-
Berlin-Paris and EU facing hard tests

The French-German axis is facing a new crack due to the increasing differences between the two parties over energy prices as well as defense, and this of course greatly affects the cohesion of the European Union from within at a difficult time, which is the Russian invasion of Ukraine. This raises many questions about the ability of France and Germany to overcome differences, as well as the ability of the Union to maintain its unity.
Chancellor Olaf Scholz thrashed it out for three hours in Paris on 26th-October in hopes of bridging gaps between the two neighbors and key European Union allies on issues including energy, defense and the economy. Macron hops to bridging gaps between the two neighbors and key EU allies on energy, defense and the economy.[1]
Most recently, the French government was irritated by the news that Scholz plans to visit Beijing next week to meet Xi Jinping in what would be the first visit by a foreign leader since the Chinese president got a norm-breaking third term. Germany and China also plan their own show when it comes to planned government consultations in January.
Macron has refrained from directly criticizing a controversial Hamburg port deal with Chinese company Cosco, which Scholz is pushing ahead of his Beijing trip. But the French president last week questioned the wisdom of letting China invest in “essential.
Currently though, both Germany and France seem to prefer forging their own independent paths. Berlin recently voted through a €200 billion ($197 billion) emergency package to aid against rising gas and electricity prices at home, without informing France. That would have been common courtesy especially as such an amount is likely to distort the market.
What's more, at a recent NATO meeting, Germany signed a deal with 14 other NATO countries and Finland on a new air defense system called the European Sky Shield Initiative, or ESSI. The initiative aims to create a joint air defense program on the continent. But France was not included.This is even though France is already developing the so-called Mamba air missile defense shield together with Italy.[2]
Analyst Robinet-Borgomano suggested that Paris was in fact annoyed that the shield would use US- and Israeli-made equipment rather than a French-Italian alternative. France "ought to have pushed for interoperability between systems to ensure European sovereignty, we can see that it's about competing for leadership in European defense", he said. A still thornier issue is a plan to develop a German-French-Spanish next-generation fighter jet known as the Future Combat Air System (FCAS).[3]
While cooperation between France and Germany cannot shape EU policy by itself, the absence of a good working relationship between the two has a particularly negative impact on the EU’s ability to move forward. The EU27 survey reveals the importance of both actors; how they are viewed by each other and by their EU partners; and the potential they have to shape EU policy.
Moreover, many EU member states view German dominance as part of the problem. This was especially apparent during the eurozone and refugee crises,
German respondents chose France as their country’s most-contacted partner. When asked about their preferred partners in individual policy areas, Germans almost always named their colleagues in Paris first.[4]
Thus, it is not due to a lack of attention that Berlin’s closest partner feels so disappointed. The roots of the problem probably lie in Germany’s perceived lack of ambitious EU initiatives or clear vision for the union’s future. Macron – who, after his election victory, placed all his bets on the German government to jointly reform the EU – appeared to feel that Germany had left him, waiting for Berlin to respond to the flurry of ideas he presented.
It is expected that the situation will deteriorate further against the background of massive additional spending by the European Union member states on the economic and social aid they provide to Ukraine, and this is what prompts the emergence of opposition from within the EU countries, especially in Germany, France, Italy, the Netherlands, Hungary and other countries, which increases discontent with governments, due to inflation and price hikes.
References
[1]ABC News
[2]POLITICO
[3]Berlin-Paris ties under strain as EU faces harsh tests
[4]THE BIG ENGINE THAT MIGHT: HOW FRANCE AND GERMANY CAN BUILD A GEOPOLITICAL
By Jassim Mohamad –Bonn
levantnews
You May Also Like
Popular Posts
Caricature
BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
opinion
Report
ads
Newsletter
Subscribe to our mailing list to get the new updates!