Macron and Scholz recalibrate the battered Franco-German axis

The ramifications of Russia's invasion of Ukraine have hit the foundations of the Franco-German axis, the driving force of the European Union. Bilateral relations between the continent's two main economic powers are at their lowest ebb in decades because of the energy crisis looming over Europe. In recent weeks, Paris and Berlin have been at loggerheads when it comes to tackling the many common issues that threaten the cohesion of the EU bloc. 

French President Emmanuel Macron received German Chancellor Olaf Scholz at the Elysée Palace on Wednesday to iron out their differences. They were due to head a joint Council of Ministers meeting today in Fontainebleau, a few kilometres from Paris, but the tension of the last few hours led the parties to postpone the meeting until January. Instead, the leaders held a "working lunch" practically alone, accompanied only by a small group of assistants. 

There was no press conference afterwards. Of the meeting, which lasted just over three hours - one hour longer than planned - only Scholz is known to have arrived. Macron, who had decided to cancel the usual joint appearance at the end of the conversation, was smiling and approachable, but nothing comparable to other receptions. The French president's gestures were cold and distant. Despite this, the Elysée described as "constructive" a meeting that resulted in the creation of joint working groups.

The tête-à-tête, "friendly" and "constructive" in tone, according to German diplomatic sources, was intended to recalibrate the battered Franco-German axis. Too many issues remained on the table, too many open fronts that have eroded trust between two of the EU's founding partners. From solutions to mitigate the energy crisis, to adopting a common position on China, to divergent approaches to the war in Ukraine. 

Putin's aggression has awakened Germany's geopolitical conscience. The tripartite government led by Olaf Scholz has realised, after months of lethargy, that it is caught in a hostile environment from which it needs to defend itself. Berlin is trying to forcefully change the model that has allowed it to become the eurozone's economic giant, based on the acquisition of cheap Russian gas and reduced defence spending. It is time to find new ways to continue feeding its industry. 

These conditions have pushed Germany to strengthen its defence ties with the US. Berlin has chosen to buy US F-35 fighter jets rather than French military technology from Dassault, and has also pushed for the European missile defence shield project with 14 other countries, not including France. The Elysée argues that it does not want to fuel an arms race, the reality is that the defence system would be US- or Israeli-owned, not French.

Scholz has also opted to boost bilateral relations with its Eastern European neighbours, a decision taken at the expense of the weakening of the Franco-German axis. The chancellor's plans include expanding the European Union "to 30 or 36 members", a far more ambitious plan than the Political Community launched by Macron. 

Russia's energy disconnection has also taken its toll on the Franco-German axis. The last European Council meeting aimed at mitigating rising energy prices amplified their divergences. Macron defended the gas cap, while Scholz was reluctant in a negotiation that ended with a minimum agreement. Technical standoff. The French president warned Berlin that it risked 'isolating itself from Europe', but the German chancellor responded that he did not feel that way at all. 

The MidCat also tensed the atmosphere. Scholz closed ranks with Spain's prime minister, Pedro Sánchez, to put pressure on Macron, but the Elysee tenant went off on a tangent last week with the approval of an alternative plan: the BarMar, a pipeline that would connect Barcelona with Marseille to transport green gas and hydrogen from the Iberian peninsula to the rest of the continent. Macron won for himself the backing of Sánchez and António Costa, the Portuguese prime minister.

But at the heart of the tensions was the German chancellor's decision to launch a public spending plan worth 200 billion euros in aid to companies and individuals to mitigate the effects of the energy crisis. On the day of the announcement, Scholz was scheduled to meet with French Prime Minister Élisabeth Borne, but cancelled the conversation both in person and by videoconference, citing health problems due to COVID-19. The Elysée claims that it was not informed of a measure that, in its view, distorts the European single market. 

The straw that broke the camel's back was Scholz's approval of the entry of Chinese capital into the port of Hamburg, the city where he served as mayor between 2011 and 2018. The Chinese state-owned shipping company Cosco submitted a bid to buy a 35% minority stake in the strategic infrastructure. The reluctance of the Green and Liberal ministers with whom he shares a government, as well as warnings from other institutions, did not deter the chancellor, who has finally accepted the sale of a reduced percentage of 25%.  

Macron avoided criticising the decision, which was not the only one related to China that has irritated the Elysée in recent days. The French president does not look favourably on Scholz's imminent trip to Beijing, where he will meet with Xi Jinping. It will foreseeably be the first visit by an international leader to the Asian giant after the certification of his third term at the head of the Communist Party and, in all likelihood, of the country. Macron would have preferred to make the trip together, reports Politico, a request that will not be met.