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thank you. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2014] live next to the u.s. chamber of commerce in washington with german chancellor angela merkel

focusing on u.s.-german relations and the importance of the transatlantic trade and investment partnership. which is getting attention on capitol hill. a survey released by pew research showing 53% of americans regard a trade agreement as a good thing. been at theor has white house meeting with president obama on a number of issues. in particular on sanctions against russia over the intervention in ukraine. the ap saying that the president says violence escalating in eastern ukraine is making it obvious to the world that pro-russian militants are not peaceful protesters. he voiced his support for the ukrainian government on the day of its first major offensive aimed at driving out the insurgents occupying government buildings across the east of ukraine. we will hear from the german chancellor in just a bit. she will be introduced i thomas dunne eu, the president and ceo of the chamber of commerce.

we bring you a conversation on sanctions and their effectiveness on foreign policy. the president is meeting with chancellor angela merkel. >> german companies always opposed sanctions against iran and it is no surprise that they are opposing sanctions against russia. germany ruthlessly pursued its mercantile interest and the lobbyist wrong. it is a very strong economic relationship between germany and russia. including the former german chancellor. he is making money helping national gas -- natural gas

flow. >> which goes to one of the fundamental flaws of sanctions as a foreign-policy tool, correct? >> it is a rather blunt instrument. choice than tono try sanctions. politics are a flaw. ismany is what russia -- rubbish' partner. partner.ading what jacktell you lew had to say. >> if you look at the impact on russia's economy it is misleading to look at what happens day by day. you have to look over the time crimeaussia went into

since we have imposed sanctions. there has been a substantial in russia'sn and -- weak economy. we see it in their exchange rate and stock exchange and a number of important economic indicators. they were downgraded to one notch above junk and with the rationale and the bond rating was in part the sanctions being imposed. the question is how do we proceed and occur -- a careful way step-by-step emma building pruden has --dent putin has acknowledged that they are building pressure. taking more action if the policy does has -- putin not change. it is the most effective way -- [applause]

>> chancellor merkel, distinguished guests, ladies and gentlemen, welcome to the chamber of commerce of the united states. my name is tom donohue. i and the president and ceo of this fine institution. i want to thank you for being here. i would like to extend a special welcome to those of you visiting our headquarters for the first time. 100 -- aer is 102-year-old organization. this building serves as the central rallying point for the u.s. business community.

we host several hundred meetings here in this room alone every year. we are gathered in today, the international hall of flags is rich in symbolism and history. afterom takes its name the overhead banners of 12 great explorers who blazed the first halves of trade. they planted the first seed of commercial and industrial growth in the new world. these flags remind us that the transatlantic relationship has been around for a long time. reminded how essential this relationship is. a strong u.s.-eu alliance is critical to global stability, peace, and freedom. this has been proven time and again throughout recent history.

the world is changing and the transatlantic partners are being tested in new and difficult ways. competitors who are vying for natural resources, human talent markets, economic and geopolitical influence. to meet these challenges we must step up and offer strong, smart, and positive global leadership security and advocacy of our most cherished values. if we do not, others will fill our void. this brings me to special guest, chancellor merkel. since she assumed the office in 2005, she has not only revitalized germany's massive economy, the largest in europe can that -- and the third

largest in the world but has put u.s.-german relations on a sounder footing. just as importantly, she has displayed exemplary leadership on transatlantic issues. in particular she has been a forceful opponent of the transatlantic trade and investment partnerships which we ttip. ttip will ensure the free flow andapital, talent, goods, procurementorm rules, protect intellectual property, and foster cooperation. here at the chamber we are right with the chancellor on the importance of this agreement. we are pressing forward it -- for its advancement. we will hold four global

conferences in key companies including germany to demonstrate unity on this important ttip. chancellor merkel understands that we need prosperity to pay for security and without security, we cannot have prosperity. ttip is critical to strengthening the economic foundation of our alliance and it is critical to demonstrating our global leadership. some have suggested that europe needs this trade agreement more than the u.s. does and that is fundamental nonsense. let me be crystal clear. america needs europe and we need this agreement for our own economy and to strengthen the partnership that has done more the any other two events cause of prosperity, liberty, and peace in the world. the world is watching, from moscow to beijing. transatlantic the

partners are being scrutinized very closely. while today's a time of uncertainty, there are some things we can be sure of. we can be certain that when the eu act together, we make a tremendous difference in world affairs. we can be certain that expanding our commercial relationship is key to our ability to exert global influence. we can be certain that chancellor merkel will continue to provide real leadership and commitment to a stronger and deeper transatlantic partnership . i had the honor of seeing the chancellor on the opening day of the world's largest industrial fair in hanover where she spoke out strongly about this relationship. it is now my great pleasure to welcome her back to the u.s. chamber of commerce. forward tolooking

hearing her message. ladies and gentlemen, the chancellor of germany, angela merkel. [applause] >> mr. donohue, ladies and gentlemen, i am delighted to be back in washington today. i am equally delighted to be here as a guest of the u.s. chamber of commerce. sort of look at andfact how close the u.s. germany are linked but also to economic [inaudible] shares -- rests on shared values and shared

interests. we know that only together can we tackle and master the great economic and political challenges in this globalized world of today. about a quarter of a century ago, 25 years ago, the berlin wall fell. blocsnfrontation of the came to an and and some talked about in end of history as we know it. post-war order is put into question. this order rests on the acceptance of the rentable of territory integrity. almost 50 years after the end of the second world war, borders and europe are again changed by strengthitting the of the law. this in the annexation of

the crimean peninsula. i am sure there've rule of law will prevail. we need steadfastness and we need to be in it for the long haul and we also need resolve and determination to pursue our transatlantic harner ship in the sense of standing up for our values and for what we believe in. ever since the beginning of the crisis in ukraine, it europe and the u.s. together are resolved to stand up for a democratic order, a solution that is in keeping with the rule of law. we are guided [inaudible] and of the ukrainian people. we think they ought to be able to decide their own future on their own. this goes for the constitution of the country but the social orientation of the country. solution -- the door to the

solution remains open. be furthersituation destabilized, all of the partners in europe and the u.s. be weakening in their resolved to adopt further sanctions. i discussed this issue with president barack obama in our talk. in most important event here the special elections in the 25th of may [inaudible] fair elections can mean a new beginning. a new legitimacy. they can prepare the ground for a process of constitutional reform that includes all ukrainians. whoever wants a good future for ukraine will contribute towards taking placemay 25

in a secure environment. there -- also to the mission that we created [inaudible] for ukraine. imf, theht the european union, the u.s., japan have earmarked a substantial financial support for ukraine. all eyes aret now on ukraine, we must not forget that the transatlantic ownership also is called upon to bring a solution to the iran conflict area did -- conflict. iran in order to do this needs to go beyond abiding by the geneva joint plan of action. it needs to match its words with

these. should you ran not fulfill its obligation or insufficiently we continue to stand ready to actually recall the suspension of sanctions and adopt new, even more far-reaching sanctions vis-a-vis iran. a ought to give negotiations challenge. the civil war that has raged in syria for three horrible years also calls upon us to stand together. this humanitarian catastrophe has claimed the lives of 140 thousand people already. millions of people have been turned into refugees. the stability of the neighboring countries, indeed of the whole region, has been called into the question and we will not accept this state of affairs. germany is participating in the multinational protection mission that is to destroy the inhumane americanweapons on the

vessel and the number of the substances will be rendered unusable in germany. we cannot and must not accept the syrian tragedy also because respect for human rights and human dignity -- the individual freedom and rule of law is indeed the foundation on which our countries on both sides of the atlantic rest area this is a foundation that supports us also in those debates. that should not be put to a test. by nsalection of data [indiscernible] in political responsibility is more than aware that the work is indispensable to secure the safety and freedom of our people but we are responsible for the

protection of our citizens against a terrorist threat. we are responsible for attacks against privacy of our individual citizens and that is into and with our shared values of freedom and rule of law and democracy. we all know that there have inays been -- they have been conflict with each other. it is important to strike a balance and redefine a balance andeen individual rights protection and security and safety. this is even more true today with the digital revolution. these two aspects, these components have to be brought and rebalanced and our citizens are expecting us to do so. the state needs to abide by the principle of proportionality. let's be blunt about this. over the past few months, we have seen considerable differences of opinion and of interest between germany and the u.s. over the this issue.

i do think that we will not have fully overcome this even after my visit. to ae cannot actually come reconciliation on this one just by contacts between the intelligence communities. we need to enter a dialogue where we are clear about the dramatic changes and instances of the revolution not only on intelligence work but on the changes that this means for our societies, the way we do businesses and -- business and politics and initiate a dialogue between our countries, and i am gratified to note this project. we need to be clear in our minds that it is a very ambitious target to tap this potential of the international data flow but to also see to it that we continue to be in a position to protect the freedom of the individual. are is what democracies

about, protecting individual rights, the dignity of man, and the safety and security of citizens. neverutshell, an end justifies the means and not everything that is technically feasible ought to be done. we discussed the balance between freedom and security and the rights of in -- the individual. it is a debate that is ongoing betweene and here and europe and the u.s. despite the differences, i continue to abide clearly by the principal that europe, germany, and the united states could not wish for a more reliable partner respectively than we have ourselves in this transatlantic alliance. -- ofliance is a private prime importance to all of us and this is the basis for our very close economic operation as well.

our relations secure on the whole 15 million jobs on both sides of the atlantic. our are indispensable for prosperity. german companies alone created more than 600,000 jobs over here and american companies and their created 800,000 jobs as of now. the u.s. chamber of commerce is an eloquent testament to these integration of our two economic areas. the world has changed incredibly. on the one hand you have more of a political and economic weight of the economies. in the overall framework of the g-20. crisis has impaired progress and growth in the industrialized countries and has a lasting impact. globally we see a strengthening

of growth which is something we are pleased about. the imf is expecting growth of 3.6% for next year and 2.9%. this must -- 3.9%. in europe and the u.s., just as in other industrialized countries, we are still facing very grave challenges. we have a far too high public indebtedness. inig burden of unemployment many countries, especially among the young generation and increasing competition on global continuednd the vulnerability of the global financial system. to masterly be able those challenges if we continue to work closely on the basis of the transatlantic relationships. and the imf, world trade

organizations, oecd come a and the framework of the g7. transatlantic economic council was established not only on this very important area such as [indiscernible] did it contribute to a smooth cooperation between business communities but it proved to be in a way the nucleus of a project that at the time was considered utopian by many. the project to take up negotiations on the transatlantic trade agreement. we havece last summer been negotiating and we are negotiating it -- about the transatlantic investment trade partnership and it is a key project of our cooperation. it will draw the two economic areas, europe and the united

states, closer to each other and can strengthen both sides of that equation. i am very grateful to you. it is indeed in both our interests to promote this. have aopean and the u.s. close network of free trade agreements with third countries. further negotiations take place with other countries and i really think that we ought to be transatlantica free-trade area between us. i am saying this on our behalf, we want to make this possible until the end of 2015. it would be a clear signal of our resolve to draw down very -- barriers to trade. be an important impetus to the global economy as a whole. it is crucial in this overall context to be ambitious and to be very comprehensive in one's approach. down the still

existing customs barrier between the european union and the united states that are still in place but they are no longer in keeping with the times trade we want to do more as regards nontariff barriers to trade. overought to be drawn down many decades on both sides. there have been a number of standards and regulations that have been promoted and put in place and due to this duplication of regulations on both sides of the atlantic, that are not benefiting citizens, high costs and to our business community. a german company for example that wants to export machinery to the u.s. today needs to have registered individual components from cables to safety valves and that theyt so correspond to american u.s.

specifications. in many cases the function of these components is identical. that is the sort of opportunity that is opening up for us to that thenree money can be invested in the future economies. we must go beyond simply reducing the traditional barriers to trade. this is why we want to liberalize services and public procurement processes. we want to develop future oriented technologies, innovative technologies, and include as a means more than we have done hitherto. --ll and medium-sized companies have a hard time trying to access the market. bury small or medium-sized is difficultit

to sell their beer. i am tempted to say that you do not know what you are missing due to that. ladies and gentlemen, looking at the negotiations of ttip, we concentrate on boosting competitiveness, it is important to feature those [inaudible] sides also benefit. a joint transatlantic area will prices and a broader range of products. for example under the auspices of the transatlantic economic council, we have been able to come to an agreement on mutual recognition of environmentally es.nd process

much easieren made due to this. many citizens in europe just as in the u.s. have been following p with aions for tti critical and somewhat skeptical eye. these negotiations can only be successfula conclusion if we show a high degree of transparency and also if we try to enlist the support and participation, so it is important that both partners to the negotiations have made it clear that a free trade agreement will not lead to the drawdown of rules that protect the interests of consumers, of people who work, and the environment. also the has to be some kind of leeway for future regulation because it is not the aim of this free-trade agreement to give a prominence to the interests of companies vis-à-vis the interest of citizens. the aim is to learn from each other, to be in close dialogue,

perhaps promoting new standards that go a long way toward improving the standard of living of citizens of both sides. if we are able to do that then we will also be able to, the two of us together, to set standards for the environment and protection. we have power that we can wield in global communications. our partners in the wto are watching our negotiations with great attention. i can only assure you that our aim is and remains to come to as comprehensive a drawdown of that years, we have seen offerral negotiations better opportunities. i am convinced that any progress we make in ttip will not only

reduce prospects [inaudible] but increase it. kind ofems to be a new spirit in wto. large share in the success that was possible in bali. trade policy can only be one building block of a comprehensive strategy to release the forces for growth in our countries. four other areas need to come into play. first, public budgets need to be put on a sound, sustainable level. the debt crisis we have seen in the euro area has shown us very clearly that durable prosperity can only happen on the basis of sound fiscal policy. in coping with the crisis in the

euro area beyond any doubt, we important progress. we have adopted rules for a stable monetary union and important support programs for countries in need and building of thenking union european level. we now at the same time that the european crisis, the sovereign debt crisis is not yet overcome, at least not in a lasting way, the mistakes that were made more than 20 years ago when the european monetary union came into place have not been completely addressed. we have to continue to work on this and our objective needs to be we must never see such a crisis repeat itself and again -- itself again. exercise long lasting in europe and our partners theide of europe such as u.s. and japan. i know part of your public -- this is part of your public

debate. u.s. arepe and the facing great challenges. the labor market, it the theational area, creating most positive environment for investment. the task is the same. rendering our companies of holding their own in global company vision. europe and america can benefit a lot from each other and can learn a lot from each other. europe and the u.s. -- germany in terms from the u.s. of giving seed money to innovative companies. i am please that apparently the good affairs we have made with our training scheme has been looked at very favorably here by the americans as well.

what is also important to see is achieving a secure supply of affordable energy. we are interested to work together with the u.s. here. ought tonegotiations give us an opportunity to deepen .ur energy cooperation in europe when we look at the crisis in ukraine, we also think about how we can make ourselves more independent of unilateral energy supplies and gas delivery from russia. the transatlantic mentorship also offers great opportunities. we are duty bound to make global resilientsystems more particularly in the g 20. we have made great headway. there are a number of areas where we still have considerable need for further reform. i am much interested in seeing regulation, bout on the shadow banking sector. we need to also do more on

itulations where we see to that any financial institution that gets into difficulties and irrespective of its size can actually be [inaudible] without taxpayer money. you have made enormous strides here and we have made some progress. this needs to be continued. all of these foreign and security policy challenges can act be mastered if we together. the transatlantic partnership is and remains also in future the crucial key to peace, freedom, security, and prosperity for all of us. year,particularly in this 2014, that we are more than aware of this fact. 100 years after the beginning of the first world war, 75 years after the beginning of the second world war, and 25 years after the fall of the berlin wall. we must never forget what a treasure for both peace and

freedom, for peace in freedom, what a treasure this kind of venture is and we feel committed to cherish and nurture this treasure politically and economically in germany and america. this is what this great transatlantic partnership is all about. thank you for your attention. [applause] >> that was wonderful. to we have a great chance answer a few questions, and i will start to give everybody a chance to get settled. interested fory

message from you on the practical things that the business community in this country and the business community in europe can do on drive us to go out and closer and faster to this agreement. at the endthink that of the day, the business communities to feel committed to this aim. i am assured of support i have seen [indiscernible] can companies which those people who see so much concern, who are skeptical so i would ask you to talk to their own labor force and asked the companies to

talk to their own labor force and bring home to them who actually in the world already has such a trade agreement and what benefit they can reap from this. they are not aware especially in indonesiaarea that has and free-trade agreements with china. there are many others of this kind. we need to make it understood that we are not trying to cut down certain standards that have been achieved with a lot of work over time. we are trying to secure the future of what as we know it jobs as we know it in our countries. it would be important to talk to trade unions in germany about this because they are able to do quite a lot for people they talk to. go out of the box if you like and not meet only with your own people because they all know your viewpoint anyway, but go outside, go and talk to the public.

bring this to [inaudible] and companies have a hard time. they are looking after their own and their own interests. we have seen that in negotiations with korea. withis also the case japan. what will this mean for us if the south koreans are able to penetrate our markets and so on. it is interesting that there is this south korean trade agreement. enormous growth rate. other bit of what they feared has come to pass and that is what the industry in general needs to see. we made the experience that sets free-trade agreements revive business. >> we have been told i our labor

that when we negotiate that we should negotiate labor standards that are like the european standards. we have been telling the labor unions we have got that done now so support this agreement. and we will continue to remind them. so one more question and then we'll go to the audience. in andnt days in meetings here meanings we have had with others, we talked about the fact -- the effective the on thetances in ukraine negotiation of this trade agreement. will it compete it or will it stimulate it and perhaps even move it faster? going to get any

more difficult. whether it is easy is something the jury is still out on. energy, i think you may well have a positive effect, actually. that is where i see possibly the greatest benefit. we're currently talking a lot about what sort of lessons do we learn and particularly here in washington, i understand you are talking about the next sanctions , the next possible step. .e ought to join forces we were saying we want to ring about a good solution. we should not underestimate present sanctions already taking effect, have an effect. they have an effect that goes far beyond the sanction proper

because right now, corporation with an economic areas such as h basically seem to be moving up, getting more intensive than getting better is called into question and the question of whether a company would invest in russia into the future, that is something that now they would have to -- second thoughts about. we in europe have imposed sanctions that have taken effect and work for six months but in europe there will be a rethink on their own energy supplies. they do not want to continue to be 100% dependent on russia. it may well be that the at the energying supply also in the united states, we may well have much closer cooperation with you. people have to be told if we do

not have a free trade agreement it will take a very long time before we can have the first deliveries of liquefied natural gas eerie and when we have a -- thisde agreement, could go a long way toward convincing european countries. >> thank you. this is a very unique sitting arrangement because usually i can see over the lights. -- press, the price we have extra lights. to put you to have on your best honor. i can see you. who would have the first question? going once. had better put your hand up or i will start the next question. thank you. stand up you introduce

yourself and where you are from so the chancellor might know what you really want to ask. [laughter] >> i will do it in german. i come from berlin. you for your keen words on ttip. asre were discussions regards lowering of standards and other issues mentioned that is something that is talked about back home and the lack of trans parents he -- transparency of those negotiations. scheme is discussed at a very controversial matter back home. viewpoint on this? >> we reacted in a very reserved a particulars to

area of investment protection. it has been blown a little bit out of proportion. for in a way stands something that we need to do, we need to do more. we can do without this if it is not needed. if it is not needed we need to do it. there are individual components taken up by people who are skeptical, who want to use this by proving that something that is dear to our hearts back home, it is in many ways impaired by this agreement. if you talk to people about free trade agreements we have with other countries, that goes a long way toward addressing such skepticism. we must be aware that during the whole of these negotiation process, people will tend to aspects andfferent

explained there is something horrible happening. we need to be transparent and explain more. negotiations cannot be happening at an open stage. one has to protect one's own interests as well. one should not be too secretive about it either. are worried about our holding something from them. again try and say there are other trade agreements and tell people you were fearful than but these fears were not justified. >> the history of sanctions are

pretty clear. sanctions are truly multilateral. there is a chance of success. if sanctions are unilateral, companies or countries often tried to game the system to win temporary advantage at the expense of the companies that are under great restrictions. where we stand today is the u.s. has more strict sanctions and other countries. how can the united states and germany be on the same page with the same sanctions so that we have a chance to really make a difference with truly multilateral sanctions where the major countries have the same restrictions on their companies so that there is a chance to move forward? after all, we try to coordinate very closely. there are very different sort of

situations in place in europe and the u.s. but we have been able to align our policies pretty well. what is the difference? talking about companies now. we are talking about sanctions against individual persons, the american laws are different than those in the eu. in the uu we can impose sanctions on persons that have direct responsible -- responsibility for what is happening on the peninsula or what is destabilizing. have always iran we been shot down by the courts when we went too far in their minds. we are currently working in the eu on such a legal framework and trying to broaden that somewhat and making it somewhat similar to what you have in the united states. have 28, in europe, we

member countries. we have to come to unanimous decisions over anything that we plan to do. that sanctions have repercussions are very different. if you talk about possible financial sanctions, germany is not particularly affected. if you talk about energy sanctions, germany is a little bit more effect it. ifeurope we have an interest matters come to such a pass that we need to go further that we have a mix of sanctions where each and every country is -- suffers little bit. suffering atry little bit and not one country suffering at all. we have worked with russia and andive them credit lines

also european bank investment. moment and think whether we should not do certain changes as regards the way we treat russia. that is something the u.s. is not able to do. there is not 100% alignment between what we do but there has balance.e kind of fair that some companies are affected 100% and some not at all. the eu is tearful and preparing work and looking at that aspect on the whole, trade between europe and russia obviously is much more closely developed then trade between the u.s. and russia. go to the side? we shall move back here where they seem to have people with more questions. how much time do we have?

back there. >> i am a russian journalist. hearing from my friends who work in germany that the business trinity is against sanctions. community is against sanctions. they do want to go to saint petersburg and take heart in the next meeting. in the next-- art meeting. what do you say to your own community? think -- i do not know if that is the case in any other parts of the world. people who want to do business and that is what the business community is about. -- exactlyong longing for sanctions. some people are also against

sanctions against iran. that is true now for russia. theof the top ceos of business community and industry have said if that is the case if you decide on that than we will abide by your decisions and the community knows this. although they have envisaged a different kind of relationship. if two years ago you had asked me whether we would discuss such issues today i would have said that is not very probable. one needs predictability. frameworkeds certain conditions for investments. so many in the business community, i cannot talk obviously reliably on their behalf but many of them are and theat reliability basic acceptance of the european postwar order, namely

territorial integrity, is a very important thing and the business community in doing business cannot completely neglect that. open and the possibilities are there. let us work together with russia for the elections taking place in ukraine on may 25 so ukrainians are in a position to decide their future course of their country themselves and we do not need to introduce her their sanctions. no one is longing for that. do you think politicians like to talk about this? we cannot just sit back and watch. basic principles that ought to be prevalent in europe are being brought into question. since the first sanctions have been actually suspended against iran, the german business community was happy. it would be a strange community that is longing and working for

sanctions. the business community, should we have to impose sanctions, will abide by them. vix i wanted to add that in the u.s. we hear from many of our companies the same thing the caterpillar representative said. it should be balanced and there should not be people taking advantage during sanctions. people understand that if we do not deal with this challenge in an orderly and a broad-based way, we will deal with lots of other more difficult challenges. i believe as the chancellor said , that the leaders of the american business community will rally around this collaborative approach to dealing with the problem in the ukraine, and we will make sure that they do. we think we can take one or two more. someone else.

right there. someone is bringing you a microphone very quickly. thank you. >> thank you. i am with the european union delegation. as you have seen yesterday, there was the report [inaudible] commissioned by obama that was just released in the report goes much beyond just the question of intelligence, of course, addressing what can we do with this data, what are the challenges and opportunities for our economies and our societies. i would like to have your views about how do you see the future in this area, also in cooperative terms of both sides of the atlantic on how can we strike the right towns between privacy and security on economic opportunities? thank you. >> thank you. the currentat

debate in the u.s. has actually already taken effect. the american president issued a presidential order making a few changes and now the question is obviously what does this mean for citizens outside, people outside of the u.s.? shownterim debate has first results. i think it is a good thing that between germany and the united , there is a good thing that a cyber-dialogue will take place. we will look at a data management and questions, how do we use the data, what sort of at tacks are we open to and vulnerable. in europe we have to admit we have the following problem. we are developing a lot of these health technologies -- these technologies. those that are behind those, the

drivers of this particular line of technology are either in asia or more importantly even in the u.s., so we need to find ways to be in a position to give our contributions to this technology and it will be easier for us also to set standards and how to use them. best possiblemake use of such technologies and in the end complained that there is not some kind of standard that governs how they are used. we out there developing our own. there needs to be a dialogue on this. walkoreign ministers will on this. [inaudible] >> we are now going to take the last question. we will go to the side. back there.

>> i am marjorie krause. i was interested in the comments about energy security and how those efforts are moving forward, and i understand what is going on is going to help in the longer-term. i wondered if you could comment on any shorter-term phone abilities that europe will face until some of the new terminals and pipelines, online that will create a better path for energy security in the future. it is not actually for the first time that in the context of ukraine we have been working on the better and more secure energy supply and better connections within europe as regards hype lines. a few years ago, we already had

crisis.gas supply they were difficulties between russia and ukraine in wintertime. slovakia did not receive any gas. at the time, we said we will the phenomenon- of reverse flow which enables you to also supply countries directlythat may not be connected to the pipeline. measuresried to take that will avoid such a situation othering again where countries are cut off from supplies. someone is doing that sort of scheme right now. due to -- we have also tried to supply ukraine because there is a possibility of this reverse flow barrier. to europe fromes russia come through the ukraine so there is a high dependency

there and we are closely linked because we have a gas storage tanks in ukraine which in summer needs to be replaced so that -- in winter, you have sufficient gas to supply europe. have to look at the individual dependence of individual countries. 37% dependence on there are other european union members that are more than 50% dependent on russian the plot -- supplies. have a third framework on the energy package on the table in europe. even an owner of a pipeline will not be allowed under that scheme to use the pipeline only for his own gas, but there are certain

features of that capacity that he can use for his own supply come but the rest has to be tendered for a public bidding process to take place, and you use thesee that others pipeline so there is not a monopoly. this leads to russia being interested in seeing the more fromeing used russia, and there is one measure we have taken. these negotiations were stopped on how they can be used by russia because we said we want to see the political progress because -- before. we have done something and we are going to continue to work in to direction for a five- how to doan to think this. a polish proposal of also developing a clout regards

consumer position. we have individual contracts with russia for individual member countries, but we can also pool our markets which will then render a stronger consumer pricesl for uniform gas to europe. it is a broad range that goes $490 per cubic meters come and that is the same gas supply that is sold to individual countries by individual companies. >> chancellor, we have a lot of guests that come to the chamber. been has been -- this has an important visit you have paid us. we are very anxious to know when you will be coming back. the sooner you come back, the sooner we can keep pushing this forward. we want to thank you very much for visiting. i want to thank you very much for your very candid and very

helpful comments, and we want to thank your colleagues and your associates for everything you t this event to get it. we look forward to seeing you again very soon. [applause] [captions copyright national cable satellite corp. 2014] [captioning performed by national captioning institute] german chancellor angela merkel in washington to visit the white house and speaking for the past hour in the chamber of commerce. except we will bring you that news conference from earlier today with president obama. she and the president addressed a number of issues including

sanctions from russia. it is about 45 minutes. the chancellor from the federal republic of germany. >> good morning, everybody. it is always a great pleasure to welcome my friend chancellor merkel to the white house. germany is one of our strongest allies, and angela is one of my closest partners. and with her indulgence, i want to start by making two brief comments. first, as president, my top priority is doing everything we can to create more jobs and opportunities for hard-working families for our economic strength as a source of strength in the world. this morning, we learned that our businesses created 273,000 new jobs last month. all told, our businesses have now created 9.2 million new jobs over 50 consecutive months of job growth.

the grit and determination of the american people are moving us forward, but we have to keep a relentless focus on job creation and creating more opportunities for working families. there is plenty more that congress should be doing, from raising the minimum wage to creating good construction jobs rebuilding america. i want to work with them wherever i can, but i keep acting on my own wherever i must to make sure that every american who works hard has a chance to get ahead. second point, i also want to say on behalf of the american people that our thoughts are with the people of afghanistan who have experienced an awful tragedy. we are seeing reports of a devastating landslide on top of recent floods. many people are reported missing. rescue efforts are underway. just as the united states has stood with the people of afghanistan through a difficult

decade, we stand ready to help our afghan partners as they respond to this disaster, for even as our war there comes to an end this year, our commitment to afghanistan and its people will endure. now, angela, i am still grateful for the hospitality that you and the german people extended to me, michelle, and our daughters last year in berlin. it was an honor to speak. you promised me a warm welcome and delivered an unbelievable 90-degree day in berlin. this morning, our work touched on a range of issues where the united states and germany are vital partners. we agreed to continue the close security cooperation, including law enforcement, cyber, and intelligence that keeps our citizens safe. we refer to our strong commitment to completing the transatlantic trade investment

partnership, t-tip, which will boost jobs in the united states and europe. we discussed energy security, including the europe diversifying its energy resources will stop united states is already approved natural gas exports, which will increase global supply, and t-tip will make it even easier to get exported gas to europe. at our working lunch, we will review negotiations with iran and our shared determination from preventing iran from developing a nuclear weapon. we will discuss in syria where we continue to support the moderate opposition and provide humanitarian relief to the people. i look forward to a briefing on asia, a region where both of our countries can ensure that all countries in the asia-pacific and adhere to international law and international norms. of course most of our time was spent on the situation in ukraine. angela, i want to thank you for being such a strong partner on this issue. you have spoken out forcefully against russia's illegal actions

in ukraine and you have been a leader in the european union as well as indispensable partner in the g7, and your presence here today is a reminder that our nations stand united. we are united in our determination to impose costs on russia for its actions, including through coordinated sanctions. we are united on our unwavering article five commitment to the security of our nato allies, including german aircraft joining nato patrols over the baltics. we are united in our support for ukraine, including be very important imf program approved this week to help ukraine stabilize and reform its economy. and as ukrainian forces moved to restore order in eastern ukraine, it is obvious to the world that these russian-backed groups are not peaceful protesters. they are heavily armed militants who are receiving significant support from russia. the ukrainian government has the right and responsibility to uphold law and order within its territory, and russia needs to

use its influence over these paramilitary groups so they disarm and stop provoking violence. let me say that we are also united over the appalling treatment over the observers who have been detained in eastern ukraine. pro-russian militants are still holding several people including seven germans as well as their escorts. they have been paraded in front of the media and forced to make a statement at the barrel of a gun. it is disgraceful and it is inexcusable. russia needs to work to secure their immediate release, and the international community is not going to be satisfied until colonel schneider and his fellow captives come home. finally, as both angela and i have repeatedly said, we want to see a diplomatic resolution to the situation in ukraine. but we have also been clear that if the russian leadership is not

changing its course, it will face increasing costs as well as growing isolation. diplomatic and economic. already it has fallen to near all-time lows. russian stocks have dropped sharply and russia has slipped into a recession. $100 billion in investment russia will exit this year. russian companies are finding it hard to access the capital they need and russia's credit rating has been downgraded to just above junk status. in short, russia's actions in ukraine are making a weak economy even weaker. moreover, if russia continues on its current course, we have a range of tools at our disposal, including sanctions that would target certain sectors of the russian economy, and we have been consulting closely with our european and g7 partners, and we are stepping up our planning. angela and i continued these consultations today. the russian leadership must know that if it continues to destabilize eastern ukraine and disrupt this month's presidential election, we will move quickly on additional steps, including further

sanctions that will impose greater costs, but that is a choice facing the russian leadership. our preference is a diplomatic resolution to this issue and the ukrainian government has already shown itself more than willing to work through some of the issues that would ensure that the rights of all ukrainians are respected, that you have a representative government, they have shown themselves willing to discuss amendments to the constitution, to devolve power to a local level. they have gone through with their commitment to potentially provide amnesty for those who lay down arms and who are willing to abandon the building they have occupied. the ukrainian government in kiev has followed through on the commitments that it made in geneva. we need russians to do the same. so, angela, i want to thank you again for being here, and as always for your friendship and partnership. these are challenging times. russia's actions in ukraine pose

a direct challenge to the goal that brought europe and the united states together for decades, and that is a europe that is whole, free, and at peace, just as our predecessors are united to pursue their version, so will we. chancellor merkel. >> well, thank you very much for the gracious hospitality and the very warm welcome the you have accorded to me, and i am very glad to be able to be back in washington to have an opportunity to address all of these different issues with you. i think priority really is on the current issue of ukraine, and the agenda showed how important the partnership is also in today's times. i think it is a very good thing that all of the steps that we have taken so far we have taken together, and today, in our talk, we yet again

underlined that we fully intend to go ahead as we did in the past. what happened on ukraine, what happened on the crimean peninsula? well, the postwar border has been put into question on the acceptance of territorial integrity by all. and this is why it was so important for us to react in concord. what is at stake here is that people in ukraine can act on the basis of self-determination and can determine themselves, which they wish to embark on any future. the 25th of may is a very crucial date, to ensure that, and we will see to it that elections can take place. the osce will play a central role in all of this. we talked about this. and together with the osce, we shall do everything we can in order to bring russia to do the necessary steps on the 25th of

may, bringing about progress in stabilization of ukraine. the 25th of may is not all that far away. should that not be possible to remedy the situation, further sanctions will be unavoidable. this is something we do not want and we have made a diplomatic offer. the diplomatic solutions are very much up to the russians, which road we will embark on, but we are resolved to continue down that road. let me address issues that have a bearing on the intelligence services. let me underline yet again for for the german side. we have always enjoyed it very close cooperation with our american partner. we are more than aware looking at the challenges of the modern world today, and obviously in fighting terrorism, the work of the intelligence services is not only important, it is indeed indispensable. i am firmly convinced that our

cooperation in this area is a helpful one, yet there are differences of opinion about what sort of balance to strike because of the intensity of civilians trying to protect the citizens against threats and on the other hand protecting individual courtesy and individual freedom and right to privacy. that will require further discussion between our two countries and over to overcome these differences of opinion. we had these discussions also on the european front. we are talking about safe harbor agreements about the privacy protection agreements, and i take back the message home about the u.s. is ready to do this, is ready to discuss this, although we may have differences of opinion on certain issues. on t-tip, i think particularly in the overall context of further intensifying our trade

relations, of global growth but also in the context of diversification of energy supply, this is a very important issue. it will be very important for us to bring the negotiations very quickly to a close. we are firmly convinced that for the european union, for germany, and for the united states, this offers a lot of opportunities for the future, and it is so important for us to bring this agreement to a successful conclusion. there are a number of discussions, i know people have doubts, but these can be overcome, and they need to be overcome. just look at the many partners all over the world that have bilateral trade agreements. i mean, it is simply necessary. looking at the closeness of our partnership, for us to have this agreement, the trade agreement, and we are fully at one on this one.

so we have very intensive talks, and we're going to build on this over lunch. thank you very much for giving me this opportunity and also thank you for your gracious hospitality. >> i think we are going to take two questions from the u.s. press and two questions from the german press. we will start with lesley clark. >> thank you, mr. president. with violence in the ukraine today, you said germany and the united states are united in the effort to de-escalate, but have you been able to reach any common ground on sanctions, particularly the russian energy sector? what is next if you are unable to, and to chancellor merkel, reports in the u.s. have said that you believe president putin may not be in touch with reality. is that what you said? is that we believe? and you talked to him earlier this week. could you give us a little more insight into what he might be thinking? and do you believe he is a threat to europe?

>> obviously, every day we are watching the events in eastern ukraine and southern ukraine with deep concern. and i think what you have seen over the course of the last several months in the midst of this crisis is remarkable unity between the united states and the european union in the response. we have at the same time offered a diplomatic approach that could resolve this issue. we have been unified in supporting the ukrainian government in kiev, both economically, diplomatically, and politically, and we have said that we would apply cost and consequences to the russians if they continued with their actions. that is exactly what we have done. and you saw just over the course of the last week additional sanctions applied both by the europeans and the u.s.

the next step is going to be a broader-based sectoral sanctions regime, and what we have said is is that we want to continue to keep open the possibility of resolving the issue diplomatically, but as angela merkel said, if in fact we see the disruptions and the destabilization continuing so severely that it impedes elections on may 25, we will not have a choice but to move forward with additional, more severe sanctions. and the consultations have been taking place over the course of the last several weeks about what exactly those would look like and would apply to a range of sectors. the goal is not to punish russia. the goal is to give them an

incentive to choose the better course, and that is to resolve these issues diplomatically, and i think we are united on that front. within europe, within the e.u., i'm sure there has to be extensive consultations. you have got 28 countries and some are more vulnerable than others to potential russian retaliation, and we have to take those into account. not every country is going to be in exactly the same place, but what has been remarkable is the degree to which all countries agreed that russia has violated international law, violated territorial integrity of a country in europe, and i think there is unanimity that there has to be consequences for that. how we structure these sectoral sanctions, the experts have been working on, and we anticipate that if we have to use them, we can. our preference would be not to have to use them. and i thank chancellor merkel's leadership on this front.

she has been extraordinarily helpful not only in facilitating european unity, but she has also been very important in helping to shape a possible diplomatic resolution and reaching out to the russians to encourage them to take that door while it is still open. keep in mind that when it comes to sectoral sanctions, we are looking at a whole range of issues. energy flows from russia to europe -- those continued even in the midst of the cold war, at the height of the cold war, so the idea that you're going to turn off the tap on all russian oil or natural gas exports i

think is unrealistic, but there are a range of approaches that can be taken not only in the energy sector, but in the arms sector, the finance sector, in terms of lines of credit for trade, all that have a significant impact on russia. i don't think it is appropriate for us to delve into the details at this stage because our hope is that we do not have to deploy them, but what i can say is that our experts at the highest level, not just bilaterally, but multilaterally through the european commission and our diplomatic teams have been working through all the possibilities, and we are confident that we will have a package that will further impact russia's growth and economy. but again, our hope is that we should not have to use it. we are not interested in punishing the russian people. we do think that mr. putin and

his leadership circle are taking bad decisions and unnecessary decisions and he needs to be dissuaded from his current course. >> i think there is been a very difficult assessment on what happens in the ukraine. on the one hand that you have the united states and europe. we have always taken our decisions together. on the other hand, the russians situation. i hope that russia will live up better in the future to its responsibilities, but we need to see deeds matching their words. we do not have any release of the hostages, among them also four german hostages. this is a crucial step.

we have not seen any implementation of the geneva agreement on the russian side. the ukrainian side has taken the steps. and the osce is an organization to which we want to accord a greater role for they can pave the way and prepare for elections. one word on sanctions was up i agree with the american president. they are not an end in and of itself, but combined with what we want a diplomatic solution, it is a very necessary second component to show that we are serious, we are serious about our principles, and those abroad face a whole range of possibilities are being prepared for in the european union. in europe, we have taken is sufficient that if destabilization happens, we will move to the third stage of sanctions. i want to underline that this is not necessary to what we want, but we are prepared. my main aim will be first and foremost to improve

stabilization and to see to it that the elections can happen. we will work on that in the next few days, but we are also prepared to take further steps. what we are talking about here will be sectoral measures in the context of industry. the american president, i can only agree, he has said what is necessary. oil and gas is very strong in europe. we can also look ahead in the median term what we can do in order to promote an energy union and the european union, which we are doing. looking at our dependency in the next 10 to 15 years on russian gas supplies, there are 6 countries in the e.u. that depend 100% on gas supplies. we need to improve ebb and flow, we need to create our grid of pipelines. all of the countries need to share supply, and those are measures that we are currently discussing in europe. we are talking about short-term but also medium-term and

long-term measures, and also getting more prominent in this respect. >> madam chancellor, you said time is of the essence. when would be the time you would say the first phase of sanctions is what you would promote and is a more energy intensive initiative by the e.u. necessary for example on the government level? can you understand the fact that also mr. putin needs to play a role in the solution, which is the position of the european union, but also his arguments have to be weighed, and also the chancellor have a may go several phone calls with him, do you think he will work on this? >> as for the question what about the next few days to come,

i think the meeting of foreign ministers of the e.u. is going to play a very important role on this respect. there are possibilities in various directions. we from the german side as we have agreed with our american friend will do everything we can in order to bring the osce into a supported political situation to do what is necessary to move forward in ukraine. you have the monitors for the elections. you have questions regarding changes of the constitution. you have decentralization. all of the different parts of the country have to be at the same level. we want to give osce the necessary political backing. at a certain point in time, that is very difficult. for me, the elections on the 25th of may are crucial.

should there be destabilization, this would be getting more and more difficult. for now, i am working toward elections on that date. we have approved that in other areas. we will demonstrate this resolve yet again. i am firmly convinced that the united states of america and the european union need to act in concert here and they have done so in the past and they will continue to do so. >> i have said from the start that russia has legitimate interests in terms of what happens next door, in ukraine. obviously, there is a deep and complicated history between russia and ukraine.

of course, mr. putin's views should be taken into account. what cannot be taken into account is his suggestion and words and actions that he has the right to violate another country's sovereignty, territorial integrity, to dictate the economic policies or foreign policy of a sovereign country. that is not acceptable. our view from the start has been that the ukrainians should be able to make their own decisions. if they are allowed to make their own decisions, they will have a good relationship with russia and with europe. that they will want to trade with russia and with europe. but what they cannot except, accept, understandably, is

the notion that they are simply an appendage and that the kremlin has veto power over decisions made by a duly elected government in kiev. if mr. putin's goal is to allow ukrainians to make their own decisions, then he is free to offer up his opinions about what he would like the relationship to be between ukraine and russia, and i suspect that there will be a whole lot of ukrainian leaders who will take those views into consideration. but it cannot be done at the barrel of a gun. it cannot be done by sending masked gunmen to occupy buildings or to intimidate journalists. one of the biggest concerns we have seen is the russian propaganda that has been blasted

out nonstop, suggesting that the ukrainian government is responsible for the problems in eastern ukraine. the ukrainian government has shown remarkable restraint through this process. the notion that this is some spontaneous uprising in eastern ukraine is belied by all the evidence of well-organized, trained, armed militias with the capacity to shoot down helicopters. generally, local protesters don't possess the capacity of surface-to-air missiles or whatever weapons were used to shoot down helicopters, tragically. we have seen the attempts of osce monitors who were approved not just by europe or the united states, but also by russia, being detained. and somehow russia is suggesting that kiev is responsible for

that? we have heard mr. putin say that kiev has to do a better job of reaching out to eastern ukraine. you have seen attempts by kiev in a serious way to propose decentralization of power and to provide for local elections and for them to offer amnesty for those who have are the taken over these buildings. none of that has been acknowleged by mr. putin or the various russian mouthpieces that are out there. you have seen suggestions or implications that americans are responsible for meddling inside ukraine. i have to say that our only interest is for ukraine to be able to make its own decisions. the last thing we want is

disorder and chaos in the center of europe. so, for the german audience who perhaps is tuning into russian tv, i would just advise to stay focused on the facts and what has happened on the ground. a few weeks ago, mr. putin was still denying that the russian military was even involved in crimea. then a few weeks later, he acknowledged, yeah, that was our guys. there has not been honesty and credibility about the situation and a willingness to engage seriously in resolving these diplomatic issues. our hope is that mr. putin recognizes there is a way for him to have good relations with

kiev and good relations with the europe and the united states. but it cannot be done through intimidation and coercion that we are seeing right now in eastern europe. >> thank you, mr. president. earlier this week, an inmate died in oklahoma in what critics called an inhumane manner of an execution. some countries have expressed their concerns. what are your thoughts? does this raise more questions about u.s. justice? and to chancellor merkel, after edward snowden's revelations on

surveillance on your own cell phone, are you satisfied by the steps taken by the u.s. -- has trust been rebuilt? thank you. >> what happened in oklahoma is deeply troubling. the individual who was subject to the death penalty had committed heinous crimes, terrible crimes. i have said in the past that there are certain circumstances in which a crime is so terrible that the application of the death penalty may be appropriate. mass killings. the killings of children.

but i have also said that in the application of the death penalty in this country, we have seen significant problems, racial bias, uneven application of the death penalty. situations in which there were individuals on death row who later on were discovered to have been innocent because of exculpatory evidence. all of these do raise significant questions about how the death penalty is being applied. this situation in oklahoma highlights some of the significant problems there. i will be discussing with eric holder and others to give me an analysis of what steps have been

taken in this area and more broadly. we have to ask ourselves difficult and profound questions around these issues. i am also going to say something about nsa because i know it is of great interest in the german press as well. germany is one of our closest allies and closest friends. that is true across the spectrum of issues. security, intelligence, economic, diplomatic. angela merkel is one of my closest friends on the world stage and somebody whose partnership i deeply value. so it has pained me to see the degree to which the snowden disclosures have created strains in the relationship. but more broadly, i have also

been convinced for a very long time that it is important for our legal structures and policy structures to catch up with rapidly advancing technologies. as a consequence, through a series of steps, we are trying to reform what we do. we have taken these issues very seriously. domestically, we have tried to provide additional assurances to the american people that the privacy is protected. when i have also done is taken the unprecedented step of ordering our intelligence communities to take the privacy interests of non-u.s. persons into account in everything that they do. that is something that has not

been done before and most other countries in the world do not do. the privacy interests of non-u.s. citizens are deeply relevant and have to be taken into account under have to be protected. we are in the process of implementing those steps. we have shared with the germans the things we are doing. i know the perceptions among the public are that the united states has capacities similar to what you see on movies and in television. the truth is our focus is principally and primarily on how

do we make sure that terrorists, those who want to proliferate weapons, transnational criminals, are not able to engage in the activities that they are engaging in. in that, we can only be successful when partnering with friends like germany. we will not succeed if we are doing that on our own. what i have pledged to chancellor merkel has been in addition to the reforms we have taken, in addition to saying we are going to apply privacy standards to how we deal with non-u.s. persons, as well as u.s. persons, in addition to the ways we are constraining the potential use of bulk data.

we are committed to a u.s.-german cyber dialogue to close further the gaps that may exist in terms of how we operate, how german intelligence operates. to make sure there is transparency and clarity about what we are doing and what our goals and intentions are. these are complicated issues. we are not perfectly aligned yet. we share the same values and we share the same concerns. this is something that is deeply important to me. i am absolutely committed by the time i leave this office, we're are going to have a stronger legal footing and international framework for how we're doing business in the intelligence sphere. i will say though that i do not think there is an inevitable contradiction between our security and safety and our privacy. the one thing that i have tried to share with chancellor merkel is that -- you know, the united states historically has been concerned about privacy.

it is embedded in our constitution. as the world's oldest continuous constitutional constitutional democracy i think we know it little bit about trying to protect people's privacy. we have technology that is moving rapidly and we have a challenging world that we have to deal with and we have to adjust our legal frameworks. she should not doubt and the german people should not doubt how seriously we take these issues. i believe we will be able to get them resolved to the satisfaction not just of our two countries, but of people around the world. >> under the conditions, we have possibilities were differences of opinion to overcome. in the medium term and the long term. one possibility is to enter into cyber dialogue because this is very important, a forum to have

longer discussions as to where we stand individually and ramifications. secondly, there are two strains of negotiations. on the one hand, the safe harbor agreement. and the privacy and protection. in the course of negotiations, it will come out very clearly what differences of opinion there are. i think it is of prime importance for us to bring these forward and to bring the process to a conclusion. and something else comes into play, i heard this morning during a breakfast meeting that our parliaments should be in closer contact on this. it is very important. it is important for the broader public to be involved. so also understand each other's

motivations and arguments. >> mr. president, could you explain why it is not possible to agree on a no-spy agreement which was proposed by the u.s. government. what kind of assurances could you give chancellor merkel with regard not only to ordinary german citizens, but also with regard to government members, that they are not under u.s. surveillance anymore? >> the question addressed to you

, chancellor, the french president said trust as regards to the nsa discussion has been rebuilt, can you say the same thing? >> it is not quite accurate to say that the u.s. government offered a no spy agreement and then withdrew it. i think what is accurate to say is that we do not have a blanket no spy agreement with any country, with any of our closest allies. we do have are a series of partnerships and procedures and processes that are built up between the various intelligence agencies. what we're doing with the germans, as we are doing with the french, as we do with the british, the canadians, or anybody is to work through what exactly the rules are governing the relationship between each country and make sure that there are no misunderstandings. i think that we have gone a long way in closing some of the gaps. but as chancellor merkel said, there are still some gaps that need to be worked through. but i think what we can be confident about is that the

basic approach that we take with germany is similar to the approach we take with all of our allies and our friends. that during the course of the last several years as technology advanced, i think there was a danger in which traditional expectations tipped over because of new technologies. what we have tried to do is make sure our policies reflect increased capabilities and increased dangers of intrusions in privacy. let me put it this way. our interest in working effectively with the germans and to making sure that german government as well as the german people feel confident about what we do is as important to us as any other country. germany is at the top of our

list in terms of friends and allies and colleagues. we are not holding back from doing something with germany that we somehow do with somebody else. >> i think the whole debate has shown the situation is such that we have a few difficulties yet to overcome. to overcome. there was going to be a dialogue between our two countries. this is also why there needs to be and will have to be more than just business as usual, looking in the german parliament, but members in the german government and the german public. we need to do that.

it is good we are taking these steps, and we are looking at what is still dividing us. these issues will be addressed, we will work on them, and it will be on the agenda for the next few weeks to come. >> thank you very much, everybody. >> we will show you that news conference beginning at 8:00 p.m. eastern. the house and senate were out today. they are back next week to month that on tuesday. eal with research and tax credit. in the senate, they may take up next week a major recording passage of the keystone xl pipeline. we talked about both those issues and the benghazi investigation with a reporter

."om "the hill pai john boehner tweeted about this saying americans deserve the truth about the benghazi attack that killed our ambassador. ing editoris manag of "the hill." what is the point of forming this committee? >> to give more power and political pressure for republicans to address this issue. john boehner had previously not jumped on this legislation. legislation that was called for by frank wolf, the republican from virginia, who said we need to have a select committee to look into this. boehner had confirmed to chairman looking into benghazi,

but the e-mails that have come out this week had changed the dynamic, putting pressure on boehner. 189 republicans have already signed onto that legislation, and today boehner indicated they will go forward and move the select in the. we are still getting details, still to be determined, but boehner is going forward. >> the house will vote on this in the coming week? the houseto go to floor, and this will pass. it will mostly be a partyline vote. you may get a few democrats who will vote for it, but most republicans have politicized benghazi and will say no. subpoenaedissa has john kerry. he has not testified before? >> darrell issa wants to know why these documents were

obtained, had to be obtained through a lawsuit brought by a conservative group and were not given to congress. the administration has indicated a couple reasons for that. one that it was classified, and there was a question about those e-mails being classified, but the other reason was not about benghazi specifically. issa wants to get answers from kerry specifically who is not leading the state department at the time, but has been involved with documents livered to congress. that will happen later this month. that will be quite a combative hearing. >> another issue, the contempt of congress citation for lois lerner, the former irs official. this comes to a vote next week. what does that look like? >> another partyline vote. republicans have been frustrated. there has not been a lot of new news in the investigation.

we approaching the anniversary. the reason is lois lerner is a key figure, and she is not talking. now the republicans are bringing this measure, went to the committee on a partyline vote because they want to get more answers, and they think there is a lot more to this story. they will have the vote, it will pass, and then it will be referred to the justice department for putting pressure on the justice department to seek criminal charges. that does not mean it will happen, but it will be more pressure on the doj to look at this. senate, there is word the senate may take up the keystone call for thend opening of the pipeline, at least overruling what the administration wants to do. how did this come about? >> fascinating politics. a lot of the red state democrats up for reelection in six months support the approval of keystone. , certainlyats democratic leaders, do not. this could give them political

cover. the question is whether it will be a binding or a nonbinding vote. that is saying ok we will move forward on keister. one thing to what is the house has already passed a key stability and in the senate, even if a binding bill, they will have the votes, but not have a veto proof majority. this could give senate democrats cover, but at the same time it will not overrule the president who has not decided and has repeatedly delayed the decision. it looks like it will happen now after the election. for the democratic standpoint, this could be a good thing because it gives them political cover. republicans, it advances the ball. is a potential compromise here. >> thanks for the update. the house returns tuesday at noon. nate on monday.

you will see many members of congress and others saturday night as we begin coverage of the white house correspondents dinner. president obama and others headline the event before an audience of celebrities, journalists, and the white house press corps. p.m.overage starts at 6:00 on saturday night. we will bring you coverage online, interest and video, and additional social media features. be following lots on saturday night. at the united nations today, russia called on the meeting of the security council during which russia's ambassador called on the west to stop messing with the destiny of ukrainian people. u.s. ambassador samantha powers said russia was trying to insult the intelligence of the world community by calling another urgent council meeting. today's meeting was an hour and 50 minutes.

the 7167th meeting of the security council is called to order. as this is the first meeting of the council for the month of may 2014, i should like to take this opportunity to pay tribute on behalf of the council to her representative of nigeria, for her service for the president of the council for the month of april 2014. i'm sure i speak for all members of the council in expressing deep appreciation to ambassador -- to the ambassador and her to mimetice deep skill in which they conducted the council's is this last month. the provisional agenda for this dated 13s a letter

april, 2014, from the representative of the russian federation to the united nations, addressed to the president of the security council. the agenda is adopted. in accordance with the role 37 of the council's provisional rules of procedure, i invite the representative of ukraine to participate in this meeting. it is so decided. accordance with the rule 39 of the council's provisional rules of procedure, i invite the undersecretary general for political affairs to participate in this meeting. it is so decided.

the security council will now two of the- of item agenda. i now give the floor to the gentleman. >> mr. president, members of the council, since we last met to discuss ukraine in april, although a number of areas in the country remained calm, we have seen a further severe deterioration of the situation in parts of eastern and southern ukraine. recent developments in those areas threaten the further destabilization of the country and the region as well as well as the unity of ukraine itself. cities, ann a dozen increasing number of holdings are being held by armed groups.

of most immediate concern is the situation in the eastern city of -- of 125,000 people has been occupied by armed insurgents since april 12. during the ongoing operations by the authorities, according to the ukraine ministry of defense, two helicopters were shot down overnight with at least one pilot killed. a number of other casualties have also been reported on the ground on both sides. cannot at this stage be completely verified. the acting minister of interior has stated a number of roadblocks have an removed from around the city, but from the media we understand that tent standoffs continue -- tense

standoffs continued in parts around the city. at the same time, the seven osce military monitors accompanying military staff the held remained in detention, with repeated calls for their release. to this end, we understand that russian president putin dispatched a special presidential envoy to assist in the freeing of the hostages. i reiterate the secretary-general's call to those responsible for their abduction to release them immediately, unconditionally, and unharmed. the crisis has also escalated in oner cities, for yesterday, one may, self-declared suffered --oeists seized a self-declared separatists seized

individuals. we have also read reports of clashes are in a pro-unity demonstration in a southern city in odessa. >> mr. president, established members of the council, i would like to share with you key elements of the secretary-general's statement that is being issued at the same time that we are meeting. the secretary-general reiterates his grave concern over the situation in the southern ukraine. reminder of how situation has become. expansion of militia activities and ongoing siege is a public buildings by unidentified armed groups undercuts the letter and spirit of the 17 april geneva statement.