AT&T Fourth-Quarter Earnings Hurt by Pensions and Storm





Over the holiday season, AT&T sold a record number of smartphones. But its quarterly earnings took a hit from pension costs and Hurricane Sandy.


On Thursday, AT&T reported a loss in the fourth quarter of $3.9 billion, or 68 cents a share, up from a loss of $6.7 billion, or $1.12 a share, from the same quarter a year earlier.


The company said revenue was essentially flat at $32.6 billion.


Its adjusted per-share earnings were 44 cents a share, excluding pension costs, the impact of Hurricane Sandy and the sale of its advertising units. Wall Street analysts had expected 45 cents a share on earnings of $32.2 billion, according to Thomson Reuters.


“We had an excellent 2012,” said Randall Stephenson, AT&T’s chief executive, in a statement. “Looking ahead, our key growth platforms — mobile data, U-verse and strategic business services — all have good momentum with a lot of headroom,” Mr. Stephenson added.


The company, based in Dallas, said that it sold 10.2 million smartphones over the quarter, the most ever sold by any American carrier. A majority of those smartphones were iPhones: AT&T sold 8.6 million iPhones, in contrast with Verizon’s 6.2 million iPhones. AT&T, the second biggest carrier after Verizon Wireless, is in the process of a major network expansion. It said late last year that it would invest an extra $14 billion to expand its wireless and broadband services through 2015. It expects that its fourth-generation network technology, called LTE, will cover 300 million people by the end of next year.


Beyond making upgrades to its wireless network, AT&T has plans to offer new services that might create new revenue streams. In March, it will begin selling its new wireless home security system, Digital Life, which will allow people to use tablets or phones to monitor their homes from afar. If a burglar trips a motion sensor in the house, for example, a user can receive a text message, then call the police. Ralph de la Vega, chief executive of AT&T Mobility, has said that he believes home security will be a big opportunity to increase revenue, because only 20 percent of American homes have security systems, leaving millions of homeowners as potential buyers.


This article has been revised to reflect the following correction:

Correction: January 24, 2013

An earlier version of this article published online misstated the expectation of Wall Street analysts for AT&T’s quarterly per-share earnings. It was 45 cents, not 48 cents.



Read More..

The New Old Age Blog: Grief Over New Depression Diagnosis

When the American Psychiatric Association unveils a proposed new version of its Diagnostic and Statistical Manual of Mental Disorders, the bible of psychiatric diagnoses, it expects controversy. Illnesses get added or deleted, acquire new definitions or lists of symptoms. Everyone from advocacy groups to insurance companies to litigators — all have an interest in what’s defined as mental illness — pays close attention. Invariably, complaints ensue.

“We asked for commentary,” said David Kupfer, the University of Pittsburgh psychiatrist who has spent six years as chairman of the task force that is updating the handbook. He sounded unruffled. “We asked for it and we got it. This was not going to be done in a dark room somewhere.”

But the D.S.M. 5, to be published in May, has generated an unusual amount of heat. Two changes, in particular, could have considerable impact on older people and their families.

First, the new volume revises some of the criteria for major depressive disorder. The D.S.M. IV (among other changes, the new manual swaps Roman numerals for Arabic ones) set out a list of symptoms that over a two-week period would trigger a diagnosis of major depression: either feelings of sadness or emptiness, or a loss of interest or pleasure in most daily activities, plus sleep disturbances, weight loss, fatigue, distraction or other problems, to the extent that they impair someone’s functioning.

Traditionally, depression has been underdiagnosed in older adults. When people’s health suffers and they lose friends and loved ones, the sentiment went, why wouldn’t they be depressed? A few decades back, Dr. Kupfer said, “what was striking to me was the lack of anyone getting a depression diagnosis, because that was ‘normal aging.’” We don’t find depression in old age normal any longer.

But critics of the D.S.M. 5 now argue that depression may become overdiagnosed, because this version removes the so-called “bereavement exclusion.” That was a paragraph that cautioned against diagnosing depression in someone for at least two months after loss of a loved one, unless that patient had severe symptoms like suicidal thoughts.

Without that exception, you could be diagnosed with this disorder if you are feeling empty, listless or distracted, a month after your parent or spouse dies.

“D.S.M. 5 is medicalizing the expected and probably necessary process of mourning that people go through,” said Allen Frances, a professor emeritus at Duke who chaired the D.S.M. IV task force and has denounced several of the changes in the new edition. “Most people get better with time and natural healing and resilience.”

If they are diagnosed with major depression before that can happen, he fears, they will be given antidepressants they may not need. “It gives the drug companies the right to peddle pills for grief,” he said.

An advisory committee to the Association for Death Education and Counseling also argued that bereaved people “will receive antidepressant medication because it is cheaper and ‘easier’ to medicate than to be involved therapeutically,” and noted that antidepressants, like all medications, have side effects.

“I can’t help but see this as a broad overreach by the APA,” Eric Widera, a geriatrician at the University of California, San Francisco, wrote on the GeriPal blog. “Grief is not a disorder and should be considered normal even if it is accompanied by some of the same symptoms seen in depression.”

But Dr. Kupfer said the panel worried that with the exclusion, too many cases of depression could be overlooked and go untreated. “If these things go on and get worse over time and begin to impair someone’s day to day function, we don’t want to use the excuse, ‘It’s bereavement — they’ll get over it,’” he said.

The new entry for major depressive disorder will include a note — the wording isn’t final — pointing out that while grief may be “understandable or appropriate” after a loss, professionals should also consider the possibility of a major depressive episode. Making that distinction, Dr. Kupfer said, will require “good solid clinical judgment.”

Initial field trials testing the reliability of D.S.M. 5 diagnoses, recently published in The American Journal of Psychiatry, don’t bolster confidence, however. An editorial remarked that “the end results are mixed, with both positive and disappointing findings.” Major depressive disorder, for instance, showed “questionable reliability.”

In an upcoming post, I’ll talk more about how patients might respond to the D.S.M. 5, and to a new diagnosis that might also affect a lot of older people — mild neurocognitive disorder.

Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”


This post has been revised to reflect the following correction:

Correction: January 24, 2013

An earlier version of this post misspelled the surname of a professor emeritus at Duke who chaired the D.S.M. IV task force. He is Allen Frances, not Francis.

Read More..

The New Old Age Blog: Grief Over New Depression Diagnosis

When the American Psychiatric Association unveils a proposed new version of its Diagnostic and Statistical Manual of Mental Disorders, the bible of psychiatric diagnoses, it expects controversy. Illnesses get added or deleted, acquire new definitions or lists of symptoms. Everyone from advocacy groups to insurance companies to litigators — all have an interest in what’s defined as mental illness — pays close attention. Invariably, complaints ensue.

“We asked for commentary,” said David Kupfer, the University of Pittsburgh psychiatrist who has spent six years as chairman of the task force that is updating the handbook. He sounded unruffled. “We asked for it and we got it. This was not going to be done in a dark room somewhere.”

But the D.S.M. 5, to be published in May, has generated an unusual amount of heat. Two changes, in particular, could have considerable impact on older people and their families.

First, the new volume revises some of the criteria for major depressive disorder. The D.S.M. IV (among other changes, the new manual swaps Roman numerals for Arabic ones) set out a list of symptoms that over a two-week period would trigger a diagnosis of major depression: either feelings of sadness or emptiness, or a loss of interest or pleasure in most daily activities, plus sleep disturbances, weight loss, fatigue, distraction or other problems, to the extent that they impair someone’s functioning.

Traditionally, depression has been underdiagnosed in older adults. When people’s health suffers and they lose friends and loved ones, the sentiment went, why wouldn’t they be depressed? A few decades back, Dr. Kupfer said, “what was striking to me was the lack of anyone getting a depression diagnosis, because that was ‘normal aging.’” We don’t find depression in old age normal any longer.

But critics of the D.S.M. 5 now argue that depression may become overdiagnosed, because this version removes the so-called “bereavement exclusion.” That was a paragraph that cautioned against diagnosing depression in someone for at least two months after loss of a loved one, unless that patient had severe symptoms like suicidal thoughts.

Without that exception, you could be diagnosed with this disorder if you are feeling empty, listless or distracted, a month after your parent or spouse dies.

“D.S.M. 5 is medicalizing the expected and probably necessary process of mourning that people go through,” said Allen Frances, a professor emeritus at Duke who chaired the D.S.M. IV task force and has denounced several of the changes in the new edition. “Most people get better with time and natural healing and resilience.”

If they are diagnosed with major depression before that can happen, he fears, they will be given antidepressants they may not need. “It gives the drug companies the right to peddle pills for grief,” he said.

An advisory committee to the Association for Death Education and Counseling also argued that bereaved people “will receive antidepressant medication because it is cheaper and ‘easier’ to medicate than to be involved therapeutically,” and noted that antidepressants, like all medications, have side effects.

“I can’t help but see this as a broad overreach by the APA,” Eric Widera, a geriatrician at the University of California, San Francisco, wrote on the GeriPal blog. “Grief is not a disorder and should be considered normal even if it is accompanied by some of the same symptoms seen in depression.”

But Dr. Kupfer said the panel worried that with the exclusion, too many cases of depression could be overlooked and go untreated. “If these things go on and get worse over time and begin to impair someone’s day to day function, we don’t want to use the excuse, ‘It’s bereavement — they’ll get over it,’” he said.

The new entry for major depressive disorder will include a note — the wording isn’t final — pointing out that while grief may be “understandable or appropriate” after a loss, professionals should also consider the possibility of a major depressive episode. Making that distinction, Dr. Kupfer said, will require “good solid clinical judgment.”

Initial field trials testing the reliability of D.S.M. 5 diagnoses, recently published in The American Journal of Psychiatry, don’t bolster confidence, however. An editorial remarked that “the end results are mixed, with both positive and disappointing findings.” Major depressive disorder, for instance, showed “questionable reliability.”

In an upcoming post, I’ll talk more about how patients might respond to the D.S.M. 5, and to a new diagnosis that might also affect a lot of older people — mild neurocognitive disorder.

Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”


This post has been revised to reflect the following correction:

Correction: January 24, 2013

An earlier version of this post misspelled the surname of a professor emeritus at Duke who chaired the D.S.M. IV task force. He is Allen Frances, not Francis.

Read More..

AT&T Fourth-Quarter Earnings Hurt by Pensions and Storm





Over the holiday season, AT&T sold a record number of smartphones. But its quarterly earnings took a hit from pension costs and Hurricane Sandy.


On Thursday, AT&T reported a loss in the fourth quarter of $3.9 billion, or 68 cents a share, up from a loss of $6.7 billion, or $1.12 a share, from the same quarter a year earlier.


The company said revenue was essentially flat at $32.6 billion.


Its adjusted per-share earnings were 44 cents a share, excluding pension costs, the impact of Hurricane Sandy and the sale of its advertising units. Wall Street analysts had expected 45 cents a share on earnings of $32.2 billion, according to Thomson Reuters.


“We had an excellent 2012,” said Randall Stephenson, AT&T’s chief executive, in a statement. “Looking ahead, our key growth platforms — mobile data, U-verse and strategic business services — all have good momentum with a lot of headroom,” Mr. Stephenson added.


The company, based in Dallas, said that it sold 10.2 million smartphones over the quarter, the most ever sold by any American carrier. A majority of those smartphones were iPhones: AT&T sold 8.6 million iPhones, in contrast with Verizon’s 6.2 million iPhones. AT&T, the second biggest carrier after Verizon Wireless, is in the process of a major network expansion. It said late last year that it would invest an extra $14 billion to expand its wireless and broadband services through 2015. It expects that its fourth-generation network technology, called LTE, will cover 300 million people by the end of next year.


Beyond making upgrades to its wireless network, AT&T has plans to offer new services that might create new revenue streams. In March, it will begin selling its new wireless home security system, Digital Life, which will allow people to use tablets or phones to monitor their homes from afar. If a burglar trips a motion sensor in the house, for example, a user can receive a text message, then call the police. Ralph de la Vega, chief executive of AT&T Mobility, has said that he believes home security will be a big opportunity to increase revenue, because only 20 percent of American homes have security systems, leaving millions of homeowners as potential buyers.


This article has been revised to reflect the following correction:

Correction: January 24, 2013

An earlier version of this article published online misstated the expectation of Wall Street analysts for AT&T’s quarterly per-share earnings. It was 45 cents, not 48 cents.



Read More..

The Lede Blog: Clinton Testifies on Benghazi Attacks

The Lede followed Secretary of State Hillary Rodham Clinton’s testimony Wednesday before the House Foreign Affairs Committee and Senate Foreign Relations Committee about the Sept. 11, 2012, attacks on the American Consulate in the eastern city of Benghazi, Libya, that killed Ambassador Chris Stevens and three other Americans.

At a House Committee hearing last October investigating the attack, as reported on The Lede, State Department officials and security experts who served on the ground offered conflicting assessments about what resources were requested and made available to deal with growing security concerns in Tripoli and Benghazi.

Mrs. Clinton had been scheduled to testify before Congress last month, but an illness, a concussion and a blood clot near her brain forced her to postpone her appearance.

As our colleagues Michael R. Gordon and Eric Schmitt reported, four State Department officials were removed from their posts on last month after an independent panel criticized the “grossly inadequate” security at a diplomatic compound in Benghazi.

Read More..

Gadgetwise Blog: A New Kind of Holster for iPhone

Unless you carry a Bushmaster Adaptive Combat Rifle around, the Sector 5 Black Ops iPhone cover from Element Case is likely to be the most polarizing accessory you own.

The case is made from a resin called G10 and designed by a company best known for its premium handgun grips, VZ Grips.

The back of the case bears a checkering pattern common to handguns, and it has a rim of machined aluminum that is anodized with a nonreflective coating.

They even throw in a back knurled power button and “tactical holster” for affixing your phone to your belt.

Like many Element Case products, the cost is high: $200. Element Case has made a business of creating expensive covers from premium and exotic materials, like its $200 Ronin case made with a bumper of resin-impregnated wood.

The weaponized iPhone case certainly courts controversy, but thanks to the remarkably grippy pattern on the Black Ops model, you may not give it up until they pry it from you cold, dead hands.

Read More..

Well: Long Term Effects on Life Expectancy From Smoking

It is often said that smoking takes years off your life, and now a new study shows just how many: Longtime smokers can expect to lose about 10 years of life expectancy.

But amid those grim findings was some good news for former smokers. Those who quit before they turn 35 can gain most if not all of that decade back, and even those who wait until middle age to kick the habit can add about five years back to their life expectancies.

“There’s the old saw that everyone knows smoking is bad for you,” said Dr. Tim McAfee of the Centers for Disease Control and Prevention. “But this paints a much more dramatic picture of the horror of smoking. These are real people that are getting 10 years of life expectancy hacked off — and that’s just on average.”

The findings were part of research, published on Wednesday in The New England Journal of Medicine, that looked at government data on more than 200,000 Americans who were followed starting in 1997. Similar studies that were done in the 1980s and the decades prior had allowed scientists to predict the impact of smoking on mortality. But since then many population trends have changed, and it was unclear whether smokers today fared differently from smokers decades ago.

Since the 1960s, the prevalence of smoking over all has declined, falling from about 40 percent to 20 percent. Today more than half of people that ever smoked have quit, allowing researchers to compare the effects of stopping at various ages.

Modern cigarettes contain less tar and medical advances have cut the rates of death from vascular disease drastically. But have smokers benefited from these advances?

Women in the 1960s, ’70s and ’80s had lower rates of mortality from smoking than men. But it was largely unknown whether this was a biological difference or merely a matter of different habits: earlier generations of women smoked fewer cigarettes and tended to take up smoking at a later age than men.

Now that smoking habits among women today are similar to those of men, would mortality rates be the same as well?

“There was a big gap in our knowledge,” said Dr. McAfee, an author of the study and the director of the C.D.C.’s Office on Smoking and Public Health.

The new research showed that in fact women are no more protected from the consequences of smoking than men. The female smokers in the study represented the first generation of American women that generally began smoking early in life and continued the habit for decades, and the impact on life span was clear. The risk of death from smoking for these women was 50 percent higher than the risk reported for women in similar studies carried out in the 1980s.

“This sort of puts the nail in the coffin around the idea that women might somehow be different or that they suffer fewer effects of smoking,” Dr. McAfee said.

It also showed that differences between smokers and the population in general are becoming more and more stark. Over the last 20 years, advances in medicine and public health have improved life expectancy for the general public, but smokers have not benefited in the same way.

“If anything, this is accentuating the difference between being a smoker and a nonsmoker,” Dr. McAfee said.

The researchers had information about the participants’ smoking histories and other details about their health and backgrounds, including diet, alcohol consumption, education levels and weight and body fat. Using records from the National Death Index, they calculated their mortality rates over time.

People who had smoked fewer than 100 cigarettes in their lifetimes were not classified as smokers. Those who had smoked at least 100 cigarettes but had not had one within five years of the time the data was collected were classified as former smokers.

Not surprisingly, the study showed that the earlier a person quit smoking, the greater the impact. People who quit between 25 and 34 years of age gained about 10 years of life compared to those who continued to smoke. But there were benefits at many ages. People who quit between 35 and 44 gained about nine years, and those who stopped between 45 and 59 gained about four to six years of life expectancy.

From a public health perspective, those numbers are striking, particularly when juxtaposed with preventive measures like blood pressure screenings, colorectal screenings and mammography, the effects of which on life expectancy are more often viewed in terms of days or months, Dr. McAfee said.

“These things are very important, but the size of the benefit pales in comparison to what you can get from stopping smoking,” he said. “The notion that you could add 10 years to your life by something as straightforward as quitting smoking is just mind boggling.”

Read More..

Well: Long Term Effects on Life Expectancy From Smoking

It is often said that smoking takes years off your life, and now a new study shows just how many: Longtime smokers can expect to lose about 10 years of life expectancy.

But amid those grim findings was some good news for former smokers. Those who quit before they turn 35 can gain most if not all of that decade back, and even those who wait until middle age to kick the habit can add about five years back to their life expectancies.

“There’s the old saw that everyone knows smoking is bad for you,” said Dr. Tim McAfee of the Centers for Disease Control and Prevention. “But this paints a much more dramatic picture of the horror of smoking. These are real people that are getting 10 years of life expectancy hacked off — and that’s just on average.”

The findings were part of research, published on Wednesday in The New England Journal of Medicine, that looked at government data on more than 200,000 Americans who were followed starting in 1997. Similar studies that were done in the 1980s and the decades prior had allowed scientists to predict the impact of smoking on mortality. But since then many population trends have changed, and it was unclear whether smokers today fared differently from smokers decades ago.

Since the 1960s, the prevalence of smoking over all has declined, falling from about 40 percent to 20 percent. Today more than half of people that ever smoked have quit, allowing researchers to compare the effects of stopping at various ages.

Modern cigarettes contain less tar and medical advances have cut the rates of death from vascular disease drastically. But have smokers benefited from these advances?

Women in the 1960s, ’70s and ’80s had lower rates of mortality from smoking than men. But it was largely unknown whether this was a biological difference or merely a matter of different habits: earlier generations of women smoked fewer cigarettes and tended to take up smoking at a later age than men.

Now that smoking habits among women today are similar to those of men, would mortality rates be the same as well?

“There was a big gap in our knowledge,” said Dr. McAfee, an author of the study and the director of the C.D.C.’s Office on Smoking and Public Health.

The new research showed that in fact women are no more protected from the consequences of smoking than men. The female smokers in the study represented the first generation of American women that generally began smoking early in life and continued the habit for decades, and the impact on life span was clear. The risk of death from smoking for these women was 50 percent higher than the risk reported for women in similar studies carried out in the 1980s.

“This sort of puts the nail in the coffin around the idea that women might somehow be different or that they suffer fewer effects of smoking,” Dr. McAfee said.

It also showed that differences between smokers and the population in general are becoming more and more stark. Over the last 20 years, advances in medicine and public health have improved life expectancy for the general public, but smokers have not benefited in the same way.

“If anything, this is accentuating the difference between being a smoker and a nonsmoker,” Dr. McAfee said.

The researchers had information about the participants’ smoking histories and other details about their health and backgrounds, including diet, alcohol consumption, education levels and weight and body fat. Using records from the National Death Index, they calculated their mortality rates over time.

People who had smoked fewer than 100 cigarettes in their lifetimes were not classified as smokers. Those who had smoked at least 100 cigarettes but had not had one within five years of the time the data was collected were classified as former smokers.

Not surprisingly, the study showed that the earlier a person quit smoking, the greater the impact. People who quit between 25 and 34 years of age gained about 10 years of life compared to those who continued to smoke. But there were benefits at many ages. People who quit between 35 and 44 gained about nine years, and those who stopped between 45 and 59 gained about four to six years of life expectancy.

From a public health perspective, those numbers are striking, particularly when juxtaposed with preventive measures like blood pressure screenings, colorectal screenings and mammography, the effects of which on life expectancy are more often viewed in terms of days or months, Dr. McAfee said.

“These things are very important, but the size of the benefit pales in comparison to what you can get from stopping smoking,” he said. “The notion that you could add 10 years to your life by something as straightforward as quitting smoking is just mind boggling.”

Read More..

Media Decoder Blog: Adding Subscribers, Netflix Posts Surprise Profit

Netflix on Wednesday announced a surprise profit in the fourth quarter of 2012 and a new total of 27 million streaming subscribers in the United States, a jump of more than two million from the third quarter.

The company also added nearly two million new subscribers in other countries, though it continued to lose money overseas, as expected. Overall, however, the company reported $8 million in net income and $945 million in revenue. Analysts had expected a slight loss, not a profit, due to the rising costs of acquiring must-see streaming content.

Netflix’s fourth-quarter earnings exceeded not just Wall Street’s expectations but also its own, as the chief executive, Reed Hastings, and chief financial officer, David Wells, noted in a letter to investors. Revenues, they said, were driven in part by holiday season sales of new tablets and television sets.

Investors cheered the news, and at one point sent Netflix shares soaring more than 30 percent in after-hours trading.

The growth spurt in the fourth quarter attested to the popularity of on-demand libraries of television shows and movies. Streaming services by Amazon, Hulu, and Redbox are competing on the same playing field as Netflix, but for now Netflix is the biggest such service by far.

“The fact that our growth remains this strong despite intensifying competition, and our already substantial U.S. market penetration, underlines the large opportunity ahead,” Mr. Hastings and Mr. Wells wrote.

Netflix ended 2012 with 27.1 million streaming subscribers in the United States and 6.1 million elsewhere. On Wednesday it predicted that it would end the first quarter of 2013 with somewhere between 28.5 and 29.2 million in the United States and somewhere between 6.6 and 7.3 million elsewhere.

Net income will be about in line with the fourth quarter, Netflix said, since the revenue from new subscribers will be offset by licensing expenses and continuing declines in its DVD-by-mail business.

Read More..

France and Germany Celebrate 50th Anniversary of Élysée Treaty





BERLIN — France and Germany recently issued a joint postage stamp as part of a yearlong celebration of the 50th anniversary of the Élysée Treaty, the landmark agreement between the two former enemies.




The stamp is identical, except for one telling difference. In each country, it bears a picture of a man and woman, side by side, peering through lenses colored in blue-white-red and black-red-gold. But the French stamp costs 80 euro cents, while its German twin sells for only 75.


In a year loaded with symbolic gestures and 4,000 events, including Tuesday’s joint session of Parliament, joint cabinet dinner and a concert, that 5-cent disparity is a reminder that despite the decades of friendship and enormous day-to-day cooperation, significant, often devilish, differences persist.


De Gaulle once described Europe as “a coach with horses, with Germany the horse and France the coachman.” Since he signed the treaty with Konrad Adenauer in 1963, successive governments in both countries have struggled to overcome, or overlook, what divides them.


But the relationship has never been as close as some hoped. While the German news media celebrated Tuesday’s anniversary of a treaty that has been a cornerstone for the European Union and German prosperity, the tone from France was harsher. Le Figaro called it “a friendship broken down,” foundering on “diplomatic and economic tensions,” while Le Monde called the event “a festival of hypocrisy.”


The critical matter, however, is that war between the two peoples, who murdered each other for centuries, seems as inconceivable now as the Spanish Inquisition.


“Coming from a long history of conflict and war, they have succeeded in intertwining themselves so closely that today one can no longer imagine it any other way than both partners working closely together,” said Georg Link, the German foreign minister’s commissioner for Franco-German cooperation.


Chancellor Angela Merkel, a conservative, and President François Hollande, a Socialist, began the festivities on Monday here, with a question-and-answer session with university students from both countries. Sitting side by side, they appeared at ease for the first time since Mr. Hollande came to power last May, exchanging jokes and using first names — a public first, and a telling shift.


Yet, even if the two succeed in establishing a better relationship, the tensions between centralized, statist France and federal Germany are real and will persist. They involve European issues like the euro zone crisis and the failed merger of the aerospace giants EADS and BAE Systems, as well as foreign policy matters, like the obvious disagreements over military engagements in Libya and now Mali.


French officials say the two leaders get on decently, agree on fundamental questions and maintain a daily web of contacts and relationships at all levels. They argue that former President Nicolas Sarkozy of France, a conservative, deferred too much to Ms. Merkel to the detriment of the euro and economic growth, and that Mr. Hollande and Ms. Merkel have gotten more done through compromise.


Honest about their differences, Mr. Hollande cited as examples of the new relationship a “pact for growth” to go alongside a fiscal discipline treaty, championed by Ms. Merkel, and the ability to come to agreement on the single banking supervisory system for the euro zone. Ms. Merkel said they planned to meet in May to work out a joint position on economic cooperation, growth and competitiveness ahead of the next European Union summit in June.


The French have sought to “rebalance” the power structures within the European Union by working closely with the Spanish and Italian leaders, and softened the quasi-religious quality of the German prescription of budget discipline and debt reduction.


But it remains true in European Union affairs that Ms. Merkel’s words carry more weight than those of any other leader — and not just because of Germany’s demographic and economic power. There is an understanding that nothing works in the bloc without German agreement, and that France, weaker economically and more saddled with debt, plays a more junior role.


A survey of 25,000 people on either side of the border released ahead of Tuesday’s festivities showed that while 80 percent of Germans and 70 percent of French hold the other in high regard, stereotypes persist.


The French still see themselves as Europe’s center of policy creativity, but view Germany as the overly cautious, and increasingly begrudging, paymaster. The Germans, however, consider their caution one of their greatest assets, and grumble at French reluctance to reform their social-welfare system and reduce their dependence on nuclear energy.


With an active military and a seat on the Security Council, the French also see themselves as playing a far more important diplomatic role globally, while Germany seems to have regressed in its willingness to use force.


As France has moved to engage militarily in Mali, for instance, responding quickly to a cry for help from an ally, French officials note that while Britain was quick to offer air transport help, Berlin initially pledged only political support. The Germans have since offered two cargo planes.


On Tuesday the chancellor gave no indication of German eagerness to join the fight, thanking French troops for their efforts “for all of us.”


One enduring bond between Paris and Berlin is a belief in the importance of the European Union as an anchor for peace and prosperity. The leaders have acknowledged that the strength of their bond has often proved troubling for their European partners, as seen in British efforts to renegotiate its terms for membership.


“Europeans have a special view of German-French relations,” Mr. Hollande told a group of students, with a smile. “When we get along, they are afraid it will be to their detriment. And when we do not get along, they realize then that it is to their detriment.”


The chancellor, seated beside him, nodded vigorously.


Read More..