Special treatment for Germany discomforts Europe

Within the framework of the European Semester, the European Commission has today published its assessment of EU Member States’ reform efforts. As a key pillar of these so-called country reports, the Commission has scrutinized EU countries that cause macroeconomic imbalances and thereby contribute to the destabilisation of the eurozone.

These “in-depth reviews” form the basis of the potential “Macroeconomic Imbalance Procedure”, which the Commission may trigger if the in-depth reviews conclude that member states have caused excessive imbalances. In addition, the country reports cover the macroeconomic and social situation of the EU countries, the implementation of the country-specific recommendations from the previous year, and take stock of the budgetary situation within the member states.

Commenting on the publication of the reports, Greens/EFA financial and economic policy spokesperson, Sven GIEGOLD, said:

"The EU Commission is using double standards. When it comes to the breaking of rules, the EU Commission treats Germany more leniently than Italy or France. While Italy is facing toughened austerity measures, the EU Commission is reluctant to start a procedure against Germany. The special treatment of Germany evokes a discomfort in Europe. It nourishes the reproach of a German Europe. If the EU Commission consistently applied its own rules, it would have to initiate proceedings against Germany's high export surplus, which threatens the proper functioning of the Economic and Monetary Union. The European Commission’s unequal treatment of countries damages cohesion in Europe.

"Yet because of benevolent self-interest, Germany should increase its spending on investment and specifically raise low wages. This improves the living conditions in Germany, instead of pushing our partner countries further into debt. Conversely, France and Italy must intensify their economic reform efforts geared towards social and environmental sustainability.”

European Semester Winter Package: http://europa.eu/rapid/press-release_IP-17-308_en.htm

European Commission’s latest country report on Germany: https://ec.europa.eu/info/file/96680/download_en?token=nd9QlBAW

Country-Specific Recommendations for Germany from the last European Semester Process (2016), as proposed by the Commission and voted by the Council:  http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32016H0818(05)&from=EN