Germany and France have reached an agreement after long negotiations on a proposal for a common budget of the Eurozone countries. The reports of the mirror, and the German press Agency, citing a joint decision paper by the Federal Minister Olaf Scholz (SPD) and the French economy Minister Bruno Le Maire.

The amount of the budget must be negotiated accordingly. Le Maire had called in the summer, an amount of 20 to 25 billion Euro as a “good starting point” – that would be about 0.2 percent of the joint gross domestic product of the 19 Euro-area countries. The President of France, Emmanuel Macron, who had demanded a budget of “several GDP points”, which would be several Hundred billion euros.

The common budget is to differences between people, reduce economies in the Eurozone. It is planned, according to the paper, for example, to increase investment in structurally weak regions. For example, the financial and debt crisis in Greece has shown, what could be the impact of large economic disparities within the currency Union.

Particularly controversial is whether and in what amount, the money should be used to stabilize economies in times of crisis. “The budget of the Eurozone is part of the EU budget,” according to the Reports in the paper. That was the German side is important. This is intended to ensure that the Budget complies with the General EU policies and budget rules in line.

project of Macron

presented In a much-publicized speech at the Sorbonne in Paris-University of Macron in September of 2017, had his proposals for the “re-establishment of a sovereign, United and democratic Europe”. In addition to a common Budget, he wants to see a European Minister of Finance – what is Germany but skeptical. He also calls for a European army. Last supported Merkel in the medium term the construction of such.

imagine your Plan want to Scholz and Le Maire Reports, on Monday in the Eurogroup. There is the Euro summit will be prepared in December, when the EU reforms in the Euro area to adopt. From German government circles, it was said that the proposal had a good chance to be accepted. However, it is assumed that several Euro countries will see a common budget is critical.

Kevin Chung studied literature in Seoul. He is interested in various areas. He can be reached at or 82-2-6956-6698.