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Franco-German economic motor stalled until Paris reforms say experts

German observers say Berlin is now expecting Paris to back up its rhetoric with genuine reforms to the French economy.

La rédaction de Mediapart

This article is freely available.

The Franco-German motor that has historically driven Europe's economy is stalled and unlikely to start up again until France implements deep structural reforms seen as vital in Germany, experts say, reports GlobalPost.

However, with France taking more of a leading role in foreign policy, the relationship could become more balanced even if German Chancellor Angela Merkel is still seen as Europe's driving force, politically and economically.

The eurozone's two biggest economies have enjoyed very different fortunes of late.

Even if Germany's powerhouse economy has slowed recently, unemployment remains relatively low at 6.7 percent, growth is expected to come in at just under two percent and the government hopes to balance its budget next year.

On the other side of the Rhine, France is suffering a deep economic crisis, with unemployment over 10 percent, sluggish growth expected at 0.4 percent this year and a ballooning budget deficit that will break EU rules until 2017.

"When one of the partners is that weak, the engine simply cannot keep running," said Henrik Uterwedde, an expert at the Franco-German institute in the south-western city of Ludwigsburg.

"As long as the French part of the motor is spluttering, nothing out of the ordinary will happen. France needs to do its homework. The solutions are in Paris, not Berlin," added Uterwedde.

Leaders on both sides have regular contact -- French prime minister Manuel Valls visited Berlin last week and German foreign minister Frank-Walter Steinmeier is due in Paris Thursday -- but there is still the odd high-profile clash.

Read more of this AFP report published by GlobalPost.