Friday

29th Mar 2024

Germany would 'never dare' to judge France on economy

  • Differences but no frictions, the two ministers say (Photo: Council of European Union)

The finance ministers of France and Germany on Tuesday (13 November) strongly denied there were any friction about how Paris is tackling the country's economic problems.

"It is extraordinary that we get questions on frictions and divergences during a joint press conference. The very aim of this press conference is to show there are none," French finance minister Pierre Moscovici said.

Read and decide

Join EUobserver today

Get the EU news that really matters

Instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

"There are no Franco-German misunderstandings, no meddling in each other's affairs," he said. But he admitted that it was "natural" for the "bigger" friend Germany to show an interest in how France is reducing its public deficit and how Paris plans to catch up on competitiveness.

Moscovici presented a "competitiveness" plan on Monday evening during a meeting of eurozone finance ministers. It outlined what Paris plans to do to reform its labour market and bring the public deficit and debt within EU thresholds.

The International Monetary Fund and a specially-commissioned report both urged Paris to focus more on labour market reforms rather than tax hikes for the rich and for companies.

The French government has meanwhile readjusted its policy and announced a €20 billion tax relief for enterprises.

For his part, German finance chief Wolfgang Schaeuble - a renowned fiscal hawk - said his country would "never dare to judge France's economic decisions" and that he "fully trusts" the government to take all the right measures to bring the economy onto a more competitive track.

The joint press conference comes after a series of denials in Germany of press reports that Schaeuble wanted to ask an advisory panel of economists - usually dealing with the domestic economy- to have a look at France's economy.

Instead, Schaeuble on Tuesday floated the idea of jointly tasking "experts within a broader exercise" to look at the historic and cultural roots of the economic traditions of both countries.

"We are not giving grades to each other. That would be the worst basis of the Franco-German relationship," Schaeuble said.

No matter the type of government in both countries, the Franco-German entente was crucial for Europe to overcome the crisis, both ministers said.

"We are the two largest economies in Europe and we have a special responsibility which we are willing to assume. France and Germany will always be working towards bridging their differences," Moscovici said.

France stripped of another top rating

Moody's on Monday became the second ratings agency to strip France of its top rating, citing continued economic woes and lack of competitiveness.

'Swiftly dial back' interest rates, ECB told

Italian central banker Piero Cipollone in his first monetary policy speech since joining the ECB's board in November, said that the bank should be ready to "swiftly dial back our restrictive monetary policy stance."

Opinion

EU Modernisation Fund: an open door for fossil gas in Romania

Among the largest sources of financing for energy transition of central and eastern European countries, the €60bn Modernisation Fund remains far from the public eye. And perhaps that's one reason it is often used for financing fossil gas projects.

Latest News

  1. Kenyan traders react angrily to proposed EU clothes ban
  2. Lawyer suing Frontex takes aim at 'antagonistic' judges
  3. Orban's Fidesz faces low-polling jitters ahead of EU election
  4. German bank freezes account of Jewish peace group
  5. EU Modernisation Fund: an open door for fossil gas in Romania
  6. 'Swiftly dial back' interest rates, ECB told
  7. Moscow's terror attack, security and Gaza
  8. Why UK-EU defence and security deal may be difficult

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Join EUobserver

EU news that matters

Join us