ELMAU, Germany

Russia’s involvement in Ukraine, terrorism and climate change were the key topics for the G7 summit in Germany, U.S. President Barack Obama said on Sunday.

“Over the next two days, in Schloss Elmau, we’re going to discuss our shared future,” Obama told locals in Kruen, a small village in the Bavarian Alps, ahead of the G7 leaders’ summit.

“We are going to discuss the global economy, creating jobs and opportunities, maintaining a strong and prosperous European Union, forging trade partnerships across the Atlantic, standing up to Russian aggression in Ukraine, combating threats from violent extremism to climate change.

“On all these issues we are very grateful for the partnership and leadership of your Chancellor Angela Merkel.”

Obama met Merkel in Kruen ahead of talks that also include the leaders of Britain, Canada, France, Italy and Japan, as well as EU leaders.

The president and chancellor were greeted by locals dressed in traditional dirndls and lederhosen before tucking into beer and pretzels.

Obama hailed ties between the U.S and Germany and praised Merkel, referring to Germany as a source of hope amid global challenges.

Merkel underlined the importance of Germany’s ties with the U.S.

“Despite some of our different opinions, the U.S. is our friend, partner,” she said. “It is such an essential partner that we have [such] close cooperation. It is because we have mutual interests”.

Merkel’s coalition government is under growing pressure due to secret cooperation between Germany’s BND intelligence agency and the U.S.’s National Security Agency, with the opposition accusing the government of failing to control the BND.