Macron comes to Merkel’s aid as allies project united front on EU’S mounting problems

ANGELA MERKEL and Emmanuel Macron moved to tackle the European Union’s growing list of problems, calling for a limited common eurozone budget by 2021, a beefed-up border police force to deal with migrants, and deeper defence cooperation.

In a joint declaration in the German town of Meseberg yesterday, Mrs Merkel said: “A new chapter opened for the European Union and for Franco-german cooperation today.”

Mr Macron added: “This summit comes at a moment of truth for Europe, for each of the nations of our continent.”

The French president came to Mrs Merkel’s aid as she battles open revolt within her own government over migrant policy, pledging French support for a new common approach to asylum cases, a strengthened border force, and migrant reception centres in Libya.

Mrs Merkel responded by dropping German resistance to any form of common eurozone budget, although analysts pointed out that no figure has been agreed.

Mrs Merkel also blocked Mr Macron’s call for a eurozone finance minister, insisting the budget remain controlled by national governments through existing EU structures.

“The French have conceded a huge amount of ground and have little or nothing to show for it in return,” said Mujtaba Rahman, the head of Europe practice at the Eurasia Group consultancy. “This is a victory for northern European hardliners.”

The two leaders agreed to transform the current ESM euro rescue fund into a European Monetary Fund with its own budget to help support struggling eurozone economies, to set up a backstop for European banks and to harmonise French and German corporate tax.

On the migrant issue, they agreed to strengthen the EU’S external borders, and to transform the bloc’s Frontex border agency into a “European border police” with more funding. Mrs Merkel said they had agreed to push for a new common asylum system under which cases could be decided in any Schengen state, not just the country where migrants first arrive – in a concession to front-line states like Greece and Italy.

They also agreed to strengthen EU foreign policy by calling for an end to national vetoes and the need for unanimity, and to push for a common defence policy.