By Sarah Marsh and Matthias Williams BERLIN (Reuters) -German Chancellor Friedrich Merz on Thursday said Europe was prepared to fight if necessary for its core values of freedom and democracy, in an explicit riposte to the Trump administration's repeated criticisms of the European Union.

Germany and Ukraine strike a deal to jointly develop weapons with "no range restrictions," as the Kremlin says Trump's jabs at Putin are due to him "not being informed."

Ukrainian President Volodymyr Zelensky will leave Berlin with a new €5 billion ($5.7bn) arms package as he seeks to build his country’s arsenal, and its ability to produce weapons at home.

German Chancellor Friedrich Merz pledged Wednesday to help Ukraine develop its own long-range missile systems that would be free of any Western-imposed limitations on their use and targets as the Kyiv government fights to repel Russia's invasion.

German Chancellor Friedrich Merz announced a cooperation with Ukraine to produce long-range weapons after a meeting in Berlin with Ukrainian President Volodymyr Zelenskiy.

The leaders of Germany's ruling coalition parties said they had agreed to pass an immediate action program including tax relief measures and a reduction in electricity tax over the coming months in a bid to jump-start the sluggish economy.

The former leader in Germany of the Islamic State terrorist group, Abu Walaa, will have a first hearing next month in his legal battle to avoid deportation. According to dpa sources, the hearing is scheduled for June 11.