Recently, the European Union has encountered unparalleled trials, including Brexit, Covid-19 crisis, and Ukrainian war, causing significant political complexities and triggering a living cost crisis. However, adjustments made post the financial crisis have bolstered its resilience. After the Brexit vote, the member nations showed extraordinary unity in the separation agreement with the EU. The influence of the French and German connection has been instrumental in these changes. During the Covid pandemic, the trajectory of EU integration seemed to alter significantly, with France and Germany playing crucial roles in suggesting collective EU bonds to facilitate the most affected members towards economic resurgence.
However, the relationship between France and Germany appears to be straining and losing focus. Emmanuel Macron, the President of France, recently met with Olaf Scholz, the German chancellor, in Berlin to deliberate over the escalating threats to the EU. Rather than reinforcing a sense of unity and purpose between the two largest member nations, it emphasized disagreements. A pertinent example is the recent report by Mario Draghi, the former European Central Bank president, addressing EU competitiveness.
Macron expressed support for additional shared EU debt to finance the €800 billion annually, which the Draghi report deemed necessary to uphold competitiveness. On the contrary, Scholz rejected any further debt mutualisation within the EU. Conversely, Macron voiced his support for China’s EV tariffs – a position subsequently supported by majority of EU leaders – among other protectionist regulations to aid the EU economy, while Scholz advocated for a free trade approach,
While the stalemate between Paris and Berlin doesn’t pose a threat of disintegration to the EU, stagnation is a concerning possibility. Recent Spanish proposals permitting a few nations to advance towards a capital markets union, a topic of ceaseless disagreement, only signal the growing impatience in certain capitals. To chart a clear path forward on critical issues, the relations between Paris and Berlin need to regain unity and direction.