The Chancellor expresses her "respect and admiration"

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Angela Merkel and Mariano Rajoy with umbrellas

Chancellor Angela Merkel welcomes Spain's Prime Minister with military honours

Photo: Bundesregierung/Denzel

One key item on the agenda was preparations for the European Council meeting at the end of the week in Brussels, but the two heads of government also discussed the situation in the euro zone, energy issues and bilateral matters.

Within the framework of the 24th German-Spanish government consultations, they also looked at European and international issues. Parallel to their meeting, individual Spanish and German Cabinet ministers met at the respective ministries for talks. In the afternoon all Cabinet ministers involved in the government consultations attended a meeting jointly chaired by the Chancellor and the Spanish Prime Minister.

Spain is on the right path

Speaking to media representatives, both heads of government praised the excellent cooperation between the two states. The Chancellor paid tribute to Spain’s reform efforts. Germany has, "great respect and great admiration," she said, for what Spain has managed to do to overcome its sovereign debt crisis.

Angela Merkel declared her conviction that the reforms will produce the desired results. She also praised the cooperation between the two countries in the fight against high youth unemployment. At the coming European Council meeting in Brussels this will be one item on the agenda of the heads of state and government.

The Spanish Prime Minister pointed to the successes already achieved on his country’s road to reform. The process of restructuring financial markets will soon be completed, said Mariano Rajoy. Then Spanish banks will once again be able to provide the credit needed by the country’s economy.

In other areas too restructuring is progressing apace, he reported. The Spanish government will continue to work on bringing down the country’s budget deficit, and stimulating economic growth.

European economic and currency union

With respect to the further development of the European economic and currency union, the Chancellor reported that she and the Spanish Prime Minister agreed that the common currency calls for greater solidarity and more convergence in the field of economic policy.

Germany too must do its bit to boost economic growth, she said. The Federal Republic of Germany is saving, but only to the extent that there is still scope to do something for growth.