Germany has said that EU plans to limit cars' carbon dioxide emissions would put Germany's luxury carmakers at a disadvantage to their French and Italian competitors which tend to build smaller, less polluting cars.

French President Nicolas Sarkozy (L) is welcomed by German Chancellor and head of Germany's Christian Democratic Union party (CDU) Angela Merkel as he arrives for a council of ministers meeting in the Bavarian town of Straubing June 9, 2008. (Xinhua/Reuters Photo) 

Meanwhile, a recent Sarkozy's proposal to cap soaring oil prices by lowering EU fuel taxes has won only a lukewarm response from Germany.

Merkel has said that she supports Sarkozy's initiative to coordinate the approach of the industrialized nations in this respect but stressed that this has to be done "in a goal-oriented and sustainable way."

Sarkozy is also expected to brief Merkel on his plans for the Mediterranean Union which is expected to become a centerpiece of France's EU presidency.

Germany, which sees the proposal as a competition to EU eastward expansion and an attempt to sideline Berlin, has repeatedly warned of unilateral French moves on the issue.

After strong resistance from Berlin, including the cancellation of the Franco-German summit which was initially planned to take place on March 3, Sarkozy finally promised to open the Mediterranean Union to all European nations.

(Xinhua News Agency June 10, 2008)