BERLIN (AP) – Germany and France agreed Monday to draw up proposals by the beginning of December to boost investment as they try to come up with a strategy that will help shore up the European economic recovery.
Though the decision to come up with an investment plan shows the two countries trying to work together closely, the divide between Berlin and Paris on economic matters is wide.
The German government has faced pressure from abroad to pump more money into the economy to help bolster both its and Europe’s recovery. However, it appears determined to stick to plans to halt new borrowing next year for the first time since 1969.
France, meanwhile, is under pressure to get its finances in order after admitting that its 2015 budget would break promises to bring its deficit below the European Union limit of 3 percent of its annual gross domestic product within two years.
“We are determined to do everything together to strengthen investment in our countries – we will do that in the framework of the different capacities we have to act,” German Finance Minister Wolfgang Schaeuble said after he, and Germany’s economy minister met their French counterparts.