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Social democrats of Germany want rapid reforms in the euro area

GERMANY (OBSERVATORY) –¬†German Social Democrats have increased pressure on conservatives of Chancellor Angela Merkel to support proposals for reforming the eurozone, as agreed in their coalition deal, Reuters reports.

Merkel’s conservatives want to limit its ability to carry out reforms in the euro area, according to documents that were reviewed in Reuters. These plans could damage Germany’s relations with France on the eve of the visit of the head of the Fifth Republic, Emmanuel Macron, to Berlin this week.

“Europe has been waiting for Germany for more than a year,” said Karsten Schneider, a senior member of the Social Democratic Party of Germany, referring to unusually long attempts to form a government coalition in Germany after the September 2016 elections.

“It’s time for us to realize our responsibility,” Schneider told ARD.

Conservative lawmakers should discuss the euro zone reforms in the very near future, this should happen before Macron’s visit to Berlin, which is scheduled for April 19.

The draft resolution of German legislators, drawn up by the leading members of the conservative bloc Merkel, rejects the plans of the European Commission for the creation of the European Monetary Fund (EMF).

Instead, conservatives say that the creation of such a fund in accordance with European law will require the amendment of the treaty “in consultation with national parliaments,” which is a complex step that will take quite a long time to implement.

Schneider said that creating an EMF automatically does not mean that Germany had to pay more money for other European countries.

It was also “absolutely clear” that any move to promote the existing eurozone rescue fund, the European Stability Mechanism (ESM), at the EMF would not change the veto power in national parliaments, he added.