With the October 4th decision by the European Union to increase EU tariffs on Chinese electric vehicles (EV), a divisive saga has ended abruptly. For the past few months, European Union members have been divided on the question of whether to increase duties on Chinese EVs to a rate of 45 per cent over the next five years. Whilst some countries like France have supported the project, others like Germany and Spain have allied to voice their opposition. Interestingly, this timely alliance reflects the rapprochement of both countries over the past three years.
Their Resemblances
Common to both countries are two factors which have likely played a role in increasing their level of cooperation over the past few years. The first and perhaps most important of those in relation to the recent tariff increase is the fact that both Germany and Spain are large car producers. In fact, in 2023, both countries were respectively the first and second largest car producers in Europe. As such, both countries have aimed to gain prominence in the Chinese market, which they fear EU tariffs could harm.
The second is that both countries are among the last European Union member countries with centre-left parties in power. Whilst Germany has long allied with the historically left-leaning French governments, recent disagreements on gas supply and hikes on EU Chinese EV tariffs have hampered such cooperation. With only four of twenty-seven EU member states having left-wing parties in power, Germany and Spain being two, the German economic powerhouse has turned to its most logical ally in Spain. Not only have they both worked to push for a resurgence of the left in Europe, but they have also allied against France to push for increased reliance on gas, as will later be explained.
Whilst both factors have encouraged the alliance of Germany and Spain, the conflict in Ukraine has been the key reason for reproachments between the two parties.
Energy Dependence – Spain’s Answer to Germany’s Gas Crisis
With the conflict in Ukraine and the ensuing restriction of Russian gas inflow to Germany in 2022, the country found itself in a complicated situation. One of Chancellor Scholz’s first answers to the crisis was to push for an Iberian pipeline, offering Germany a quicker and more reliable source of energy. Also known as the “MidCat” pipeline project, the infrastructure was initially shrugged off by the German Chancellor, finding Russian gas to be cheaper and more accessible. With little to no alternative following the sanctions on Russia, the German Chancellor restated interest in the project in the summer of 2022.
Pedro Sanchez, Spain’s Prime Minister, quickly supported the project, arguing that the pipeline would be Europe’s best alternative to Russian natural gas. The Spanish rhetoric focused on limiting Russia’s ability to blackmail European economies. With a shared understanding of the gravity of the situation presented, both leaders agreed on the importance of promoting Europe’s energy interconnectedness, lessening Russia’s hold on European decisional power. This meant moving forward with the project. The problem at the time, which remains, was France’s disagreement with the project.
Being that the pipeline is projected to pass through France to get to Germany, France’s support for the project is essential. That said, in line with the European Union’s policy on renewable energy, France has been quick to reject Germany and Spain’s advances. Indeed, French President Emmanuel Macron has argued that a European pipeline would only delay the EU’s green energy transition. With France historically favouring nuclear sources of energy, it would have little to gain from the pipeline and has thus largely disregarded pressure from Germany and Spain. Coming back to Germany and Spain’s allied efforts against France, though Germany’s Scholz has argued the pipeline could serve greener purposes, such as the transportation of hydrogen, arguments have had little bearing on France’s opinion of the project.
Contemporary Germany-Spain Alliance
The shared opinion held by both Germany and Spain on EU tariff hikes regarding Chinese EVs thus reflects the recent growing alliance between both parties. Moreover, much like with the “MidCat” pipeline project, Germany and Spain’s opposition to increased tariffs also clashed with France’s favourable opinion. That said, considering both German and Spanish leaders are trailing behind in their respective national poles and past statements by French political figures in favour of reconsidering the nation’s stance on the “MidCat” pipeline project, both countries are likely to find common grounds leading to them getting closer as time passes.
Edited by Flore Lemaire
The opinions expressed in this article are solely those of the author and they do not reflect the position of the McGill Journal of Political Science or the Political Science Students’ Association.
Featured image by Euractiv