• Ukraine conflict
• Reforms strengthen social cohesion
• Education and research
• Pensions and long-term nursing care
• Energy
• Traffic and transport infrastructure
• Middle East
• German-American relations
• More international responsibility for Germany

Commenting on the aircraft crash in Ukraine, she said, "We need an independent investigation as swiftly as possible."

Right at the start of the press conference, the Chancellor raised the issue of the air disaster in eastern Ukraine. "My thoughts are with the families of the victims," said the Chancellor. Four of the victims were German. She reported that she had already spoken by telephone with Dutch Prime Minister Mark Rutte and expressed her condolences. Many of the victims were Dutch citizens.

The aim must now be to set up an independent investigation of the crash as swiftly as possible. The indications are that the aircraft was shot down.

Ukraine conflict

Angela Merkel called on Russia and on the Russian President to help bring about a political solution to the conflict. The prerequisite for de-escalation is still a ceasefire respected by both sides. She stressed that there is no alternative.

At the same time Angela Merkel noted that there has still been no de-escalation of the conflict. No appropriate response was forthcoming to the gesture made by Ukrainian President Petro Poroshenko in declaring a ceasefire. Peace is only possible if the separatists and the Ukrainian government talk. At the last European Council meeting in Brussels a new step was taken, in terms of stepping up sanctions on Russia. Now companies involved in the actions in Crimea and the destabilisation of the country can also be placed on the list of affected individuals and entities.

"Events in Ukraine demonstrate how happy we can be, that we in Germany live in peace and in liberty," stressed Angela Merkel.

Reforms strengthen social cohesion

In terms of domestic policy the Chancellor said, "We have achieved a lot over the last eight months." By way of example she listed the reform of the Renewable Energy Sources Act, the minimum wage, the pensions package and increased funding for education and infrastructure in Germany. "These are important reforms, which enhance the cohesion of our society." They are also projects that involve innovations.

In future it is paramount that we manage to balance the budget. "We have presented a budget for next year that provides for a balanced budget for the first time in 46 years." Economic indicators for the immediate future are extremely positive, which allows us to be optimistic about our prospects. "We have already achieved many individual elements," declared Angela Merkel. But a lot of work still needs to be done over the next few years.

The Chancellor gave the prominent example of the implementation of the education package along with the federal states. Other important projects include the reform of the federal education assistance system (BAföG), the digital agenda including the expansion of broadband coverage, traffic and transport infrastructure including the plans for a system of road tolls for private cars, and the tasks ahead within the European Union and under the G7 Presidency. Angela Merkel declared her conviction that, "We will succeed in future, as we have in the past."

Education and research

In the education sector, Angela Merkel explained efforts will focus on the six billion euro education package and on constitutional changes to permit the federal government to finance universities jointly with individual federal states. Angela Merkel are reminded her audience of the reforms to the federal education assistance system (BAföG). "The transfer of responsibility for this grant and loan system to the federal government ensures that our state remains capable of effective action at all levels."

Thanks to its ability to innovate, Germany will remain fit for the future. This is why, announced the the Chancellor, the Meseberg meeting on Germany’s future on 2 September with the two sides of industry and the next dialogue on innovation on 13 October are to focus on this.

The threatened shortage of skilled labour is to be tackled simultaneously at several levels. At the next Integration Summit, for instance, the training migrants will be one central issue.

In research, said Angela Merkel, the federal government will continue to guarantee an annual increase in funding for non-university research facilities under the Pact for Research and Innovation. In future, the federal government will also pay the share hitherto contributed by the federal states.

Pensions and long-term nursing care

Angela Merkel underscored the fact that it is not true that the pension age of 67 has been abolished. This continues to be the rule. The new pensions package merely allows people who have already worked for 45 years to retire early as of the age of 63. This is a transitional regulation, she said, which will rise gradually again to 65 years.

"In the long-term nursing care system we have decided to introduce the demographic reserve," declared Angela Merkel. This will not be sufficient in the long term, but it is a first step which is intended to make it clear that this nursing care is particularly hard hit by demographic trends.

Energy

Another trailblazing project mentioned by the Chancellor is the reform of the Renewable Energy Sources Act. This has already gone through parliament and is to come into effect on 1 August.

The energy shift, a move to put Germany’s energy supply on a more sustainable basis, is an ongoing issue, declared Angela Merkel. The main focuses are enhancing energy efficiency, expanding the transmission grid, and devising ways of promoting the use of renewable energy that complies with EU legislation.

Traffic and transport infrastructure

Commenting on the planned road tolls for private cars, Angela Merkel said this must be compatible with European law and must not raise the cost of motoring for German drivers. Those were the conditions laid out in the coalition agreement. There are good reasons for charging for the use of all roads, because any other system would simply shift the traffic from toll roads to non-toll roads.

"I cannot really see that this is likely to jeopardise the European community," she added. Germany is pursuing the project in close consultation with the European Commission. If the project is approved by the EU, the question of neighbouring countries like Austria and the Netherlands possibly taking legal action would no longer be relevant.

Middle East

Even in view of Israel’s latest ground offensive in Gaza, Angela Merkel underlined here understanding for Israel. The Chancellor noted that in spite of the Egyptian initiative no ceasefire has yet been achieved. She stressed that every country has the right to defend itself should it be attacked.

Germany stands by Israel when it is called on to defend itself, said the Chancellor. The new dimensions of weaponry in the hands of the radical Hamas gives serious grounds for concern, said Angela Merkel. The German government is convinced that there must be a two-state solution in the region.

German-American relations

The Chancellor stressed that a firm partnership links Germany and the USA. The USA is Germany’s most important ally. Nevertheless, there are differences of opinion between the two in terms of cooperation between intelligence agencies.

It is important that the EU and the USA continue to cooperate very closely, she said. She mentioned the examples of negotiations with Iran over its nuclear programme and the Middle East Conflict. The trust that has been lost must also be restored through talks and agreements. The cyber dialogue is one line of discussion that should be used, she added.

The Chancellor stressed the link between Germany’s security interests and the need for cooperation between intelligence agencies. "We can see time and time again in politics that stamina is important. We want to uphold our legal order and to defend our interests." Germany’s security interests cannot be properly served without cooperating with other intelligence agencies. "And we should not forget that the USA is not the only country to be interested in information from Germany," stated the Chancellor.

More international responsibility for Germany

The Chancellor welcomed the ongoing debate about Germany assuming more responsibility in foreign policy. "This debate is important and right, because it is not only ongoing in the political arena, but within society as a whole," said Angela Merkel. In the long term, Germany can only live in peace and democracy if we help resolve crises elsewhere. Germany’s increased foreign-policy activities are evidence of Germany’s commitment.

Germany is one of the largest contributors to the United Nations and attaches a great deal of importance to multilateral activities and European projects. The Chancellor expressed her conviction that in the long term Germany can only enjoy a good future if Europe too has a good future.

After taking office in 2005, Chancellor Angela Merkel held her first summer press conference in the Federal Press Conference building in 2006. Journalists in Germany’s capital city see the traditional press conference as a good opportunity to put their questions before the Chancellor’s summer holiday. The Federal Press Conference association was founded in 1949 by parliamentary press correspondents.