The reform ideas of the French President to be implemented. But in highly diluted Form. Macrons credibility has suffered not only by the “yellow vests”. Christoph Hasselbach reports from the EU summit.
It was a favourite project of the French President, Emmanuel Macron: He wanted a Eurozone Finance Ministers and an extra budget in order to make the Eurozone more resilient against crises and economic differences between the EU countries.
But one and a half years after his return to office remained little to be desired. Only Angela Merkel had let him wait for months. Then a whole series of countries objections.
When Germany and France were finally able to agree on a slimmed-down Version that began the protests of the “yellow West” in France. Macron has placed a part of its reforms in its own country on the ice. This has weakened his authority in Brussels.
Still, political reforms are some of its Europe now on the way.
Euro group boss, Mario Centeno, spoke at the summit, an “important day for all of us”, because “in a few weeks we came on the subject of Euro zone budget from ‘impossible’ to ‘probably'”. In the meantime, it’s become even a ‘for sure’.
But this was only possible because the original French proposal has been greatly diluted. Thus, the Euro zone budget to be part of the normal EU budget and not an extra pot. Also, it is well-named, demonstrably not a volume. Macron had called for several hundred billion euros, the amount will in any case remain far below it.
Concessions to the “yellow West” Macron cost a lot
In short, a Euro-Budget considers it to be unnecessary
Federal Chancellor of Austria, Sebastian Kurz, whose country holds the Council presidency, made a surprisingly undiplomatic it clear that he considers Macrons proposal is superfluous: “I am no friend of the Euro zone budgets. There are clear rules, there is also a Budget in the European Union. I don’t think that there is, in addition, it is necessary to create a separate Euro zone budget. I think that the taxpayers would only cost a lot of money.”
Many heads of state and government fear that an extra budget of poor economic countries could be abused and cost the EU would have to pay the countries of the colliery.
“I don’t see that it is still in need of incentive and extra money, if someone keeps to the rules, but this should be obvious,” says Short.
The Dutch Prime Minister Marc Rutte had spoken in the last few months, a similar – albeit not so bluntly.
Chancellor Angela Merkel initially had concerns, and supported the Euro-budget only after the amount and use were severely limited. “The performances” of various countries “diverge”, depending on whether they are net payers or more recipients of European funds, Merkel said somewhat euphemistically to the summit. But: “The French President was satisfied, and I am, too.”
Austria’s Chancellor, Briefly: “That would cost the taxpayers a lot of money.”
Merkel has a lot of understanding
Less controversial are other points. So the Euro-rescue Fund, the ESM should be strengthened and its responsibilities extended. The ESM awards, for example, against austerity and reform conditions to loans to countries in financial distress. In the future, he should be able to intervene earlier to prevent financial crises in a timely manner. He should also intervene in the case of a Bank rescue, and such money houses to handle their Bankruptcy is inevitable.
All of these plans seem to be since the sometimes violent demonstrations of the “yellow West” in a different light. Macron had responded to the protests with billions in concessions. The tedious reduction of the French budget deficit to a value below the allowed three percent of the economy’s performance is again expected to be null and void.
For Short, Rutte, and the other is the inefficiency to be overcome. Merkel was, however, convinced that the President will continue his reforms in his own country.