Leading economists from Germany and France have jointly developed a comprehensive reform agenda for Europe’s two largest economies, commissioned by the governments in Berlin and Paris. Documents outlining the proposals, set to serve as a foundation for the Franco-German ministerial meeting in Toulon on Friday, detail potential overhauls in areas spanning labor markets, economic growth, energy policy, defense and relations with China, according to reports in the “Frankfurter Allgemeine Zeitung”.
Monika Schnitzer, chair of the German Council of Economic Experts and lead coordinator on the German side, emphasized the urgency of implementing reforms. She highlighted a limited timeframe for action due to the current political situation in France and the upcoming presidential elections in 2027, stating, “Now is the time for action; this represents a historic opportunity.
The researchers advocate for increased research funding modeled after the U.S. system, with capital directed towards projects poised for technological advancements. In defense policy, the economists call for a “radical shift in European rearmament strategy” including “large-scale technology programs” in fields like robotics, space exploration and hypersonic weaponry. They also propose the creation of a unified European market for defense goods and joint procurement processes.
Specific proposals within Germany include the phasing out of early retirement at age 63 and a revision of the tax benefits afforded by marital status. Regarding energy policy, the report criticizes a “glaring lack of coordination” that threatens both security and prosperity and could place the two economies “on a collision course”.
