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"We will not be able to remain an island of prosperity if we are surrounded by a sea of poverty," declared Shimon Peres after his meeting with the Chancellor, summing up the importance of ongoing events for Israel. He is convinced that poverty is the main cause of the unrest. The two politicians fully agreed that the unrest in Egypt could have repercussions for the stability of Israel.

In her meeting with Prime Minister Benjamin Netanyahu the day before, the Chancellor called on the Egyptian government to initiate a peaceful dialogue and to undertake reforms. Along with the Israeli government, she hopes that freedom of opinion, freedom of the press and the freedom to demonstrate will now be embraced in the regions currently in the grips of unrest.

At the same time the Chancellor pointed to the positive role Egypt has played in efforts to bring peace to the Middle East. Now it is up to the Egyptian government to seek open discussions with their own people, she said. The general strike in the country shows, "that clearly the dialogue with those demonstrating is not yet adequate," she added. It will not be possible to continue to ignore the wishes of those who suffer poverty, unemployment and other problems to express their opinions freely, said the Chancellor.

Peace process must not be disrupted

Speaking in Jerusalem, Angela Merkel stressed that developments in Egypt and other countries in the region must not be allowed to disrupt the Middle East peace process.

The former Israeli Foreign Minister Tzipi Livni warned that Iran might fuel unrest in Egypt and attempt to benefit from the instability of the country. She called once again for pressure to be increased on the government in Teheran and for stricter international sanctions. In view of the threat to Israel the Chancellor did not discount the possibility of stepping up sanctions, but she pointed out that this would only make sense if they have broad support, and were undertaken in agreement with Russia and China.

Both sides must make concessions

The Chancellor reminded her audience that if progress is to be made on the peace process, both sides will have to make concessions. The continued construction of Israeli settlements in particular is an obstacle to constructive talks, she said. The currently peaceful relations between Israel and the Palestinians are deceptive, she said and cannot be considered robust.

The meeting of the Middle East Quartet during the Munich Security Conference at the end of this week could be helpful in the view of the Chancellor. She underscored the fact that the Quartet can only ever play a supporting role, however. The initiative for continuing the peace process must come from Israel.

Germany’s permanent responsibility

In her meeting with Shimon Peres Angela Merkel once again made it quite clear that Germany will never renounce its endeavours to achieve peace and security in Israel. Shimon Peres called the Chancellor a "genuine, true and serious friend," of Israel. He is not alone in this belief. For her commitment to Israel and to fostering understanding between Jews and non-Jews, Angela Merkel was presented with an honorary doctorate from Tel Aviv University.

Later in the day the Chancellor met German and Israeli volunteers who are part of the Action Reconciliation Service for Peace along with Holocaust survivors. This year the Action Reconciliation Service for Peace will celebrate its 50^th anniversary in Israel.