The European Union may face a conflict of interests again. This time it involves two leading countries of the EU. The social party of France criticizes the actions of the German government in general and of Angela Merkel personally. The socialists announced that Merkel's egotistic intentions were only to save the capital on the German deposits, to maintain the balance of trade, and to invest in her own electoral future. The French ministers also expressed their opinions. The French Minister of Social Economy and Consumption said that it is time to do away with the austerity policy in Europe. “Only Merkel supported by some Nordic countries believes in efficiency of these measures. As for the rest politicians, it is obvious that there are no prospects of reducing unemployment.”
Previously President of France and the head of socialists Francois Holland agreed to sign the European Stability and Growth Pact managed by German Chancellor. According to this document, at the end of the year the national budget deficit had to be less than 3% of GDP. To achieve this goal, France increased the taxes to 20 bln euros and decreased the expenses to 10 bln euros. But even these steps were not enough to adhere to the 3 percent limit. The Cabinet is sure that Germany in this crisis situation feels better than any other EU country. The glaring evidence is the fact that youth unemployment in Germany is 7.7%, while in Greece it is as high as 50%.
The government of Germany, in its turn, considers the claims of France unfounded. The French try to cover their defaults concerning to the Pact. “France bothers us the least. Probably this country needs one more year to reduce deficit to 3% of GDP. For now we can put on with that,” announced the Merkel's CDU/CSU fraction representative on fiscal policy Norbert Barthle. Despite the discontentment among its neighbors, Germany calls for tranquility and for the realistic estimation of the current situation. Angela Merkel noted that there is no austerity measures in Europe at all.
