Finance Minister hails "historic step" for Euro Area

Euro Area – Reply by M. Bruno Le Maire, Minister of the Economy and Finance, to a question in the National Assembly

Paris, 20 June 2018

A historic step was taken in strengthening the Euro Area yesterday.

The German Chancellor and the French President reached agreement on a fair taxation of digital giants by the end of 2018, and on corporation tax convergence – an issue France and Germany have been working on for 10 years.

For SMEs it means more growth, more development and more market prospects.

France and Germany reached agreement to strengthen the banking union and give ourselves a safety net. Were another financial crisis to break out in the Euro Area tomorrow, we would have stronger instruments to protect French savers and French banks.

Germany and France have finally agreed to give the Euro Area a budget.

That was the promise the French President made in his speech in the Sorbonne in September. The promise is being kept: Germany and France are in favour of the Euro Area having its own budget.

This budget should enable us to face up to economic crises that would affect one country or another, whereas those countries are on their own today when they face an economic crisis. It should also enable us to invest, finance innovation and research and have businesses which do better, are innovative and succeed in the face of technological revolutions.

In the economic world today, there’s a confrontation between the United States and China, two continents that matter. This strengthening of the Euro Area should enable us to ensure that another, economically solid and prosperous continent emerges, that of the European continent./.

Published on 08/01/2020

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