German Chancellor Angela Merkel said on Friday that European policy should emphasize both security and trade to change the European business climate.

Just eight weeks ahead of the beginning of the German EU presidency, she said in a statement that the aim for more joint co-operation on policy is to give Europe a new foundation for the 21st century.

In reference to the failed WTO trade talks, she added the EU could play an important role to help determine and develop international regulations, adding that it is in Germany's interest to liberalize world trade.

Germany is set to become the world's biggest exporter for the fourth consecutive year, according to the statement, which also notes that the country's export sector provides eight million jobs, compared to 2.5 million more than 10 years ago.

In relation to climate change, she added that the upcoming EU presidency would promote ways to reach agreement on what should follow the Kyoto Protocol. The protocol is a U.N convention among various nations to reduce carbon dioxide emissions and other greenhouse gases.