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

the sting Milestone

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

Four years on and half a billion dollars later – Tax Inspectors Without Borders

5 lessons for the future success of virtual and augmented reality

EU legislation protecting home buyers approved in Parliament

Could a Digital Silk Road solve the Belt and Road’s sustainability problem?

How to stop data leaks

These countries have the most nuclear reactors

Reparations for sexual violence in conflict – ‘what survivors want most, yet receive least’

EU tourism industry expects a new record year in 2014

COP21 Breaking News_05 December: Carbon Price Needed for Climate Change Success

Afghanistan: top UN official denounces ‘extreme’ suffering of civilians in Ghazni

UN highlights importance of skills development on World Youth Skills Day

The status of the Code of Medical Ethics: loading

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

On World Bee day, human activity blamed for falling pollinator numbers

EYE to kick off on Friday: 8000+ young people discussing the future of Europe 1 – 2 June

At global health forum, UN officials call for strong, people-focused health systems

With Gaza violence ‘escalating as we speak,’ UN envoy calls for ‘immediate stop’

2014 budget: The EU may prove unable to agree on own resources

Harnessing the power of nature in the fight against climate change

The Philippines is reopening a ‘cesspool’ island after a six month clean up

Parliaments broadly agree on next steps for economic, monetary union

Brain drain 2017: why do medical students need to emigrate to become doctors in 2017?

Larger species are more at risk of extinction than smaller ones – here’s why

The EU Commission predicts a decimated growth in the next years

Postal workers in France are helping elderly people fight loneliness

Commission issues guidance on the participation of third country bidders in the EU procurement market

Backed by UN agency, countries set to take on deadly livestock-killing disease

These are the 3 key skill sets workers will need to learn by 2030

‘Crimes against humanity,’ ‘war crimes’ and risk of new ethnic violence in DR Congo, warn UN experts

EU and China to do more in common if the global scene gets worse

Making the most of the Sustainable Development Goal 3: its overlooked role in medical education

The future of science could be in your gut. Here’s why

Access to health in the developping world

UN chief ‘deeply alarmed’ over military offensive in south-west Syria

Children are so hungry in one British town they are eating from bins

Citing public anger and youth activism, OECD Secretary-General urges governments to heed calls for climate action

Gynecologic care in the 21st century

“The Arctic climate matters: to what degree?”, a Sting Exclusive co-authored by UN Environment’s Jan Dusik and Slava Fetisov

EU Commission – US hasten talks to avoid NGO reactions on free trade agreement

Portugal: €4.66 million in aid for 1,460 dismissed workers and jobless young

This Chinese tech giant’s latest gadget is… a bus

“No labels for entrepreneurs!”, a young business leader from Italy cries out

FROM THE FIELD: Malawi farmers diversify to fight climate change

“The Sea is vast as it admits all rivers”, Ambassador Yang Yanyi of the Chinese Mission to EU gives her farewell address in Brussels

UN chief hopes for new agreement after Israel concludes international observation mission

Preparing Africa for ravages of climate change ‘cannot be an afterthought’ – COP24

Globalization is changing. Here’s how your business can adapt

Cohesion Policy: EU invests €880 million to improve Poland’s railway system

Security Council beats midnight deadline, renews Syria cross-border aid in contentious vote

Greece: Tsipras’ referendum victory does not solve the financial stalemate of the country and its banks

Election-related violence claims 85 lives in Afghanistan: UN report

Why climate change matters for future health professionals

Wind farms now provide 14% of EU power – these countries are leading the way

Bayer-Monsanto merger: the story of the rise of the “endless company”

“As German Chancellor I want to be able to cope with the merger of the real and digital economy”, Angela Merkel from Switzerland; the Sting reports live from World Economic Forum 2015 in Davos

2019 EU Budget: Commission proposes a budget focused on continuity and delivery – for growth, solidarity, security

Climate change as determinant of health: the 21st Century challenge

LETTER FROM AFGHANISTAN: Elections serve up food for thought, for Afghan youth

The creative technology and its advancements

European Semester: The Winter Package explained

More Stings?