Macron Urges Greater Euro Zone Convergence, Presses Germany to Act

French President Emmanuel Macron walks with German Chancellor Angela Merkel upon her arrival to attend a Franco-German joint cabinet meeting at the Elysee Palace in Paris on July 13, 2017. (Reuters Photo/Stephane Mahe)

By : Richard Lough | on 3:18 PM July 13, 2017
Category : International, World

Paris. 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 (13/07).

In an interview with French regional daily Ouest France, Macron, who favors 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 favor 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 neighbors 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 harmonization 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 US 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 toward protectionism had been reborn in the United States but despite French and US 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.


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