By Andreas Rinke and Florence Loeve
BRUEHL, Germany, July 17 (Reuters) – The leaders of Germany and France pledged on Friday to deepen defence cooperation and counter intense economic competition from China, which they said was exerting drastic pressure on Europe through overcapacity and an undervalued currency.
German Chancellor Friedrich Merz and French President Emmanuel Macron met as part of a regular series of joint cabinet meetings, looking to get past tensions over the collapse of a joint fighter jet project earlier this year.
“We are doing what is necessary to safeguard our freedom, our security and our collective defence,” Merz told a joint press conference at which the two outlined a list of objectives including missile defence and long-range strike systems.
Both leaders took aim at China, which they said was not respecting the rules of international trade by offering at least eight times the level of state support to its industry seen in other countries in the Organisation for Economic Co-operation and Development.
“I am not prepared to accept that things can remain as they are at present, because this is unfairly at the expense of jobs in Europe,” said Merz, adding that he did not want a trade war but wanted dialogue over the currency and industrial overcapacity.
COOPERATION ON NUCLEAR DETERRENCE
The two leaders had already outlined proposals for France to cooperate on nuclear deterrence with Germany, following increasingly clear signs from Washington that the United States was looking to reduce its defence commitments in Europe.
“We’re taking a step-by-step approach here, and it may well end up resulting in a new doctrine, but it’s far too early to say that today,” Merz said, adding that any cooperation would complement existing arrangements within the NATO alliance.
For the first time, German troops will take part in a French nuclear exercise, and the two leaders inspected an air base where a nuclear-capable French Rafale fighter refuelled alongside a German Eurofighter aircraft.
Macron said France would maintain full responsibility for paying for its nuclear deterrent.
“The funding for the French nuclear programme will always be provided by France,” he said when asked whether France was considering having Germany help fund the programme.
Asked whether he would be comfortable cooperating with Marine Le Pen, leader of the far-right National Rally’s (RN) parliamentary group, Merz said Germany’s hand would remain extended to France, regardless of whom voters chose.
The so-called Future Combat Air System (FCAS) is set to continue despite the decision to abandon plans for a common fighter aircraft, with further development on the cloud-based information systems at the heart of the project.
“The remaining projects, including those relating to the cloud and other areas, are continuing to progress between our manufacturers,” Macron said.
He said governance and supervision measures would be tightened for future defence cooperation, after the FCAS project fell apart amid disagreements between the two main industrial partners, France’s Dassault and Airbus.
($1 = 0.8744 euros)
(Florence Loeve reported from Paris, Additional reporting by Miranda Murray, Writing by James Mackenzie, Editing by Timothy Heritage and Hugh Lawson)
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