France asks help from Germany but it will not be for free

Martin Schulz, EP President meets with Michel Sapin, French Minister for Labour, Employment and Social affairs followed by press point last November. Mr Sapin would wish he could shake hands so happily after his meeting with Wolfgang Schauble last Monday (European Parliament Media Services, 19/11/2013)

Martin Schulz, EP President meets with Michel Sapin, French Minister for Labour, Employment and Social affairs followed by press point last November. Mr Sapin would wish he could shake hands so happily after his meeting with Wolfgang Schauble last Monday (European Parliament Media Services, 19/11/2013)

France and Germany had a ‘meeting’ last Monday to discuss about the latter’s support on the problematic budget of France regarding the high deficit levels. This comes after the submission of France’s 2015 budget upon approval by the European Commission (E.C.).

The Hexagone claims that slow growth must be fought at all costs. However, Germany is opposed to such policies calling for austerity measures and investment plans. The question that raises here is whether or not the two biggest E.U. economies are going to cooperate to come up with a viable solution for everyone. The next card though will be played by the E.C. officials who will decide on the faith of France.

France needs further deficit extension

It is not news that the second biggest European economy is facing severe issues that call for immediate action. It seems that the problems for France got worse when they delivered the 2015 budget. France had to provide deficit figures of lower than 3% because of the two-year expansion, which was granted by the E.C. on 2013 to meet this criterion.

However, their deficit estimate for 2015 is 4.3%, way higher than the one that was imposed. They also mentioned that the deficit will drop under 3% in 2017. This is against the Stability and Growth Pact, the agreement that maintains stability in the E.U., which among others obliges governments to keep their deficits under 3%.

Meeting on deficit problems

It was three days ago when the French Finance minister Michel Sapin and the Economy Minister Emmanuel Macron went to Berlin to talk about Germany’s support on the deficit issue. France tried to persuade Germany to provide a €50 billion investment program to the E.U. economy in order to balance their cuts. This was not accepted of course by the German Finance Minister Wolfgang Schäuble but both countries agreed to prepare an economic paper that will propose solutions to help France overcome this problem.

Behind the scenes

France is claiming that they are determined to promote growth and bring back prosperity to the French people. They tend to do that by overlooking the E.C.’s rules about the deficit ceiling. However, the pressure from the E.C. officials and Germany is enormous. Will they give in to the E.C.’s regulations and Germany’s focus on austerity measures? Maybe that is the case.

According to the German news magazine Der Spiegel, France and Germany are composing a report that will include measures ensuring France’s deficit reduction on an effort to persuade the E.C. to approve the 2015 budget. Thus, the plan is focused on the French working class who is about to face severe austerity promptly.

E.C.’s decision for France budget approval

Everyone is waiting to see if the European Commission. is going to approve the French budget or send it back to Paris to be altered and impose sanctions. But a senior German government official said yesterday that the budget will not be discussed at the summit of EU leaders this week. This implies that a possible agreement is being made between France, Germany and the Commission, in order for the last to approve the 2015 budget.

If this come true, it is high likely that the situation in France will change dramatically and may cause political turbulences.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

18th European Forum on Eco-innovation live from Barcelona: What’s next for eco-labelling?

China hopes EU Commissioner De Gucht drops super anti-dumping tariff on solar panels

Everybody against Japan over yen’s devaluation

Brexit uncertainty keeps shaking the world’s financial markets

More capital and liquidity for the banks

Yes, together we can make a change! YO!Fest and EYE 2016

Legal Manager – 2050

Yanis Varoufakis in a Sting Exclusive: “Unsustainable debt turns the creditor into Leviathan; Life under it is becoming nasty, brutish and short”

WEF Davos 2016 LIVE: “Employment contracts today are a reducing share of the workforce”, scientists worry in Davos that the 4th industrial revolution threatens employment globally

De Gucht: More gaffes with the talks on the EU-US free trade agreement

Can ECB’s €60 billion a month save Eurozone?

Paris, Rome, Brussels and Frankfurt to confront Berlin over growth and the Athens enigma

European Court of Justice to Google: It is #righttobeforgotten but not #righttoberemembered

IMF: European banks do not perform their duty to real economy

MWC 2016 LIVE: 5G to embrace unlicensed bands and Wi-Fi

Varna (Bulgaria) awarded European Youth Capital 2017

TTIP’s 11th round major takeaways and the usual “leaked” document

Appreciation of euro to continue

Germany loves a strong euro; the new Fiscal Councils can deliver despite the Greek chaos and a wider questioning of austerity

Junker for Commission President: What were the stakes in this affair

THE ROAD TO GANESHA

Responsible Artificial Intelligence

Rehn ready to sacrifice part of the real economy

Trump’s Russophiles under investigation, Europe remains ‘en garde’

UN Human Rights Council resolution on youth and human rights: a step forward for youth rights

European Youth Forum welcomes establishment of new Youth Intergroup in the European Parliament

Parliament votes reform for better European Co2 market but critics want it sooner than later

Is Eurozone heading for disinflation?

Migration crisis, a human crisis after all

Rehn very reserved about growth in Eurozone

Germany fears that Americans and Russians want to partition Europe again

168 hours left for MEPs – ECOFIN Council to deliver a Banking Union

Facebook and Google to treat Europe as the 51st State of the USA

MWC 2016 LIVE: Mobile has power to tame transaction fees – PayPal CEO

Who cares about the unity of Ukraine?

Medical Doctors in Industry 4.0: pure science fiction

MWC 2016 LIVE: Orange targets VoLTE and Voice over Wi-Fi; strikes Google partnership

What does Tsipras have to offer to the rest of Europe? Is it worth an early advance of €10 billion? Berlin sturdily denies it

EU-US relations on the dawn of the Trump era

iSting: Change Europe with your Writing

Who is to pay the dearest price in a global slowdown?

The EU accuses Russia of bullying Ukraine to change sides

The impact of refugees on the European healthcare system

EU is officially in recession

Commission criticised member states on blocking financial transaction tax

South Sudan’s foreseen genocide: from “Never Again” to “Again and Again and Again”?

EU Summit: Why was Poland isolated in opposing Tusk and the ‘multi speed’ Europe

A European young student speaks about the Youth Policies of the European Commission

Tackling Youth Unemployment

The Next Web 2014, the biggest European conference on Internet so far and the Absence of Brussels from Amsterdam

More Stings?