Berlin  - Germany and France are expected to launch joint industrial projects in the energy and automobile sectors when Chancellor Angela Merkel meets President Nicolas Sarkozy Thursday.

The plans cover innovations in the renewable energy sector and research into new methods of propulsion for motor vehicles, government sources said ahead of the meeting in Berlin.

The two countries have been at odds over plans announced by Sarkozy to give financial aid to the French car industry to help it overcome the global economic downturn.

The differences were put aside at a special EU summit held in Berlin earlier this month, but fears of protectionism still hang over the issue.

Thursday's talks are expected to help prepare for a new meeting of EU leaders in Brussels at the end of next week as well as the Group of 20 summit in London on April 2.

The two leaders plan to discuss efforts to improve regulation of the global financial markets in a bid to prevent a repeat of the crisis which has plunged many countries into recession.

Defence and foreign ministers of both countries are also taking part in the talks, part of regular Franco-German consultations.

German Defence Minister Franz Josef Jung and his French counterpart Herve Morin plan to discuss the situation in Afghanistan and the Horn of Africa, where both countries are engaged in EU anti- piracy operations. (dpa)