Wording in the coalition treaty
However, the wording in the coalition treaty together with the allocation of the
Foreign Office and the Finance Ministry to the SPD can be seen as an indication
of some change of minds.
While (euro) crisis management has dominated the
last years, not least under the grand coalition 2005-2009, the next government
emphasises its will to join with France in providing a fresh start for Europe and
improve the resilience of the euro area.
The benign economic environment and
the favourable European election calendar with less national elections ahead
should help to take decisions on EU-level. The coalition parties CDU/CSU and
SPD are signalling that Germany is prepared to constructively contribute to
compromises on the various challenges ahead. While the positive language will
be welcomed in European quarters, the devil will be in the detail when it comes
to balancing the priorities.
Compared to other policy chapters, the coalition agreement does not add much
more substance to the E(M)U policy part than had been laid down in the
sounding paper a week ago. The coalition partners commit themselves to reform
the euro area in close partnership with France.
They want to advance fiscal control and economic cooperation in the euro area and review the presented
proposals accordingly. None of the usual – controversial –catchwords in this
context, e.g. An EA budget or finance minister, are mentioned, though. Instead,
the coalition agreement clarifies that the Stability and Growth Pact will remain
the guiding principle and that stability and growth have to be seen as
complementary.
EU Forecast
euf:ba18.d:132/nws-01