Angela Merkel’s response to Emmanuel Macron’s EU reform push is to beef up the Eurogroup: the regular conclave of finance ministers from the nineteen countries that use the single currency. Merkel would add economy ministers to the meetings and expand the Eurogroup’s remit to include all areas of economic policy.

Mehreen Khan argues in the Financial Times that it’s a good way to sabotage eurozone reform: “you effectively hollow out decisionmaking power and create a glorified talking shop.”

I think that’s an exaggeration, but Merkel and Macron do have different priorities.

The former, backed by a Dutch-led alliance of liberal member states, calls for structural reforms to boost competitiveness in the south. Macron argues for investments to promote convergence.

The end goal is the same, but the way they would get there is very different: Merkel puts the onus on the laggards while Macron argues for a shared responsibility. Hence his push for a common eurozone budget and a European finance minister. Read more “Merkel Presents Alternative Eurozone Plan, Erdoğan Calls Early Elections”