In exceptional circumstances, an exceptional presidency. As Europe sinks into a major economic crisis, Germany assumed the rotating presidency of the EU Council on Wednesday, July 1.
The leading European power will have a lot to tackle in the coming six months: reestablishing fairer trade relations for European companies facing global competition, sketching the outlines of the new relationship with the United Kingdom (which had until July 1 to extend its transition period), and above all, finding a compromise among the Twenty-Seven on the multiannual financial framework and the recovery plan aimed at getting the European economy out of the rut.
A political challenge of great magnitude for German Chancellor Angela Merkel, who might be delivering one of the last major battles of her career. To do this, and in the tradition of a Franco-German duo steering the European Union, she can count on the support of Emmanuel Macron, who visited her on Monday, June 29, to refine a common argument in preparation for the upcoming European Council on the 17th and 18th of July.
Member states are not the only ones involved in discussions about the Union’s economic future. During its plenary session scheduled from July 8 to 10, the European Parliament will attempt to influence the debates and urge the Twenty-Seven to maintain the highest possible multiannual budget.
Another scar from the Covid-19 health crisis that Europe is trying to erase: the EU Council voted to reopen the external borders of the Schengen area to residents of 15 third countries. China is among these (subject to reciprocity), but not the United States or Russia. The list is updated every two weeks based on epidemiological criteria.
A political and economic heavyweight on the continent, Germany presents an attractive profile for reaching a compromise on the future multiannual budget and recovery plan: a proponent of a European loan, it has managed to draw closer to the southern countries, while its sound budgetary health reassures the frugal. Regarding this issue, and on other major ones as well, the German mandate raises great expectations.
