After her meeting with France’s new Prime Minister Manuel Valls in Berlin, the Chancellor reported that their talks had been "intensive and cordial". Germany and France aim to master national, international and European challenges together. Obviously, a large part of their talks had been dedicated to the current economic situation and ongoing developments in the euro zone, reported Angela Merkel.

Formidable reform agenda

The French Prime Minister had brought her up to date on "the formidable and ambitious French reform agenda," said the Chancellor. France is to undertake "an impressive number of efforts". She added, "We wish them every success in realising this agenda." She is interested in ensuring that Germany and France "make the necessary efforts together". It will then be up to the European Commission to judge these efforts.

"My priority is that Europe must be credible. That implies that we must stick to the agreements we have reached together – and that means the Stability and Growth Pact," stressed Angela Merkel. This Pact allows for "a degree of flexibility", and the Commission will judge what is undertaken in France. "Germany will support the Commission and will not make its own judgement."

Reforms not an end in themselves

The aim is to make the euro a stable currency in the long term, to encourage growth in Europe and to underpin the credibility of European decisions. "Reforms are not an end in themselves. They serve to raise standards of living, and improve the lot of the many unemployed people," said Angela Merkel.

Manuel Valls reaffirmed his belief "that it is absolutely essential that we step up our budgetary efforts". Structural reforms will also be realised, the reforms that have so often been announced and never implemented. "We have fallen behind."

He reported that he had explained to the Chancellor the time schedule he envisages. The reforms will definitely be implemented, "because I have the parliamentary majority I need," declared Manuel Valls. It is, however, also important "that the German people trust me".

Pulling forces to generate jobs and prosperity

Fiscal consolidation and measures to foster growth in the euro zone and the European Union as a whole are equally essential, said the Chancellor. "There are many fields in which we can cooperate", also with the new European Commission.

Angela Merkel pointed to the fact that the German Commissioner is responsible for the digital agenda, "which certainly offers excellent potential for growth". This is a field, she said, where "there are good opportunities for Germany and France to initiate investment".

International challenges

Germany and France "agree completely" in their assessment of the threat posed by the terrorist organisation Islamic State, said Angela Merkel. She also made special mention of the excellent cooperation between the two countries in conjunction with the Ukraine crisis and Russia.

The visit of the French head of government is thus "helping our relations to continue to develop positively," she said. The initiative of the ministers of finance of the two countries to step up investment in Europe is another good example. In the fields of economic and energy policy too there is lots of scope for the two countries to work together.

The Chancellor summed up, "I am convinced that this visit will encourage Germany and France to continue to cooperate extremely closely, and to take this collaboration to new fields and new levels."

Fundamentally important relations

The French Prime Minister described his talks with the Chancellor as direct, frank and conducted in an atmosphere of trust. "The exchange was worthy of our two countries." The two nations are both interested in success. He described Franco-German relations as fundamentally important. "Together we can move Europe forwards."