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.

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

A few, or rather two, trade and economic alliances may rule our brave new world

Sydney is choking on record levels of smog – and the bushfire season is just getting started

Antitrust: Commission sends Statement of Objections to Insurance Ireland for restricting access to a data sharing platform

These Dutch cities are using the circular economy to conserve water

Coronavirus: Using European supercomputing, EU-funded research project announces promising results for potential treatment*

Myanmar: New UN envoy offers to serve ‘as a bridge’, recognizes ‘positive steps’ over Rakhine state

Dark spots on EU humanitarian aid spending

Cultural Intelligence: the importance of changing perspectives

German heavy artillery against Brussels and Paris

Commission adopts White Paper on foreign subsidies in the Single Market

Libya: $202 million needed to bring life-saving aid to half a million people hit by humanitarian crisis

Hostilities in Syria’s southwest, mean cuts in vital aid across Jordanian border: Senior UN official

Guterres underscores UN role in achieving a free, secure Internet

EU-Turkey deal on migrants kicked off but to who’s interest?

Artificial intelligence summit focuses on fighting hunger, climate crisis and transition to ‘smart sustainable cities’

Rohingya crisis: EU allocates €31 million for Bangladesh and Myanmar

Alcoholic drinks: Commission tables update of rules governing alcohol excise duties

Africa is set to get its first vertical forest

State aid: Commission invites interested parties to provide comments on proposed revision of Guidelines on State aid to promote risk finance investments

Look to cities, not nation-states, to solve our biggest challenges

Three experts on why eradicating plastic pollution will help achieve gender equality

Young students envision turning Europe into an Entrepreneurial Society

5 ways urban transport could step up a gear for women

EU-wide protection and support for whistle-blowers

Pay packet inequality growing worldwide, says new UN report

The European Council takes more measures to stem illegal migration

COVID-19: ‘Top priority’ must be on containment, insists WHO’s Tedros

Technology is a means, not an end

Food safety: Enhancing consumer trust in EU risk assessment and authorisation

4 ways to cyberproof your business during mergers & acquisitions

Does the “climate change” require ombudsman services for environment?

Trade negotiations with US can start under certain conditions

From ‘strength to strength’ UN-African Union security partnership growing, Security Council hears

‘Shared responsibility’ to stop 420,000 needless deaths from tainted food each year, UN, world leaders warn

Brexit Update: EU endorses unprecedented compromise to help Cameron out of the referendum mess he got himself into

Engaging women and girls in science ‘vital’ for Sustainable Development Goals

Bring killers of journalists to justice: UN agency seeks media partners for new campaign

These are the cities with the biggest carbon footprints

US life expectancy is falling – here’s why

“CETA is a game changer for major trade agreements”. The Sting reports live from EBS 2015

It’s time we harnessed Big Data for good

UN and African Union in ‘common battle’ for development and climate change financing

As G7 calls time on coal, have you checked your supply chain?

Changing how we produce and consume: New Circular Economy Action Plan shows the way to a climate-neutral, competitive economy of empowered consumers

Withdrawal Agreement: Commission sends letter of formal notice to the United Kingdom for breach of its obligations under the Protocol on Ireland and Northern Ireland

Medical students and their ability to edify women’s rights

EU tax haven blacklist not catching worst offenders

A Sting Exclusive: “Stronger Cybersecurity for a safer EU against cybercrime and cyber threats”, by MEP Dalli

Young people struggling in digital world, finds latest OECD PISA survey

This is what has led to the George Floyd protests in the United States

Renewable energy could power the world by 2050. Here’s what that future might look like

3 ways blockchain can revolutionize global supply chains

NextGenerationEU: European Commission disburses €231 million in pre-financing to Slovenia

Investing in health workers yields ‘triple dividend’, WHO chief says in New Year’s message

EU and UK reach agreement in principle on fishing opportunities for the remainder of 2021

Why the UK government must do more to boost green revolution

Deal on faster exchange of non-EU nationals’ criminal records

EU founding values: Commission starts legal action against Hungary and Poland for violations of fundamental rights of LGBTIQ people

UN’s AIDS agency ‘greatly encouraged’ by latest scientific breakthrough showing cure is possible

Alarming number of Ebola deaths in DRC a ‘rallying cry’ to scale up treatment

More Stings?