Nuclear, Russian gas, finance … these issues that pit France and Germany

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Emmanuel Macron and the new German chancellor, Olaf Scholz, displayed their unity, during their first official meeting, Friday, in Paris, promising to work together to strengthen Europe. Several sensitive issues nevertheless oppose the two leaders. France 24 takes stock.

First official visit to Paris for the new German Chancellor, Olaf Scholz. Angela Merkel’s successor met, Friday, December 10, at the Elysee Palace, with the French president during a working meeting, at the end of which Emmanuel Macron hailed “a solid convergence of views”. While France prepares, on January 1, to take the presidency of the European Union, the Head of State counts more than ever on the support of Germany.

If the two leaders share a number of common ambitions, on European sovereignty, the defense of the Union or even the protection of borders, their opinions differ on several sensitive issues relating to the climate crisis, geopolitics as well as the economy. Explanations.

Nuclear

Green energy or danger for the planet? Among the most pressing issues between France and Germany is the nuclear issue. The European Commission must decide, in the coming weeks, on its possible inclusion in the list of green energies. A position ardently defended by France, the leading European producer and consumer of electricity from power stations, which praises the merits of this carbon-free energy. Paris, which intends to build new reactors, hopes to see nuclear power appear among the priority areas of investment for the European Union.

But this position is at odds with that of Germany, which undertook, for ten years, after the Fukushima disaster, an exit from this energy considered too dangerous and whose waste management poses a problem. For Annalena Baerbock, new head of German diplomacy and co-president of the Greens, nuclear power is a non-negotiable subject. The minister herself worked within her party to obtain the closure of the last German power stations in 2022.

Russian gas

Another difference on the energy issue is the Nord Stream 2 gas pipeline. These 1,230 kilometers of pipes connecting Russia to Germany, via the Baltic Sea, should allow Moscow to double its gas exports to Europe. A project considered essential by Berlin to carry out its energy transition, but which arouses the mistrust of several of its partners, including France.

Paris fears that this new gas pipeline, which bypasses Ukraine, deprives Kiev of revenues linked to the delivery of Russian gas, and weakens its position vis-à-vis Moscow. While the tensions between the two neighboring countries are accentuated, the new German chancellor warned Russia of possible “consequences” for the gas pipeline in the event of invasion of Ukraine, without calling into question the project. This gas pipeline, whose construction was finalized last September, still needs to be certified by the German network agency before it is put into service.

>> To see: Investigation into Nord Stream 2, the gas pipeline of discord

Post-Covid finances

Hit hard by the Covid-19 pandemic, France and Germany have massively widened their deficit to keep their economy afloat, banking on a strong economic recovery. Symbol of this unity in the face of the crisis, the two countries supported the European recovery plan of 750 billion euros, adopted by the European Council on July 21, 2020. But what will happen once the crisis is over?

Angela Merkel was a fervent supporter of European budgetary orthodoxy and in particular of the deficit ceiling, set at 3% of gross domestic product (GDP). A rule today “outdated” according to Emmanuel Macron, who called for “rethinking the budgetary framework” of the EU.

If the Social Democratic Party of the new German Chancellor is closer to French positions on financial matters, Olaf Scholz defended budgetary austerity before the health crisis as Minister of Finance. And in his government, it was the Liberals, defenders of budgetary rigor, who obtained this portfolio.

Friday, in Paris, Olaf Scholz recognized the importance of maintaining the growth generated by the stimulus pact while insisting on the need to “work on the solidity of our finances”. “It’s not contradictory. For me, these are two sides of the same effort, “said the German Chancellor at the joint press conference with Emmanuel Macron.