Farm row to mar Franco-German talks

Looking in different directions: Leaders cannot agree

French and German leaders are preparing for summit talks amid tensions in their key relationship.

The meeting, in the eastern German city of Schwerin, is being overshadowed by differences in opinion on agricultural reform and the future of European institutions.

September's German elections are also expected to have an impact on the talks, as German Chancellor Gerhard Schroeder - struggling in the opinion polls - will want to avoid contentious decisions.

Friendship doesn't always mean we have to be of the same opinion

Gerhard Schroeder

Mr Schroeder welcomed French President Jacques Chirac to Schwerin for the talks.

New French Prime Minister Jean-Pierre Raffarin and the French and German foreign and defence ministers will also be there.

The Schwerin summit is the first between the two countries since Mr Chirac's roller-coaster ride back to power in elections earlier this year.

The presidential and parliamentary polls ended with a strong swing to the right, a pattern which Mr Schroeder fears could be about to repeat itself in Germany.

France is the biggest winner in current farm policy

His right-wing challenger, the Bavarian conservative Edmund Stoiber, is ahead in the polls as Mr Schroeder struggles to defend his economic record.

Relations between the two countries, traditionally at the heart of the European Union, have become more strained in recent years.

French Foreign Minister Dominique de Villepin has suggested in a newspaper interview that France and Germany should try to "refound" their relationship at the summit.

The right-wing French newspaper Figaro compared the two countries to two trains set on a collision course at full speed.

There's no point in denying it, the German and French starting positions are far apart

German official

Their positions on farm policy and European reform are "diametrically opposed", it says.

Farm policy is potentially the most explosive issue.

European Agriculture Commissioner Franz Fischler is attempting a radical overhaul of the Common Agricultural Policy, earning the ire of French farmers.

The timetable for reforms is key, as up to 10 new members, many with poor agricultural sectors, are set to start joining the EU in 2004.

Germany, a net contributor to the CAP, insists that early reforms must be made to avoid crippling costs after expansion.

'Far apart'

But France, the CAP's biggest winner, says no changes should come before 2006.

"There is no point in denying it, the German and French starting positions are far apart," said a senior German official ahead of talks.

"It will be the task of both sides to look for a compromise that is acceptable to the other partners in the European Union as well."

Mr Schroeder has tried to minimise the importance of the clash of opinions.

"Friendship doesn't always mean we have to be of the same opinion," he said.

The talks in Schwerin, rather than trying to reach agreement, are expected to settle only for a timetable on an accord.

The date for agreement seems likely to be set for after the German elections. Mr Stoiber, if elected, is much closer than Mr Schroeder to the French position.

Other issues for discussion are expected to include European defence policy, the Middle East crisis, and US plans to attack Iraq.

The defence issue is expected to yield a declaration reasserting the two countries' commitment to work together.

The summit between the two nations is held twice a year.