France and Germany Join Forces to Combat Economic Crisis
Germany and France announced last week the creation of a joint group seeking to improve the EU’s banking situation and advance its monetary union. German Finance Minister Wolfgang Schauble said the two nations wanted to make “joint decisions” to battle the Continent’s ailing economy. French President Francois Hollande was forward enough to call the cooperation of France and Germany concerning the crisis the key to the “reorientation of Europe.”
At present, political moves in Europe are focused on creating a single regulatory entity over the European banking system. In a statement last week, President of the European Commission Jose Manuel Barroso explained:”The additional measures that Europe needs must be firmly rooted in a commitment to deeper integration. … We must go beyond cooperation and establish an EU-wide supervisory authority, particularly in the eurozone. … A single rulebook for financial services is being put in place for the single market. Building on this, a single European banking-supervision authority would open the way to direct recapitalization of banks through the European Stability Mechanism.”
The emphasis is on a single rulebook for a single market regulated by a single supervisory body. Europe wants to unite financially, which is virtually impossible without further political integration.
Der Spiegel reported this week that German Chancellor Angela Merkel is pushing for a constitutional convention before the end of the year. Hans Kundnani said such a convention could either “dramatically reshape” Europe or lead to it “falling apart.” It’s a risk, but Germany views it as a necessary one.
Germany is poised to become the power behind this single European power (see Chapter 5 of our free booklet Germany and the Holy Roman Empire). France can see that, and it doesn’t want to get left behind.
Following the precedent of former President Nicolas Sarkozy, France has been seeking an increasingly closer role with Germany. By doing so, it boosts Berlin’s influence and sway in developing European policies. Throughout history, however, the two nations have not been the most peaceful neighbors. Germany was quick to overrun French borders in two world wars, at one point occupying the country. France was once the undisputed power of Europe, but, since Napoleon, it has not been the primary power.
A report in the June 1969 Plain Truth said this: “Regardless of whoever is at the helm of France’s government, from now on you will see more chaos and instability! She will stumble from one crisis to another—playing a subordinate role to Germany! This is absolutely certain.”
Don’t think this new level of Franco-German cooperation, discussed last week, is evidence of cooperation between equals. As the 2008 financial crisis clearly illustrated, France is the lesser power of the two, and Germany is not likely to allow Paris to forget that. Germany is certain to dominate a new, unified European power, and the current banking crisis will hasten that end.