Merkel, Macron agree on major European Union reforms

Merkel's refugee policy has led to more than 1.6 million migrants arriving in Germany in the last three years

"We in Germany have to admit that we need to get better", said Merkel, adding that the biggest worry was the country's transport sector, which has seen emissions rise slightly compared to 1990.

She would have to fire him, he would pull his party out of government, and Ms. Merkel would no longer have a majority in parliament.

Germany received more than a million refugees in the last thee years, mostly from Syria and Iraq.

Otherwise, Berlin would introduce right after the summit a unilateral ban on refugees already registered in other EU states, said the junior governing Christian Social Union, which holds the interior ministry.

"This is not about buying time", Seehofer said of the agreement reached with the chancellor.

Trump pointed to Europe, which he said had become a "migrant camp", and said that would not happen to the U.S. under his leadership.

This comment was made after it emerged that Germany's interior minister Horst Seehofer, leader of the CSU Party which has formed a coalition with Merkel's own CDU, is calling for tougher immigration laws in defiance of the Chancellor's existing stance on the matter.

Merkel later on Monday met Italian Prime Minister Giuseppe Conte for talks in Berlin and said Berlin wanted to support Rome in its efforts to reduce the number of migrants arriving on its shores, possibly handling asylum requests for the European Union in non-European countries including Libya.

On the same day his name and report came up at the White House, Seehofer was quoted about Chancellor Merkel in the leading German business magazine, Handelsblatt, where he said "he can't work with that woman anymore".

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Merkel and Macron jointly stressed the need for an EU-wide solution to the migration crisis that is now casting a shadow over cooperation between European neighbors, according to German news agency dpa.

Merkel is now locked in a stand-off with her party's Bavarian allies - the Christian Social Union, led by Interior Minister Horst Seehofer - over the government's migration policy.

French Finance Minister Bruno Le Maire said failure to reach an agreement on reforming the euro zone during talks between the two leader in Meseberg castle outside Berlin could spell trouble for the single currency bloc and the wider European Union.

Conte, who was visiting Germany for the first time since assuming office on June 1, said Italy wanted changes to European Union immigration rules to ensure other European Union countries share the burden of handling refugees.

The CSU exists only in Bavaria, while Merkel's less conservative CDU is in Germany's other 15 states.

Trump announced a year ago that the US will pull out of the accord negotiated by his predecessor unless he can "get a better deal".

The Bavarian governor said that he would welcome a "truly effective European regulation" but warned against delaying the matter with a superficial and non-binding resolution at the June EU summit.

Analysts at Deutsche Bank suggest that the German political drama was the main story in Europe yesterday where Chancellor Merkel was forced into considering concessions to stave off a potential political crisis. That route has since been closed under a 2016 deal Turkey-EU deal. We see states that are turning inward, trying to find national solutions to problems that require European solutions.

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