Germany and France Team Up On a Budget Deal

By Catherine Kent

Reuters reported on Sunday that Germany and France are secretly discussing a deal that would allow the European Commission to approve Paris’s draft 2015 budget, despite the budget exceeding European Union debt limits. The agreement sets a blueprint for France to reduce its deficit and undergo structural reform. This deal is important to Germany, because it would avert a clash between two of the Commission’s prominent players, and foster German-French relations.

If this draft works, Germany will oppose any sanctions that the European Commission proposes and France will side-step the EU’s austerity measures. On Wednesday,  France will propose its rule-defying draft in Brussels, and face the grim possibility of fines if the draft is rejected.

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