Cold comfort from Chancellor Kohl
Thursday 07 December 1995
Around the time of their last meeting, the Germans had privately begun referring to France as the "patient". It was this sort of talk that finally prompted Mr Chirac to declare, after months of shilly-shallying, that cutting the public deficit was his priority of priorities. Now the priority is being acted upon, and the patient is in high fever. But Mr Chirac is likely to look in vain for any meaningful act of sympathy. He will get, of course, the solemn affirmation of Franco-German solidarity on everything, which in any case is always recycled as a matter of course at these summits.
On substance, however, Mr Kohl can afford to be at his most self-righteous. Despite the burden of unification, equivalent to transferring to the east each year some 5 per cent of GDP, Germany has succeeded, through the recession of 1993 and 1994, in driving down its public deficit to below the Maastricht criteria level. France and Britain, in more favourable economic conditions, have failed to achieve as much. Kenneth Clarke has just pushed back his deficit reduction timetable by another year, so that Britain should come in under the 3 per cent bar in 1997.
President Chirac, however, has less room for such sleight of hand - stepping up to the mark on EMU is a matter of honour, and the pressure of international market scrutiny is that much greater on France. The biggest problem is that the French economy is crawling along on annualised GDP growth of under 1 per cent, and unemployment is rising again: hardly ideal fundamentals for deficit-slashing. That was the whole point of the convergence criteria. They were not meant to offer choice, just Teutonic virtue.
- 1 Crystal meth addict 'gouged out his eyes and ate them' while high on drug, Australian MP claims
- 2 As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
- 3 The ten most unequal developed countries in the world
- 4 Saudi Arabia 'seeking to head United Nations Human Rights Council'
- 5 Toddler throws a tantrum at the White House – in front of Barack Obama
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
Report finds that Britain's wages are the most unequal in Europe
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
The day that Britain resigned as a global power
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...