I am delighted that you have wasted no time and travelled straight to the institutions in Brussels, and on Europe Day. That speaks for itself.
We had an excellent exchange. We both agreed that whatever we are addressing right now needs to have an urgency mindset. Topics that we raised were, for example, competitiveness, a key priority of this Commission. To increase and improve the competitiveness of the European Union, we discussed four different points.
The first is that it is crucial to close the innovation gap. This requires adequate funding, but it also requires a conducive environment with a guarantee of freedom of research and freedom of science, which we are able to deliver.
Second topic: We looked at the difficult topic of energy prices. We have structurally too high energy prices. We need to lower them. And for that, we need to invest massively in interconnectors, in grids and in storage. We do not lack energy. We have a lot of energy production, specifically low-carbon energy. But we lack the capacity to store it and the grid.
We also looked at our capital market. We need a deep and liquid functioning capital market for the whole European Union. In other words, our companies, wherever they enter the Single Market and the single capital market, they need to have the same entry point conditions. And we agree that this is now the time to really push this topic forward and to make progress. So, before the summer, we are expecting a big push forward on that topic.
And finally, a topic that we also agree on: We must simplify and speed up both at European and at national level, because simplification is key for our competitiveness. This is the aim of the now well-known Omnibus initiatives that we are launching. We need to make sure that we can move forward swiftly now with the Omnibuses in the Council, and in parallel that gold-plating at national level also disappears.
So, this was looking at the internal market, but of course the external conditions are also crucial. Germany proves the point, a global powerhouse with close ties to European and especially foreign markets. Europe today is more attractive than ever. Currently, from all over the world, countries are eager to work, trade, and partner with us. You know the topics – from Mexico to Mercosur, from Switzerland to South Africa, from India to Indonesia, just to name a few. We have 76 trade agreements today, and the number is growing.
We would welcome to count the US among them, and that is why we have put forward a zero-for-zero offer, zero tariffs on both sides of the Atlantic. We are ready to eliminate tariffs on industrial goods. And as you know, we are working intensively on a negotiated solution in the tariff question, a solution that is balanced, that is fair, that is mutually beneficial and that strengthens both sides of the Atlantic. But if and where negotiations fail, we also will act, and that is the reason why we are currently consulting a possible rebalancing list. In other words, all instruments, all options stay on the table.
We discussed Ukraine. First and foremost, I think it is important that the 30-day ceasefire that has been proposed now by President Trump and President Zelenskyy is accepted and subsequently implemented. At the same time, we also agree that we have to bring Ukraine into a position of strength. This includes further support economically, militarily and politically, and we underline both that we want to reach a just and lasting peace. This also turns the look towards the topic of additional defence spending in the European Union, and I welcome the Chancellor's initiative to substantially increase German defence spending. As part of our Readiness 2030, we agreed on the need to conclude the instruments SAFE and the National Escape Clause. With SAFE, we will ensure EUR 150 billion in EU-backed loans. This is very important because it enables for us joint procurement. That is a program for joint procurement, but also for investment in the Ukrainian defence industry.
Finally, we also discussed migration. I cannot say it often enough: Migration is a common European challenge, and it needs a common European solution. It is with that spirit that we agreed the Pact on Migration and Asylum. Now it is important to implement it, to make it a reality. And this comes along with investment and a lot of hard work. I am pleased to announce today that we will provide an additional EUR 3 billion for that topic. It is the result of the midterm review. And with the Pact, we will have stronger external borders, better ways to prevent secondary movement, very important here too, and faster asylum procedures. That is the internal work we are doing.
On the external dimension, the second pillar is partnership with our neighbouring countries, neighbouring to the European Union, and these partnerships deliver. This year, the illegal arrivals are down by 30% already. That is good. And finally, there is a point where Member States need to increase the returns. We know the fact that only 20% of those migrants that have a negative asylum decision are being returned to their home countries. Therefore, the Commission presented a proposal on return in March. For us, it is very important that now the Member States and the European Parliament play their role.
All in all, we have proven that together we can overcome the challenge of irregular migration, and I believe that we can continue to do so if we work hand in hand with full respect of our commonly agreed legislation.
To conclude, Robert Schuman would have been happy if he would have seen the Eurobarometer that shows today that support for the European Union among citizens is at the highest level ever. And I think this question is being asked for more than 40 years. This is a privilege, but it is also a big responsibility. People place their trust in us when we tackle and solve the big problems. They do not care which level is responsible, whether it is the regional, the national, or the European level. They want us to deliver, and to deliver on the big challenges.
Dear Friedrich,
The fact that you have chosen Europe Day speaks volumes. That is a hugely important signal because, by doing so, you make it very clear that for you European policy is a top priority. With all my heart, I wish you a good start and look forward to our excellent cooperation.
