12 European States Revolt Against Merkel, Macron Plan To Reform Europe

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Originally appeared at Zero Hedge

Two days ago, when we laid out the components of Merkel and Macron’s blueprint to reform the EU, we said that while “Macron suggested the proposal will be presented to other countries, with specifics to be worked out later this year and the plans to take effect from 2021, it was unclear how he plans to get “other countries” to vote for a proposal which has already led to the alienation of Central and Eastern Europe, Brexit and an openly populist government in Italy.”

12 European States Revolt Against Merkel, Macron Plan To Reform Europe

We did not have to wait long for confirmation, because just two days later, Europe’s two self-proclaimed leaders were facing an unexpected backlash from most other European governments against the German and French plans for a common eurozone budget, dealing a blow to the two countries’ ambitions for a big overhaul of the single currency area.

As the FT reports, the rest of Europe’s “core”, including the Netherlands, Austria and Finland are among 12 governments questioning the need for any joint eurozone “fiscal capacity”, challenging a central tenet of French President Emmanuel Macron’s vision for the eurozone that he has successfully pressed Berlin to endorse.

As we reported on Wednesday, increasingly unpopular French president Macron and the politically embattled Merkel tried to restart their close collaboration this week ahead of a wider summit of EU leaders. They agreed that a new common pot of eurozone money could be funded by a mixture of national contributions and new EU levies, such as a financial transactions tax.

Ironically, while their agreement supposedly forms part of a broader deal between Paris and Berlin on how to strengthen the currency bloc, the rest of Europe generally disagreed, which incidentally is also the reason why any attempt at “Federalizing” Europe is doomed to failure: Europeans tend to frown upon self-declared “master states” who tends to decide for everyone else, even if these states end up paying for much of the outlays (largely thanks to the presence of the EUR and the absence of the DEM).

As a result, EU diplomats said Merkel’s concession to Macron – as a reminder, having found herself isolated at home, Merkel has been forced to see support abroad – had emboldened other countries to resist the blueprint, out of concern that it would leave their taxpayers too exposed to problems in crisis-hit member states.  And, as the FT writes, the splits were observable at a meeting of EU finance ministers in Luxembourg on Thursday, with increasing signs that governments have formed competing camps with distinct visions on the direction of further integration.

According to a letter seen by the Financial Times, Dutch finance minister Wopke Hoekstra has written to Mário Centeno, the president of the eurogroup, to underline that there is “wide divergence” on the need for any budget, with a number of countries concerned about “moral hazard risks” and questions of “fiscal neutrality” posed by the plan.

The letter insisted that the lack of the agreement on the budget be clearly communicated to leaders at next week’s summit.

“There was clearly no consensus on starting to explore options” at Thursday’s meeting of finance ministers, the Dutch finance minister said in the letter, adding there was also no agreement to start exploring the use of a financial transactions tax to finance it.

And the punchline: the letter was written by the Dutch finance minister on behalf of Belgium, Luxembourg, Austria, Sweden, Denmark, Finland, Latvia, Lithuania, Estonia, Ireland and Malta.

The simple math: 2 vs 12, and it is safe to say that the rest of the eurozone is not aligned with France and Germany either.

It gets better: according to the FT, the 12 countries expands a coalition called the “Hanseatic League” (a reference to the commercial and defensive confederation of merchant guilds and market towns in Northwestern and Central Europe, which in the late 1100s, grew from a few North German towns to dominate Baltic maritime trade for three centuries along the coast of Northern Europe), an initial group of eight smaller fiscally conservative countries, which have insisted on more national responsibility to solve economic problems in the eurozone.

Meeting with vocal resistance, Berlin and Paris have insisted that the Franco-German deal on reforming the monetary union is not a fait accompli for the rest of the eurozone; it is however mandatory that at some point Europe will have to be reformed, and Germany and France will have to likely lead that effort (assuming of course that Merkel is still around). And judging by the Thursday backlash, Europe’s core has just carried out a coup.

Trying to soften the harsh reception, French finance minister Bruno Le Maire said that “it is not a take it or leave it road map. It is open for discussion for negotiations among members of the eurozone.”

And judging by the reaction, Europe is done “negotiating” when the outcome is the one pre-decided by just two nations.

* * *

But wait, it gets worse, because while Merkel and Macron may have been hoping to lay the groundwork for what Europe will look like in several years, Merkel may not make it if she is unable to find a common ground in the coming “migration” summit, and fails to provide a satisfactory answer to the CSU’s 2 week ultimatum.

As Reuters reports, Merkel played down expectations of any major breakthrough at hastily-arranged talks among EU leaders on Sunday on the migration dispute dividing Europe. Plans for the emergency meeting, before a full EU summit at the end of next week, were thrown into chaos on Thursday when Italy’s new prime minister said a draft accord on migration had been withdrawn because of a clash with Merkel.

The German chancellor is under pressure to get EU leaders at the main June 28-29 summit to agree to share out migrants more evenly to placate her conservative allies, Bavaria’s Christian Social Union (CSU). But Italy and others are very reluctant.

Initially expected to involve eight EU leaders, the Sunday talks will now bring together at least 17, according to the latest count by officials in Brussels.

“The meeting on Sunday is a consultation and working meeting at which there will be no concluding statement,” Merkel told reporters in Beirut with Lebanon’s Prime Minister Saad Hariri on Friday. “It is an initial exchange with interested member states.” She said conditions in Syria were not yet right for refugees to return. Germany has taken in hundreds of thousands of Syrians and others since 2014, and migration policy is threatening her ruling coalition.

If no “satisfactory” deal is achieved at next week’s summit, German Interior Minister and CSU chief Horst Seehofer has threatened to defy Merkel and turn people away at the German border who have applied for asylum in other EU states.

However, with Italy now taking a hardline approach and refusing to accept any more migrants, Europe finds itself in migrant chaos with no way out, one spawned by Merkel’s own disastrous 2015 “open door” policy, and absent a “Merkel Miracle” over the next week, the chancellor may be out of a job as soon as early July, with Germany facing new elections potentially as soon as September, an outcome which the SPD is already actively preparing for.

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  • Robin Wood
    • Jens Holm

      I think he is doing well making, what he was elected for reforming vital parts of the too protected french economy in all levels.

      Their main problem has been and are, they have protected French production inclusive the Govern one. By that have too many old less unproductive sectors and rules incl. in their social structures.

      By that they are now behind the ones, which they would like to compare themselves with – thats the whole german languge group.

      Danish exporters also too often meet, that our products unike or just common ones are met by by strange restrictions and limitations of the worst kind – BUT they kind of demand, they just can sell by free entrence and not any control here.

      Some could understand, if one or both exported mainly shit, but its not.

    • Wise Gandalf

      and? are you jealous?

      • Spit

        All games have an end. It is now only a matter of time.

        • Wise Gandalf

          Ruskies learned this in 1989.

  • Merijn

    Hey Mister Empereur de Júpiter Macroni Rothschild XVI… Everything kits behind the rits..? How much Money do you need from Holland? We got more then Enough, we are a Very Rich Nation… and My Government & Mr. WOPKE Hoekstra….Wopke..wtf… Already got €70 Billion from the Bank for you… just in advance… do you think you can manage with that for a couple of weeks? Then Our Dutch Citizens will have earned some more Money for you…(if you’ve got some good ideas to Tax the Dutch Folks here at home a bit more please let us know)
    Yours Sincerely Mark Rutte…

  • Sinbad2

    The US is doing to the EU, exactly what it did to Yugoslavia.
    The Europeans led by Americas greatest leader, Angela Merkel will probably succeed in starting a war among themselves.
    The champagne corks will pop in Washington when the first shots are fired in Europe.

    • Jens Holm

      Far out again.

    • Wise Gandalf

      Again false opinion. YOu learn first, after talk about the world. Yiu are nice australion ziotroll.

  • Jens Holm

    Merkel and Macron are not Leaders of Europe even germany has the biggest economy and many are affiliated with it.

    Its inflation in words as well as many dont understand EU and even democracy is hard to underfstand.

    Those 2 are welcome as any other to propose reforms, because most in EU see, that reforms are needed. Those are not Dicators as Assad and Erdogan even trying to command outr Goverment to control our free speech as he wish.

    Others are welcome to propose things too.

    My own Nilling Nullingworth oppinion is, that EU has become to big and too complicated. I would prefare parts of i was taken out or had a looser attuitude – AND – the rest was kept more 100%.

    And let me remind You many here, they mainly speak about all those millions, which prefare us from staying with You.

    Shame on You You cant give them the minimum of normal human right. I am not for, but I do understand well how Trump will be in the same room as all the ones, which work hard to ignore human rights even more.

    • la Cariatide

      germany and france has passed bills to control the freedom of speech on the internet.
      no freedom of conscience, no liberty at all.
      they just begin to fear that with the Internet we stop believing their war propaganda against Syria and about so-called ‘migrants’.

      As for BacharLeChimique, he has won the war and will be remembered as of the heroes of our time, with Vladimir Poutine, Hassan Nasrallah and the Iranians (IRGC) :)

      try again hasbara.

      • Jens Holm

        ????

        You even think France and Germany is about little midgets like You. hahaha – and inernet and lies – hahaha.

        • la Cariatide

          you don’t know my own country,halfwit.
          try to speak about Syria proxy war or 9/11 false flag in france. ‘muh conspiracy nuts’ is all you get as answer.
          just shut up slave :)

    • Mario Putzo

      Do not attempt posting in a language you don’t speak. It makes you look and sound weird.

      • Jens Holm

        ??

  • hamster

    I think somebody should grab some handy pliers, force open Merkel’s mouth, and rip every one of her teeth out by the roots. That fucking hag should retire from politics and spend the rest of her miserable life drinking fluids and eating porridge.

  • Wise Gandalf

    You, ruskies can piss gold or blood, but there will rise United States of Europe.

    • Spit

      Smart boy, You sense something. But You Just cant figure it out, its so obvious… Almost figured it out…

    • Tudor Miron

      Yes, Solomon. United Caliphate of Europe is already taking shape.

      • Wise Gandalf

        in ruskieland are more moslems. and from the last 2 years the immigration in ruskieland = over 90% moslems, bye by, Islamic Republic of Russia! :))))

        • Tudor Miron

          Tell it to those who know nothing, they might buy this BS.

          • Wise Gandalf

            I know the numbers form russian statistical bureau

            i am more educated form Russia than you :)))

      • Mario Putzo

        Shut up moron.

    • Siegfried

      Wishful thinking: you’ve lost already Hungary, Poland, Italy, Austria, Czechia. Greece is underway and TURKEY “has other worries now”..

      • Wise Gandalf

        Interesting, but in all these countries 60+% want EU.

  • Barry Warmkessel

    Macron and Merkel, puppets of the Rothschilds.

    • Siegfried

      Well, one is Rothschild but SHE is CIA-Rockefeller-BILDERBERG
      The ROTHSCHILD-puppet tries to infiltrate the BILDERBERG-flock.
      “Rothschild” are Netanyahu, Trump, Macron..

      • Mario Putzo

        There is somebody behind you, be militant.

      • Bill Wilson

        Trump is a Vulgarian.

    • occupybacon

      Merkel is also puppet of Putin, like the ex chancellor.

      • Mario Putzo

        Unlike Trump. Bozos.

        • occupybacon

          I don’t know about any US ex-president or other official working for a big Russian energy company. Germany openly shows who is her favorite friend.

          • Mario Putzo

            Trump works directly for the Kremlink, pro bono x

          • occupybacon

            Merkelistan started 2 world wars, it must obey to Donald Trump master race!

          • Mario Putzo

            ps: Merkel is in the CDU, Schroeder was in the SPD. Neither Merkel, nor the majority of Germans are happy with Schroeder but it not illegal wot work for Gazprom. Germany is a democracy so until Schroeder breaks the law there isn’t much they can do, unlike the US , its chief bozo, an his cheerleaders like yourself who do not seem to understand what a democracy and the rule of law mean.

    • Mario Putzo

      Barry Warmkessel, puppet of the Cryptonazis.

  • Drogba

    Merkel the zionist witch,who has nearly destroyed Germany with her open borders policy,is now acting like a queen dictator along with her rothschild pal macron.Time for all exit doors to be opened,the EU is a zionist shithole.

  • Spit

    Its over. it is Over.
    I predicted the complete capitulation of the European Union Last Year if the Italians went hard right.
    This is roughly how this game will now play out.
    The Italians, by going hard right will seek some kind of control over Europe from a political point of view.
    The Euro will not collapse, it will go down as a controlled demolition.
    The French will almost certainly come out on top some how, because Macron is propped up by the NWO.
    Germany is in BIG trouble.

  • Siegfried

    Two “elected Leaders” after rigged results: MERKEL and MACRON.

  • Rodger

    “It gets better: according to the FT, the 12 countries expands a coalition called the “Hanseatic League” (a reference to the commercial and defensive confederation of merchant guilds and market towns in Northwestern and Central Europe, which in the late 1100s, grew from a few North German towns to dominate Baltic maritime trade for three centuries along the coast of Northern Europe), an initial group of eight smaller fiscally conservative countries, which have insisted on more national responsibility to solve economic problems in the eurozone.”
    A very important aspect of the Hanseatic League was that the towns in it were united but most of all autonomous. There wasn’t a central Hanseatic government that dictated rules. Picking that name points to that aspect most of all.

  • Mario Putzo

    What you seem to conveniently overlook is that a federal Europe, an EU with a common currency backed by a fiscal union is the only way for it to survive. Finland and Austria might be currently benefitting from the plight of the south, but the current state is untenable. Either they abandon the euro, or take it on properly. Complacency and laziness won’t save the continent (not that the writer of this piece of garbage cares.)