Weak Macron and Scholz Seek Common Ground to Manage Trump

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(Bloomberg) — German Chancellor Olaf Scholz will meet French President Emmanuel Macron in Paris on Wednesday as the embattled leaders try to chart a new course for Europe with U.S. President Donald Trump threatening to overhaul transatlantic relations.

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Despite their many policy differences and weak positions, Scholz and Macron will test the strength of the project and will call for an immediate response if the US follows through on threats to impose tariffs on European imports, according to people familiar with the plans. They will also pledge to speak with one voice when dealing with the new administration in Washington.

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Last year’s disastrous election left Macron marginalized in the French parliament and German voters are poised to vote Scholz out of office next month. That gives the leaders of the European Union’s two biggest economies limited leverage over an aggressive US.

Trump has threatened to charge the EU with a range of problems, from trade surpluses to not spending enough on defence. Bloomberg reported earlier that the EU has prepared a list of US companies that will face retaliation if Trump continues his threats.

“We will defend free trade as the basis of our prosperity and that of our partners,” Scholz said at the World Economic Forum in Davos on Tuesday. “Europe is committed to free, fair trade and we are not alone in this.”

The meeting of these leaders will not be the first time that the two try to unite when facing aggressive foreign countries, even in the midst of disagreement.

Scholz and Macron have failed over the past three years to build a strong working relationship due to their different views and styles. That tough shift coincided with pressing EU issues, such as Russia’s invasion of Ukraine, the faltering economy and high energy prices.

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The stakes, however, are much higher now amid a global reshaping of the power dynamic.

For Scholz, European countries can only protect their prosperity if they protect some openness of their economies amid China’s growing global trade ambitions and Trump’s hostile stance. The German leader wants the EU to close free trade agreements with countries in South America and beyond.

Macron has a different take on trade. The French president was furious when, despite his strong opposition, the European Commission in December pushed ahead and finalized negotiations for a free trade agreement with the South American Mercosur bloc, a deal backed by Germany.

Similar differences emerged when France last year convinced the commission to raise prices for Chinese electric cars, a move opposed by Germany as it fears Chinese retaliation against German automakers.

France and Germany will also have trouble finding common ground in terms of safety and security. Although Scholz is in favor of loosening Germany’s strict borrowing limits to finance more domestic defense with debt, he opposes Macron’s proposal to take another round of European joint borrowing to fund defense programs.

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In February, Macron caught Scholz off guard when he ruled out sending Western troops to Ukraine during a press conference in Paris after a meeting of EU leaders that included the chancellor. The German leader quickly rejected the proposal.

In Wednesday’s meeting, Scholz and Macron will also talk about the subject of the regulation of the European tech giants of America.

Scholz and Macron will discuss how both governments can support the EU in its efforts to protect citizens from the growing threat of disinformation and hate speech on social media such as Elon Musk’s X and Mark Zuckerberg’s Facebook and Instagram, the people said.

Since the EU’s Digital Services Act provides a toolbox of defensive measures, Scholz and Macron are likely to agree that Europeans should oppose any US efforts to weaken or eliminate those European rules.

“As the European Union, we can build on our strengths,” Scholz said on Monday. “As a European community of more than 400 million people, we have economic weight.”

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