The EU can create a single budget to mitigate the difference in the development of economies of member countries. On Tuesday, June 19, German Chancellor Angela Merkel and French President Emmanuel Macron, with the participation of members of the governments of both countries, agreed to create a single eurozone budget in parallel with the existing EU budget, according to a DW report.
The new budget will be put in place by 2021, but details on how it will be financed still need to be worked out.
Merkel said the new budget should facilitate investment growth and lead to a gradual smoothing of the difference in the development of the economies of countries in which the single European currency operates.
“We are working to make sure that the eurozone budget will be used to strengthen investment, also with the aim of strengthening convergence within the eurozone,” Merkel said.
Macron, in turn, said that this would be “a real budget with annual revenues and spending.”
It is expected that details of the budget will be unveiled before the end of this year.
Germany and France are seeking to revamp changing the European stabilization mechanism, established in 2012 to fight the debt crisis in the EU. It is proposed to transform it into the European Monetary Fund, which is intended to assist the countries of the European Union that are facing financial problems.
Earlier, the French president said he wants to offer Europe a new strategy by the end of the year and does not believe that a solution to the crisis may be a rejection of globalization.
Before that, the German Chancellor said that the EU should act more cohesively on the world scene and speedily make decisions.