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France, Germany still split on eurozone reforms, French official says

Reuters  |  PARIS 

(Reuters) - and have made progress but have yet to agree on a roadmap for zone reforms, French and German officials told after ministers from both countries held talks in on Saturday.

French and German have promised to present a joint reform proposal at a summit on June 27-28, but differences remain on zone issues and regulation.

The zone's two biggest economies differ on how to balance Macron's call for more solidarity in with Merkel's insistence that tax payers in richer countries should not end up paying for government failures in poorer ones.

French Minister met with his German counterpart, Olaf Scholz, in on Saturday in an attempt to narrow their differences.

"We discussed all outstanding issues and made substantial progress, exchanging papers and talking throughout the night," a French said. "We still have some work to do before being able to agree on a roadmap."

A German ministry spokesman said: "We have made significant progress with our French friends towards a reform proposal for the euro zone and we will continue our talks next week."

The French confirmed that both ministers agreed to continue their negotiations during the week, probably by video conference.

Scholz has suggested the creation of a Europe-wide to make the euro zone more resilient to future economic shocks. The Social Democrat also wants to introduce a financial transaction tax.

On Friday, speaking at a business conference in Berlin, Le Maire had welcomed German Angela Merkel's support for the idea of a euro zone investment budget, one of French Emmanuel Macron's key demands. But he said and had "a way to go" to reach a truly ambitious common position.

(Reporting by in Paris and Michael Nienaber in Berlin, Writing by Dominique Vidalon; editing by Elaine Hardcastle, Larry King)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, June 10 2018. 19:12 IST