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Berlin and Paris seal their rapprochement with an energy agreement

Olaf Scholz and Elisabeth Borne have sealed the warming of Franco-German relations, after weeks of dissonance.

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Olaf Scholz and Elisabeth Borne have sealed the warming of Franco-German relations, after weeks of dissonance, with an energy agreement supposed to “guarantee” their supply.

“The more difficult the times, the more important is the cooperation between Germany and France,” said the German Chancellor at a joint press conference with the French Prime Minister.

Ms. Borne, on her first visit to Berlin as head of government, advocated a “unity that must be maintained” in the face of the multiple crises facing the Franco-German couple.

These statements came at the end of an intense ministerial ballet on both sides of the Rhine in recent weeks, after tensions that led to the postponement of the Franco-German Council of Ministers in October.

Adversity

The warming was made concrete by the signature before the objectives by the two leaders of an energy “solidarity agreement” between Paris and Berlin.

In concrete terms, the agreement provides for France to help Germany through gas deliveries.

The latter in exchange will support its neighbor to “secure its electricity supply”, according to the joint statement.

The agreement on electricity “secures” France in December and January, said a French government source.

“Friends support each other in adversity,” summarized Mr. Scholz, while Ms. Borne hailed a text “important that will have concrete consequences and will protect the citizens of both countries.”

France has already been delivering gas to Germany since mid-October, which in turn could bring forward the increase in its electricity exchange capacity to November (instead of January), allowing France to receive more gas.

Due to the shutdown of many nuclear reactors, this is the first time in 42 years that France is a net importer of electricity.

For Germany, too, this is a historic turning point, as the country used to import its gas from Russia.

However, the two countries remain divided on the idea of capping gas prices. And Germany’s 200 billion euro aid plan for individuals and companies to cope with soaring prices has raised fears among its neighbors of a distortion of competition.

Paris and Berlin have also sought to display a common front against Moscow.

The two countries “will support Ukraine until the end” of the conflict, Borne also repeated, on behalf of the two countries regularly criticized for the supposed timidity of their support to Kiev.

The Prime Minister also met with Robert Habeck, the Green Vice-Chancellor in charge of the Economy and Climate, who had already been received in Paris on Tuesday in a rather unprecedented manner by the French President, who also met with the German Foreign Minister Annalena Baerbock.

“We did well to postpone the Franco-German Council of Ministers in order to have consistent elements in January,” summarized a French diplomatic source.

This Council of Ministers should finally be held around January 22, which will mark the 60th anniversary of the Elysée agreement between the two countries.

“The beginning of the school year was difficult for everyone. There has been a little tension that motivates everyone, and like that we move more,” added the same source.

“Together, we are stronger” to “face the climate transition and ensure that between China and the United States, there is a third power called Europe,” said Thursday the French Minister of Economy Bruno Le Maire, receiving the German Finance Minister Christian Lindner.

Exit from the dead end

Paris and Berlin have also shown a desire to “accelerate” European industrial projects in the face of the massive investment plan of the United States (Inflation Reduction Act, IRA), likely to distort competition and on which Ms. Borne and Mr. Scholz want a common European response.

However, these tensions have brought some projects out of the deadlock, such as the political agreement reached between manufacturers Dassault and Airbus on the European combat aircraft (SCAF) project, even though no contracts were scheduled to be signed. Mr. Scholz said he was “confident” that the project would become a reality.

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