France and Germany to Strenghten Eurozone

• 06.05.2015, 15:58
•  Europe,  World

The French Minister of economy Emmanuel Macron and the German Minister of Economy Sigmar Garbriel, who is also a Vice Chancellor of Germany, have called for greater fiscal and social harmonization in the Eurozone with a common budgetary mechanism and tools.

Faced with the threat of possible BREXIT and GREXIT of the European Union, France and Germany say it’s high time to strengthen the Eurozone and to address the ''critical flaws in the architecture of monetary union''.

As eurozone economies converge and adopt stronger institutions, countries sharing the single currency should create a ''preliminary eurozone budget'' providing a tool for ''automatic stabilization'' in times of crisis, Euroactiv reports.

''This new economic and social union should involve not only structural reforms (labour, business environment) and institutional reforms (functioning of economic governance) but also social and tax convergence where necessary (consistent, though not necessarily equal, minimum wages, and a harmonised corporate tax),ʺ the Economy Ministers wrote in their report.

It should be recalled that the UK Prime Minister David Cameron has promised an In-Out referendum by the end of 2017. France's right-wing party, the National Front (FN), has also called for a vote on its membership of the EU following the British example, and Greece, in its turn, not being able to pay all the debts to its European creditors, regularly discusses the question of leaving EU or at least Eurozone.