We return with warm memories of European friendship for America. The European people know the United States is working hard for freedom, democracy, and peace, and believe me they appreciate our efforts, as we do theirs.

I know you've heard that because there were a few demonstrations, some things might have been going wrong. But you know every time I noticed who was demonstrating, I felt reassured that we were saying and doing the right things.

I don't mind telling you there's a very special person who does a wonderful job on these trips, also. Whether meeting with leaders and parents concerned about drugs in Bonn, Lisbon, or with the Holy Father at the Vatican, or doing a pretty fair flamenco in Madrid, I think Nancy's one of the best ambassadors America's ever had. And I look at the press she got, I'm taking flamenco lessons myself. [Laughter]

Well, we feel good about what's been done, and after every summit leader agreed that steady economic growth means each government getting spending under control, how sweet it is to return with a 50 - 49 Senate victory for spending restraint and no tax increase.

And thank you, George Bush, for flying all the way back here from the West and casting the tie-breaking vote.

And our thanks to Bob Dole and Pete Dominici, the Republican leadership of the Senate, their colleagues, and Senator Pete Wilson for the grit that he showed in coming back when we needed him the most.

So, I thank them all for a budget resolution that moves Congress toward real spending restraint and significantly lower deficits. This was a courageous and a politically difficult action.

During these discussions with our economic allies, concern was voiced that projected budget deficits threaten world economic growth. Well, this Senate budget resolution represents a savings of almost $300 billion over the next 3 years, and it reflects the Senate's willingness to bite the bullet to help sustain our economic expansion.

It's easy for some to attack individual elements of the Senate package, but I'm convinced that this was the only serious deficit reduction package that could pass the Senate.

Our commitment to America's security is determined by the threat posed by our adversaries. If we conclude that our national security is jeopardized, I will not hesitate to request, and the Senate leaders have assured me that they will consider, supplemental funding for fiscal year '86.

I know Americans agree with us that we must restrain the growth of this Federal Establishment. The Senate has made an important commitment to cut excessive spending. Now it's up to the House to do as good a job reducing the deficit by cutting spending and not raising taxes. And we urge the House to pass a responsible budget resolution as soon as possible. We're committed to reducing excessive government spending and urge bipartisan support in both Houses of the Congress to help us in that effort.

And now, it's time to say goodbye again. This time I don't mind because we're just going upstairs, and we'll see you all very soon.

Thank you all again. God bless you all.

Thank you.

Note: The President spoke to administration officials and members of the White House staff at 2:05 p.m. at the South Portico of the White House.