France and Germany Agree Upon Speeding up Deficit Elimination Procedures

France and Germany want a speeding up of the procedures in the deficit countries within the European Union and particularly the imposition of sanctions of a financial nature, said French Economy Minister Christine Lagarde at a joint press conference with German Minister Wolfgang Schäuble Finance in Paris. “We raised the main mechanisms of strengthening European economic governance and for us both, what matters most today is the commitment of States to respect the provisions of the Stability and Growth Pact, ” Lagarde said after the bilateral discussions she had with Schäuble. The European Stability Pact stipulates that the deficit in each Member State should be at 3 % of GDP and as of today the amount exceeds the vast majority of EU countries.

During their talks, Lagarde and Schäuble also talked about the possibility of imposing sanctions of a financial nature, mainly in the form of a sum to be paid by a State that violates “the 3% limit. Under it, France and Germany have their priority financial stability and strengthening the Stability Pact, in particular “sanctions that are effective and can be implemented.

Paris and Berlin want enforcement and “civil penalty “as” the suspension of voting rights in Member States where more than serious and / or repeatedly limit the deficit under the EU Stability Pact, according to text was published after the joint press conference Lagarde and Schäuble. Political sanctions such as suspension of voting rights should be imposed on Member States in breach seriously and / or several joint commitments, considering the French and the German Government at this text.

“This mechanism should be included in any revision of the Treaty ” the EU can be accepted in future be added to this text. Pending such a review is an alternative policy without legal restriction and could take the form of a political agreement. Once we signed a joint letter to the EU President Herman, including a joint Franco – German proposal to improve financial management and strengthening the Stability Pact”, was also added to Lagarde in an interview with Schäuble.