Report
Patrick Artus

Should the Franco-German couple lead the euro zone?

Many people in France are calling on the Franco-German couple to lead the institutional development of the euro zone . Is it certain that this is a good idea? The dominance of the Franco-German couple displeases the other countries considerably (the Northern euro-zone countries, Italy). It must be recognised that some of these countries display real economic success, and have no desire to “ take lessons” from France and Germany. Why should countries with prosperous economies - Austria, Belgium, the Netherlands, currently Spain and Portugal - be excluded ? Is there robust common ground between France and Germany, for example on the nature of federalism or economic policy coordination? Do the large structural differences between France and Germany not lead them to have very different objectives? Given France’s structural problems (low potential growth, high structural unemployment, weak corporate modernisation , external deficit, labour force skills shortfall, public finances, etc.), is France sufficiently credible to play a leadership role in the euro zone? Would it not be better if a larger group of countries than simply France and Germany drove the euro zone’s institutional progress?
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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