Brussels, 19/02/2014 (Agence Europe) - At a Franco-German summit on Wednesday 19 February, German Chancellor Angela Merkel and French President François Hollande laid the foundations for closer cooperation in the political, economic and military fields.
The Franco-German partnership stands united over the best way to react to the explosive situation in Ukraine. They are calling for all possible steps to be taken to put an end to violence, adopt targeted sanctions against those who have supported violence and relaunch political dialogue with all countries concerned, including Russia (see other article).
In the field of foreign affairs, Germany has expressed its willingness for a greater commitment to military operations outside of the European Union, such as in Africa. For the first time, the Franco-German brigade will be deployed on the ground in Mali, in the framework of European military operations. “Germany will be a reliable partner for the duration”, promised the Chancellor, referring to training initiatives for African troops and humanitarian aid (see other article). The German authorities will also send medical teams to Central Africa, also in the framework of a European operation.
Germany and France also hope to increase their cooperation in the strategic activities sectors, such as energy and new technologies. As regards the “energy transition”, the situations differ between the countries, but there is agreement to carry out this transition with ambition and to translate this ambition into reality, said Hollande, praising Germany's experiences in the field of “renewable energy”. Merkel said that action must be taken to ensure that European industries are able to compete with their American rivals which enjoy cheap energy thanks to the exploitation of shale gas in the United States. She also expressed her hopes that Europe would be able to create conditions conducive to investment, so as not to lag behind in the future-oriented sectors such as “microchips and software development”, not forgetting the importance Germany attaches to working to improve the protection of personal data.
FTT. France and Germany have agreed to implement the financial transactions tax (FTT) ahead of the European elections of May, the French President and German Chancellor announced. “The finance ministers must decide whether this tax will be phased in”, said Hollande, adding that the two governments shared “the same approach to derivatives”. With this statement, he appeared to be sticking to the position expressed the day before on the sidelines of the Ecofin Council by the German finance minister, to the effect that the tax should be phased in, just for shares initially and then to be extended to other categories of financial products, such as derivatives. French Minister Delegate for Development Pascal Canfin issued a press release in which he stated that the Franco-German agreement covered “a base which includes all derivative products”, even though the precise details of this agreement have yet to be finalised.
“The principle is that (the text) will be applied”, Hollande confirmed, adding that an as yet imperfect tax was better than no tax at all. Merkel agreed, stating that it was necessary to “first of all get enhanced cooperation up and running (…), because once things start moving, some countries might shed their reluctance and that would allow us to go further”.
With the European elections ahead, the two political leaders reiterated the importance of explaining to citizens that turning in on themselves would inevitably lead to decline. “What is our people's place in globalisation? There is no future without openness, without understanding the world”, said Hollande. If we cut ourselves off from everybody else, if we give in to selfishness or fear, then there would be a risk of returning to clashes and divisions, he added. And for the benefit of those who believe that their country would be doing better without the euro, he compared the series of monetary “devaluations” states would have to carry out in order to remain competitive and the “solidarity” between the countries of the eurozone, which made it possible to face up to the sovereign debt crisis. Merkel said that a number of criticisms of Europe are “justified” when Europe puts spokes in wheels, particularly when it adds layers of red tape. She also stressed points which are never controversial within the EU: “The freedom to travel, the freedom of opinion and of the press”. “100 years is not a long time”, she said in reference to the period of conflict between Germany and France, which they put aside when initiating European integration. In June, Merkel will be taking part in commemorations of the Allied landings in Normandy in June 1944. (MB with FG/transl.fl)