to shield its industry and consumers from soaring energy prices, its government failed to notify neighbouring France beforehand, leaving French President Emmanuel Macron seething in private.German officials had visited the Elysée palace days earlier and said nothing about the package Paris believes hands an unfair advantage to German companies and threatens the European Union’s single market.
It is also impacting Europe’s plans to build its next generation of fighter jets, gas pipeline projects across the EU, and German plans to let China invest in its ports. But Europe can ill-afford a breakdown in relations that weakens EU unity as it firefights multiple crises: Russia’s war on its eastern fringe, spiralling inflation and its biggest economies teetering on the brink of recession.
Mr Scholz’s decision therefore to allow a Chinese company to buy a stake in its largest port and pursue what the French say is a short-sighted mercantilist policy towards China has baffled Paris.German officials say that they are aware they need to reduce their reliance on China, but they add that this should not mean banning all Chinese investment in Europe.
Ms Tara Varma of the ECFR think-tank in Paris said there was a perception in Paris and other European capitals of German foreign and security policy being driven by a “Germany First” ethos.