German Chancellor Friedrich Merz and French President Emmanuel Macron met in Berlin to address growing tensions between their countries, which are central to the European Union's stability. Despite warmer personal relations, the leaders struggled to bridge deep divides over defense cooperation, particularly a joint fighter jet project, and how to respond to looming US-EU trade conflicts and tariffs. Both leaders pledged to resolve the fighter jet dispute by the end of August and to present a united front on trade policy, but significant disagreements remain. Their meeting underscores the challenges facing the so-called 'Franco-German engine' that has historically driven EU policy. The outcome of their talks will have major implications for Europe's defense strategy and its economic relationship with the US.
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