‘Poets and Alchemists’: Berlin and Paris Undermine Euro Stability

Market uncertainty over the future of the euro has returned in the autumn of 2014, but the writers of this article suggest that this has not stopped France from flouting European Union budget deficit rules. The writers say that Germany was already busy negotiating with France a dubious compromise.

The economic and finance ministers of Germany and France announced on the 20 October 2014 that they would soon present proposals for warding off a new recession. Paris had previously held out the prospect of France cutting its spending by €50bn if Germany matched that amount in investments. Berlin must defend its budgetary discipline, some commentators in European newspapers warned. Others thanked Paris for launching an important debate.

• Primary Source

ESO: Background information: Paris and Rome facing yellow card from Brussels http://www.europeansources.info/record/paris-and-rome-facing-yellow-card-from-brussels/

EurActiv, 20.10.14: Paris, Berlin secretly discuss French budget deal http://www.euractiv.com/sections/euro-finance/paris-berlin-secretly-discuss-french-budget-deal-309309

Euro|Topics: Main Topic, 21.10.14: Paris and Berlin consider investment package http://www.eurotopics.net/en/home/presseschau/archiv/archiv_dossier/DOSSIER152328-Paris-and-Berlin-consider-investment-package

European Commission: DG Economic and Financial Affairs: EU economic governance: Stability and Growth Pact: Draft budgetary plans of euro area Member States http://ec.europa.eu/economy_finance/economic_governance/sgp/budgetary_plans/index_en.htm

https://ec.europa.eu/info/business-economy-euro/economic-and-fiscal-policy-coordination/eu-economic-governance-monitoring-prevention-correction/stability-and-growth-pact_en https://ec.europa.eu/info/business-economy-euro/economic-and-fiscal-policy-coordination/eu-economic-governance-monitoring-prevention-correction/stability-and-growth-pact_en

ESO: Background information: Steinmeier: numbers offer ‘shortsighted’ view of Franco-German relationship http://www.europeansources.info/record/steinmeier-numbers-offer-shortsighted-view-of-franco-german-relationship/

Deutsche Welle, 21.10.14: The battle over European austerity http://dw.de/p/1DZTP

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