Before beginning her meetings with French President, Emmanuel Macron, on Thursday 19 April in Berlin, the German Chancellor, Angela Merkel, provided assurances that she was, “optimistic that we will move forward swiftly”.
Six months after the Sorbonne speech by the French President (see EUROPE 11870) and two days after his speech at the European Parliament, the Chancellor has begun to provide some answers to the French proposals. During a joint press conference, she provided assurances that banking union, “does not pose any problems”. She explained, “We are ready to accept a guarantee mechanism for bank deposits not immediately but in the long term”.
With regard to reform of the Eurozone, she sees things differently and emphasised that, “There are French proposals but there are also German proposals. The previous German Minister for Finance, Wolfgang Schaüble, had, for example, proposed that we should be less dependent on the IMF and which we could use instrument, such as the European Solidarity Mechanism more intensely in future”.
Without providing any direct answer to the question of whether the Eurozone should have its own budget capacity, as sought by Emmanuel Macron, the German Chancellor pointed out that Germany is highlighting the need for a balance between solidarity mechanisms and responsibility, “which have ensured the success of the rescue plans in Ireland, Spain and Portugal”.
Ms Merkel also put the idea of creating a “Jumbo Council” into perspective. This idea is to bring the European ministers responsible for the economy and finance in the Eurozone together and was mentioned by the CDU/CSU at the Bundestag this week.
The new German Minister for Finance, Olaf Scholz, is a Social Democrat, while his counterpart for the economy is Peter Altmaier, a Christian Democrat.
This idea is not at all to the taste of the Social Democrats. Pervenche Berès (S&D, France), considers that this would be a way of extending austerity policies in Europe, given that the S&D group at the European Parliament is advocating regular meetings between the ministers for finance and employment and social affairs.
She explained that this did not involve creating megastructures but pooling resources and experiences for a more coherent policy. The Chancellor said, “We are putting different aspects of the question on the table but it seems that the main substance of our proposals can produce a good result”.
Emmanuel Macron also wanted to be as conciliatory and stressed that, “The main thing is to have a political objective and end” whatever the future agreement on the instruments is. He also highlighted the need to, “base the elements of solidarity and responsibility in terms of reform and competitiveness policy”. He did, however, emphasise the “solidarity” section with regard to both the Eurozone and migration. He also confirmed his enthusiasm for a mechanism that supported the local authorities that are responsible for taking in asylum seekers as part of the post-2020 multi-annual financial framework.
The German and French leaders confirmed their intention to finalise “a roadmap" for the Franco-German Council on the eurozone summit planned for the end of June. This roadmap will focus on Eurozone reforms and migration policy, as well as the promotion of innovation and research, explained Emmanuel Macron.
It should be pointed out that a joint speech could possibly be organised around 9 May, during the Europe Day festivities as part of the citizens' consultations on the future of Europe. (Original version in French by Nathalie Steiwer)