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| Small Agreements Between France and Germany Mask Larger Concerns | Small Agreements Between France and Germany Mask Larger Concerns |
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| PARIS — After months of strain, Chancellor Angela Merkel of Germany and President François Hollande of France put a brave face on their relationship this week, hoping to mark a new beginning with a joint visit to an exhibition at the Louvre about German thought and painting from 1800 to 1939. | PARIS — After months of strain, Chancellor Angela Merkel of Germany and President François Hollande of France put a brave face on their relationship this week, hoping to mark a new beginning with a joint visit to an exhibition at the Louvre about German thought and painting from 1800 to 1939. |
| The year 1939 was painful for Germany, with the consolidation of Nazism and the invasion of Poland, which set off World War II. The French exhibition tries to show the influence of German romanticism on the rise of Hitler, a contentious theory in Germany, where it is considered simplistic. | |
| But Ms. Merkel, who is running for re-election, did her duty and tried to repair a relationship with a troubled France and an ideological opponent, Mr. Hollande, a Socialist. After being attacked by the French Socialist Party for her “selfish intransigence” over European economic policy and enduring Mr. Hollande’s efforts to isolate her within Europe by making common cause with the euro zone’s troubled southern countries, Ms. Merkel managed to smile at times, even during a long news conference Thursday dominated by Mr. Hollande, who can be long-winded. | But Ms. Merkel, who is running for re-election, did her duty and tried to repair a relationship with a troubled France and an ideological opponent, Mr. Hollande, a Socialist. After being attacked by the French Socialist Party for her “selfish intransigence” over European economic policy and enduring Mr. Hollande’s efforts to isolate her within Europe by making common cause with the euro zone’s troubled southern countries, Ms. Merkel managed to smile at times, even during a long news conference Thursday dominated by Mr. Hollande, who can be long-winded. |
| The two leaders, for the first time since Mr. Hollande took office a year ago, agreed on a common approach to the next European Union summit meeting at the end of June, which will focus on reducing youth unemployment (26.5 percent in France versus 7.5 percent in Germany) and promoting economic growth. They agreed on more regular meetings of euro zone countries and a permanent president for the so-called Eurogroup of 17 finance ministers — further steps, if agreed upon by the other countries in the euro zone, toward a two-speed Europe, one of euro zone members with their own institutions, and the other of those outside the euro zone. | |
| The former French president, Nicolas Sarkozy, had always gone out of his way to find a compromise position with Ms. Merkel before European summit meetings, believing that the Franco-German “couple” is the motor that drives the union. Mr. Hollande had mocked the notion of “Merkozy,” arguing that Mr. Sarkozy gave away too much. | The former French president, Nicolas Sarkozy, had always gone out of his way to find a compromise position with Ms. Merkel before European summit meetings, believing that the Franco-German “couple” is the motor that drives the union. Mr. Hollande had mocked the notion of “Merkozy,” arguing that Mr. Sarkozy gave away too much. |
| But these days, Mr. Hollande is floundering, with France in a triple-dip recession, facing falling domestic demand, stagnant production, declining exports and record unemployment. | But these days, Mr. Hollande is floundering, with France in a triple-dip recession, facing falling domestic demand, stagnant production, declining exports and record unemployment. |
| And Germany is worried that Mr. Hollande may understand France’s problems but lacks the political courage — or the domestic support, even within his own party — to make significant changes to the French economy, state and labor market. A weak and uncompetitive France, Berlin thinks, is a weak partner and weakens Europe itself. | And Germany is worried that Mr. Hollande may understand France’s problems but lacks the political courage — or the domestic support, even within his own party — to make significant changes to the French economy, state and labor market. A weak and uncompetitive France, Berlin thinks, is a weak partner and weakens Europe itself. |
| The German government commissioned, and refused to comment on, a study about France’s economic problems, while leading members of Ms. Merkel’s party, the Christian Democratic Union, have been fiercely critical of Mr. Hollande. Andreas Schockenhoff, a deputy party chairman and its foreign policy spokesman, said Mr. Hollande’s “vehement criticism of the European Commission’s reform proposals” for France “contradicts the spirit and letter of European agreements and treaties.” He continued, “Someone who talks like that is shaking the foundations of the E.U.” | The German government commissioned, and refused to comment on, a study about France’s economic problems, while leading members of Ms. Merkel’s party, the Christian Democratic Union, have been fiercely critical of Mr. Hollande. Andreas Schockenhoff, a deputy party chairman and its foreign policy spokesman, said Mr. Hollande’s “vehement criticism of the European Commission’s reform proposals” for France “contradicts the spirit and letter of European agreements and treaties.” He continued, “Someone who talks like that is shaking the foundations of the E.U.” |
| Similarly, a report Mr. Hollande and Ms. Merkel were given on Thursday on competitiveness and growth, prepared by two senior businessmen, one French and the other German, insisted on the necessity of serious structural changes in France. The German, Gerhard Cromme, who works for Siemens, wrote separately, in the quarterly Commentaire, that “the gap that is growing between the competitiveness of the German economy and the French one threatens to unbalance their political partnership.” | Similarly, a report Mr. Hollande and Ms. Merkel were given on Thursday on competitiveness and growth, prepared by two senior businessmen, one French and the other German, insisted on the necessity of serious structural changes in France. The German, Gerhard Cromme, who works for Siemens, wrote separately, in the quarterly Commentaire, that “the gap that is growing between the competitiveness of the German economy and the French one threatens to unbalance their political partnership.” |
| “A weak France will find itself one day in the club of ‘assisted’ countries, which would deprive Germany of a strategic partner,” Mr. Cromme wrote. | “A weak France will find itself one day in the club of ‘assisted’ countries, which would deprive Germany of a strategic partner,” Mr. Cromme wrote. |
| Given all of the German concern, and the sense that Berlin must support Mr. Hollande’s efforts, Ms. Merkel’s agreement to back him on a closer integration of euro zone ministers and economies was an important gesture — especially since Mr. Hollande had earlier vetoed the candidacy of her finance minister, Wolfgang Schäuble, to lead the Eurogroup, raising hackles in Germany. | Given all of the German concern, and the sense that Berlin must support Mr. Hollande’s efforts, Ms. Merkel’s agreement to back him on a closer integration of euro zone ministers and economies was an important gesture — especially since Mr. Hollande had earlier vetoed the candidacy of her finance minister, Wolfgang Schäuble, to lead the Eurogroup, raising hackles in Germany. |
| But Germany, and Mr. Schäuble, have done a considerably amount to aid France, arguing at European Commission meetings in Brussels that France was too important to the euro zone and in too much economic trouble to be forced to reduce its budget deficit to 3 percent of gross domestic product this year. In the end, the European Commission this week gave France two more years to do so, in return for strict promises of significant, painful and “urgent” structural reforms — especially of the pension system and the labor market — and reductions in public spending. The commission president, José Manuel Barroso, even scolded Paris, warning that “to be against globalization is like spitting in the wind.” | But Germany, and Mr. Schäuble, have done a considerably amount to aid France, arguing at European Commission meetings in Brussels that France was too important to the euro zone and in too much economic trouble to be forced to reduce its budget deficit to 3 percent of gross domestic product this year. In the end, the European Commission this week gave France two more years to do so, in return for strict promises of significant, painful and “urgent” structural reforms — especially of the pension system and the labor market — and reductions in public spending. The commission president, José Manuel Barroso, even scolded Paris, warning that “to be against globalization is like spitting in the wind.” |
| Ms. Merkel was polite as Mr. Hollande reacted with political bravado. “It’s not for the commission to dictate what we have to do,” Mr. Hollande said. “What’s needed is obvious.” And he insisted that a sovereign France would decide what to do and how to do it. | Ms. Merkel was polite as Mr. Hollande reacted with political bravado. “It’s not for the commission to dictate what we have to do,” Mr. Hollande said. “What’s needed is obvious.” And he insisted that a sovereign France would decide what to do and how to do it. |
| That prompted Olli Rehn, the European Union commissioner for economic and monetary affairs, to retort on Friday, “I’m slightly amazed how France on one day underlines the need for euro zone economic governance, and on another it criticizes the commission for giving well-grounded recommendations.” | That prompted Olli Rehn, the European Union commissioner for economic and monetary affairs, to retort on Friday, “I’m slightly amazed how France on one day underlines the need for euro zone economic governance, and on another it criticizes the commission for giving well-grounded recommendations.” |
| And Norbert Barthle, the Christian Democratic Union’s budget spokesman, said the two-year grace period for France was longer than Germany had expected. “France won’t be able to bank on such indulgence again,” he said. | And Norbert Barthle, the Christian Democratic Union’s budget spokesman, said the two-year grace period for France was longer than Germany had expected. “France won’t be able to bank on such indulgence again,” he said. |
| Still, given the economic doldrums in France and in most of Europe, the commission has eased off on its demands for budget cuts this year, hoping that France will use the time well. So does Ms. Merkel. | Still, given the economic doldrums in France and in most of Europe, the commission has eased off on its demands for budget cuts this year, hoping that France will use the time well. So does Ms. Merkel. |
| In the newspaper Le Parisien on Friday, Éric Hacquemand, writing of Franco-German “detente,” said, “After months of tension and some bittersweet words exchanged on both sides of the Rhine, the Franco-German motor is running — even if it is not yet running at full speed.” | In the newspaper Le Parisien on Friday, Éric Hacquemand, writing of Franco-German “detente,” said, “After months of tension and some bittersweet words exchanged on both sides of the Rhine, the Franco-German motor is running — even if it is not yet running at full speed.” |