The Strategist

German social democrats are urging for rapid reforms in the euro area

04/18/2018 - 15:10

German Social Democrats have increased pressure on conservatives of Chancellor Angela Merkel to support proposals for reforming the Eurozone, according to their coalition agreement, Reuters reports.

Those conservatives that support Merkel also want to limit her ability to carry out reforms in the euro area, says Reuters referring to files. These plans could damage Germany's relations with France on the eve of Emmanuel Macron’s forthcoming visit to Berlin.

"Europe has been waiting for Germany for more than a year," told a senior member of the Social Democratic Party of Germany Karsten Schneider, referring to unusually long attempts to create a government coalition in Germany after the September 2016 elections.

"It's time for us to realize our responsibility," Schneider told to ARD TV channel.

Conservative lawmakers should discuss reforms in the euro zone reforms in the very near future, and this should happen before Macron's visit to Berlin, which is scheduled for April 19.

The draft resolution of German legislators, composed by members of Merkel’s conservative bloc, rejects the plans of the European Commission to create the European Monetary Fund (EMF).

At that, conservatives tell that in accordance with European law, such a fund would require an amendment of the treaty "for consultation with the national parliaments". This is a complex step that will take quite a long time to implement.

Schneider said that creating an EMF does not imply that Germany had to pay more cash for other states of Europe.

It is also "absolutely clear" that any move to promote the existing euro zone bailout fund - the European Stability Mechanism (ESM) - at the EMF will not change the veto power in national parliaments, he added.