Macron and Scholz downplay differences amid talk of Rome-Berlin alliance

German Chancellor Friedrich Merz and French President Emmanuel Macron downplayed their differences ahead of a meeting of European Union leaders aimed at boosting plans to revive the bloc's economy, UNN reports, citing Bloomberg.

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The leaders of Europe's two largest economies arrived side-by-side on Thursday for a one-day meeting of EU leaders held at the ancient Alden Biesen castle in eastern Belgium.

Both declared their unity on the need for swift economic measures, even if they do not always agree on the same course.

"We want to make the European Union faster, we want to make it better, and above all we want to ensure the competitiveness of industry in Europe," Merz told reporters before entering, standing next to Macron.

EU leaders are increasingly talking about the need to reform the continent's economy, as the US becomes more protectionist and China continues to build up its industrial potential.

Thursday's meeting is intended to lay the groundwork for a plan to better integrate EU markets, lower energy prices, support company growth, and accelerate investment.

"Today we will prepare decisions that will be finally approved in four weeks at the next regular summit," Merz added, referring to the next EU leaders' summit in March.

Macron spoke in a similar vein but named the June summit as the deadline.

"The priority is a very short-term response, which is to implement everything we have agreed on," the French president said, emphasizing the need to take "very concrete measures" by June in the areas of energy, finance, and bureaucracy reduction.

This harmonious stance came in response to discussions about the differences between the two leaders regarding the best way to solve Europe's economic problems.

Macron advocates for a broader application of a "Buy European" policy than Merz. The French leader is also a greater proponent than Merz of taking on common EU debt to accelerate economic recovery.

Ahead of Thursday's summit, the leaders held a face-to-face meeting, Macron's press service reported. Both agreed that the discussion at the meeting would primarily focus on simplifying EU policies and better integrating the bloc's markets.

"Today we will discuss competitiveness and the European internal market," Merz emphasized. "In four weeks, we will also discuss financing."

The Chancellor tried to give the meeting a relaxed tone, jokingly adding: "I am glad that on these issues, Emmanuel Macron and I almost always agree."

After brief statements, both leaders left without answering questions.

Meloni-Merz Axis

Earlier, AFP reported that Italian Prime Minister Giorgia Meloni and German Chancellor Friedrich Merz are increasingly joining forces to steer the EU agenda, "risking sidelining French President Emmanuel Macron."

The publication indicated that during Thursday's EU leaders' summit, Meloni and Merz "will promote a common vision for increasing EU competitiveness." This was called "the latest sign of growing cooperation between Rome and Berlin, which calls into question the traditional France-Germany axis."

"Some observers say that 2026 will be the year of Italy and Germany," Meloni said last month at a summit with Merz in Rome. "We intend to do everything possible... to strengthen a friendship that is strategic not only for our countries but also for all of Europe."

"I hear that the Franco-German axis is not working; Meloni and Merz are doing their own thing together," one European diplomat told AFP on condition of anonymity.

Like France, Italy and Germany are founding members of the EU and allies in the NATO military alliance. But Rome and Berlin have often disagreed, not least on financial matters – frugal Germany versus debt-laden Italy. However, as Meloni has sought to cut deficits and Merz has broken with tradition to increase borrowing and investment, this old dynamic has changed. In foreign policy, they have also sought to maintain the support of US President Donald Trump, AFP writes.

"I would describe it as a parallel convergence," said Matteo Villa of the Italian think tank ISPI.

"The die is cast, and a time is coming when these two will be more compatible than the classic France-Germany pair," he told AFP.

French President Emmanuel Macron, whose country has been plunged into political crisis since the snap elections in 2024, dismissed any suggestions of his marginalization.

In an interview with several European newspapers on Tuesday, he stated that it was "normal" for Rome and Berlin to present their proposals to EU leaders ahead of the summit.

"The Franco-German partnership is essential for moving Europe forward. But it is never enough on its own," he said.

He noted that he and Meloni would hold their own Italy-France summit within a few weeks – likely in April in Toulouse, diplomatic sources reported.

However, relations between Macron and Merz are cooling, AFP notes.

Diplomats say France's attempts to block the Mercosur deal have caused resentment in Brussels and among other member states, including Germany.

Meanwhile, Germany is reportedly preparing to abandon the troubled Future Combat Air System (FCAS), a fighter jet project implemented jointly with France and Spain and suspended for several months due to tensions between corporate partners. According to media reports, Berlin is instead looking at the Italian Global Combat Air Programme (GCAP), implemented together with the UK and Japan.

Meanwhile, as Politico notes, upon arriving at Thursday's summit, Meloni stated that the Rome-Berlin alliance was not directed against France.

"There is certainly a German-Italian engine, there is certainly a convergence of positions with Chancellor Merz on many issues," Meloni said.

"I am grateful to Friedrich because we are doing a good job together," Meloni noted.

She quickly emphasized that their goal was not to isolate Emmanuel Macron. "We are strengthening our bilateral cooperation, but it is not something we are doing against someone else, excluding someone else," Meloni said, stressing that Macron was present at the pre-summit meeting initiated by Meloni, Merz, and Belgian Prime Minister Bart De Wever.

Summit Issues

Amidst Thursday's summit, where EU competitiveness was to be discussed, there is ongoing debate surrounding the "Made in EU" initiative.

The EU Commissioner for Industry, Stefan Sejourne, tried to dispel misconceptions about it. As noted, the European Commission is expected to present the Industrial Accelerator Act (IAA) later this month, which will clearly define how it intends to protect certain strategic sectors by introducing European preferences.

The European Commission's plan will focus on a limited number of critical components and strategic sectors. It will also apply only to public funding. According to Sejourne's team, among other misconceptions is the idea that the "Made in EU" initiative will lead to higher prices and become a bureaucratic nightmare.

At the same time, Politico writes, the European Commission wants to extend the "Made in EU" concept to "trusted partners."

"The European Commission wants to include foreign countries in its definition of 'Made in EU,' according to the draft of the landmark Industrial Accelerator Act (IAA)," the publication writes.

The EU executive also wants to screen foreign investments in certain technologies and use public procurement to boost demand for environmentally friendly products in the EU. The IAA is due to be published on February 25.

A leaked document, which appeared just as leaders are discussing how to revive Europe's competitiveness, creates a broad definition that would include free trade partners such as the UK or Japan, the publication writes.

How broadly or narrowly to define the concept of European preferences in public procurement in key sectors, as noted, is a stumbling block among EU member states, with France supporting a more protectionist stance, and Germany, Italy, and Nordic countries calling for greater openness.

As Politico writes, Macron is promoting the "Made in Europe" concept, which Merz and Meloni do not share.

"When Emmanuel Macron appears at the meeting of European leaders this Thursday, he will promote a very French vision of Europe's economic future. But he should not expect help from Germany and Italy, two countries that are increasingly converging in their views on the bloc's future. Both are skeptical of the French president's ambitious plans and are mobilizing support for a different agenda with a strong emphasis on free trade and commerce," the publication states.

Macron's ambition, the publication writes, is to turn the EU leaders' meeting "into a real moment," said a person close to the French president.

His plan – presented to European Commission President Ursula von der Leyen and European Council President António Costa during talks at the Élysée Palace last week – envisages a Europe with higher public investment, reduced dependence on trading partners, diversification, stronger support for domestic industry, and less bureaucracy.

Merz and Meloni, the publication writes, are unlikely to support this initiative. In recent weeks, they have reportedly made it clear that they advocate an approach that would promote European industry but with a less protectionist character to avoid alienating potential trade and investment partners.

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