KEHL AM RHEIN, Germany, Nov. 24 (UPI) -- German Chancellor Angela Merkel met Thursday with British Prime Minister Tony Blair in London for talks that have European Union officials hoping the new leader might bring about a compromise in the row over the European Union's budget.
Both leaders at first looked tense after their hourlong meeting, with Merkel appearing a bit nervous in the Downing Street press room.
"I wanted to show with this visit that the new German government wants good relations with France (pause) but not only with France, also with Great Britain," she said, trying to cover up what sounded like a first blunder.
After Merkel's trips to Paris and Brussels Wednesday, she arrived in London with the claim to be an honest-broker in the row over the budget that has Britain pitted against France and Germany. An agreement over the body's 2007-13 finances has been held up by disputes over a rebate enjoyed by Britain and agriculture subsidies that mainly benefit France. Both countries have so far refused to give up their benefits.
Asked which position she would support in the budget spat, Merkel said she would support any position that led to a resolution of the crisis, "and that goes before anything else." She added that her government, while taking into account national interests, "will do anything that Europe becomes capable of acting again."
Germany's new foreign minister, Frank-Walter Steinmeier, told German television Wednesday his government wanted to move the deadlocked positions forward, indicating that Berlin might steer a more independent course in the future.
Former German Chancellor Schroeder backed the French position, and French leader Jacques Chirac on Tuesday did his best to keep the advantage in his home court: The French head of state greeted Merkel with his smiles and a gallant kiss on the hand, calling the "Franco-German axis" one that is "vital for a well-functioning Europe."
But Merkel did not want to go as far as calling it an axis, rather a "strong friendship," thus pulling out from the exclusivity of the relationship that Schroeder and Chirac dominated with bi-monthly meetings.
While Merkel renewed the traditionally strong ties with Paris by making it her first foreign trip, she has sent signals in the past that her political agenda is closer to Blair's. Merkel's visit to London just two days after she was named Germany's first woman chancellor indicated she is at least willing to strengthen German-British ties.
Those had suffered over Schroeder's opposition of the Iraq war and the backing of Paris' agriculture subsidies that also benefit several farmers in southern Germany.
EU Commission President José Manuel Barroso on Wednesday spelled out the wish for Germany to become more active in the issue. A day later, Merkel refused to call on Britain to give up the cherished rebate secured by former British Premier Margaret Thatcher.
"I am happy that Britain wants to do something in the budget question ... and I am confident that we might find an agreement to that," she said. "My talks of yesterday and today have shown me that no country should ask too much of the other."
Merkel nevertheless struck a deal with Chirac to evaluate the next proposal, which the British EU presidency is expected to deliver at next month's summit.
Peter Becker, EU expert at the German Institute for International and Security Affairs, said Blair and Merkel will have scanned each other for their respective positions.
"The question is: Can Merkel loosen herself from the alliance with France? I think she is less deadlocked than Schroeder was in that respect," Becker on Thursday told United Press International in a telephone interview. "A first sign of that is that she has indicated to listen to the smaller E.U. countries, such as Poland."
Becker said he did not believe Merkel could get Blair to alter his position at the first try, but maybe some months down the road.
"It would be a very big task if she accepted the role as the mediator," Beck said. "But if she did and would succeed, it could become her first big triumph in European politics."
