Preparedness to spend more money on Europe
Beyond that, the coalition parties are explicitly prepared to spent more money
on Europe.
To a certain extent this is stating the obvious given the need for
partial compensation of Brexit related revenue losses (UK being the second
largest net contributor to the EU budget) or stronger efforts in defense and
external border management resp. Migration policy but weakens the chances of
a significant reform of the EU budget structure. The parties also back specific
budgetary means for economic stabilisation and social convergence as well as
the support for structural reforms in the EA that could form the nucleus for an
investment budget for the EA.
This relates to the demands by the French
President for a better absorption of asymmetric shocks but also to earlier
German proposals for so-called partnership contracts (2013) that could provide
fiscal incentives for structural reforms.
EU Forecast
euf:ba18.d:136/nws-01