Merkel, Macron back euro zone budget in 'new chapter' for bloc

Members said Mr Seehofer would defy Merkel on Monday if no compromise has been reached by then and go ahead with the plans alone

We must always do more to fight criminiality.

Chancellor Angela Merkel's fourth-term government took almost six months to put together, taking office in March after the centre-left Social Democrats reluctantly agreed to team up with her conservatives again.

The CDU and CSU have recently reached a political deadlock over the question of whether or not to turn back asylum seekers at the German border who were already registered in another Schengen area country.

"We have an draft for a new euro zone and that is a really good thing, I would say", she said. But she was also adamant the only way to do so was through a joint European Union policy and individual deals with countries where migrants first go.

But Seehofer, long one of the fiercest critics of Merkel's liberal refugee policy, said Germany must change direction on immigration.

The ministerial retreat at Meseberg castle near Berlin aims to agree a joint Franco-German stance ahead of a key June 28-29 summit on the EU's post-Brexit future, at a time when populists and eurosceptics are rapidly gaining ground.

On common defence, Merkel has said she is "favourable" to Macron's demand for a rapid reaction force dubbed the European Intervention Initiative.

Merkel opposes any unilateral move by Interior Minister Horst Seehofer, who is also CSU chairman, that would reverse her 2015 welcoming policy on migrants and undermine her authority.

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.

2 feared dead, 41 hurt after natural disaster hits Japan
No irregularities were detected at the Mihama, Takahama and Ohi nuclear plants to the north of Osaka, Kansai Electric Power said. Prime Minister Shinzo Abe told reporters the government was "working united, with its first priority on saving people's lives".

What information, if any, Trump is basing his claim on is unclear.

With House leadership signalling possible votes on immigration this week, the president intends to meet Republicans on Capitol Hill Tuesday to discuss the issue, according to The Wall Street Journal.

Seehofer and his Christian Social Union (CSU) party has clashed with Merkel, who leads the Christian Democratic Union (CDU), on refugee policy.

"US President embarrasses himself with a tweet full of lies", read the headline of the Spiegel Online, a widely read German-language news website, which linked Trump's remarks to the controversy surrounding his own migration policy.

Noting in their declaration that "the EU faces existential challenges", the leaders agreed to set up a European border police and to create a European asylum office.

Merkel does not have many options for how to resolve the conflict.

Holger Schmieding, chief economist at Berenberg Bank said: "This is definitely the worst crisis she has faced in her 13 years as German chancellor".

The declaration highlighted the success of 2016 EU-Turkey deal in countering irregular refugee flows, and suggested developing cooperation and partnerships with origin and transit countries to avoid departures to Europe and fight illegal migration. Current rules stipulate that refugees need to register their asylum application in the first European Union country they arrive in. And she has stuck to her insistence that there needs to be a European-wide solution to migration issues, despite a lack of progress so far.

He also said the European Union should step up dialogue with migrants' countries of origin and of transit, and especially with conflict-torn Libya, to stop illegal traffickers.

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