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Policy Contribution

Rethinking Franco-German relations: a historical perspective

Franco-German relations as the ‘engine’ of European integration are widely perceived to have stalled in recent years. This policy contribution assesses what the Franco-German relationship can achieve, what its shortcomings are, and what it means for the wider governance of the euro area and the European Union.

By: Date: November 7, 2017 Topic: European Macroeconomics & Governance

Franco-German relations as the ‘engine’ of European integration are widely perceived to have stalled in recent years. German economic and political strength, coupled with relative French economic and political weakness, help to explain this situation.

The re-election of Angela Merkel and the election of Emmanuel Macron in 2017 created a new potential basis for a strong, like-minded Franco-German alliance that would be able to agree on substantial policy issues. It is therefore a good time to assess what the Franco-German relationship can achieve, what its shortcomings are, and what it means for the wider governance of the euro area and the European Union.

An examination of some of the past major Franco-German agreements reveals a more complex picture than is usually recorded. The Schuman Plan (1950), the European Monetary System (1979) and the Maastricht Treaty (1992) left their mark as European integration milestones, but were also one-sided or incomplete policy agreements.

The future Franco-German relationship faces three issues that European policymakers should bear in mind 2017: (a) notwithstanding the new dynamics of the twenty-first century, a Franco-German agreement remains a critical and symbolic step necessary for reaching an EU agreement; (b) past Franco-German bargains were often one-sided and incomplete, and could not provide a definitive response to European challenges; (c) most of these agreements also involved critical input from other EU members, and suggest that the Franco-German tandem alone cannot lead the EU27 in the twenty-first century.

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Blog Post

The EU’s poverty reduction efforts should not aim at the wrong target

The EU cannot meet its ‘poverty’ targets, because the main indicator used to measure poverty actually measures income inequality. The use of the wrong indicator could lead to a failure to monitor those who are really poor in Europe, and a risk they could be forgotten.

By: Zsolt Darvas Topic: European Macroeconomics & Governance Date: February 18, 2020
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Policy Contribution

FDI another day: Russian reliance on European investment

Most foreign direct investment into Russia originates in the European Union: European investors own between 55 percent and 75 percent of Russian FDI stock. This points to a Russian dependence on European investment, making the EU paramount for Russian medium-term growth. Even if we consider ‘phantom’ FDI that transits through Europe, the EU remains the primary investor in Russia. Most phantom FDI into Russia is believed to originate from Russia itself and thus is by construction not foreign.

By: Marta Domínguez-Jiménez and Niclas Poitiers Topic: Global Economics & Governance Date: February 17, 2020
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Opinion

Berlin will make or break the European Green Deal

€1 trillion isn't enough for the European Green Deal and the EU's fiscal framework is constraining public investment. "Mrs Merkel, tear down this rule".

By: Grégory Claeys and Simone Tagliapietra Topic: Energy & Climate Date: February 3, 2020
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Past Event

Past Event

Take a chance on me: Sweden considers the Banking Union

This event will discuss if Sweden should join the European banking union and the general state of the union.

Speakers: Fredrik Bystedt, Elena Carletti, Maria Demertzis and Pawel Gąsiorowski Topic: Finance & Financial Regulation Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: January 29, 2020
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Blog Post

A European anti-money laundering supervisor: From vision to legislation

In fighting anti-money laundering, the European Commission should act fast toward creating a central supervisory authority.

By: Joshua Kirschenbaum and Nicolas Véron Topic: European Macroeconomics & Governance Date: January 24, 2020
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Past Event

Past Event

The state of health in the EU and the digitalisation of health promotion

The panellists at this event reviewed the general state of health as well as the digitalisation in the industry.

Speakers: Stefania Boccia, Caroline Costongs, Katarzyna Czabanowska, Zsolt Darvas, Guillaume Dedet, Martin Dorazil, Josep Figueras, Joanna Kokot, Martin Seychell and Michael Strübin Topic: European Macroeconomics & Governance, Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: January 22, 2020
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Past Event

Past Event

Partnering with Europe on responsible AI: a conversation with Sundar Pichai, CEO Google and Alphabet

At this event, Google's and Alphabet's CEO Sundar Pichai will elaborate on his views on Artificial Intelligence.

Speakers: Sundar Pichai and Guntram B. Wolff Topic: Innovation & Competition Policy Location: SQUARE, Mont des Arts, 1000 Brussels Date: January 20, 2020
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Podcast

Podcast

Banking after Brexit

Will Brexit damage Britain's financial services industry? Or is talk of its diminished status just a storm in a teacup? The City of London could move closer to Wall Street or it might become "Singapore-on-Thames". Nicholas Barrett talks to Rebecca Christie about banking after Brexit.

By: The Sound of Economics Topic: Finance & Financial Regulation Date: January 16, 2020
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Policy Contribution

Market versus policy Europeanisation: has an imbalance grown over time?

This Policy Contribution tests the hypothesis that an imbalance has grown in Europe over the last few decades because markets have integrated to a greater extent than European-level policymaking, potentially creating difficulties for the democratic process in managing the economy. This hypothesis has been put forward by several authors but not so far tested empirically.

By: Leonardo Cadamuro and Francesco Papadia Topic: European Macroeconomics & Governance Date: January 9, 2020
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Opinion

The Green Deal is not just one of many EU projects, it is the new defining mission

The EU has already invested so much of its political capital into the green transition that a failure to deliver would severely damage its legitimacy.

By: Jean Pisani-Ferry Topic: Energy & Climate Date: January 3, 2020
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Working Paper

A new look at net balances in the European Union's next multiannual budget

Whenever the European Union’s budget is discussed, much of the political focus is on net balances – whether countries pay in more than they receive – rather than on the broader overall positive effects of EU spending. The largest net contributor countries have sought to limit their contributions, leading to the build-up of an ad-hoc, complex, opaque and regressive system of revenue corrections.

By: Zsolt Darvas Topic: European Macroeconomics & Governance Date: December 12, 2019
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Blog Post

Non-performing loans’ legacy versus secondary markets

Eleven years since the start of Europe’s financial crisis, and the legacy of non-performing loans in the EU, though much smaller, is still a live issue for some member states.

By: Joanna Surala Topic: Finance & Financial Regulation Date: December 10, 2019
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