential slaughter.  We have done so.  Benghazi is free from threat of the Libyan regime right now.  They are hunkered down.  Misurata, which was under severe attack, is now in a situation where although still threatened, Qaddafi’s forces have been pushed back.  So what you’re seeing across the country is a inexorable trend of the regime forces being pushed back, being incapacitated.  You’re seeing defections, oftentimes of some very high-profile members of the Qaddafi government, as well as the military.  And I think it is just a matter of time before Qaddafi goes.

And each country that is part of this coalition is playing a different role.  So we did a whole bunch of stuff at the front end to disable Qaddafi’s air defenses, to take out some of their most significant firepower.  Now we are in a more supportive role as other countries have stepped up.

Germany — we did discuss last night Germany’s role, and there is going to be a lot of work to do when Qaddafi does step down, in terms of getting the Libyan people back on their feet — economic, political work that’s going to have to be done.  And my expectation is going to be that there will be full and robust German support as there has been in the past from Germany on a wide range of issues.

With respect to the economy, as I said before, this is a tough and complicated piece of business.  And ultimately, Europeans are going to have to make decisions about how they proceed forward.  What you have to do is balance the recognition that Greece has to grow, and that means that there has to be private investment there.  They’ve got to make structural reforms that make them more competitive.  They have to have greater transparency in their economic system.

But given their level of debt, it also means that other countries in the euro zone are going to have to provide them a backstop and support.  And frankly, people who are holding Greek debt are going to have to make some decisions, working with the European countries in the euro zone about how that debt is managed.

What we’ve done is to say to Germany and other countries that are involved; we will be there for you; we are interested in being supportive; we think that America’s economic growth depends on a sensible resolution of this issue; we think it would be disastrous for us to see an uncontrolled spiral and default in Europe, because that could trigger a whole range of other events.  And I think Angela shares that same view.

And so we’re going to have to work through this issue methodically, and we will be supportive in any ways that we can to make sure that all the best ideas are brought to bear on the problem.

But let me just make one larger point about — because it relates also to the question that Steve asked earlier.  I think people on both sides of the Atlantic are understandably frustrated with the ups and downs of the economy, the world economy.  And it’s just very important for folks to remember how close we came to complete disaster.

The world economy took a severe blow two and a half years ago.  And in part that was because of a whole set of policy decisions that had been made and challenges that had been unaddressed over the course of the previous decade.  And recovering from that kind of body blow takes time.  And recovery is going to be uneven, and there are going to be times where we are making progress but people are still skittish and nervous, and the markets get skittish and nervous, and so they pull back because they’re still thinking about the traumas of just two and a half years ago.

And so economic data that in better times would pass without comment, now suddenly people wonder, well, are we going to go back to this terrible crisis?  And all that affects consumer confidence, it affects business confidence.  It affects the capital markets.

And so our task is to not panic, not overreact, to make sure that we’ve got a plan, a path forward in terms of how we make our economies competitive; making sure we’re dealing with the structural issues and the basic fundamentals that will allow us to grow and create a good, sound business environment.

So in America, for example, the need for us to get a handle on our debt and our deficit is going to be important, making sure that our investments in education, in clean energy, in infrastructure — that we find a way to do that.

In Germany and Europe, there are going to be different sets of challenges.  But the important point is, is that — I think Angela would agree — what we try not to do is to look day to day at whatever is happening in the marketplace or whatever headlines are taking place and be reactive.  Our job is to set a course for the medium and the long term that assures that not only both our economies grow, but the world economy is stable and prosperous.  And I think we can do that together.

CHANCELLOR MERKEL:  Well, maybe I should comment briefly on this as well.  Two and a half years ago, we experienced something that didn’t exist for decades — ever since the ‘20s and ‘30s of the previous century.  And generally around, because we cooperated so well, we were able to ward off the worst that could have happened.  And now we have a situation that we believe is something that meets the challenges of the future.

Before the crisis, we discussed what sort of format are we to choose — a G20, G8, G30.  Now we have the G20, which is a good format, has proved to be a good format, and has, for example, as regards settling this situation and setting up rules for the financial markets, has been able to come up with credible solutions.  And that has strengthened our cooperation, although we do debate matters in a controversial manner.  For example, do we need more stimulus?  How much do we need?  How many savings programs and cuts programs do we need?  What structural programs do we need?

I think that shows great openness because we’re all breaking new ground.  These are unchartered waters, and we cannot, with all due respect, rely completely on the financial business community to give us good advice every day.  They have their own vested interest.  So we were dependent on our own good and sound judgment.  And exchanges will be necessary on this in the future as well.

As regards Libya, the United Nations resolution is apply — still applies.  Qaddafi needs to step down and he will step down.  I’m convinced of that, because we have made great progress.  And then there will still be a lot of work to do.  And in the future when we have the talks on this, we agree that Germany is showing — will be showing that it is responsible and committed to the Libyan cause.  There will be a lot of problems still to contend with, and we’ll be in the closest possible contact.

We support — Germany supports the NATO operation simply by being present in the stance there, and also by stepping up our commitment in Afghanistan.  It is our joint will that this NATO mission is successful.  And this is important for the people in Libya, but it’s also important for NATO, for the alliance at large.  And here we have one heart of allies that beats with the other allies.

Q    (As translated.)  The German decision on Libya has burdened the German-American relationship somewhat.  Were you surprised by these irritations and this warm reception?  Is this something like a reset button or a breaking up out into a new future?  And you, President Obama, were in Buchenwald and Baden-Baden, but as a new President not in Berlin.  Why not?  And will this happen once you have your new term of office?

CHANCELLOR MERKEL:  Well, I believe that this present event here today after all has been agreed for a long time, and our partnership, our friendship rests on a very broad basis, as I said this morning.  And sometimes there may be differences of opinion in such a friendship and partnership.

What’s important is that we wish each other every success.  Not each and everyone can be in on missions.  For example, we participated in UNIFIL where the United States are not participating.

Without sort of mixing up things here, there will be areas in the world where we shoulder different responsibilities.  Partners are doing together with others things that we believe can be useful.  And this is what we want to do.  We want to see to it that our contribution is bringing about a success, is encouraging other people to now see we wish to live in a democracy, this is good, this is sensible.

So I see today’s event as a wonderful reception, but it’s not something that’s so unusual.  I see it in a continuity of our very close relations, and I do see it as another starting point, if you like, for meeting other challenges of the future.

On the question of Germany, you said that the American President some people say in Germany has not really been to Germany at all.  He was in Dresden, he was in Buchenwald, he was in Baden-Baden for the NATO conference.  Berlin opens its arms to him every day.  But the Berliners can also wait.  They have proved this throughout their history.

PRESIDENT OBAMA:  I look very much forward to being in Berlin.  And the last time I was there we had a lot of fun.  (Laughter.)  And I’m sure that I’ll have a wonderful time the next time I’m there as well.  And I appreciate you assuming that I’ll have another term.  (Laughter.)  And so I’ll have plenty of time to be able to put Berlin on my schedule.  All right?  Thank you very much, everybody.

CHANCELLOR MERKEL:  And I can promise that the Brandenburg Gate will be standing for some more time.

END 12:18 P.M. EDT

Remarks by President Obama and Chancellor Merkel in an Exchange of Toasts

Rose Garden

7:31 P.M. EDT

PRESIDENT OBAMA:  Good evening.  Guten abend.  Michelle and I are honored to welcome you as we host Chancellor Merkel, Professor Sauer, and the German delegation for the first official visit and State Dinner for a European leader during my presidency.  (Applause.)

Angela, you and the German people have always shown me such warmth during my visits to Germany.  I think of your gracious hospitality in Dresden.  I think back to when I was a candidate and had that small rally in Berlin’s Tiergarten.  (Laughter.)  So we thought we’d reciprocate with a little dinner in our Rose Garden.

Now, it’s customary at these dinners to celebrate the values that bind nations.  Tonight, we want to do something different.  We want to pay tribute to an extraordinary leader who embodies these values and who’s inspired millions around the world — including me — and that’s my friend, Chancellor Merkel.

More than five decades ago — in 1957 — the first German chancellor ever to address our Congress, Konrad Adenauer, spoke of his people’s “will of freedom” and of the millions of his countrymen forced to live behind an Iron Curtain.  And one of those millions, in a small East German town, was a young girl named Angela.

She remembers when the Wall went up and how everyone in her church was crying.  Told by the communists that she couldn’t pursue her love of languages, she excelled as a physicist.  Asked to spy for the secret police, she refused.  And the night the Wall came down, she crossed over, like so many others, and finally experienced what she calls the “incredible gift of freedom.”

Tonight, we honor Angela Merkel not for being denied her freedom, or even for attaining her freedom, but for what she achieved when she gained her freedom.  Determined to finally have her say, she entered politics — rising to become the first East German to lead a united Germany, the first woman chancellor in German history, and an eloquent voice for human rights and dignity around the world.

The Presidential Medal of Freedom is the highest honor a President can bestow on a civilian.  Most honorees are Americans; only a few others have received it, among them Pope John Paul II, Nelson Mandela, and Helmut Kohl.  So please join me in welcoming Chancellor Merkel for the presentation of the next Medal of Freedom.  (Applause.)

MILITARY AIDE:  Presidential Medal of Freedom to Dr. Angela Merkel.  Dr. Angela Merkel came to symbolize the triumph of freedom by becoming the first East German to serve as chancellor of a united Federal Republic of Germany.  She also made history when she became Germany’s first female chancellor.  A dedicated public servant, Chancellor Merkel has promoted liberty and prosperity in her own country, in Europe, and throughout the world.

[The medal is presented.]

PRESIDENT OBAMA:  You can all applaud.  (Laughter and applause.)

I’ve got to do the toast.  (Laughter.)  I want to conclude by inviting all of you to stand and join me in a toast.  And I want to do so with the words that Angela spoke two years ago when she became the first German leader to address our Congress since Chancellor Adenauer all those decades ago.

Her words spoke not only to the dreams of that young girl in the East, but to the dreams of all who still yearn for their rights and dignity today:  to freedom, which “must be struggled for, and then defended anew, every day of our lives.”

Cheers.  Zum wohl.  (Applause.)

CHANCELLOR MERKEL:  (As translated.)  Mr. President, dear Barack, dear Michelle, ladies and gentlemen — the first political event during my childhood that I distinctly remember is the building of the Berlin Wall 50 years ago.  I was seven years old at the time.  Seeing the grownups around me, even my parents, so stunned that they actually broke out in tears, was something that shook me to the core.  My mother’s family were separated through the building of the Wall.

I grew up in the part of Germany that was not free, the German Democratic Republic.  For many years, I dreamt of freedom, just as many others did.  Also of the freedom to travel to the United States.  And I already had planned this out for the day that I would reach retirement age.  That was the age of 60 for men — sorry, for women at the time, and 65 for men.  So we as women were somewhat privileged at the time.  (Laughter.)

But imagining that I would one day stand in the Rose Garden of the White House and receive the Medal of Freedom from an American President, that was certainly beyond even my wildest dreams.  And believe me, receiving this prestigious award moves me deeply.

My thanks go to the American people, first and foremost, for this extraordinary honor, knowing full well how much you have done for us Germans.  And I thank you personally, Mr. President, because you are a man of strong convictions.  You touch people with your passion and your visions for a good future for these people, also in Germany.

You have been able time and again to put down important international goalposts, injecting issues such as disarmament, the question of how to shape our relations with the countries of the Middle East, and last but not least, the Middle East — the solution to the Middle East conflict with new dynamism.

Mr. President, I see the award of the Medal of Freedom as a testimony of the excellent German-American partnership.  Our countries stand up together for peace and freedom.

History has often showed us the strength of the forces that are unleashed by the yearning for freedom.  It moved people to overcome their fears and openly confront dictators such as in East Germany and Eastern Europe about 22 years ago.

Some of those courageous men and women are with me here tonight.  And the Medal of Freedom you so kindly bestowed on me, you also bestowed on them.

The yearning for freedom cannot be contained by walls for long.  It was this yearning that brought down the Iron Curtain that divided Germany and Europe, and indeed the world, into two blocs.

America stood resolutely on the side of freedom.  It is to this resolve that we Germans owe the unity of our country in peace and freedom.

Also today, the yearning for freedom may well make totalitarian regimes tremble and fall.  We have followed with great interest and empathy the profound changes in North Africa and in the Arab world.

Freedom is indivisible.  Each and every one has the same right to freedom, be it in North Africa or Belarus, in Myanmar or Iran.

Still, the struggle for freedom is demanding far too many sacrifices, and claiming far too many victims.  My thoughts are with our soldiers, our policemen, and the many, many volunteers who try to help.  I humbly bow to all those who risk their lives for the cause of freedom.

This year marks the tenth anniversary of the horrible attacks of 9/11.  Over the past 10 years, we have stepped up significantly our joint fight against terror and for freedom and this in many ways.

We see that living in freedom and defending freedom are two sides of one and the same coin, for the precious gift of freedom doesn’t come naturally, but has to be fought for, nurtured, and defended time and time again.

Sometimes this may seem like an endless fight against windmills.  But you see, my personal experience is a quite different one.  What we dare not dream of today may well become reality tomorrow.

(Speaking in English.)  Neither the chains of dictatorship nor the fetters of oppression can keep down the forces of freedom for long.  This is my firm conviction that shall continue to guide me.  In this, the Presidential Medal of Freedom shall serve to spur me on and to encourage me.

Mr. President, thank you for honoring me with this prestigious award.  (Applause.)

END
7:51 P.M. EDT

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