Despite his anti-austerity rhetoric on the campaign trail and her open support for Nicolas Sarkozy, François Hollande and Angela Merkel are expected to make compromises during their first meeting on Tuesday. In the euro crisis, the pair has no choice but to get along.
Personal dealings with Hollande, for example, might be easier than they were with his predecessor. He's considered a pragmatic and amiable politician who seeks compromises. Merkel also believes that Hollande could help to improve Germany's image in Europe. She worries about the vehemently anti-German reactions in many European countries that are suffering under austerity measures. In that sense it could suit her well if Hollande were able to claim that he convinced the Germans to soften their position.
It has only been since Hollande's election on Sunday a week ago that staff for both the president-elect and the chancellor have begun speaking directly to each other. In the days since, they have been intensively preparing for the leaders' first meeting. On Friday, Merkel's spokesman Steffen Seibert said the goal of the meeting would solely be for the two to get acquainted with each other and that no decisions would be made.
Merkel has made clear to Holland that she has drawn a red line that the chancellor will not allow to be crossed: The fiscal pact cannot be weakened. She is expected to insist on this during the very first meeting. But officials in the Chancellery also know full well that the new French president cannot return home to Paris empty handed.
Merkel is already prepared to agree to complement the fiscal pact with a growth component. This would allow Hollande to explain to voters that he was able to prevail with his demand for an end to strict austerity policies. The measures planned include allowing EU structural funds to be used to invest in new projects. Hollande can also already claim victory on one point. Merkel has no fundamental objections to a plan to increase capital at the European Investment Bank, the EU's investment arm, by €10 billion ($12.86 billion), a move that would increase its lending capacity to €60 billion. The project bonds that Hollande is proposing to finance major infrastructure projects, for example, could also become a reality. Merkel is prepared in principle to agree to the project bonds -- as long as they don't cost Germany anything.
Read more: Merkel Likely To Compromise with Hollande on Several Points - SPIEGEL ONLIN
No comments:
Post a Comment