According to Del Spiegel, France and Germany are having secret discussions about a deal that will give the European Commission the ability to have the 2015 budget draft of Paris approved, though it gets past commitments that will cut deficits.
Based on the same source, both governments are now working on some written agreement that is going to let France provide the European Commission a comprehensive roadmap for structural reform and deficit reduction.
In return, the repeated flouting of France of its promise to bring the budget deficit into the 3 percent of the national output ceiling of the euro zone will be overlooked by Germany. It would also oppose all sanctions that might be proposed by the European Commission.
The report was played down by Berlin, with an official from the government of Germany saying that it’s wrong and no agreement exists.
On Wednesday, the talked-about 2015 budget of France was presented to Brussels, as well as risks turning into the first country in the euro zone to get the fiscal plan it has rejected using new rules as its bases, which may eventually lead Paris into being forced to pay certain fines.
According to Der Spiegel, Berlin, though it has a strong fiscal discipline advocacy, is not into triggering a full-blown euro zone heavyweight clash.
One of the German government’s high-ranking members said that the official French budget rejection to be done by the European Commission is going to hurt the relationship of France and Germany massively.
Also, the growing manifestation of the stagnation in the economy in the area of single currency has already raised the pressure that Angela Merkel, the chancellor of Germany, is feeling when it comes to taking a stance that is less rigid.
On the other hand, politicians in Berlin are arguing in public saying that they shouldn’t depend on the two capitals when striking deals on the Commission’s behalf.
