John Macdougall | AFP | Getty Images
French President Emmanuel Macron (L) is greeted by German Chancellor Angela Merkel (R) prior to talks at the Chancellery in Berlin on May 15, 2017.
“Macron has said that he needs to reform France first, before he can discuss deep euro area reforms with Germany,” Gros from CEPS recalled. “He is not asking for German taxpayers’ money nor Eurobonds. So the most likely compromise will be resources for more investment.”
In June 2015, the European Commission published the so-called Five Presidents Report in which European Commission President Jean-Claude Juncker, along with European Council President Donald Tusk, Eurogroup President Jeroen Dijsselbloem, former European Parliament President Martin Schulz and European Central Bank President Mario Draghi outlined their ideas for how to further integrate the euro area. They admitted the possibility of a debt mutualization instrument – Eurobonds, and the creation of a euro zone finance minister.
“I predict that we might have at some point somebody called initially finance minister, but with few powers over and above those of the (European) Commission today,” Gros said. The executive body oversees countries’ economic performances and has the ability to fine them if they do not comply with certain rules, though such power has never been used.
“I think that a euro zone finance minister, some reshuffling of European funds to get closer to a euro zone unemployment insurance and further policy harmonization are the most feasible next steps,” Carsten Brzeski, chief economist at ING, told CNBC via email.
“The real huge steps towards financial burden sharing, tax harmonization and loss of national sovereignty are still highly unlikely to happen, even though they should,” he added.
The European Union has begun discussing what path to take now that the U.K. is preparing to leave the Union. The European Commission has put five options on the table but it is too soon to see which one the 27 will opt for.
No matter the path that will be chosen, France’s new president will be a crucial figure.