German Hard Economic Stance Hurting France
President’s Macron reputation as the most credible political leader in Europe is under speculation right now. This situation arises from his political and economic alliances with the German government. Germany is in political and economic shambles to state categorically and it appears any party that sides with them fall.
President Macron appealed to the Germans long before ascending to power. His frequent visits to the country were all but to affirm his cooperation with the number four economy in the world. When he landed the Presidency, unlike other politicians, he stuck with his word. Proving that for sure this is a credible politician. Little did he know that this would lead to his headache once in office.
Germany’s insistence on enforcing what others refer to as crude immigration and economic policies is causing Macron problems. In what appears to be Macron’s increasing lack of patience with the German’s, experts are now calling for mediation.
The Hero of Dublin, Jean-Claude Juncker, is the most suitable man to bring the German Chancellor and French president together. Experts hail him for the way he handled the 1996 feud between French President Jacques Chirac and German Chancellor Helmut Kohl. The two were feuding over the presidency of the European Central Bank.
German Reasserting Dominance
What President Macron might have noted way too late was the Germans’ attempt to reassert their dominance in Europe. Their strong economic position was the main tool of assault in this regard. Macron’s decision to take a reformist approach to please the Germans landed France in the rat race that it is in currently.
Rising unemployment, a year of protests that are still ongoing and rising poverty levels are some of the challenges Macron is facing. While a 1.3% anticipated economic growth for 2019 remains positive, the reality on the ground is different and quite shocking.
Macron is quickly losing political ground with opinion polls now placing him at par with his biggest rival. Subsequently, the country has the fourth-largest unemployment rate in Europe at 8.5%. The situation gets even dire when you look at other metrics. According to reports in September, 14.7% of the population in France which equals 9.3 million people live below the poverty line. This is a 0.6% increase within three years.
Germany Being Germany
In what seems to be its traditional style of dealing with other partners, Germany is playing hardball with France. The German government called out France for what it calls excessive budget deficits running up to 3.2% of the 2019 GDP. Economists expect this to go down to 2.3% of the GDP in 2020.
The German government also appears not to be interested in stimulating its domestic demand. The proof is seen in its exports growing by an annual rate of 4.6% in September. France imported 40.1 billion euros worth of goods. This is half the value of exports that Germany did last year.
As the uncertainties continue to ravage the Eurozone, experts are advising against Macron picking a fight with the Germans. Experts continue to watch what the most credible politician in Europe will do next.
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