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Yes.

Thank you of the European Council, di Antonio, a very warm welcome to Berlin.

You are our guest today as you are touring the capitals. Which takes you to the European capitals.

Because the European Union is facing far reaching decisions.

Therefore, I very much welcome the fact that you engage in individual encounters with the Member States.

This is especially relevant with regard to the Multiannual Financial Framework. Negotiations are entering the decisive stage.

As you may know, ladies and gentlemen, I invited my colleagues from Sweden,

Denmark, the Netherlands, Austria and Finland to Berlin two weeks ago.

As a group,

we contribute roughly 40% to the budget of the European Union and as much as 70% of the bilateral aid to Ukraine from the European Union.

Our message continues to be that we have to show realism as we engage in. Reforms. This is what Europe needs.

We have to show realism with regard to the financial viability.

The Commission proposals, as they are now, foresee an increase of roughly 60% compared to the present period of the MFF,

and at a time of budgetary savings in all Member States, this is simply prohibitive.

Because at the end it is the European taxpayer who has to foot the bill.

The proposals therefore have to be cut by €7 billion as we see it,

and these cuts have to be across the board.

We also need to show realism with regard to running up common debt.

Excessive indebtedness is a threat to our sovereignty and our ability to act.

We do have the admittedly painful task of setting priorities,

and running up new debts in the European Union is not a way out.

The second point is the reforms that are needed with regard to the political priorities.

With a budget of the 20th century, we will not be able to solve the problems of the 21st century.

We need a modern financial framework that reflects our political priorities.

Competitiveness and our ability to defend ourselves are priorities here.

Europe, I believe, will only be able to hold its own.

Based on its own economic, but also on its own military strength,

we aim to conclude the extremely complicated and complex negotiations on the MFF,

if possible, by the end of this year.

That is my firm will, and it is also what the German Government would wish to see,

and that is also what we have decided at the European Council.

The President and I discussed these matters today.

We believe that the second topic of central importance is closely linked to the MFF competitiveness of the European Union,

that is, in spring this year, the European institutions agreed.

On a roadmap for competitiveness on my initiative, outlining concrete measures and deadlines,

and our objective is to implement that roadmap, but we have to do more.

We have to reduce bureaucracy in order to ease the burden on our companies.

We are not fast enough and not ambitious enough in that regard,

and we have to further improve conditions for investments and, above all, to implement them more speedily.

In concrete terms, this means that we have to accelerate the permitting procedures.

Certain investment projects from strategic sectors, such as the green and digital transformation,

have to be approved speedily and have to be given preferential treatment.

All of that is what we aim to do.

It is in our hands we can achieve this, and I will come back to this at the next Council meeting in October.

What is not in our hands are the economic decisions by our global trading partners,

and we increasingly witness market distorting practices here.

We are in favor of free trade, but we are anything but naive.

In June, we tasked the European Commission with two missions first,

to continue to engage in dialogue with our trading partners and to do so in a confident way. Confidentially and constructively defending our interests.

Second,

the Commission is to further sharpen our trade defense toolkit and to add additional tools to the toolkit.

We need an effective toolkit if we are to effectively defend our interests,

so we will engage in intensive negotiations in October with Ursula von der Leyen on where we stand right now.

Other topics are also on the agenda, for example, Ukraine, energy security,

keeping up the pressure of sanctions on Russia and the topic of migration will also be on the agenda.

The situation in Ceuta has impressed upon us how important it is to protect the European external border,

and we will also insist on the rules of the common European asylum System being applied by all parties. Because otherwise we will not succeed.

And last but not least, we talked about enlargement of the European Union,

which will also be on the agenda with regard to Ukraine, Moldova and the countries of the Western Balkans. We want to see our decisions advance.

I by and large agree on this with António Costa, and I would like to once again thank you, António for his readiness to come here today,

and I thank you for the good and trusted exchange that we had not only today but very much today.

It has been a very intensive exchange, and I wish you good luck as you too.

As the capitals, you have an important task to attend to,

trying to convince each and every Member State of the need to engage in a compromise so as to allow us to wrap up this objective.

Thank you for your personal commitment and again thank you very much for having taken the time to come here today. Mr. Mr Chancellor, Friedrich Nagel.

Let me begin by thanking you very much for your time and your warm welcome here in Berlin,

and for the very useful exchange that we had today.

Meeting you in Berlin, as with every leader in their own capital,

allows me to better understand each national perspective on our common challenges.

It helps me and my team to prepare the upcoming European Council meetings.

I am on a tour of the capital, with many stops, but one single destination our unity.

Our unity matters now more than ever,

as we face a stark new geopolitical reality with attempts to intimidate and divide Europe.

Across our continent, we have seen numerous hybrid activities and attacks,

drones, sabotage, cut cables attacks on infrastructure.

Germany has been at the front line of this new reality with the attempted Russian drone attack at Leipzig and other recent failed attempts,

and I want to express here, dear Friedrich, once again, the European Union's full solidarity with Germany. I am proud of Europe's response.

We have remained united in solidarity with each other, most recently with Germany.

Russia must understand that these threats will not change the European Union's position on Russia's a of aggression against Ukraine.

They only strengthen our unity and our commitment to peace and to the respect of international law.

It is time for Russia to end this war, not to escalate or extend it.

The European Union will continue to support Ukraine for as long as it is needed during the war,

in any negotiations, in the reconstruction and on its path to the European Union.

Friedrich, thank you for Germany's historical investment in security and defense.

Germany plays a fundamental part in Europe's growing efforts to shoulder its own common defense,

a collective effort that Member States must pursue jointly.

That is the best way to reach our common goal on new European defense readiness.

This new geopolitical reality also requires us to accelerate our work for a safe,

prosperous and competitive Europe.

That is why we need a new approach to our next long term European budget,

with a new structure and a new way of allocating our resources.

More efficient, more focused on delivering results where it matters the most,

our collective defense and security, but also our competitiveness, innovation and resilience.

In a nutshell, a budget for the future.

A budget that reinforces trust in Europe's economy and security,

a budget that addresses the concerns and the expectations of our citizens. Let me be clear.

The budget we are discussing is not business as usual.

Cohesion and agricultural policy remain essential for regional development and food security across our continent,

but we need to modernize a modernized budget focused on boosting our industry,

supporting our innovators, protecting our citizens and defending our borders.

In short, a budget that is fully aligned.

And supportive of your government's ambitious economic reform agenda.

As we do with each Member State's national budget,

in deciding on our European budget, we must make choices.

That means, just like any budget, meeting our priorities within limited and finite resources,

national contributions must be kept at a reasonable level.

That is why it is so important to find an agreement on the realistic overall level of the budget,

and that is also why finding new own resources and new revenue streams for the European Union will be an essential part of an overall agreement.

We need an agreement by the end of 2026, as you said.

Indeed, in a world of instability and unpredictability,

the European Union must remain a source of stability and responsibility.

Our citizens, our companies, our farmers and our researchers need predictability.

So thank you, Friedrich, for your strong support for reaching an agreement this year.

Our strategic autonomy depends on a competitive economy.

To make our economy stronger, we need more than a modernized budget.

We need to create the conditions for European industries and businesses to innovate,

thrive, grow and generate quality jobs for our citizens.

The One Europe, One Market agenda set out an ambitious timeline to achieve decisive progress this year and next year,

towards simplifying our rules, cutting red tape, completing the single market,

ensuring affordable energy, supporting innovation and reducing our strategic dependencies. This work is underway.

We need to stay on track and even accelerate.

To keep up the momentum,

the European Council will return to competitiveness in October.

I want to thank you once again for your tireless efforts to push the competitiveness and simplification agenda forward at European level.

Friedrich, I look forward to continuing our work together in the European Council. Thank you very much. Mr.

Costa, Germany has seen the success of the AFD this week,

a party very critical towards the European Union and a party where the voters want less EU and less taxes. Now you're talking sometimes about new taxes.

How do you think this might influence the success of these movements that you also have in other countries?

Chancellor,

you will welcome tomorrow the President of the United Arab Emirates tomorrow. What do you expect of his visit? Why is this visit important for Germany?

First of all, as you can imagine, I cannot commend on internal political issues in the Member States,

and I fully respect the decisions of all the citizens in the Member States.

What I can say is that it is clear that European citizens want Europe to deliver concrete results,

concrete results to increase and to ensure their security.

To protect our borders and to boost our competitiveness.

The people are facing a moment of anxiety. Entity with By different reasons.

Because they are facing the challenge from AI.

Others because they are facing the challenge of climate change, others because they are facing the lack of competitiveness of the European economy,

because others are facing threats in our borders, in our societies.

What we need is to Give a concrete answer to anxiety. And to provide confidence, security.

And the confidence that the future Will be built by us together. This is all about this budget.

This budget is to strengthen our cohesion, to boost our competitiveness,

to ensure security for all and to ensure the best collective defense for all the Europeans across the continent.

That is what it is about, and for sure, we cannot ask more from the Member States.

Then we need to create new own resources in order to protect the national budgets.

All national budgets need to be respected, and we respect all the national budgets,

and this is the reason because we need to have new own resources in order to fund what we can do together better that each one can do alone.

It Let me Just express one idea or add just one idea to what was said.

In this budget of ours, in the year 2026, we have been able to achieve slight growth,

half of which is to be traced back to our exports to the European Union.

The membership of the European Union of Germany and the European Union should not be called into question.

Those who try to do so, those who talk about leaving the Schengen area or the euro, are threatening.

Putting at risk a substantial part of Germany's prosperity, I will do everything I can to further develop the European Union.

Germany is by far the most densely populated country of the European Union.

We are by far the biggest contributor, because we are the most densely populated.

The most populous country of the European Union,

our prosperity depends to a very large extent on our membership of the European Union and that we also work to ensure that we further develop the European Union with the objective of strengthening its competitiveness.

As concerns the visit of my colleague from the United Arab Emirates, you will hear more about that tomorrow in detail.

We are about to conclude a whole host of bilateral agreements.

In a way, this is the return visit for my visit I paid a couple of months ago to the Gulf States,

and I am delighted that the President of the UAE will be here tomorrow.

Actually, he will be arriving today, and we will have a big reception for him hosted by the Federal President.

I very much look forward to this opportunity to see him again.

And to further deepening the relations between the United Emirates and Germany,

the UAE are an important and valuable partner for the Federal Republic of Germany.

Thank you, Chancellor, one question to both of you regarding Ukraine.

The American mediators have been to Moscow and Kiev.

We do have indications that there might be new negotiations with Russia after the Duma elections.

How confident are you that these negotiations are actually going to take place, and do you expect substantial results?

Have you agreed on who is going to be at the table on the part of the European Union should the Europeans be invited to participate in these negotiations?

Chancellor, a question I would like to address to you.

Given the debate in the Bundestag this morning, you attacked the AFD in strong terms.

What do you think about the ongoing debate about banning the AFD?

Do you support the proposal to set up a working group of the federal government with the Linder?

The only thing I can say is that I continue to be skeptical whether such a procedure with the objective of banning the AFD will be successful.

Of course I can take another look at this, but as I see it, this is a really high hurdle to overcome,

and, generally speaking, I do not believe that by banning this party you can solve the problem.

That the people who voted for this party see in Germany.

As we try to deal with the AFD, I think we ought to pursue a political path,

we ought to do so in a political manner.

We should try to win back the voters for the political center, also for the CDU.

We should submit to the voters a convincing political offer,

indicating that we take their concerns and reservations to present politics seriously.

One more thing,

I do not think it came about by chance that The fact that the national security advisers The 3 European national security advisers were present when the Ukrainian government and the Ukrainian President talked to the mediators from the United States.

Right now we have little indication that the Russian Government and the Russian President,

would be willing to engage in serious talks about an end to his war.

We have been submitting that offer for months. The federal government has done so.

I personally have engaged, using any means at my disposal to Allow for a diplomatic solution,

but as long as the Russian Government has not been willing to open up to any of these proposals or suggestions for a diplomatic solution,

I see little chance of us.

Pursuing that approach, but we will not relent in our efforts to bring about a political solution.

We will do whatever we can to assist Ukraine.

This is not with the aim of continuing the war. It's the opposite.

We want to see an end to the war, but we make full use of all diplomatic means at our disposal right now.

We are fighting since 24 February 2022 for a just and lasting peace in Ukraine.

And the only reason because The war doesn't stop.

It's because Russia doesn't want to stop the war.

Simply like this, and we will support all kinds of negotiations in order to convince Russia to stop the war,

to accept a ceasefire, to go seriously to the table of negotiations.

It is time to stop the war, it is not time to escalate, it is not time to extend it,

it is time for peace, and for this Russia needs to stop.

But of course,

A just and lasting peace means that we need a peace that respects international law.

Mr.