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France calls for more Euro solidarity, otherwise the EU project is “unsustainable”

Saturday, April 13th 2019 - 07:09 UTC
Full article 5 comments
“Countries with solid budgets must invest more,” Le Maire said. A similar message from IMF which urged Germany in particular to boost spending “Countries with solid budgets must invest more,” Le Maire said. A similar message from IMF which urged Germany in particular to boost spending

Widening differences over economic policy among Euro area countries are “unsustainable” and could undermine the currency union itself, French Finance Minister Bruno Le Maire said on Friday.“There isn't enough solidarity in the Euro-zone,” Le Maire told reporters on the sidelines of the International Monetary Fund and World Bank Spring meetings.

“Growing economic divisions among member states are unsustainable in the long term and could result in the disappearance of the common currency project.”
“Countries with solid budgets must invest more,” Le Maire said.

That was the same message pushed by the IMF itself, which on Friday again urged Germany in particular to boost spending in order to accelerate growth a raise wages, and reduce its budget and trade surpluses.

Le Maire said “Those with the means shouldn't hoard money for years and years, allowing growth to deteriorate.”

Instead, those governments should “invest in new projects, innovation, so that there can be more cooperation and solidarity in the Euro-zone.”

Le Maire also said the global economic slowdown was “pronounced and worrisome,” calling on countries to be prepared for a “collective response.”

The European response could come in the form of the “growth pact” he proposed on Friday which would include increased spending by economies with the “fiscal space” to do so, an allusion to Germany and the Netherlands.

Meanwhile, states like France should pursue economic reforms and shore up their finances, something Paris is “determined” to do with measures “that get results,” he said.

Categories: Economy, Politics, International.

Top Comments

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  • bushpilot

    A truly astounding example of socialist superior enlightenment.

    We need more solidarity, you need to do things the way we want you to.

    Frenchmen: Us, do things your way? No, that isn't solidarity, that is domineering.

    We don't have money, so we want you to spend your money. And we want a say in how you spend that money that you don't want to spend.

    Our spending turned out to be unsustainable so from that we conclude that you doing the opposite, not spending money, will also be, “unsustainable”. ???

    And we “promise” that we will get our finances in order, and “get results”, and when we do, we will spend our money too. We promise.

    No, you shouldn't wait until we get our finances in order, to spend your money on “solidarity” projects.

    Germany: Do we get to spend our money in our country?

    Frenchmen: No, you have to spend it in other countries so there is “solidarity”.

    Germany: Which outside countries should we spend that money in? The poorest ones?

    No, you should spend your money in France. And we will tell you how, to protect our sovereignty (never mind solidarity in this case)

    Do we get to tell France what to do with their money, too?

    No, that would impinge on France's sovereignty.

    After all, even though us Frenchmen have no money left, as you can see from the above reasoning, we are very smart, advanced thinkers.

    Isn't spending yourself broke an example not of smart thinking but of shortsighted stupidness?

    No, we are smart thinkers.

    That is why we now have regular weekend riots each Saturday all over our country about how we need to spend piles of money we totally don't have. Because we are so enlightened about national finances. You should listen to us.

    “The problem with socialism is it runs out of everybody else's money”.

    Until it finds yet another pile of money that doesn't belong to them to pillage.

    Socialist Moral:
    “They have money, it is only moral that they give a big part of it to us to spend, on whatever.”

    Apr 13th, 2019 - 11:42 pm 0
  • DemonTree

    The Euro was a mistake from the beginning. Tying strong economies like Germany's to weaker ones like Greece and Spain was always going to cause problems. Germany has benefited from the currency union keeping prices for their exports low, allowing them to sell more and generate a huge surplus. But if they want the Euro to survive, closer integration and even funnelling money to the poorer members will be unavoidable. The US states all use the dollar, which means a place like Alabama can't devalue their currency in order to compete more effectively with New York. But this only works because all states share the burden and the richer ones subsidise the poorer ones. For Europe, the alternative would be going back to the old national currencies, or at least splitting the Euro into two, with a stronger and weaker version for different countries.

    By my reading of the article, it sounds like Le Maire wants Germany to spend money inside their own borders, to prop their economy and stop it falling into recession, which would have a knock-on effect on the others. And he also said France should pursue economic reforms and shore up their finances, which doesn't sound like he approves of unsustainable spending. Is there anything objectionable in that?

    Apr 14th, 2019 - 10:16 am 0
  • bushpilot

    Maybe this article doesn't have as much signifigance as the way it is presented makes it seem to.

    But, no. I don't see anything objectionable to someone not approving of unsustainable spending.

    So, why is there a need to put their books in order? Is this a very dominant objection?

    Why aren't they in a position to pre-empt a coming recession themselves?

    How does somebody that has trashed their house now turn around and say, “we will now tell you how to run your house”?

    Does the german finance ministry have any fiscal acumen that can be applied to pre-empting a recession? Can their judgements on this issue be more trusted than those of the french finance ministry? (demonstrations every Saturday)

    Germany and the Netherlands need to spend hard cash, they need to do something real. France just needs to be “determined” to be able to do so “one day in the future”, “with results”.

    Nice piece of thinking there.

    “You give hard cash, I give words, so I should be telling you what to do”.

    “No, I don't have to give hard cash too, I don't have any anymore, a situation which completely validates my standing to be telling you what you are doing wrong with your cash.”

    However, France also has a viable military which means a very expensive military. I'm glad they have a military, I don't object to that either.

    The U.S. is no great example of fiscal acumen either. And they have opinions on what Germany should do with their Geld too.

    Apr 14th, 2019 - 02:11 pm 0
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