Prime Minister Keir Starmer said Merz had agreed to change German law this year so that small boats used to transport migrants across the English Channel can be seized in Germany.
"It's a clear sign that we mean business in every way," the British premier told reporters. Berlin, though, has yet to confirm when the legislation will be introduced.
Merz's trip came a week after undocumented migrants topped the political agenda during a state visit to Britain by French President Emmanuel Macron. Merz said he would host Macron in Germany next week.
Starmer and his German counterpart signed the first ever "friendship treaty" between their countries at London's Victoria and Albert Museum, named after Queen Victoria and her German-born husband, before holding talks at the PM's Downing Street office.
Merz said London and Berlin had agreed an exchange programme, in which German and British school children would not need visas to take part.
Speaking in German, he said he believed allowing the "young generation" to get to know each other and their respective countries was a "good basis for the further development of our relations".
- Arms co-operation -
Downing Street said the two leaders would also agree to jointly boost exports of military goods such as Boxer armoured vehicles and Typhoon jets, which could lead to "billions of pounds of additional" orders.
They would also commit to developing a precision strike missile with a range of more than 2,000 kilometres (1,250 miles) in the next decade.
Undocumented migration has become a major headache for Starmer's year-old Labour government, as support for the upstart anti-immigrant Reform UK party soars.
More than 22,500 would-be asylum seekers have arrived on England's southeastern coast by small boat from northern France this year alone.
The prime minister's office said changing the law in Germany would allow police to "take action against warehouses and storage facilities used by migrant smugglers" to conceal small boats intended for Channel crossings.
Starmer and Merz also discussed continued support for Ukraine, with both countries expected to play a role in US President Donald Trump's plan to send weapons to Kyiv with financing from other NATO countries.
- Brexit trauma -
The visit was Merz's first to the UK as chancellor, although he has already met Starmer several times. They made the same trip by train to Ukraine just days after Merz took office in early May.
The wide-ranging agreement also known as the "Kensington Treaty" refers to the turbulent security situation faced by both countries, and includes a mutual defence pact.
"There is no strategic threat to one which would not be a strategic threat to the other," the pact says, with a pledge the two countries "shall assist one another, including by military means, in case of an armed attack".
While Britain and Germany already have a commitment to mutual defence as NATO members, the treaty aims to pave the way for greater defence cooperation, including operations on NATO's eastern flank.
The agreement also seeks to improve Britain's post-Brexit ties with its neighbours.
Macron's trip to Britain in early July was the first state visit to the country by a European Union head of state since the UK's acrimonious departure from the EU in 2020 following the 2016 referendum.
Merz said that while he personally "deplore(d)" Britain's decision to leave the bloc, the UK, France and Germany were "converging" in policy matters including migration and security.
Britain and Germany also agreed that some UK passport holders would be able to use faster German eGates and they committed to improving train connections.
Last month Eurostar said it planned to launch a new route from London to Frankfurt in the early 2030s -- the first such direct connection between the UK and Germany.
Chilean officials acknowledge organized crime infiltration in military
Washington DC (UPI) Jul 16, 2025 -
The discovery of drugs on Chilean military bases and vehicles in early July has raised alarms about possible infiltration of drug trafficking networks into the country's armed forces.
Authorities found a shipment of narcotics hidden at a military base in Colchane, near the Bolivian border, followed days later by a suitcase containing ketamine aboard an Air Force plane. The incidents have prompted closed-door Senate sessions and demands for answers from military leaders.
The discoveries followed the June 29 arrest of seven people -- six Army noncommissioned officers and one civilian -- who were charged and placed in pretrial detention. Prosecutors accuse the group of trafficking at least 423 pounds of cocaine and cocaine paste.
Security Minister Luis Cordero said there are "serious cases" showing organized crime has infiltrated the armed forces and could threaten public security, though he denied it is a structural or widespread issue.
"This wasn't an issue a few years ago, so legislation and measures need to be updated. Organized crime must be confronted early," Defense Minister Adriana Delpiano said.
Both ministers participated in a special session of the Senate Constitution Committee to examine ties between organized crime and the armed forces, and to discuss legislative and administrative steps to prevent future infiltration.
Lawmakers addressed jurisdictional disputes between military and civilian courts, proposed reforms to the Code of Military Justice and efforts to bolster institutional intelligence and counterintelligence.
Counterintelligence is a key tool in the fight against organized crime, as it helps identify security gaps in the country, security expert Pilar Lizana told Chilean broadcaster Radio Bio Bio.
Since 2023, Chilean armed forces personnel have been authorized to assist with border control and monitor illegal crossings in the country's north.
"The porous borders, the ease of drug transit and the search for alternative routes have made the country a key link in trafficking networks, exposing its institutions to corruption," said Humberto García, president of the Chilean Institute of Public Policy.
The incidents have also reignited debate over lifting bank secrecy protections for public officials and military personnel -- a proposal backed by pro-government sectors as a tool against corruption.
However, opposition leaders have raised concerns, arguing the change could infringe on individual rights.
Authorities and analysts agree that drug cartels and transnational criminal groups, such as Tren de Aragua, pose a growing threat to national security.
"The current situation demands a coordinated and forceful response from all branches of government. The credibility of the armed forces -- vital to national security and public trust -- is at stake," Garcia said.
"Transparency in investigations, tough sanctions and strong oversight mechanisms will be essential to confronting this growing threat."
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