Security conference, the International Meeting was actually kicking off an opening with a passionate debate. That wasat a meeting in its infancy. Today it is the munich security conference. We will have discussion and debate. Here and 125 countries they will beginning you a very warm welcome to munich. This is something very special i wouldny, chancellor like to also welcome you. This conference which began in 1990 is very much influenced by the cold war, by the conflict between two countries. It was also influenced by a Nuclear Deterrent create it was more about the cohesion. , it brought an end to the cold war in 1990. Specifically the transatlantic it was actually able to achieve its goal. I would like to give a very warm woke up to the delegation of the United States, and all of the others who have come here on behalf of them. [applause] today, more than a quarter of a century later, the world has changed dramatically. Wo blocs. No longer t the structure has become much more progressive, there is obviously United States of america as a superpower. A European Union with 28 Member States. I wanted to highlight this and go into preparatory for the conference. I was looking at the global gdp and 2015, itn 1990 has actually tripled. The gdp of the states has also tripled. , if you takee eu those 28 Member States has tripled during this time. The gdp of china has actually gone up to the tune of 28 times. We have 22, the United States has been able to maintain their share and hold it. China has gone up 2 to 15 . This is something we have to 9 11nd with, starting with , we have new conflict that has arisen because of several wars and the rise of Climate Change and there is an increasing amount due to globalization and digitization. What we have today is a world where there is no fixed international order. With the cold war, the relation and is as of yet not where it should be. The challenges on the world today cannot be mastered i won state alone, it needs a global effort. That means we have to board to head. We have to strengthen our borders and make them more efficient. This is true for the European Union, it is true for the United States. Also, with ones of forum that germany holds responsibility, the g 20. The meeting of heads and state governments was founded, this was founded in the aftermath of the International Financial crisis. Certain that this profound crisis could only be Work Together if we Work Together. We are shaping an interconnected world because we are firmly convinced that only if we act together will he be strung together. Because of the structures are not as efficient, in many places, in many respects. Ist of our countries there this approach where we are seeing the most effective being solved. Some people say should we not concentrate on ourselves . Become inward looking, i would argue that we should have every effort to fight. Obviously, we have to improve now. Let me start with what is happening at home, the eu is in a very difficult situation. Due to the results of the referendum and england, we will only be 27 Member States. That is very regrettable. I think. It is a fact. The 27 remaining Member States have to be even more interested in asking themselves what is the change for the future. We have to be satisfied with the status quo, the whole of the eu must be satisfied. It is challenge towards globalization. We have to show that there is an added value. We have to create jobs. We have to create competitiveness. We have to be successful for our people. The market, our economy has dependent on that because that creates prosperity. That is something we wanted to do in the eu. We have to strengthen our commonality. We have a very profound crises. N the eu twice o we have created a common currency, it is sufficiently resilient. Adopt mechanisms to secure that currency. We have had to continue to work on this. Thing in most of the member countries, we were not prepared for the longterm pressure we have seen. You will have to retroactively install the mechanisms at the necessary patrol. We have had to concentrate on the eu more with the important challenges and the competitiveness of jobs. As well as security and my prediction over the next few years we will also have to focus on regulations that can be asapped but also hinder us key to beallow the the beall and and all. Will do more of this on defense, we have to do more on defense. We have to allow a structure on , our defensive germany and france has actually seized the opportunity to do more. Yes, if we want to be. Deal moreso have to on national security. 16 motions all across the world where we participate. We have more than one third of the national expenditure. We are the largest donor in this area to defense. We can do more, do obviously the integrate our military effectiveness. Also in detail i have spoken about this. ,e need a leadership capacity we need to have this and the eu, we need to shape an interconnected approach which will not only bring forward our military capacity. Forill also develop corporations. It has to be all encompassing. We also have to bring everything forward in the way that we do that. For example, we train people on the ground, we also have to have forces on the ground. , the eu mustity never be seen as an alternative to nato, it complements and is integrated. That is how we see this. Also with the appropriation and defense, that is something that always played a very important role. 1989, we are now toing over and transitioning projects. Germany has also been integrated in other areas. There are a lot of Franco German initiatives. Euis all going into the there is one central issue and seized addressed did we you russiaive of the and ukraine issue. We cannot report that we have all of the agreements to the midst agreement. We have to do everything in order to bring a sustainable ceasefire about. Thats is what the people are very insecure about. People are very afraid about that. , with the agreement second issue that i would like to mention here, the importance of nato. Highlighted was through the annexation of crimea, and the conflict in the ukraine where russia is supporting this effort. That is something that saddens and worries me. Why has this lead to such insecurity . What is that matter when it comes to security, we all have to remind yourself that the one principle in europe in the postwar. Safety and security and peace. We have been the principle of integrity that has been violated. This is something the european order of peace rests. That is must be why we are so strict in enforcing that. It is no longer the tenets that bind us. With our world order upset, it is most important to strengthen strengthen the eastern flank. We are doing this from the bottom. Canada is responsible for latvia the United States is and poland is. We did invoke article five where we are ensuring each other of a standby agreement in the case of conflict. We are in a Major Mission in afghanistan, and this basically started after 9 11. Germany is continuing to Work Together with nato here. With 20 other nations in the north of afghanistan. I had the opportunity to talk to the afghan president. A political solution also is absolutely necessary in order to ensure a peaceful future for afghanistan. When we speak of nato these days, we also always talk about the financial contribution each and everybody puts on the table. Germany and all other Member States of nato committed itself to reach the 2 goal. Just ask the defense minister as already insured you, we will do everything we can in order to fill this commitment. Let me add, however, i believe nato is very much in the european interest, it is very in the german interest, but i also believe it is in the american interests. Where we are all allied together, united together. We see this and rely on this and see this as a project of common interest. Ladies and gentlemen, third, i would like to talk about the enormous challenge i see in afghanistan. Through i. S. And organizations such as boko haram, it will probably be of increasing importance. This islamic terror is being resolutely fought against by antii. S. Alliance which is active in iraq and syria. Germany is participating in this as well. We know that particularly turkey is very much threatened through that challenge of International Islamic terrorism but also through the terrorism of pkk. Let me address this very openly. The europeans alone could not cope with fighting international islamists. We need the strength of the United States of america. We say this because the border between the e. U. And europe is the border us from islamic terrorists. That is very much the same in europe. So cooperation with the United States is very important to us. And it is also important that islam, muslim, is incorporated into this. Those countries, first and foremost, have to give a contribution. Only in this way will we be able to convince people it is not islam that is the problem but a falsely understood islam. Their logistical authorities of islam have to find Strong Language in order to delineate themslves and distance themselves from fundamentalist terrorists. We cannot do it. It has to be done by their religious clergy and islam authority. For example in the neighborhood of iraq, we would like to pay tribute to what turkey has done. They have received almost 3 million refugees. Lebanon, jordan have received an enormous number of refugees that have brought them to the limit of what they can do. We have a responsibility. The European Union has a responsibility to bear. Accepting those refugees, the root causes of the fighting. We as germany have shown a bit of responsibility. Unfortunately, in the European Union, we have not found a common position. The external borders of the union are the borders that separate us from those areas where people amassed a great number fleeing from terror. We cannot simply say this has nothing to do with us. We have to deal with this issue. Against islamic terrorism, let me say one thing. I would say this that unfortunately, from my perspective, the past 25 years we have not yet been able to create a durably stable and Good Relationship with russia. But as a neighbor, they are also on our external borders. So i will not relent in my efforts to champion the cause of good relations with russia. Though there is a difference of opinion, that does not mean after all, i think the natorussia founding act has to be respected. Thank you, secretarygeneral, for hosting these natorussia meetings. I think we are also united in fighting International Terrorism. You can see that is where we have common interests. The role of multilateral institutions, here i would like to pay tribute to the United Nations. It is most important to understand that the work of the United Nations has a lot to do with providing global security. And it is good that the United Nations secretarygeneral is in attendance today. Security these days is understood in a much more comphrensivef way it is not only defense cooperation. The secretarygeneral put crisis prevention at the top of the agenda for the future work of the United Nations. I can only support him in this. Any crisis that has been prevented will avoid a situation where, again, we have to tap into our defense budgets. We would be able to use that money for development. One area we have to do this is our neighboring continent, africa. The continent neighboring the European Union will loom very large in the agenda. How can we see to it that, in africa, we have a dynamic and economic development, as we have seen in asia . People know through digitization, through their smartphones, how other people live in the world. So we will look at what leads to expulsion, what leads to Global Health crises. Education, particularly education of young girls, women, enabling them and powering them to shape their own lives. So i would like to invite all of you to help us, support us in shaping this. Thank you for your attention. And let me tell you, it was an honor and a privilege to address you here today. Where we all feel it will be a tremendous challenge to all of us. Something is at stake for all of us. Will we be able to act in concert, act together . Or will we fall back to our parochial policies . I call on you to cooperate with us. Let us stand together, making the world a better place. Then, it will be a better place for each and every one of us. Thank you very much. [applause] i am delighted. Thank you, madam chancellor, for that speech. I think we have set the tone for the day. I am pleased that we have the opportunity to accept some questions. If you want to ask questions, i would be happy if it could be one question and it can be precise, and we will answer, and it will be very easy to answer that. You can also offer quick questions in english and other languages. It would be my privilege to ask the first question. Madam chancellor, you said yourself that you are willing to openly address the issue of financial contributions to nato. Yesterday, in our first session, we had the minister of defense from germany, we had the u. S. Secretary of defense, and others. It was my impression that this, of course, could be the contentious issue in the course of this conference when it comes to the transatlantic relationship, having heard from the u. S. Administration. But also from german voices, for example, from your coalition partner, we hear somewhat more skeptical statements. So do you fear that in the course of this year, we will have a controversial issue across the atlantic . Not necessarily a bilateral one, but between the e. U. Member states of nato . And could it be a topic for the electoral campaign, in the way that some say we have pronato, prou. S. And the others are against that. I recall a situation back in 2002. It proved to be quite uncomfortable, quite inconvenient. Maybe you can comment on this. Chan. Merkel well, i am not the coalition partner. I am myself. Ok, seriously. Let me say clearly what the german interest is. I think everyone who holds political responsibility in germany ought to always pursue this line of argument. What we have to do is tell our citizens that we do everything in order to ensure their security. The situation is without the United States of america, even if we stand together in the European Union and act in our defense, fight against International Terrorism is not something we can do sufficiently. So i think it is absolutely right and understandable if the United States of america and president obama also did this that is why we decided to do it. To do more. And germany is aware of its responsibility. I would like to see a situation happening where even in the election campaign, the defense expenditure, as we increase our defense expenditure last budget by 8 , we cannot do more, because it has to be absorbed. We need capability. Sheer numbers will not be sufficient. It has to be absorbed somehow. I think we ought to pursue this course. But the bone of contention will not be over you do not increase your defense expenditures, so youre not doing something for security. Also with development corporation, it goes some way into expanding defense. We should we have used it for the refugees, but that is not the only thing we need to do. We have to work with the cooperation on the ground. Security is not to be seen in a comprehensive way. We look at our conservation to the United Nations. When we help in crisis prevention. When we help people in their home countries live a better life and therefore prevent crises, this is also a contribution. So i will not be drawn into a debate who is more or less military minded. I think we need more capabilities for this, more defense expenditure. I do not think this is a bone of contention. After all, the decision in wales was taken together. The defense minister was there. But also the foreign minister. Everything ought to run smoothly, because this is a common thought in the coalition. [applause] a famous bavarian would say, lets see what happens. I have only seen a couple of hands raised. I do not know if we can admit them all. But i have one question here on paper. Let me just read it out, or would you like to ask it yourself . Thank you very much for an eloquent speech. In essence, you have been talking about more defense for europe. Yesterday, there were also speeches that were very eloquent in this issues. Since elections were mentioned, there is also an election coming up in france. Assuming that we are going to have a proe. U. , proreform president next may, what would be your expectation of the frenchgerman role in this area of more defense, more europe. Thank you very much. Chan. Merkel well, obviously, i hope that there is a continuation of what the two defense ministers of france and germany have already initiated. They have been given a lot of support by most of the Member States of the European Union. The Defense Union actually worked there when the European Union was established. Unfortunately, the french at the time had reservations, so that failed. Now many years later, we are again working on the verge of bringing that about. 70 years after the treaties of rome, i think it is good we talk about a possible Defense Union again. I think we have to look at the reality of the day, particularly about procurements. There is healthy competition between german and French Companies sometimes. We need them all over the world, where we bid and our competitors. But maybe our defense ministries could find a common approach. I do not think in any other time in history has there been such a positive willingness to cooperate among the french and germans to cooperate now. Mali is a case in point. Germany has gone out on a limb there. Because we dont have this longstanding experience in africa. It is quite a dangerous mission. We know it is a peacekeeping mission, but we know there is lively terrorist activity. We have done this in order to demonstrate our bond with the french to try and alleviate the burden on the french forces, because the french have a very high burden through terrorist activities in their home ground. So we have shoulder that and it shows that we are indeed ready and willing to embark on a new course. The next question comes from the front row here. Do we have a microphone . My question to you is, what can we do to protect our democratic processes from fake and false news . And are you worried about the important elections we face this year in europe . Thank you. Chan. Merkel well, whether we can actually do that before the elections, i do not know. But obviously, we ought to be , well, vigilant. Estonia knows well what you are talking about. You have had that experience. In the civil area, we have initiated and adopted a new cyber strategy. The new defense minister has established a domain within the ministry that deals only with cyber activity. And we know that russia, actually, is very much actively engaged and also considers this hybrid warfare to be part of its legitimate policy. I think it would be very good if, in the framework of the russianato council, this could be put on the agenda. We have very new possibilities here. You can actually deal a blow to critical infrastructure. You can spread false news about and spread misleading information. I think that is a great challenge to democracy. I have every intention, when we talk about certain news and fake news all of a sudden, it seems to be conventional wisdom on everyones lips i feel the citizens in germany will be confident taking their own decision out of their own free will. Obviously false information that has spread, at least in little atou come is something least in lithuania, is something we have to tackle resolutely from day one. In the back, he wanted to ask a question concerning ukraine. We understand the minsk agreement is dead. And yesterday from what we were told, it is dead two times over. Where can we take it from here . Thank you very much, ms. Gensler. Chancellor. Chan. Merkel president poroshenko is, just looking at now, is denying this strongly. I have been in contact with the president of ukraine very often. The minsk agreement is the only basis that we have in order to keep up this channel of communication, trying to bring a solution to the problems forward. I am absolutely against throwing something out that might still be useful when it is the only thing you actually have and it has a certain degree of hope connected to it. As i see it, there are two huge problems. The minsk agreement relied on the fact that we had a roadmap. The problem was that when the minsk agreement came into force, there was no real ceasefire. There was still a conflict raging. We never had a continuous four or fiveday ceasefire. So you can argue we cannot do anything politically. But because we are reasonable and sensible people, ukraine said we will initiate this political process. That is why we are in contact with several working groups and the election and the reform process. I can only warn you against highlighting all of our failures. I could talk with some length about where we failed. I talk about the challenges all over the world. We would love to fight together with russia against International Terrorism. We would love to establish sensible trade relations to work on some kind of union from vladivostok to europe. But we cannot give this up. We not only owe it to ukraine, we owe it to many other countries. We have to find a political solution here and are more than ready to put every effort into to sometimes be disappointed but to continue to work on this. [applause] with your permission, madam chancellor, i think we have time for one question. Chan. Merkel yes, sure. I would like to give it to stefan. It may be difficult for you to see. Madame chancellor, i am sure that you would not like to comment on what is going on in the new u. S. Administration. There is fierce criticism when it comes to the trade surplus, and we have had heated debate. Will this be a problem when you take the First Step Towards the new u. S. Administration . Second question, what would you say, or do you doubt the u. S. Media coverage when it comes to u. S. Domestic policy . Chan. Merkel well, my information usually comes from german newspapers. I suppose you will be happy to hear that. And as for the rest, i think a free and independent press is of the essence. I have Great Respect for journalists. We, at least here in germany, we have always done the best when we show respect for each other, when we show mutual respect. Whenever we differ, we talk about it openly. Freedom of the press is a pillar of democracy. That is something i think we all accept. Now obviously, the trade balance will play a role when you talk about economic issues. I do not want to go at greater detail into the root causes. We are proud to have good products, as the americans are proud of their good, quality products. If you look at how many apple products are probably spread around the room, they are more than happy. Avenue, german cars are still in the minority there. [applause] due to the eurozone, obviously we have a valuation problem of the euro because the European Central bank is pursuing a Monetary Policy that is not oriented only towards germany, but from portugal to slovenia or slovakia. It has to be valued for all member countries. If we still have the deutsch mark, it would stand as a different value from the euro. But that is an independent Monetary Policy. I as chancellor, i have zero influence over this. There are demographics that come into play. Germany will have one of the greatest demographic changes to contend with, apart from japan, in the next 20 years. Which means that we have to save our money to weather that great challenge. If i look at direct Foreign Investments in the United States , one also has to see this, not only the trade balances. As i said, there are a lot of things on our agenda, and i look forward to that discussion. Thank you very much, madame chancellor. [applause] announcer Vice President pence also spoke at that conference in munich. We will show you his remarks here at 10 30 eastern on cspan. You can also find the event online at www. Cspan. Org. Announcer cspans washington journal. With news and policy issues that impact you. Coming up monday morning, the American Enterprise institutes gary schmit. Nuclear power north korea, russia and iran. Lauren wright joins us to talk about her book, on behalf of the president , president ial spouses and white house communication strategy today. Be sure to watch washington