WASHINGTON – German Chancellor Angela Merkel and President Barack Obama set aside past differences on key issues such as the economy during Merkel’s state visit this week to present a united front on Afghanistan and Libya.

The cooperation of both countries in Afghanistan shows commitment to an integrated approach in the region that builds the country’s civil as well as military capacity, Merkel said at a White House news conference Tuesday.

The two leaders also agreed that Libyan leader Col. Muammar Gadhafi must step down.

“Gadhafi must […] hand power to the Libyan people, and the pressure will only continue to increase until he does,” the president said.

Merkel said once Gadhafi steps down, Germany will provide support to Libya.

Merkel also echoed Obama’s opposition to unilateral actions by Palestinians or Israelis will hurt the Middle East peace process.

“Just as we agree that both sides will need to make difficult choices,” Obama said, “we agree that unilateral actions such as Palestinians seeking a vote on statehood at the U.N. General Assembly should be avoided.”

Merkel noted: “Unilateral measures are not helping at all to bring about this cause, and we agree that we wish to cooperate very closely on this, because as we both say, time is of the essence,” Merkel said.

The German chancellor also addressed the global economy, saying Germany needs to stay competitive in order to be a strong economic partner with the United States.

Obama recognized Germany as a strong political and economic ally of the United States.

“We see our partnership in the skill of our diplomats who prevent the spread of deadly weapons and stand up for democracy in Europe and beyond,” he said. “We see our partnership in the drive of our workers and businesses who sustain the largest trade relationships in the world.”

The chancellor received the Medal of Freedom at a state dinner Tuesday evening.