German Chancellor Angela Merkel has praised President Barack Obama's speech in Cairo and says it could be a point of departure for Middle East peace efforts. Merkel stressed after meeting Obama on Friday that "we need a two-state solution" with Israel living side-by-side with a Palestinian state. The German leader said Thursday's address in Cairo in which Obama reached out to the Muslim world was "a significant speech." She said it "can be the point of departure for many political activities" regarding the Middle East peace process. Merkel said Germany was ready to help in that process.