Many thanks for the invitation to Bayreuth. And thank you for the excellent discussion which we have just had at the cabinet meeting.
Every intervention showed how issues being addressed at European and global level have a direct effect on Bavaria, whether they concern Russia's war of aggression, the resulting energy crisis, food insecurity, trade issues, or indeed Europe's leadership in the fight against climate change, how we generate sustainable growth, the competitiveness of our businesses or their access to essential raw materials, for example. These are all issues being addressed at European and global level, but which have a direct impact on the ground.
Europe's responses to megatopics such as digitalisation or migration also play an important role. In that regard, it was again very informative to be a part of those in-depth discussions and to see on a practical level what is happening on the ground, with all the advantages but also the difficulties. This shows how important it is to cooperate.
A strong, functioning European internal market is a key component of the regions' economic strength. But the reverse is also true: the European Union is only strong if its regions are strong. The regions are, of course, also directly influenced by Europe's standing in the world.
The European Union has a dense network of trade agreements with 74 countries. This number is set to rise. We are currently negotiating – or have just concluded – agreements with like-minded partners such as Chile and Uruguay. We are in the final stages of negotiations with Mexico and Mercosur, where we are paying close attention to maintaining high common standards. We also have partners in the Indo-Pacific with which we are in the process of striking agreements. We have just concluded an agreement with New Zealand, negotiations are nearing completion on an agreement with Australia and we are in talks with India as well as with partners in Africa – as shown, for example, by the agreement we reached with Kenya just recently, in June.
At the end of this week, I will be travelling to the Philippines to further expand our strategic cooperation with them. What we want are multifaceted trade agreements covering a wide range of issues, from market access – which is so important for European businesses – to modern trading standards. At the end of the day, this is fundamental for every single company which actively exports.
Today, however, in Bayreuth I am also taking with me a clear commitment from Bavaria to ensure European leadership in clean tech, Bavaria's strong interest in investing in the digital future, fibre networks and in the whole issue of semiconductors. This is a vital issue which Europe is supporting in a very targeted way through the European Chips Act. This is because we are convinced that solid growth and sustainable economic activity can go hand in hand. And this is what we must keep demonstrating on a daily basis.
I reported on the EU's contribution with regard to migration. On the one hand, there is our legislative work, namely our Pact on Asylum and Migration, which I am confident we will adopt in this legislative cycle. But on the other hand, there is the very practical work we are doing every day to manage migration, which is at least equally important. This ranges from issues regarding the Western Balkans route to issues regarding the Mediterranean countries. To give you an example: we have worked very intensively with the Western Balkan countries to allow us to manage the Western Balkans migration route better and more transparently. We have managed to reduce irregular migration through that route by 25% since the beginning of the year. This was the result of very pragmatic work.
However, irregular migration in the Mediterranean has increased significantly since the beginning of the year. This means that we need to work more closely with the countries of origin and transit there too. We need to invest more in stabilising their economies and work with them to more consistently tackle organised crime by smugglers and traffickers. So in the Mediterranean area, for example, we have just concluded an agreement with Tunisia. And other such agreements will follow.
Naturally Ukraine also played a central role in our discussion - its great courage and unwavering resolve in defending the country and thus also the principles of international law and the UN Charter, all of which is deeply impressive. Ukraine is defending not only its own existence, but also the basis on which we have built our framework for peace. And that is why Europe is standing steadfast at Ukraine's side, as I know Bavaria is too.
Lastly, we discussed the far-reaching issue of the importance of vibrant rural areas for Europe. The European Union is, for good reason, investing hugely in this area. Traditional agricultural aid and regional funding account for about half of our total EU budget. But above all, we want to invest in the attractiveness of rural areas. This is why, for example, throughout Europe we are investing in broadband roll-out to ensure that people and businesses in more remote areas are well served, in 5G networks, in better rail connectivity, but also in sustainable tourism, and good healthcare in the countryside.
But it is also important to look at agriculture. The EU is massively promoting modern agricultural practices that respect nature while simultaneously stabilising yields. For example, the precision farming methods that are being developed so that farms significantly reduce their water and fertiliser consumption. We are also accelerating the development of hardier plant varieties. These will be crucial in this time of climate change. We need plant varieties that are more tolerant and more resilient in warmer climate conditions. We very much agreed today that we want to work with farmers to achieve structural improvements, because we all know agriculture is key for nature conservation and climate protection.
The pressure to change that has been imposed on us by climate change is being felt the whole world over. It is the challenge of our epoch. But it can also open up enormous opportunities. Particularly for regions that are as highly innovative as Bavaria.
I will conclude with that, and thank you once again very much for your kind invitation.
