Macron urges greater euro zone convergence, presses Germany to act

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Macron urges greater euro zone convergence, presses Germany to act

 

FILE PHOTO: German Chancellor Angela Merkel greets French President Emmanuel Macron at the beginning of the G20 summit in Hamburg, Germany, July 7, 2017. REUTERS/John

 

PARIS (Reuters) - The European Union remains an incomplete project and will require changes to its treaties that bring greater convergence between euro zone member states, French President Emmanuel Macron said in comments published on Thursday.

 

In an interview with French regional daily Ouest France, Macron, who favours deeper European integration, said Germany was benefiting from a "dysfunctional" euro zone.

 

Macron, elected in May, has called for giving the euro zone a single finance minister and a common budget - a proposal that has been met with caution by German Chancellor Angela Merkel and suspicion in Berlin that German taxpayers might be left having to shoulder common debts.

 

Macron reiterated that he was not in favour of turning national debts of euro zone countries into a single pool of euro zone debt.

"I have never reproached Germany for being competitive," Macron said in the interview. "But a part of German competitiveness is due to the dysfunctionalities of the euro zone, and the weakness of other economies."

 

"Germany ... has a strong economy, but it has demographic weaknesses, economic and trade imbalances with its neighbours and shared responsibilities to give the euro area the future it deserves."

 

German business newspaper Handelsblatt reported on Wednesday that the finance ministers of Germany and France planned to present a roadmap for the harmonisation of their countries' corporate taxes at a joint cabinet meeting on Thursday.

 

Macron said Germany, which has a budget surplus, must be a part of a revival in public and private investment in Europe.

 

Asked if Europe could rely on U.S. President Donald Trump, the centrist president, 39, said Europe needed the United States. He said he would fight the stance taken on climate change by Trump, who arrives in France later on Thursday.

 

Macron said a tendency towards protectionism had been reborn in the United States but despite French and U.S. differences over free trade there was still scope to "find a common space to combat unacceptable practices such as dumping."

 

Trump has threatened tariffs on steel in response to oversupply in world steel markets that is largely created by China.

 

(Reporting by Richard Lough; Editing by Robin Pomeroy)

 

-- © Copyright Reuters 2017-07-13

[SOUTHERNSTAR]

Your puppetmasters will be proud of you oh young one with the old wife. You do your masters proud to ask for more of the same when it is clear that the EU experiment has failed. Your friend Soros can already see the billions role in from the millions of migrants entering the EU, those who must be housed, clothed and fed on tax money. It is just a further transfer of money from the middle class to the elites like Soros. It has nothing to do with humane treatment of people just raw power of money.

[ilostmypassword]

2 minutes ago, SOUTHERNSTAR said:

Your puppetmasters will be proud of you oh young one with the old wife. You do your masters proud to ask for more of the same when it is clear that the EU experiment has failed. Your friend Soros can already see the billions role in from the millions of migrants entering the EU, those who must be housed, clothed and fed on tax money. It is just a further transfer of money from the middle class to the elites like Soros. It has nothing to do with humane treatment of people just raw power of money.

Really, the EU has failed? Actually, it's been doing a lot better lately.  And as for the Eurozone, while it has had harsh consequences for nations like greece, portugal, and spain, it hasn't been all that bad for most of the northern european members. Slightly bad for them. The problem with the Eurozone is that it's a monetary union without a fiscal union. It was a foolish policy of austerity that delayed its recovery.  It's not a disaster, although most members would be better off without it. And how is it that George Soros will benefit from mass immigration? Is he being paid to provide hot meals to immigrants?

[Retiredandhappyhere]

ilostmypassword said: 

 

"The problem with the Eurozone is that it's a monetary union without a fiscal union".

 

And that is precisely why the UK wisely refused to join the Eurozone.  

 

Despite Macron's declared hopes, can you really envisage all the Eurozone countries agreeing to a single Finance Minister and a common fiscal policy?   If not, then the problem you identified will continue to hamper many Eurozone countries, largely to Germany's benefit at the expense of the poorer countries.

[ilostmypassword]

Just now, Retiredandhappyhere said:

ilostmypassword said: 

 

"The problem with the Eurozone is that it's a monetary union without a fiscal union".

 

And that is precisely why the UK wisely refused to join the Eurozone.  

 

Despite Macron's declared hopes, can you really envisage all the Eurozone countries agreeing to a single Finance Minister and a common fiscal policy?   If not, then the problem you identified will continue to hamper many Eurozone countries, largely to Germany's benefit at the expense of the poorer countries.

It certainly has hurt Greece, Portugal, and Spain by not allowing them to devalue their currency. Instead they have to do it via deflation which is a lot slower. Eventually, though, at least in the case of Spain, deflation will do it's work and the Spanish economy will start to recover. The ridiculous debt demands imposed on Greece, unless slashed, will mean that its debt problems will only get worse over time. Of course, this is due to Germany bailing out its banks and calling it a rescue of Greece. Not per se a Euro problem. I don't know where Portugal stands now. But Portugal and Greece are small nations and at least their people have the freedom to work wherever they choose in the EU.

[Baerboxer]

Interesting to see how this pans out. 

 

Germany has its own agenda. Mrs. Merkel will likely win another term and will want to carry on that agenda. She once before commented that there was no urgency or priority to revisit EU treaties.

 

M. Macron has a different agenda. That will bring him into potential conflict with the EU's most experienced and senior leader. M.Macron will soon start to push through his changes and reforms in France which will potentially cause some conflict.

 

His mettle is going to be tested sooner rather than later - good for him. At least he's not a pathetic u-turn who doesn't have the courage of his convictions which we in the UK have to suffer.

[fabphil]

M & M and pair of disasters....god help Europe..

[ilostmypassword]

2 minutes ago, fabphil said:

M & M and pair of disasters....god help Europe..

Anybody who reads your comment will come away so much more enlightened about the situation.