tom barrett, mayor of milwaukee, and his wife. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011]

>> we're going to take you live right now where president obama and the first lady are getting ready to welcome the german chancellor, angela merkel.

>> the president and first lady welcoming the german chancellor and her husband to the white house. this is her sixth visit to the white house since the obama administration began. this evening, she will be presented with the presidential medal of freedom as part of the state dinner. we want to remind you are coverage of the dinner will officially get underway this evening at 8:00 eastern. one of our guests will be from the council of foreign relations. we will be taking your comments and thoughts on u.s.-german relations. that gets underway at 8:00 eastern. we will take you back to the booksellers area in the white house as other guests arrive for this evening's state dinner.

>> at the hon. john roberts, chief justice of the supreme court and his wife.

the hon. austan goolsbee and his wife.

mrs. susan eisenhower and her guest, mr. buckey clarkson.

the hon. senator, daniel coats, and his wife, marsha coats. [inaudible]

[inaudible] [inaudible]

[inaudible] [inaudible]

>> that is this national director for the national -- the musical director for the national symphony. they will be performing this evening as well as james taylor.

>> leader mitch mcconnell.

>> the hon. nancy pelosi and her husband.

the hon. gregory meeks and his wife.

the hon. tom corbett, governor of pennsylvania.

>> we have been watching some of the arrivals for tonight's state dinner with the german

chancellor. she will be presented with the presidential medal of freedom. you will see that later on this evening. our coverage of the dinner will start at 8:00 eastern as we hear from a member of the council for relations who will talk about german-u.s. relations. we will take your phone calls after 8:00 eastern, here on c- span. while the presidents day began early, shortly after 9:00 a.m. eastern, as the president officially welcomed her over from blair house this morning on the south side, the south lawn of the white house. this runs about 35 minutes.

♪ >> ladies and gentlemen, the president of the united states and mrs. michelle obama. ♪ [playing hail to the chief] ♪

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>> ladies and gentleman, at the national anthem of the federal republic of germany, followed by the national anthem of the united states. ♪

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>> good morning, everybody. chancellor merkel, members of the german delegation, on behalf of michele and myself, it is our great pleasure to welcome you back to the white house. on behalf of the american people, it is our great honor to welcome you back to the united states. [applause] [speaking german]

>> it today marks the first of this it and stayed there for european leader during my presidency. it is only fitting the transatlantic alliance was the cornerstone, the heart of our efforts to promote peace and prosperity are on the world. germany, at the heart of europe, is one of our strongest allies. chancellor merkel is one of my closest global partners. >> [speaking german]

>> our alliance at its core and the partnership between our peoples, the generations of german-american to help build a strong america. the americans, who during a long cold war, helped to defend a free germany. citizens of both of our who were together and forge the future every day. >> [speaking german]

what's at a time when some ask whether the rise of new global powers mean declines of others, this visit reaffirms an enduring truth. our alliances with nations like germany are more important than ever. they are indispensable to global security and prosperity. >> [speaking german] >> as to of the largest and most dynamic economies, the united states and germany can show that the prosperity we seek is best achieved when nations invest in

our greatest resources. our people and their ability to compete and innovate and the 21st century. >> [speaking german] >> as members of the most successful alliance in human history, our commitment to our common defense is also a pillar of global security. from completing our mission in afghanistan to preventing terrorism to achieving our vision of a world without nuclear weapons. >> [speaking german]

>> finally, as people around the world imagine a different future, the story of germany and are alliance and a 20th-century shows what is possible in the 21st. wars can end. adversaries can become allies. walls can come down. nations can be whole and free. >> [speaking german]

>> it is obvious none of us looks -- neither of us looks like the leaders that preceded us. [applause] but the fact that we can stand here today as president of the united states and as chancellor of the united germany is a testament to the progress, the freedom that is possible in our world. >> [speaking german]

>> we are honored to have all of you here. as allies, as partners, but most of all as dear friends. [applause] >> [speaking german] >> [speaking german]

>> mr. president, mr. vice president, members of both cabinets, and guests of honor, my fellow countrymen, ladies and gentlemen, thank you very much for this very warm and very moving reception. it is overwhelming. i am delighted to be back in washington, d.c., again. >> [speaking german] >> about 20 months ago, this was almost 20 years after the fall of the berlin wall, i have a great honor to address both houses of congress, a wonderful moment.

i am certain that this day to day shall be another such unforgettable moment. >> [speaking german] >> mr. president, receiving the presidential medal of freedom tonight is something that considered to be not only and a gracious gesture of appreciation, i see this as a gesture of appreciation for the whole of this united germany. it is a testimony to the very close ties that bind us. >> [speaking german]

>> we know that america has always been a true friend to us. our friendship has grown and matured a throughout the decades. every day, it is filled with new life. more than 600,000 americans are working for german companies here in the united states and the reverse is also true, more than 600,000 germans work for american companies in germany.

there are many and diverse exchange programs at schools and universities and they help us to win over numerous young people as. builders between our two countries. 17 million members of the armed forces of the united states and their families have lived in germany ever since the second world war. they have served their country with honor and distinction. the more than 50,000 american soldiers who are currently stationed in germany are more than welcome every day. >> [speaking german]

>> i could mention many more examples of the ties that bind the two countries together. let me underline one thing in particular. when germany and europe or/the war -- by the wall, america consistently stood on this side of freedom. this, we shall never forget. >> [speaking german] [applause] [speaking german]

>> today, we are just as closely linked to each other by the bonds of friendship as we were those 20 years ago. we are standing on a firm foundation and spending and supported by this firm foundation, we tackle the current challenges we both face. germany and the united states are partners, sharing responsibility for a peaceful and stable afghanistan. we are pulling in the same

direction trying to keep iran from falling -- from developing its nuclear forces capability. in north africa, we support the structural freedom. together, we master the aftershock of be global and financial crisis great germany and the united states do share the same values. democracy and freedom, rule of law, and the universality of human rights. >> [speaking german] >> it is for this very reason that a close partnership with the united states is just as much part and parcel of germany

as its european integration. both belong together, both remain the pillars of german foreign policy. in berlin, it into a dozen aids, you spoke to more than 200,000 people. -- in 2008, you spoke to more than 200,000 people. it is my turn to say that europe and germany have no better partner than america. thank you. [applause]

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>> beginning in about 45 minutes, we will bring you live coverage of the events surrounding a state dinner this evening. he will be talking about u.s.- german relations. we will also be taking your phone calls. that gets underway at 8:00 eastern. this is the sixth visit by angela merkel since the beginning of the obama

administration. she will be presented by the medal of freedom by president obama. we expect to show you tonight the toast from the white house dinner, the dinner being held this morning -- this evening, lawn of the white house. that is getting underway as we speak. our coverage gets underway in about 45 minutes. a full day of activity between president obama and the german chancellor. the president defended his economic record in the wake of the latest job numbers. he said the americans should expect an uneven recovery from the 2008 financial crisis.

>> ladies and gentlemen, the president of the united states and the chancellor of the federal republic of germany. >> it is an honor to welcome my good friend back to the white house. we had a wonderful dinner last night, one on one. her english is much better than my german. michelle and dyes are very much looking forward to hosting the chancellor at tonight's state dinner. i will have the privilege of presenting angela merkel with

the medal of freedom grade -- freedom. germany is one of our strongest allies. we see it in the students and teachers, the scientists and researchers who are on mocking new innovation, including the claim renewable energy sources that we need to combat climate change. we see our partnership and the courage of our service members to stand shoulder to shoulder in afghanistan. the german serve under americans and american serve under germans. we want to thank you and the german people for your strong commitment to this vital mission and our hearts go out to the wounded warriors and all the families, american and german, his loved ones have given their lives to keep us safe. we remember and honor them all.

we see our partnership and this kilobar diplomats to prevent the spread of deadly weapons and stand up for democracy in the passion of development experts as they work to divert suffering in countries like sudan. that is also the essence of my partnership with the chancellor. this is our 10th meeting together. that does not include the many phone calls and video conferences that we seem to have at all hours of the day and night. there is hardly any global issue where we do not consult one another. i said before, i always value her pragmatic approach to complex issues, her intelligence, her frankness. i trust her.

it's fun to work together. it has been fun today. germany is one of our largest trading partners. we discussed how to keep our economy is growing. hundreds of thousands of american jobs are supported by eight car exports to germany, hundreds and thousands of americans work for german companies that have chosen to invest in america. i am pleased that the billions of dollars of german investment is making possible a new plants. all of which go to create more american jobs. we discussed the need to eliminate barriers so we can unleash even more trade and investment. including in the area of electric vehicles, were both of our countries are leaders.

i very much appreciated the chancellors of views on the financial situation in europe. it cannot be allowed to put the global economic recovery at risk. we discussed progress and afghanistan, or we have broken the taliban's momentum. we are preparing to turn a corner in our efforts. we will begin reducing american forces this summer, even as we join with germany and our nato allies in supporting afghans and their political and economic efforts to forge a lasting peace. i think the chancellor for support for the principles that i laid out last month, the basis for negotiations between the israelis and palestinians. just as we agreed that both sides will need to make difficult choices, we agreed that unilateral actions should

be avoided. we agreed that iran continuing a nuclear program and its refusal to engage in any meaningful talks with the international community remain a very serious concern. we agreed that the international atomic energy agency this week determined that iran is continuing to ignore its international obligations, we will have no choice but to consider additional steps, including potential additional sanctions. we discussed the historic changes under way in north africa and the middle east. with regard to libya, the germany deployment of additional resources and personnel to afghanistan has allowed other nato allies to increase their support for the mission to protect the libyan people. the chancellor and i have been clearer, gaddafi must step down and hand power to the libyan people.

the pressure will only continue to increase until he does. following our agreement with our g8 partners, the chancellor and i discussed our support for political and economic reform across the middle east and north africa, especially in egypt. the united states and germany are the two largest donors of assistance to the region, and we agree that this historic moment must not be squandered. along with the entire world, we have an enormous stake in seeing that these transitions to democracy succeed. given the chancellor's own remarkable life story and her experience in helping to heal the wounds of the past and build a united germany, i very much appreciate her leadership and partnership in this effort. i am very grateful to the chancellor for being here. i'm confident that the great alliance between our nations is going to remain indispensable pillar of the world that is more secure and more prosperous and

more just. i very much appreciate the personal friendship that i enjoy with the chancellor. >> ladies and gentlemen, mr. president, i would like to use this opportunity to thank you personally for this wonderful reception. i see it as a testimony of our friendship. [speaking german]

we have a broad based exchange of students, cooperation, i mentioned the 50,000 soldiers that are present today in germany. very welcome indeed in our country. let me say this on a personal note, without the united states, i would not be able to stand here before you today. overcoming the cold war required courage. it required the steadfastness of our partners.

many had long lost hope of integration of the two germanys and europe. the then president said that german unity, european unity deserves our support. there are a lot of tasks that we have in common and other challenges that we need to be together. we are doing this in the. of freedom. -- spirit of freedom. we have been dealing with these issues since january. in egypt, and libya, it is a great challenge. let me take you back to the periods after the second world war. germany was able to get back on its feet again.

to make it possible for the arab people to have a perspective for the future. we talked about germany, in particular, with its experience in the vocational training. working together with the egyptians, a building institutions. we opened up an office in benghazi that will serve as training for the security forces, the police on the ground. we talked about economic issues. we worked in vithe g20, very closely together.

our finance ministers talked about these issues, but we, too, talked about this at some length. for germany, it is part and parcel with our identity. we want to boost our competitiveness. we're very much aware that we are in a tough competition with the emerging economies. europe needs to be competitive, and we also need to be competitive if we wished to remain an interesting economic partner with the united states. this is why the germans pursue the policy of a competitive europe, and it is an approach of solidarity trade we need to show solidarity for the countries that need it. we talked about the middle east

peace process. this is a very important initiative. the united states of america -- we wish to promote a development of the peace process. we want a two-state solution. unilateral measures are not helping at all. we agreed that we wish to cooperate very closely on this because time is of the essence. looking at the changes in the arab area and the arab region would be a very good signal if it came out that talks between the parties -- the commitment we take in afghanistan shows that we are very close. we are very thankful for the close cooperation in the north of afghanistan. we share the opinion that in

afghanistan, we wish to approach an integrated security approach. we want to build up -- the civil side of it, we wish to go in together and out together. afghanistan will need our support, however, and the long run. thank you very much for these talks, this very warm atmosphere. we make -- we may look differently than our predecessors, but we have a lot in common. thank you. >> [inaudible] >> de expect germany to a fund and other bell love for a priest?

>> i am not concerned about a double-dip recession. i am concerned that the recovery we are on is not producing jobs as quickly as i would like it to have them. prior to this month we have seen three months of very robust job growth in the private sector. we were very encouraged by that. this month we still talk of job growth but it has slowed down. we do not know if this is a one month episode or a law under trend. we are experiencing headwind. gas prices are most prominent. it has enormous impact on budgets. but the overall trend we have

seen, over 2 million jobs created, and the rebound think of the manufacturing sector is exemplified by the recovery of the big three automakers here. it all indicates that we have set a path that will leave this to long-term economic growth. we still have enormous work to do. as long as some folks are unemployed, every morning when i wake up i will be thinking about how we can get them back to work. some of the steps we took, the payroll tax an extension and the investment cost of in the tax breaks for business investment and equipment, all of this things have helped us. one thing i'm interested in

exploring with the members of both parties in congress is how we continue some of these policies to make sure we get this recovery up and running in a robust way. we then have a set of long-term competitive challenges that are not so different from what germany or any advance country is having to go through. they are becoming more competitive. we will make sure our school systems are working well. we are infesting in infrastructure. it will be more transparent. it is encouraging business investment in a way that is balanced and sensible. we will have some days where things are not going as well as we like.

sometimes we will be supplies of better economic data than expected. we are on the path of a recovery. it has to accelerate. that will include a continuation of steps i have discussed. with respect to the european situation, i have had extensive discussions. it is a tough situation. we acknowledge it. the debt of greece is significant. it is taking some difficult steps to improve the situation, but they are under the gun from the international capital markets. as a member of the euro zone, they will be looking to other members of the euro zone to help them figure out a path forward. germany will be a key leader in the process.

the politics of it are tough. you recall how difficult it was for us to make investments in our automobile industry and to make sure we did not have a financial meltdown. imagine if you have to make those same decisions for 27 other countries with respect to somebody else's economic problems? that is some sense of how tough the politics are. i am confident that germany's leadership along with other key actors and europe will help us to arrive at a path for greece to return to growth, for this dead to become more manageable. it will require some patience. we have pledged to fully cooperate in working through these issues on a bilateral and with international institutions like the imf.

>> in europe, they are very well aware of the a responsibilities of a global a economy. they have outlined what the germans are doing to combat unemployment. if that is what we are doing in europe. we have seen how interdependent we are. but the stability of the euro is important for the whole of the global economy. we do see the european responsibility. we have seen that the stability of the bureau as a whole will be influenced if one country is in trouble. that is what this is all about. there is a ban on bailout. -- bailouts.

it is in the interest to see to this. they see that this is not in danger. we will act in such a way that sustainability is guaranteed. as far as the united states, i think everyone ought to do it these problems. we had our hands full with what we needed to do. i am content said as we shoulder our responsibility so will the united states of america. >> just the recognition of her accomplishments in the past or is it an expression of the expectations that he would have for the future? where d.c. globally -- do you see areas globally?

>> germany is being praised in america. this is the progress. it means it is certain.

her leadership will be critical on economic issues. it is some political cost of herself. it is how we did -- affect the

poorest countries find their place in the international economies. these will be areas where the leadership will be welcome to end absolutely be critical for us to achieve with the world's we want to see. she is not finished yet. she has a lot of work to do. she will have to wait for that. >> i believe when you see me standing here before you, receiving this award, there is a moment where one need to look back to an 1989 in germany unification and what happened there. it was a new face.

-- phase. we were a country with all right but also all the obligations. we were struggling for a decision that would enable us to send ships and take part in reconnaissance missions. you see the world that we have traveled. military missions are part of this. it is also in many other areas. what is also important is that we need to combine military and civil in cajun.

this is the reality. it is important for our common future. the changes in north africa are changes that happened on our doorstep. they do not have a choice. they have an enormous problem. it is not only out a charity that we are under more obligation, we also have invested interest to see that it comes on its feet. >> thank you, mr. president. >> you called chancellor angela merkel one of their closest allies. we have a key issues of libya and the global economic

recovery. in libya, do you believe more german involvement in that issue would bring it to a factor -- faster conclusion? did you ask her for a commitment? did you ask her specifically to drop per insistence that the private sit your -- private sector be involved in the pre bailout? -- in the bailout? >> do you believe neda was mistaken in getting involved ly.itari what more can you do to promote an accelerated european economic recovery? >> with respect to libya, i think it is important to note that this is a nato operation. it is fully integrated. you have german personnel that

there are involved actively in these activities. as i indicated before, germany has stepped up to take an additional responsibility in afghanistan. it created resources for us to conduct our responsibilities. she might share the belief that gadaffi need to step down for the sake of his own people. with respect to the pace of operation and participation, if you look at where we were three months ago and where we are today, the progress that has been made in libya is significant. our goal there was to protect the libyan people from a potential slaughter. we have done so. in gauzy is free from the threat of the regime.

they are hunkered down. they are in a situation even forcesthrostill threaten, have been pushed back. what you are seeing is a trend of the regime forces being pushed back, being incapacitated. you are seeing defections, often high-profile members of the government and the military. i think it is a matter of time before he goes. each country that is part of this coalition is planning a different role. we did a whole bunch of stuff at the front end. there and enabling them to take out some of the most significant firepower. now we are in a more supportive

role. we did discuss germany's role. will be a lot more to do when they do step down. they will get the libyan people back on their feet. economic, political work that has to be done. my expectation is that there will be robust german support it as there has been in the past from germany. with respect to the economy, this is a complicated piece of business. europeans are going to have to make decisions about they proceed forward. you have to balance the recognition that greed tends to grow. that means there has to be

private investment there. they have to make structural reforms such a more competitive. they need greater transparency. given the level of debt, it means as other countries are going to have to provide them a backstop and support. people who were holding greek that are going to have to make some decisions working with the countries in the euro zone of how this is managed. we will be there for you. we are interested in being supported. we believe that america's economic growth it depends on a sensible solution. we think it would be disastrous for us to see an uncontrolled

defaults in europe. that could trigger a whole range of other events. we are going to have to work through this issue methodically. we will be supported in any way that we can to make sure all the best ideas are brought to bear. let me make a larger point. i think people on both sides of the atlantic are understandably frustrated with the ups and downs of the economy, the world economy. it is very important for folks to remember how close we came to a complete disaster. the world economy to a severe world to provide years ago.

in part, that was because a whole set of policy decisions that have been made and challenges that have been addressed were there for the previous decade. recovering from that takes time. recovery will be a fun even. there will be times we are making progress but people are still skittish and nervous. the market's pullback. they are still thinking about the traumas of 2.5 years ago. the economic data will pass without comment. now people wonder if we are going to go back to this terrible crisis. that affects consumer confidence in the capital markets.

our task is to not panic or overreact comment to make sure that we have a path forward in terms of how we make our economy's competitive, making sure we are dealing with the structural issues that will allow us to grow. in america, the need for us to get a handbill -- a handful. in germany in europe, and they will be different challenges. what we try not to do this to look day today and what is happening in the market or headlines. they will be reactive.

make sure that the world economy is stable and prosperous. >> maybe i should comment on this as well. 2.5 years ago we have seen something that did not exist for decades. because they cooperated so well, we re able to ward off the worst that could that have been. it was a situation that we believe meet its. now we have the g 20. they are selling in the situation and market. this us strengthen our

cooperation. do we need more stimulus? , is devaney? what structural programs do we need? we are all breaking a new ground. we cannot rely completely on the community to give as good buys. we were dependent on our own judgment. this will be made in the future as well. it still applies. he needs to step down and he will step down. there will be a lot of work to do. in the future, we agreed that they are showing this.

this is in the best context though for a date in the best context so far. it is our joint bill that this mission is successful. it is for the people of libya. >> the german decision on libya -- were you surprised by the se indications? is there something like a reset button that you are bombarded by its. will this happen?

i believe that this event has been agreed for a long time. it is on a very broad basis. sometimes, there may be differences of opinion. it is important that we wished each other every success. paired doing it without started mixing things up. there would be areas where we can do this. we are doing it together with others. it is being spent we believe can be useful. this is what we want to do. we want to make sure that our contribution is a success. we wish to live in a sensible

democracy. this is not something that is so unusual. i see it in the continuity. it is a meeting of their challenges of the future. some people say in germany the american president has been here for germany as all. berlin opens his arms to them every day. >> i very much so for to being in berlin. the last time i was there we had a lot of fun. i am sure that i will have a wonderful time the next time i'm there as well. i appreciate you assuming that i will have another term.

i'll have plenty of time to pick berlin on my schedule. thank you very much, everybody. >> i can promise the berlin signing will happen for some more time. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011] somin the nba t >> this marks the fourth of

michelle visit during the obama administration. she will be presented with the presidential medal of freedom this evening. our coverage gets under way at 8:00 eastern, 8:00 p.m. it is a fewt -- it o'clock p.m., a minutes away. we would hear from your phone calls. this gets away in a few minutes. a couple of live hearings to teddy of bell.

-- to tell you about. we will look into extending the robert mullen term. it is at 10:00 a.m. eastern. after that, ryan crocker has been nominated to be the new ambassador to afghanistan. that its way at 9:30. >> this weekend, reckless endangerment. they talk about the role of fannie mae and freddie mac in the 2008 financial collapse. after that, and henry kissinger and whether it is possible to form a true partnership with china. also, and backers of founder talks about his memoir "idea man." -- microsoft founder talks about his memoir, "idea man, "

>> this is treated for you as a service by mayor its cable companies. we have a discussion on the visit by end of merkel. we will include your phone calls. after that, another chance to see today's news conference with the german leader and president obama. at 9:40 p.m., a briefing on a strain of e. coli that has caused sickness and over 2000 people across europe. more about the e. coli breakout michael taylor.

>> this was the scene area there this evening when president obama and michelle obama greeted angela merkel for the first state dinner for a german leader since 1985. about 200 guests are attending a black-tie dinner and later entertainment by james taylor and the symphony orchestra. moments ago, they exchange truths. we will try to bring these to you. , and circumstance comes after a full day of meetings after them. in summer was headed the german government and not the state. she received a 19 gun salute rather than the traditional 21 research for heads of state. -- reserved for heads of state. joining us is a senior fellow at the council on foreign

relations. we will take your phone calls as well. -- why the wide this state dinner? >> they wanted to send a signal to germany and to europe that it considers the transatlantic partnership the link between the united states and europe to be the centerpiece of global security. i think there were some who wear rate -- who were worried and more more interested in asia and other parts of the world. he wanted to abuse people. t spend a week in europe mainly to deliver a message that the elected partnership was alive and well. now angela merkel is here for it today visit. a lot of bells and whistles. i think it is to say this is

still the core relationship. she is in a tough package. she needs a shot in the arm. obama is trying to give it to her. >> it is based on what the bill? economic security? what is the situation? >> economic agenda is front and center right now. the united states is trying to dig itself out. europe is struggling for stability in the euro zone for countries within the european union that circulate. three of those members have had debt crises that are required bailouts. as the wealthiest country in europe, she has been asked to write the check and to foot the bill. it has not been popular. >> we will talk about more of

the evening. what are the expectation for these two leaders? on monday night, they had a private dinner at a local restaurant. it is quite an expensive restaurant. what did the expectations? let's to get some political moment -- >> to get some political momentum. the night did states is tired from the wars. we had deficits. they are treading water. there is not a lot of wind in the sale. obama is saying they raised more forceful leadership. on the detailed one, save the life of the arizona. do more in libya.

america was more reluctant to endorse it. i think obama has been trying to get around it more forcefully. i think the arab spring it will be an important part of the conversation. obama is trying to create a single page of music for the united states in europe to work together to push forward this. >> they held a news conference earlier. what has been accomplished? anything so far? >> it is hard to know exactly is the deal. the issues on the table have been clarified. they probably did reach some agreement about what america and the obama will do. we cannot know the details until we see this. if you look at the press conference and the statements,

they want to paint a picture that germany and the united states are very much on the same speech. that is as much about symbolic politics as it is the agenda. this is as strong as it has ever been. >> we will be taking more phone calls. he is the former european affairs director in the clinton administration. you can down the numbers on the screen. et as well.d us a tweake angela merkel has been called the world's less powerful women. >> she is the captain of one of

the world's leading of economists. she is probably europe's strongest leader. it is not just germany and france. the european union is trying to advocate this. in some ways, she is someone who operates on this parent there is the question that she has been brought down a couple of notches. three issues in particular have been prominent. the question is no clear energy. after the japan won, there is a debate about whether we should have the continuation.

to they will keep them going. they are going to shut them down in 2022. which is it? finally in libya, she voted to sustain it. many germans have scratched their head and wondering why they broke solidarity. she seems to be flowing with the wind. the germangin with economy. what makes this so strong? how was it different? >> one thing they have always been noted for is the quality of the manufacturing sector. they are not being reindustrialize by china in some ways that some are.

because of their engineering, the tradition of this they have really been able to preserve this fair they have this " -- preserve its. that this irresponsibility. the germans are tightening their belts. when compared to some of the other, they are much better shape. >> they rain pretty high.

it has been said that they do so at the peril of other european countries. it is like the rebalancing of the economy. they have relatively low domestic consumption and high rate of exports. countries like the united states pay the prize. german and chinese and not .uying them kare what they have talked about is what they can do to rebalance. how can we get lower

consumption and more exports to the united states? >> ac also talking diverted say they need to get more? >> there is the question that it is part of the dialogue. they are making sure there is stability. i think obama is concerned about two things. the growth back to europe as a whole and make sure there is not a run on the euro. they almost broke the global economy. >> you are on the air. >> how does this affect foreign

currencies in the mid east? as far as making their currencies stronger and more stable? >> are you referring to the euro? >> the middle east currency itself. if you look at the kuwaiti dollar, how that revalued, did that make their economies strong third? >> to the best of my knowledge, many of the economy's are pegged to the dollar or external ones. one of the issues people are watching carefully as the year rose stabilizes is will the dollar knock this off?

i think most people believe that by 2025, it will no longer be one local currency. it will probably be three. that will put doesn't quite a different world than we are today. >> we want to show you from earlier this evening president obama and angela merkel giving their traditional toast to each other at the state dinner. >> i think your gracious -- i look back here gracious hospitality. we felt we would reciprocate with a little dinner and our rose garden. -- in our rose garden.

>> it is customary to celebrate the values that bind nations. tonight we want to do something different. we want to pay tribute to an extraordinary leader. i>> [translator]

>> five decades ago, the first german chancellor ever to address our congress spoke of his people's will of freedom and the millions of the countrymen. one of those millions was a young girl. >> [translator] the >> she remembers when the wall went up and tell everyone was

crying. she cannot pursue her love of languages. she had to spy for the speaker police -- secret police and she refused. when the wall came down, she crossed over like so many others. >> [translator] >> tonight with honor and some merkel not for being denied her it, but forobtaining it

achieving what she did. she rose to become the first the firstthlead in woman chancellor in history. >> [translator] >> the presidential medal of freedom is the highest honor to

present can bestow upon a civilian. only a few others have received it. please join me in welcoming chancellor merkel to receive this medal of freedom. >> the presidential medal of freedom -- [german translator]

>> she came to symbolize the time of free them becoming the first to serve as chancellor of united republic of germany. she also became the first aim of chancellor, a dedicated public servant. portias promotes a liberty and prosperity in europe and throughout the world. >> the presidential medal of freedom -- [german translator]

>> you can all applaud. >> i have to do the toast. i want to conclude by an abiding all of you to stand for the toast. -- by inviting all the to stand for the toast. the word spoke but only to the

dreams of the young girl in the east and all those a year for the rights and dignity today. it must be defended every day of our lives. >> [german translator]

>> [speaking german]

>> ladies and gentlemen, the first political event during my childhood that i distinctly remember is the building of the berlin wall. my family broke out in tears. my family was separated through the building.

>> for many years i have driven >> as many others do of freedom. that yardy have plan for the days i would reach retirement age in the age of 60. >> we were somewhat more privilege.

>> [speaking german] >> i never knew and when did stay at the rose garden. it is beyond even-imagination. receiving this award was great. >> [speaking german].

>> my thanks goes to the american people. thank you for this extraordinary honor. i think he personally because you are a man of strong convictions. you have visions for people. we have been able to put down important issues. last but not least, there is the solution to the conflict. >> [speaking germany].

>> that the testimony of the excellent from american partnerships, our country signed it together for peace and freedom. it means people to overcome their fears and overcome dictators. >> [speaking german]

>> i am with you here tonight. >> during of freedom cannot be contained. it is this one that divided germany in europe. it is usually on the side of freedom.

>> [speaking german] >> all today the earning of freedom make this tremble. there are changes in the arab world. each and everyone has the same night for freedom.

>> they struggle for freedom. my thoughts are with our soldiers and the many volunteers who tried to help. the risk their lives. >> >> this year marks the 10th anniversary of the horrible

attacks and 9/11. of the past 10 years we have a joint side against free them. we see that defending this is one in the same. it is not come naturally. they had to defend it time and time >> [speaking german] >> sometimes, this may seem like an endless flight -- fight. but my personal experience is a different one. what we dare not dream of today may become reality tomorrow. >> [speaking german]

neither the chains of dictatorship nor the fetters of oppression can keep down the forces of freedom for long. this is my firm conviction that shall continue to guide me. this, the presidential medal of freedom, shall serve to encourage me. mr. president, thank you for honoring me with this prestigious award. [applause]

>> and german chancellor angela merkle speaking this evening in the rose garden at the white house for a state dinner, tonight the fifth state dinner, the first state dinner for a german leaders since helmut kohl in 1995. they have dinner under the stars tonight with 200 guests. all of tonight's events and the events held earlier this morning with the chancellor can be found on our website. we are taking your phone calls and tweets tonight. our guest is with the council of foreign relations. we talked earlier about germany's economy and its exporting that it is able to do, and the strength of that. but there are intricacies to the

german economy. a man was on our program who lives in germany and consults with the german economy. here is what he had to say about how it works over there. >> they have ridiculously pushy social programs in europe. they can pay for that partly because they have lower defense spending. if you list in germany the most popular programs, defense is always last in every poll. it is not left-wing or right- wing. everyone thinks it. they have wonderful safety nets, a wonderful train system, for instance. they do not spend money on defense. they are still in terrible trouble. they have demographic problems worse than ours. we have even with illegal immigration a lot more people who pay payroll taxes. i was the only one on the train

in germany of working age. everyone thinks i am crazy. it is not a sustainable system. they have horrible economic problems, but they are different than ours. >> is it a sustainable system? >> i think john put his finger on the long-term demographic problem. it is not just germany. it is most of europe. their birth rate is below replacement value. when you look at the next 20 years, you get more attention years -- more pensions and fewer workers. who is going to pay for them? the answer is immigrants. the big difference is immigrants. that issue is extremely difficult for europe. that is because europeans have not been able to integrate with

immigrants in the same way the united states have. in particular, there is a growing divide, a socioeconomic and cultural divide, between the majority populations in europe and many of the immigrants, who are muslim. that has created this religious social tension that is in many respects the great challenge for europe, moving forward. >> what does that mean for the european union and the future of the euro? >> the european union has had enormous success since 1951. a single market. a single currency. they ratified the lisbon treaty and now there is a president of europe. there is a foreign minister of europe. effectively, she has at her disposal what is called the external action service, a new

diplomatic corps for europe. when you look at the institutions, europe looks fine and well. when you drill down to the politics, europe does not look fine. there has been are- nationalization -- there has been a re-nationalization. decision making has gone back to national governments, a clawing back. we do not know where this is going. it is safe to say that for the first time in the history of the european union it is credible to say it is hitting its high water mark. it may go no further. that is one of the things i think obama is talking to merkle about. we need you to lead and bring more life into the european project. each country alone is not big enough to cut a figure on the global stage. europe is. europe has more people than the united states. it is a bigger economy.

but only when it pulls together. >> we have a call from a republican in northern washington. >> i really enjoyed this. angela merkle represents something that she touched on. she grew up in a totalitarian marxist-leninist police state and resisted those who tried to oppress the millions of german citizens of east germany for many years. as she said, she could never imagine she would be in the white house, receiving the medal of freedom. she says remember -- things can change dramatically. your most profound dreams -- the reality can exceed your fondest dreams. this happened to her. she is saying once again that totalitarians are a danger in the world. the muslim totalitarian regimes

are now facing a change. she was raising an issue that possibly they could also disappear and they could have freedom for the muslim peoples. that is what she is working for, and hopefully obama and the other leaders in europe. let us pray that they succeed. >> there is no question that you are right that she represents a historic figure in some sense, and that she did grow up in eastern germany, in a totalitarian system. now she is standing in the rose garden, getting the medal of freedom as chancellor of germany. you have to pinch yourself when you look at that. one of the things obama and merkle have been talking about is how to shepherd the middle east in the same direction that east germany went. i have to say it is going to be a tougher job in the middle east because many of the countries there have not had experience

with democracy. many of them have sectarian, tribal, and ethnic cleavages. it will be a bumpier road. central europe took about a decade to consolidate democracy. but i do think we are at the beginning of the process that may do for the middle east what the fall of the berlin wall did for europe. it is just going to take a longer time. >> the chancellor is the first woman as well to lead germany. she was elected in 2005 and reelected in 2009. we will go to an independent in san antonio. >> if i have time, i would like to make a comment on germany and their defense spending. my question is on may 11 at the united nations, in a governmental panel on climate change, they released a report that stated that by 205080% of the world's energy could -- that

by 2050, 80% of the world's energy could come from renewable. germany wants to phase out nuclear energy. president obama pointed out germany is one of the leaders in electric vehicles. how much discussion will there be with regard to renewable, especially with the economic conditions in the united states and the debt problem? >> we will leave it there and get an answer. >> there is no question that merkle's decision to shut down nuclear energy in germany will put pressure on germany to innovate green technology that can provide the electricity that will no longer be generated by nuclear plants. we do not know how successful they will be. they may end up generating more from coal, buying nuclear-power energy from france, or importing gas from russia to fuel their

electrical generators. we are at the tip of that iceberg. only time will tell. a quick word on the defense budget you mentioned. there are two separate issues. europeans in general spend much less on defense than americans do, but germany is a particular case because of the deep anti- war sentiment that remains from world war ii. that is one of the reasons merkle has been reluctant to send more troops to afghanistan or libya, this sentiment against military force. >> how much less as germany spend on defense? >> the u.s. has always been well above its european partners, even during the cold war, and has lectured its allies about the need to spend more, burden- sharing. germany has just gotten rid of conscription and is moving toward a smaller professional

force. the problem in some ways is not that they spend too little. it is how they spend it. they have been buying large territorial armies. each european country has tried to have a full-spectrum force rather than focusing -- one does the army, one does the navy. one of the things europe has to do is spend defense dollars more wisely. >> yet they have a major presence in afghanistan. >> they do have about 50,000 troops in afghanistan. they are going to start cycling out, in coordination with the united states, beginning next month. it has been a very tough sell. the war in iraq was very unpopular. the war in afghanistan was a little more popular, but mostly not. the vast majority of the german

electorate says, "what are we doing in afghanistan?" >> that is the debate in this country as well, as leaders debate what to do with our debt. defense spending in afghanistan is part of that discussion. angela merkle was asked earlier about how she viewed the u.s. debt. >> the situation in the united states -- i think everyone should deal with their own problems. we in europe have our hands full with what we need to do. i am convinced that as we shoulder our responsibility, so will the united states of america. >> we each have our own responsibility. >> the europeans take a different approach to the question of how to deal with that than americans. americans are generally keynesian its -- are generally keynesians. you worry about the economy when

the economy -- you worry about the debt when the economy is doing better. the germans have not embraced that view. they say tighten the belt, bite the bullet, and emerge stronger at the other end. the problem with that even if it works is that for the foreseeable future europe will be experiencing very slow growth. europe will not be contributing to global growth in the way the obama administration would like. >> how do germans of view of the european bailout versus how the chancellor visit -- the use it? -- views it? >> one thing the bailout has done is politicize europe. europe has succeeded by being an elite phenomenon. most europeans say, "it does not

matter to me." now that the german taxpayer is asked to write checks to the irish or the greeks, if you go to a cafe in berlin, people are talking about the bailout. that is why merkle is having such a hard time. i think she knows that she needs to do whatever is necessary to stabilize the euro. but when she goes to talk to people on the street, they are saying, "why am i bailing out a grease -- a greek person who retires at 52 when i retire at 67?" >> there is a second bailout package on the table for greece. >> i think it is probably going to go forward. there is a debate now in europe and the imf about whether they can get by with a new package, underwriting more loans, or

whether you have to restructure , which is either extend the debt or write down some of the debt so the greeks can climb out of the deep hole they are in. >> they received 161 billion, just for greece. in may, portugal received $117 billion. a second package on the table for greece. let us go to a democrat in pennsylvania. >> thank you, and thank you for your public service. i have two general questions. first, i have been reading the neighboring nations in europe are concerned about power grids failing as germany closes its nuclear power plants. i would like your opinion. do you think they will be successful in shutting down the

nuclear power plants by 2022? if so, how do you think that will impact nuclear energy politics in the u.s.? my second question -- the spiritual and religious narratives of presidential candidates in the u.s. is often part of the campaign. the fact that she is the daughter of a lutheran pastor -- did that work to her favor in germany, or do they not take up those questions when they review their candidates for elections? thank you. >> i think the germans will stick to the current plan to shut down in a gradual fashion their remaining reactors. i think they have 17 in total. seven of them are not operational. 10 are still operating.

they will be phased out by 2022. you will either see electricity prices go up or remain the same through borrowing across national boundaries, importing electricity from france and russia. i do not think we are really talking about prices. i think germany may be unique here. i think fukushima was a shock to everyone. but at this point i do not see the americans or french or others doing what the germans have done. the german situation is unique in part because of the experience of the war and aversion to nuclear energy because of the linkage to nuclear weapons. on the second issue, religion does not play the same role in european politics that it does in the united states. most european politicians do not talk openly about matters of faith.

i think merkle generally falls into that category. >> here is a question from one of our viewers. what will germany do about spain? >> one of the big unknown unknowns is who might be next. thus far, it has been relatively small countries with relatively small gdp's. if you start talking about spain or italy, countries that ranked as global economies, when it comes to a bailout you are not talking about $100 billion. that starts to seem like change. then i think europe would face some very tough questions. one of the reasons i think it is important for merkle to do what is necessary to stabilize these smaller economies is if you do not do that it is more likely the market is going to go after spain and italy. if you get right the bailout

packages and fiscal austerity for the current set of countries, it is more likely markets will start leaving the euro alone. >> let us listen to what chancellor merkle had to say at the economic forum in january. >> europe has a problem with high indebtedness. let me say this clearly again. the euro is our currency. it is much more than just a currency. if you like, it embodies europe today. i have quite often said this. should the euro fail, europe will fail. it is a political construction. for us, a continent of 500 million, it is fair competition with others. it allows us to pool our resources and to defend our common interests. we are going to defend the euro.

there is no doubt about this. and we need to pursue a policy of stability of the euro. we need to show solidarity. >> she says that europe is our currency. what do you hear there? >> the germans gave up the deutsche mark very reluctantly and may have done so reluctant -- and may have done so prematurely. you now have a single currency, but not what usually comes with a single currency, which is conversion on corporate policy. that is one of the reasons the euro crisis is occurring. but the euro is now so much a part of the european landscape that the germans and the french will do what is necessary to keep it afloat. one of the things the chancellor said that is worth mentioning is that this is also a question of war and peace. we need the euro and europe to

preserve peace. one of the things that is taking place in europe right now is a generational change. merkle represents the swing generation. for the older generation, everyone always supported europe as a way to escape the past, to make sure germany is never at war with its neighbors. if you say that to a 20-year-old who came of age after the fall of the berlin wall, they have no past from which they seek an escape. one of the things merkle and other leaders have to do is find the next narrative. escaping the past will not do it. you have to build the future. europe's place and contribution to global peace, the role in the arab spring -- maybe it is that narrative europeans are waiting for. >> we are speaking about u.s./german relations tonight. guests are dining in the rose

garden under the stars at the first state dinner for german chancellor angela merkle, the first one since helmut kohl in 1995. she has been at the united states six times, but this is the first state dinner. why not under president george w. bush? what was their relationship? >> i think this particular visit is laden with symbolic importance, and that the relationship between the united states and germany has gone through something of a rough patch. germans are asking why obama has not been to berlin. has the united states to some extent lost its european calling? obama wanted to send a clear signal -- we stand by you. this relationship is important. it is not as if with previous

visits they were downgraded. it is that this one comes at a very important time in obama's presidency and merkle's chancellorship. >> we will go to the republican color -- a republican caller. >> i wanted to let you know that your comments are very much appreciated. you handle calls very well. we really enjoy you. you are a great host. i want to ask your guest -- the euro has been so strong for the last few years, with the exception of the last two years. it has been a strong currency. all of the social benefits that germany offers -- how come german exports are so strong, and yet in the u.s. we complain

we cannot compete against china because of the fact that wages are low? which is in germany are higher than the u.s. -- wages in germany are higher than the u.s. since the cold war, germany worked as an ally to the u.s.. now russia has its own interest to protect. with natural gas and the close alliance between germany and russia, how will this affect u.s. foreign policy in the future with germany? >> an interesting question. on the first issue, you are right to say that the wages of germans are higher than americans. they have a cushy welfare state and health care system. it is expensive to hire workers in germany. there has been some shrinkage of the system.

some efforts have been made to reduce the benefits so employers are no longer as worried about the non-wage costs of labor. but the main reasons the germans have done well is they produce good stuff. they have the best engineers in the world, and produce machines and ball bearings. there is not serious competition in other places. that is why they continue to thrive and exports fuel their economic growth. on the second question, i might disagree with you a little bit on your characterization of russia as an adversary. i would say that with the reset that has taken place between obama and medvedev and the effort by nato to reach out to the russians things are slowly moving in the right direction. they are meeting tomorrow in

sweden, the defense ministers, to talk about missile defense. for the last three or four years, the russians were saying no. they have changed. they are now talking to dates, our secretary of defense, about cooperating. they are working with us on iran. they are sending helicopters to afghanistan. they have talked about mediating with libya. i think the glass is more half full. i would not be surprised if by 2015 or 2020 we see russia anchored in a broader europe. >> we have an independent caller. >> i would like to make a comment. i am an american of german heritage and feel very proud to see chancellor marco -- merkle.

my question is related to the decline of the birth rate in germany. i was going to a german mother in 1969 in europe but and not allowed to have a german nationality because of laws that state that women who had children before 1975 cannot pass their nationality to their child. i have written into law merkle about this topic. i wonder -- i have written to angela merkle about this topic. i wonder if you see a likelihood of any changes in immigration law. >> i am out of my depth on that. i am not an expert in citizenship law. i know there have been several reforms of the system that have passed through the german parliament over the last 10 years having to do with the issue you are talking about, as well as an effort to nationalize more of the immigrants that come, particularly from turkey.

there was a long time when immigrants were coming from turkey and although they might have been third generation germans, they were not german citizens. that law has changed to try to create a pathway for workers who assimilate and speak german to become a german citizen. on your particular issue, someone going of a german mother, i do not know -- someone born of a german mother, i do not know. i think relations will have a boost as a result of a good visit. i think obama is paying more attention to europe and europeans like that. but we are probably at a moment in history in which the world is changing. the west has been at the center of the global system since the beginning of 1