Coin Press - Macron-Merz to hold talks on NATO and EU-US trade row

Macron and Merz, who took power in May, have been at pains to boost the bilateral partnership at the heart of the European Union as US President Donald Trump has rocked transatlantic ties.

"The most important message is: the Franco-German couple is back at work," the French presidency said ahead of Macron's planned dinner with Merz.

Paris and Berlin, along with London and Warsaw, have pushed efforts to support Ukraine against Russia and build up the defence capabilities of NATO's European member states.

But while Paris has signalled a willingness to send peacekeeping troops to monitor a possible Ukraine ceasefire, Berlin has so far voiced no plans to contribute.

Merz and Macron were also expected to discuss the trade dispute with the United States after Trump threatened 30-percent tariffs against the EU if no deal is reached by August 1.

- Combat jet discord -

"In the tariff dispute with the USA, we are now approaching the decisive phase," Merz said Tuesday, urging "a fair and reliable agreement with low tariff rates" that strengthens the transatlantic market.

The two leaders also have to discuss bilateral stumbling blocks, from a joint defence project to energy and trade policy.

There has been disagreement over a combat aircraft to be made jointly with Spain.

Merz has objected to the idea of a greater leadership role for France while expressing confidence an agreement can be reached.

The head of French defence company Dassault, Eric Trappier, on Tuesday suggested that the viability of the project was in doubt.

"We have to question the effectiveness of a project which is run by three countries ... where there isn't one real leader but three," he told a press conference.

Another tricky area is energy, where France relies heavily on nuclear power, which Germany has decided to phase out as it shifts to solar and wind power.

Paris wants Berlin to commit to "technology neutrality" and effectively classify nuclear energy as climate friendly.

Germany's previous government of the Social Democrats and Greens rejected this, but Merz's centre-right CDU/CSU may be more open to the idea.

In a joint newspaper article in May, both leaders pledged a "restart in energy policy" and "equal treatment at the EU level for all low-emission energies".

Another area of discord has been an EU trade deal long in the works with South America's Mercosur bloc.

While Germany strongly favours it, France has expressed fears it will badly impact its farming sector.

French sources said a way forward is emerging, and that an additional protocol could add a "robust safeguard clause for agriculture".

Merz will welcome Macron at 6:30 pm (1630 GMT) at Villa Borsig, the former residence of the commander of the post-war French occupation troops on the outskirts of Berlin.

The programme includes press statements, without journalists' questions, a jazz performance and a working dinner.

St.Ch.Baker--CPN