Merkel REFUSES to bail out Europe's economic basket cases with Euro emergency fund
ANGELA Merkel has disappointed the French president by backing her party’s REJECTION of a European rival to the IMF aimed at bailing out economic basket cases.
Macron arrives in Strasbourg to outline his vision for Europe
The chancellor snubbed President Macron’s mission for a bold reform of the EU and creating a monetary fund that he spoke about in his landmark speech in Strasbourg.
The leader of Germany, who has been weakened after her failure to clinch a majority in the general election, has voiced her opinion that she was reluctant about the European Commission proposal.
She is concerned the move could mean more cash transfers from German taxpayers to weaker European economies.
I think Germany can make its own contribution and we will reach common solutions with France by June
President Macron favours bold reforms to invigorate the flagging EU, which includes the eurozone budget and finance minister.
He is due to be meeting Chancellor Merkel in Berlin on Thursday and will be pushing for bold reforms to proof the bloc against any repeat of the financial crisis that happened in 2009.
In a passionate speech in Strasbourg, President Macron said he wants France and Germany to lead ambitious eurozone reforms, which includes turning the bailout fund into a European Monetary Fund.
Macron’s plan would be for this new body to tackle a country’s debt problems before they spread to Europe.
However, Chancellor Merkel is concerned that this scheme could make richer countries liable for the debts of poorer members.
Berlin has already said that it does not back Macron’s idea of creating a eurozone budget and finance minister.
After eventually forming a government in Germany, Chancellor Merkel needs the support of her party for any big changes to the eurozone.
President Macron is going to Berlin to try and inject new energy to his eurozone reform drive ahead of a big EU summit.
Chancellor Merkel has proposed for the current eurogroup of finance ministers to be expanded so all of the eurozone’s economics ministers are included.
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She wants this body to be responsible for improving economic convergence between the countries that use the euro.
France and Germany have been trying to find common ground on overhauling the single currency area ahead of an EU summit in June.
Speaking earlier this week, Chancellor Merkel said: “I think Germany can make its own contribution and we will reach common solutions with France by June and I am looking forward to the visit on Thursday because it will be a step in working towards a common position.”