Following her talks with the Portuguese Prime Minister at the Federal Chancellery, Angela Merkel declared herself impressed with the country’s reform process. "Portugal has gone through a process of radical reform, which has placed a heavy burden on the people of Portugal," she said.

The fruits of these efforts are now reflected in economic growth and new jobs. Germany will continue to stand by Portugal, and will also support it in its moves to reduce youth unemployment, pledged Angela Merkel.

Close cooperation based on trust

The Chancellor cited labour market policy as one major area of cooperation, with a special focus on youth unemployment, the elaboration of the European multiannual financial framework and agreement on the banking union.

The two countries enjoy a close partnership - "that goes well beyond the narrow focus of the euro programmes," stressed Angela Merkel. "When we focus on the future, on research, on innovation, on improving opportunities, on cutting red tape, Germany and Portugal are very close partners."

Thanks to Germany

Pedro Passos Coelho reported that Europe in general and Portugal in particular have weathered the worst of the sovereign debt crisis. Portugal has become markedly more attractive to foreign investors, and is very close to balancing its budget.

The Prime Minister thanked the Chancellor for Germany’s long-standing assistance. At the same time he called for progress on completing the banking union so as to overcome discrepancies in interest movements.

Ukraine crisis – keeping the door open for dialogue

Angela Merkel and Pedro Passos Coelho also discussed the situation in Ukraine. The Chancellor once again declared the accession of Crimea to the Russian Federation to be illegal. Like the "so-called referendum" on the Crimean peninsula, this is a clear violation of international law.

In addition to the sanctions now imposed, Germany and the international community will be working for dialogue and negotiation. "Nothing will change in our assessment," said Angela Merkel. It is an assessment that is "widely supported within international organisations including the United Nations Security Council, the Organization for Security and Co-operation in Europe and the Council of Europe. The preparations for the next G8 summit have been suspended said the Chancellor. "No further decisions have been made," stated Angela Merkel.

Pedro Passos Coelho also expressed his concern over developments in Ukraine. He declared it important, "that we keep open the door for dialogue, so that we can move towards diplomatic and political solutions".

Cordial bilateral relations

Relations between Germany and Portugal are sound. In the past, the Federal Republic of Germany has supported Portugal, for instance, in establishing democratic structures in the wake of the 1974 Carnation Revolution and with accession to the European Communities (the precursor of the European Union).

The governments of the two countries work closely on the basis of mutual trust. The foundations are their broadly similar international and European interests. In economic terms too, they are closely interlinked; Germany is Portugal’s second most important trading partner.

At cultural level a number of educational cooperation programmes are in place, and Germany maintains cultural organisations in Portugal, including two Goethe Instituts.

50th anniversary of the German-Portuguese Recruitment Agreement

Fifty years ago, on 17 March 1964, the Federal Republic of Germany signed a bilateral recruitment agreement with Portugal, which brought the first Portuguese workers to Germany. The foundations were laid for German-Portuguese migration, which continues to this day.