German Chancellor Angela Merkel ended her silence on France’s view of EU economic policy this week: She warned French President Nicolas Sarkozy to support the independence of the European Central Bank (ecb), and not to undermine the euro.

For President Sarkozy, the problem is simple: A strong euro has weakened France’s export business. The country now carries a €27 billion trade deficit. If it is less expensive for foreign nations to buy eurozone goods, he hopes France’s export business—notably, sales from Airbus—will pick up. The strong euro poses a serious problem. According to Airbus’s parent company, eads, when the euro rises 10 U.S. cents in value, the company loses another €1 billion.

Germany, on the other hand, is the largest exporter in the world. German businesses are thriving overseas, which protects the German economy from fluctuating on euro exchange rates as drastically as in France.

Chancellor Merkel responded strongly to questions on German television asking about weakening the euro to support the eurozone’s exports. Merkel said she “would definitely object to this, and so would the entire government.”

While Sarkozy has called for the ecb to fall under political influence, Merkel appears to be drawing the line. Memories of post-World War i inflation still sear the German conscience. Since then, Germany has endeavored to hold a stable currency.

Knowing that governments, notably France, sometimes try to play games with currency value, Germany’s adoption of the euro was conditioned on the independence of the ecb. In response to President Sarkozy’s pressure on the bank, Merkel reiterated the German government’s position: “The population should be protected against inflation. This is very important. That is why the independence of the European Central Bank is the alpha and omega. And that is why Germany will not budge on this.”

The contention between Merkel and Sarkozy will make for an awkward meeting next week as the two leaders work to restructure the leadership for eads. As Europe works to offer the euro as a credible alternative to the dollar, it needs a stable currency—not a falling one. Right now, Europe has that, largely because of the phenomenal economic growth in Germany.

Berlin will not allow anyone to undermine Germany’s position as the economic engine of Europe—as President Sarkozy will quickly discover.