Wheels are still loose on Franco-German motor at heart of EU

EUROPEAN DIARY: PRESS TRIPS abroad are undoubtedly one of the perks of a European correspondent's job and when the German government…

EUROPEAN DIARY:PRESS TRIPS abroad are undoubtedly one of the perks of a European correspondent's job and when the German government extended an invitation for a springtime trip to Berlin last week I didn't hesitate to pack my suitcase.

One of the founding fathers of the union, Germany wields significant political clout in Brussels and together with France and Britain plays a key role shaping nearly all core European policies. So a date with German chancellor Angela Merkel and six of her key ministers represents an excellent opportunity to get a feel for the political temperature in Berlin on a range of EU initiatives such as climate change, security and defence, and the prospect for future reform of agricultural subsidies.

Gathering in the foyer of the Grand Westin hotel in Berlin at the start of the trip with 30 other Brussels-based journalists, we all speculated about the timing of the invitation. The German parliament ratified the Lisbon Treaty last week but most of the group agreed Berlin was eager to remind us that energetic French president Nicolas Sarkozy isn't the only EU statesman with ideas about how the EU should be run.

The wheels of the Franco-German motor at the heart of Europe temporary fell off earlier this year when a summit meeting was cancelled at short notice. Disagreements over a French proposal to set up a new Mediterranean union and a reportedly poor personal relationship between Merkel and Sarkozy have led to tensions between the two states as Paris prepares to take over the EU presidency in July.

READ MORE

Our meeting with Merkel and her foreign minister, Frank-Walter Steinmeier, was conducted "off the record", reflecting Germany's rather repressive journalistic culture (German politicians often demand to see interviews before they are published in newspapers - a practice not condoned in Irish or British newspapers).

An important issue addressed during the trip was the German position on the European Commission's climate change package. During last year's German EU presidency, Merkel won plaudits for her role in persuading states to sign up to tough binding targets to reduce CO2 emissions by 20 per cent by 2020 when compared to 2005 and to meet corresponding targets on energy efficiency, renewable energy and biofuels.

But since then, Germany has been accused of backtracking on climate change, in particular through its opposition to an EU proposal to curb car emissions and its rigorous defence of energy-intensive industries.

The main problem for Berlin is that the EU proposal targets big gas-guzzling cars (such as Audis, Mercedes and BMWs that are manufactured in Germany), which emit more CO2 than smaller cars such as Renaults, which are made in France. The powerful car lobby is exerting huge pressure on the German government, which in turn is seeking amendments to the commission proposal that would force smaller car manufacturers to achieve similar cuts in CO2 emissions as big car manufacturers.

The French oppose this idea and are defending their own car industry, generating yet another source of political tension for the Franco-German relationship.

"There's a possibility to come to an agreement with France on a fair system because we are very close. I expect before the next [EU] environment council in June," said a senior government source. The car issue is one of four difficult policy areas where Germany and France have recently set up joint diplomatic working groups in advance of the French EU presidency to try to avoid potentially damaging disagreements.

French and German diplomats are also trying to find common ground on climate change, security and agriculture - all areas of contention between the two states.

One big concern for Germany is a French plan to review the EU security strategy in an effort to bolster the union's defence capabilities. Berlin, which has serious reservations about taking part in security initiatives stemming from the second World War, opposes the review, which could seek to establish an EU chief of staff or a new permanent EU military headquarters.

Yet all the signs are that Sarkozy, who has linked the EU security review to French plans to rejoin Nato's integrated military command, is not for turning and wants stronger EU defence capabilities.

Agriculture is another area that could cause friction between Paris and Berlin. Horst Seehofer, the Bavarian powerbroker who heads the agriculture ministry, did his best to charm the visiting French and Irish journalists with a stirring defence of the common agriculture policy (Cap). Yet just a few hours earlier the state secretary for finance, Thomas Mirow, provided a more accurate assessment of Germany's policy goal: the need for big reductions in EU farm payments. This sentiment won't win him friends in Paris, which has been talking up the concept of food security and the need to protect agriculture in recent weeks. But with an EU budget review to begin next year, Berlin will be pushing to reform the Cap - after all, it is still the EU's biggest paymaster. The upcoming Sarkozy-inspired EU presidency promises to provide an interesting and bumpy ride for French and German diplomats.