German parties offer Macron hope on Europe

BERLIN: German Chancellor Angela Merkel’s conservatives and the Social Democrats have pledged to work closely with France to strengthen the eurozone, in Berlin’s first substantive response to President Emmanuel Macron’s ambitious EU reform proposals.

In a 28-page policy document agreed on after all-night talks between the German parties, they backed the idea of an “investment budget” for the single currency bloc and turning the ESM bailout mechanism into a full-blown European Monetary Fund under parliamentary control and anchored in EU law.

“Together, we are determined to use Germany’s strength, both economically and politically, to make Europe a grand project again,” said Martin Schulz, leader of the SPD, at a news conference with Merkel yesterday after the marathon talks. “This is our common goal.”

The agreement was welcomed by France and the European Commission, where concerns have mounted in recent months that the window for reforming Europe could close without a German breakthrough.

“This deal is important for the stability and future of Franco-German relations, but especially Europe,” said French government spokesperson Benjamin Griveaux.

European Commission president Jean-Claude Juncker called it a “significant, positive, forward-looking contribution” to the European policy debate.

The document agreed on yesterday was expected to form the basis for formal coalition talks. Merkel’s first attempt to form what Germans refer to as a “Jamaica” coalition with the Greens and Free Democrats collapsed in November. “This is far better than what ‘Jamaica’ wanted to do. Good opening for DE-FR co-operation,” tweeted Henrik Enderlein, director of the Jacques Delors Institut Berlin.

Days after the German election in September, Macron spelt out sweeping proposals in a speech in Paris, calling for a eurozone budget to help the bloc cope with external economic shocks and closer co-operation on defence and migration.

But he has been left waiting for months for a concrete response from Merkel.

She vowed at a summit of EU leaders last month to finalise positions on Europe with Macron by March. But that will probably depend on whether she can build on the policy document over the coming months and forge what would be her third “grand coalition” with the SPD. – Reuters

PICTURE: AP/AFRICAN NEWS AGENCY (ANA) German Chancellor Angela Merkel is flanked by Bavarian governor Horst Seehofer, left, and Social Democratic Party chairperson Martin Schulz after talks yesterday on forming a new German government in Berlin.