In recent years the alliance between France and Germany has fallen into disrepair. German policy-makers have ceased to respect the French point of view, because of the weakness of both the French economy and of its outgoing president.
.. Germany wants more fiscal discipline and new mechanisms to make countries like France and Italy engage in painful structural economic reform, while France wants common instruments such as ‘eurobonds’ and steps towards a transfer union.
.. lowering the state’s share of economic output (currently 55 per cent of GDP)
.. Those close to Angela Merkel and finance minister Wolfgang Schäuble doubt that Macron will achieve a great deal in the short term. These Christian Democrats are wary of his Keynesian thinking
.. Yet the conservatism of Germany’s voters and politicians makes it unlikely that Macron will get very far in redesigning eurozone governance, at least in the short term.