The European Union and United States are expected to reach an agreement at a summit on Monday acknowledging climate change as a significant challenge that requires immediate and ongoing global action. German Chancellor Angela Merkel is urging the Bush administration to implement tangible measures to reduce greenhouse gas emissions, in order to combat climate change. Merkel is hopeful that the joint statement will set the stage for a larger agreement on addressing global warming at the upcoming G8 summit in Heiligendamm, which she will be hosting. Merkel expressed optimism about progress in the areas of climate and energy efficiency, and emphasized the importance of building on this foundation for a comprehensive agreement involving G8 countries, as well as potentially India and China. The discussion on energy security, efficiency, and climate change will be introduced alongside a broader "Transatlantic Economic Partnership" aimed at reducing expensive non-tariff trade barriers between the EU and United States. This partnership will involve aligning regulatory standards and collaborating on areas such as intellectual property, trade security, investment, and financial markets. A council, led by EU Industry Commissioner Guenter Verheugen and White House economic adviser Allan Hubbard, will be established to oversee progress in harmonizing regulations and provide annual reports to EU and US leaders. In addition to the planned agenda, Merkel and Bush will engage in discussions on various international issues ranging from Iran's nuclear program to Middle East peace. Recent remarks by Russian President Vladimir Putin criticizing US plans for a missile shield in central Europe and suspending Moscow's commitments under a key arms treaty have also brought Russian relations to the forefront. Washington believes the shield would defend against threats from countries like Iran and North Korea, while Moscow views it as a threat to its former sphere of influence. Merkel stressed the importance of discussing the issue with Russia through the NATO-Russia council. German officials see the joint declaration on climate change as progress, although it lacks specific commitments. The draft emphasizes the need to stabilize greenhouse gases and acknowledges the IPCC's report on the impact of rising temperatures. It calls for the development of advanced technologies to reduce global emissions and promises cooperation at the upcoming U.N. meeting on climate change in Bali. During her fourth trip to Washington, Merkel has forged a strong bond with Bush, repairing the strained relations that occurred when her predecessor Gerhard Schroeder clashed with the US president over the Iraq war. However, as the Heiligendamm summit approaches in less than six weeks, Merkel faces a challenging task in convincing Bush to commit to broader, enforceable international measures to combat climate change. German officials are also worried that the growing tensions between Washington and Moscow over the missile shield, as well as the impending conflict over Kosovo's independence, could overshadow the summit scheduled for June 6-8.