The future of the EU depends on an upcoming large-scale reform which will hardly succeed without mutual understanding between France and Germany. Fortunately, the two largest eurozone’s economies have been able to come to a compromise and started to work on a joint reform roadmap.
The first draft should be submitted to the European Commission in July. However, successful implementation of these reforms could be complicated by the victory of euroskeptic parties in Italy’s election. “For those who will have to draw the Franco-German blueprint, the message from Italy is that the policy framework that has dominated Europe since the mid-1980s no longer commands broad support. For three decades, the consensus on the need for market reforms and sound public finances has been strong enough to overcome opposition in small countries (Greece) and outlast procrastination in large ones (France). In the coming years, however, the eurozone playing field may well become a battleground,” Jean Pisani-Ferry, Commissioner General for Policy Planning, comments on the situation.
Financial relations within the EU are the matter of major importance on the agenda. At present, there is no legislation to guarantee a strict observance of the fiscal rules by all countries of the euro bloc. Sanctions and a threat of exit or even removal from the EU are certainly not a satisfactory solution. Therefore, Germany and France assumed responsibility for developing a clear-cut and viable mechanism of settlement of disputes, including financial ones. This will simplify a path for the better future.
