Contents page 1 — Germany-on-the-apparatus-page 2 — At the end of the currency and a modest amount is likely to remain On a page

The Text has become a little longer. A total of more than 20 pages comprise the working papers of the Federal Ministry of Finance, which outline the “basis for negotiations at the European level” in the upcoming Reform of the currency Union.

the documents available at the TIME, the Federal government, for the first time, specifically, on the initiative of the French President, Emmanuel Macron wants to respond. Has submitted more than a year ago an ambitious Plan for a far-reaching conversion of the Euro-Zone, with a common Finance Minister, a common budget and a common Parliament.

The response to these proposals is something like the journeyman’s piece of Olaf Scholz. He is the responsible Minister, it is his theme. Scholz has always negotiated with his French counterpart Bruno Le Maire. He has met with negotiators from Northern States such as the Netherlands, because this can start with the Paris proposals, nothing.

In the center of the Expansion of the crisis Fund, the ESM is now a European monetary Fund. The ESM is allowed to previously awarded credit only to countries that have been hit by a serious crisis – and only if these countries implement in exchange for tough reform conditions. Now, the Fund should receive a new credit line, which can also take economically sound countries, without reforms to be implemented. The logic: In other regions of the world such a country would be supported, if it is detected by a crisis, by its Central Bank. The Euro countries have no Central Bank. Therefore, the new monetary Fund to take on this task.

first use was discussed in Brussels already, He could secure the rest of the Euro countries, if the conflict with Italy escalated and it comes to turmoil in the financial markets. The conditions, however, are strict: The countries concerned have to be faced with “asymmetric economic shock outside of its political control”. And you have to comply with European budget rules. Specifically, The budget deficit must be less than three percent of economic output, the debt ratio must not be more than 60 percent of the economic output.

This article dates back to the TIME no 48/2018. Here you can read the entire issue.

If the rate exceeds this threshold, it must demonstrate that it has reduced in the three years before applying for the loan by at least 0.5 percentage points annually. Italy could get at present, not a loan. For over-indebted countries a kind of insolvency procedure is to be introduced. However, it is not foreseen that these countries are “automatically” sent to the bankruptcy, if you apply for a loan. Justification: This would exacerbate crises.

The proposal follows a pattern that runs through all the documents: Where Macron is a policy visions Scholz on technical Details. And where Macron on the Gas, occurs Scholz on the brake. This is also shown in the Euro-Budget. The French wanted several Hundred billion euros. The idea: From this pot will be funded investments, and countries supported in economic Distress. Scholz insists that this Budget is part of the General EU budget. It would feed mainly from previously non-designated contributions from the member States and whether there is additional money, is unclear.