She discussed her vision of a peaceful Middle East region with the President of the United Arab Emirates, Sheikh Kalifa Bin Zayed Al Nahyan.

An Israel with secure borders where people can live in peace. And a Palestine where people have a genuine chance in life. That is what she would like to see.

"I have already seen one wall come down," Merkel noted. "You need to believe in your vision," she added in reference to her own past in which she experienced the collapse of communism, the reunification of Germany, as well as a gradual rise to the office Chancellor and now President of the European Council.

Israeli-Palestinian conflict

The conflict that has gone on for decades between Israel and the Palestinian Territories is the key to peace in the Middle East. Resolving this conflict is the precondition for being able to resolve other problems in the region such as factional unrest in Lebanon, the nuclear dispute with Iran, the power struggle in Iraq, or Syrian hostility towards Lebanon.

Merkel said she was pleased that King Abdullah of Saudi Arabia had been able to get the leaders of the feuding Palestinian factions to come together. A meeting between Hamas leader Khaled Meshaal, Prime Minister Ismail Haniya, and President Mahmoud Abbas was scheduled for February 6.

Ending the factional strife among Palestinians would be a first step in the direction of peace.

The terms of the Roadmap, the peace plan formulated by the Middle East Quartet in 2002,  provide for the establishment of an independent Palestinian state. In return, the Palestinians would recognize Israel’s right to exist and its borders. This objective is to be attained in three phases. In the first phase the two sides would agree to a cessation of all violence. The Palestinian leadership would end terrorism and incitement against Israelis, draft a constitution, and hold democratic elections. Israel would take all necessary steps to help normalize Palestinian life and freeze settlement activity in the occupied territories. The second phase provides for the creation of a Palestinian state with provisional borders. The third phase would be dedicated to the achievement of a permanent status agreement on borders, Jerusalem, the return of refugees, and the future of Israeli settlements.

European peace policy

In a foreign policy speech given at the Emirates Center for Strategic Studies and Research Chancellor Merkel reminded her audience that it was not until the middle of the 20th century that the European nations finally succeeded in overcoming a tradition of war and hatred among themselves.

She underscored the need for a comprehensive security concept, noting that military crisis management works only in conjunction with civilian stabilization and reconstruction efforts.

There is proof in Europe that this is a formula for success. It brought stability in Bosnia-Herzegovina. It averted civil war in Macedonia. A deployment of European troops helped provide security for the Congo’s first democratic election in forty years.

But Europe can be successful with its peace policy approach only if it speaks with a single voice.

The parties involved in dealing with the crises in Lebanon, in Afghanistan, and in Iraq also need to speak with one voice, Merkel said.

There are forces in the region who don’t want peace. "We’re worried about Iran," Merkel said in reference to its nuclear program. Iran has rejected all the offers that were made to it. Now there is a need for the international community to stand together and draw a line in the sand.

UAE-German trade

The economic situation in the United Arab Emirates continues to be very good. The country’s gross domestic product grew by 12 percent in 2005 to 115 billion dollars. Exports rose by 23 percent and imports by 18 percent. Revenues from oil sales were at record levels.

The United Arab Emirates are now Germany’s most important trading partner in the Middle East, followed by Saudi Arabia and Egypt.

German exports rose by 21 percent in 2005 (to a volume of 4.31 billion euros) and by 25 percent in 2006. Around five hundred German companies are currently operating in the United Arab Emirates, 150 in Abu Dhabi, 250 in Dubai, and the rest in the Northern Emirates.

The EU and the six countries in the Gulf Cooperation Council have been negotiating a free trade agreement for a number of years now. In her speech at the German-Emirates economic forum Chancellor Merkel urged that these negotiations be concluded as soon as possible.

The United Arab Emirates have played a prominent role in the area of medical technology in recent years. Chancellor Merkel witnessed the signing of two related agreements.

A cooperation agreement was signed with the Technical University of Munich for the establishment of a school of medicine at Abu Dhabi University. A similar agreement was signed with the University of Bonn for the establishment of a  medical services polytechnic.