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 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

Climate change brings a host of other risks for businesses

Britain heading to national schism on exit from EU

How has technology changed – and changed us – in the past 20 years?

The anti-vaccine movement shows the peril of a post-truth world

MEPs take stock of the EU’s foreign, security and defence policy priorities

A Sting Exclusive: “Leading by example! EU must push for UN deal to avoid dangerous climate change”, European Parliament Vice-President Ulrike Lunacek cries out from Brussels

How smartphones can close the global skills gap for billions

OECD Donor countries need to reform development finance to meet 2030 pledge

How can we regulate disruptive technologies?

An ageing workforce isn’t a burden. It’s an opportunity

EU climate law: MEPs want to increase emission reductions target to 60% by 2030

Draghi strives to control the unruly exploitation of financial markets by banking leviathans

Ten UN peacekeepers killed in a terrorist attack in northern Mali

Coronavirus: rescEU medical stockpile expands in four Member States

Technology is delivering better access to financial services. Here’s how

Coronavirus: truth and myth on personal risk perception

‘Never give up’: UN chief urges all who serve, marking UN Day

EU steps up aid for Lebanon – European Commissioner for Crisis Management in Beirut

Energy Union: EU’s effort towards a cleaner climate with integrated energy market

Health is nothing but the main consequence of climate change

Could electric vehicles pose a threat to our power systems?

8 fascinating and fearsome frontiers of science you should know about

The banks first to benefit from the new euro trillion ECB plans to print

EU rewards organisations that make eco-innovation pay

“If the job market doesn’t exist, then even the most brilliant Youth Guarantee cannot ensure a job to these young people”, European Youth Forum Secretary General Giuseppe Porcaro on another Sting Exclusive

Comprehensive listening: a tool to humanize Primary Healthcare and medical specialties

How teaching ‘future resilient’ skills can help workers adapt to automation

Traditional finance is failing millennials. Here’s how investing needs to change

Environmental Implementation Review: Commission helps Member States to better apply EU environment rules to protect citizens and enhance their quality of life

Don’t believe the hype: offices are here to stay

Most fish consumers support a ban on fishing endangered species, poll finds

State aid: Commission approves €6 billion Italian schemes to support SMEs affected by coronavirus outbreak

Even in the world’s richest countries, kids might not have what they need to learn at home

Draghi tells the EU Parliament his relaxed policies are here to stay

10th ASEM in Milan and the importance of being one: EU’s big challenge on the way to China

The UK’s River Thames has come back to life – with a seal population to prove it

How leaders can use ‘agile governance’ to drive tech and win trust

On Brexit: the outcome of UK elections next May to be based on false promises?

Brazilian officer a ‘stellar example’ of why more women are needed in UN peacekeeping

‘Grave consequences’ await if new deadly escalation of violence in Gaza continues – top UN official

It is impossible to end HIV without SRHR

Activist investors are more powerful than ever. Here’s what that means for the economy

ECB’s Draghi favours a cheaper euro to serve all Eurozone countries

MEPs and EU ministers agree on closing information gaps to enhance security

The Ecofin Council creates officially the clan of ‘undead’ banks

Strengthen inclusion, participation of people with autism to ‘achieve their full potential’ says UN chief

To save biodiversity, MEPs call for binding targets at global and EU level

3 things you need to know about securing a blockchain

JADE Spring Conference 2018 is on its way: Young entrepreneurs gather in Brussels to shape Europe

Will the end of QE come along with ECB’s inflation target?

Security Council urges ‘maximum restraint’ around Gulf region as Iran and United States trade diplomatic blows in New York

“At the Environment Assembly citizens expect clean, not hot air”, the Head of UN Environment in Europe underscores in a Sting Exclusive

Blockchain is facing a backlash. Can it survive?

Microsoft’s YouthSpark: a kiss of Life to European Youth from the European Parliament

5 ways to net a sustainable future for aquaculture

Financial services: Commission sets out its equivalence policy with non-EU countries

UN ‘determined to lead by example’ on disability rights: Guterres

Parliament backs measures to cut e-commerce VAT fraud

CO2 can be a valuable raw material, not just a climate killer. Here’s how

How the EU crisis hit countries saved the German and French mega-banks from bankruptcy and still pay the costs

More Stings?

Advertising