Germany and France have agreed on a joint proposal for the structure of the planned budget for the euro area. The four-page paper, which the Reuters news agency was able to see today, states that the new tool should be part of the EU budget and promote reforms in the member states.
Overall, more economic growth is expected and countries will become more competitive. Also, the differences between the member states are to be reduced. The paper could pave the way for an agreement at the next meeting of Eurozone finance ministers. Most recently, the Netherlands and some EU states from the north had expressed doubts as to whether there should be a separate budget for the Eurozone.
The paper also states that Member States could regularly contribute on the basis of an intergovernmental agreement. Money could also come from the planned financial transaction tax. The funds could then be used for direct investments and guarantees for financing.
The EU leaders agreed at their summit in December after a long struggle for a stripped-down eurozone budget. The background to this is reform proposals by French President Emmanuel Macron. The German Finance Minister Olaf Scholz had advised on Tuesday with his French colleague Bruno Le Maire. Both countries now want to seek a dialogue with other EU partners. An agreement at the European level will be reached by the summer.