Sunday , May 22 2022

France-Germany for a common budget in the Eurozone. International Economics


Germany and France will propose at a Eurogroup meeting on Monday to create a separate budget for eurogroup countries. The proposal is directly related to Greece, because the budget targets are to prevent economic crises, but also to reduce economic inequalities between 19 European countries. This budget can, for example, finance investments in the depressed regions of the Euro Zone.

According to German media reports, the French-German finance ministers, Bruno Le Méri and All-Salts show that the euro zone budget will be of concern only to member states after a long-standing agreement following long-standing negotiations. But it will be part of the EU budget, which will ensure that the budget complies with the EU's stability criteria, Berlin insists.

Reservations of the Netherlands

The French-German proposal stipulates that Member States will each year have the right to propose financing programs under the; strategic specifications me of the Heads of State or Government and the Eurogroup. The financing decision will also be taken by the Commission's agreement, and only those countries that meet the criteria for stability in the EU will be eligible: Excluding countries such as Italy, which do not respect them, will be excluded.

Berlin and Paris have not yet reached the size of the budget. A few months ago, French Finance Minister Bruno Le Mer spoke about 25 billion euros. This is an amount corresponding to 0.2% of the GDP of the 19 euro zone Member States. According to media reports, the Commission gave a green light to the French-German proposal. However, countries like the Netherlands have reservations. The question, however, is the attitude they will see on the Eurogroup on Monday.

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