Half a Trillion Euros
Merkel
and Macron Find the Strength for Europe
A DER SPIEGEL Editorial by Peter Müller
France and
Germany have once again banded together for the greater good in Europe. Their
show of unity was long overdue.
22.05.2020, 18.12 Uhr
Germany and France have restarted the EU engine.
JOHN
MACDOUGALL/ AFP
When Emmanuel Macron talks about a
weighty new initiative, it sounds something like this: "What we have
accomplished here is sensational." When Angela Merkel introduces the same
plan, she says: "We've patched things up, so to speak, between Germany and
France."
In this case, the euphoria of the
French president seems more appropriate than the sobriety of the German
chancellor. The two want to cushion the economic consequences of the
coronavirus pandemic with a 500 billion-euro ($545-billion) recovery fund that
would apply to the entire EU. It's an historic step for the bloc and a strong
sign of solidarity from stronger member states toward weaker ones.
If Merkel and Macron have their way,
the European Commission will be allowed to take on significant amounts of debt
for the first time. The money could then be distributed as grants to member
states that have been hit particularly hard by the corona crisis. And,
according to the concept as it stands now, they wouldn't even have to pay the
money back.
To date, the German government has
been unwavering in its rejection of a "transfer union." But now,
Merkel is taking a step in that very direction. To be sure, Germany would not
be liable for the entire 500 billion. At most, it would only be on the hook for
25 percent -- the German share of the EU budget. That's why, strictly speaking,
Merkel is right when she says Germany has not consented to eurobonds, or joint
debt. Nevertheless, the current proposal would have been unthinkable in the
pre-coronavirus era.
Newfound Strength
Back in March and April, it still
seemed likely that COVID-19 could sound the death knell for the EU. Fearful
member states turned inward and began acting in their own self-interest,
posting border guards on internal frontiers and refusing to show even the
slightest hint of solidarity. Initially, Germany didn't even want to export
medical equipment. And then, the German government refused to agree to corona
bonds in order to provide aid to needy member states. The prevailing attitude
within the bloc appeared to be "every man for himself."
But now, there has been a sudden
change of heart: Germany and France appear to have enough strength leftover for
Europe, after all.
The road to compromise was longer
for Merkel than for Macron. Since taking office, the French president has been
pushing to make the eurozone crisis-proof. Among his slew of initiatives, he
has called for a common budget to help countries that run into financial
difficulty through no fault of their own. The pandemic and its repercussions
have been like a validation of this idea.
On top of that, the crisis has
further intensified countries' fears of Germany's economic supremacy. Berlin
can afford to prop up companies with subsidies, but other member states lack
the funds. A gesture of solidarity was long overdue. Fortunately, Merkel
recognized this. "The nation state alone has no future," she said
about the EU. "Germany will only prosper in the long run if Europe
prospers."
DER SPIEGEL 22/2020
SVC.OrisWFL
The article you are reading originally
appeared in German in issue 22/2020 (May 23, 2020) of DER SPIEGEL.
Politically, Merkel can afford to
cede some ground to the French president because she's currently unchallenged
in foreign and European policy. Unlike in the struggles over the euro and
Greece, she has no reason to fear rebellion from within the ranks of her party.
The recent German high court ruling regarding the questionable legality of
European Central Bank bond purchases has likewise focused minds: The days in
which European leaders could rely on the ECB bazooka have passed.
Late but Not Too Late
Now, it's up to the French and
German leaders to take advantage of their new momentum and find a way to
negotiate away the resistance of countries like Austria and the Netherlands,
both of which would prefer to get through the crisis without European debt. As
a compromise, there could be rules ensuring the 500 billion euros aren't used
to prop up the static status quo in southern Europe and are instead invested in
future-oriented projects. Because if the EU is going to burden future
generations with new debt, then those investments should at least serve their
interests, for example by protecting the climate.
But that won't be enough. On the
world stage, Europe is in danger of being crushed between China and the U.S.
There's also the migration issue, which has remained unresolved for years. On
the Turkish-Greek border, refugees have been dispersed by gunfire. In Hungary,
some were kept for a long time in camps that the European Court of Justice has
compared to prisons. These kinds of things undermine Europe's foundation at
least as much as a severe economic crisis. Without a powerful commitment from
Merkel and Macron, nothing will change for the better, unfortunately.
Germany has been late to spring to action,
but not too late. Whether this newfound courage will bear fruit will be
decisive for the future of Europe.
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