Angela Merkel prepared to consider Emmanuel Macron's eurozone reform ideas

'Economic cohesion of the eurozone member states leaves something to be desired,' Angela Merkel said.

AFP June 20, 2017 16:04:01 IST
Angela Merkel prepared to consider Emmanuel Macron's eurozone reform ideas

German Chancellor Angela Merkel said Tuesday she was prepared to consider new French President Emmanuel Macron's proposals for a shake-up of the eurozone.

Speaking to business leaders in Berlin, Merkel acknowledged that the "economic cohesion of the eurozone member states leaves something to be desired".

Merkel, who is running for a fourth term in a September general election, said Germany would be open to an "economic government" to pool "best practices" for promoting jobs and growth among the 19 eurozone members.

Angela Merkel prepared to consider Emmanuel Macrons eurozone reform ideas

File image of German chancellor Angela Merkel and French president Emmanuel Macron. Reuters

"We could, of course, consider a common finance minister, if the circumstances are right" with the proper balance among risk, liability for debt and the power to dictate policy, Merkel said.

"We could also consider a euro-budget if it is clear that we are really strengthening the structure of the economy and doing sensible things," she added, backing another suggestion by the French leader.

During his campaign, Macron had put forward ideas for reforming the eurozone, noting that the currency bloc cannot go on as it is if it wanted to avoid falling prey to protest and populism.

Among reforms he wants to see are setting up a separate budget for the group, as well as giving it its own parliament and finance minister.

Macron has forged the beginnings of a strong working relationship with the German leader since his election last month and chose Berlin for his first trip abroad as president.

At a joint press conference, Merkel threw her support behind Macron's call for a "historic reconstruction" of the European Union, even expressing openness to a possible change to key treaties governing the bloc despite some scepticism in Berlin.

Germany and France, traditionally the twin engines of European integration, agreed last month to launch a bilateral panel to kickstart the eurozone reform process.

The new working group will look at how the currency bloc can better coordinate economic policies, harmonise its tax regime and find potential Franco-German investment projects.

The bilateral panel will report to a joint ministerial meeting of the eurozone's two biggest players in July.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Spain find reason to be hopeful again after historic 6-0 rout of Germany
Sports

Spain find reason to be hopeful again after historic 6-0 rout of Germany

Spain put all the criticism and the pressure to rest on Tuesday after routing four-time World Cup champion Germany 6-0.

What to watch in European football today: Leicester hoping to spoil Liverpool's record, Milan to test unbeaten run against Napoli
Sports

What to watch in European football today: Leicester hoping to spoil Liverpool's record, Milan to test unbeaten run against Napoli

Liverpool have not lost their last 63 league games at home. That matches a club record set in December 1980 which was ended by a defeat to Leicester.

Bundesliga awaits debut of Borussia Dortmund teenager Youssoufa Moukoko
Sports

Bundesliga awaits debut of Borussia Dortmund teenager Youssoufa Moukoko

Bundesliga had Youssoufa Moukoko in mind when it dropped the minimum age from 17 to 16 at a meeting in April. The striker could make his debut against Hertha Berlin on Saturday, making him the youngest player in league history.