German Chancellor Angela Merkel launch a new “pact for competitiveness” to save the eurozone at this week’s EU summit, according to Der Spiegel.
That pact will include a standardization of labour and tax policy for eurozone members the goal of which is undoing imbalances between countries.
Merkel intends to launch the plan with French President Nicolas Sarkozy at this week’s EU summit.
Here’s what it will seek to accomplish:
- Prevent wages from fluctuating between member countries
- Standardization of retirement age, while also preserving funding for pensions
- Control domestic spending, while allowing for investment
- Corporate tax changes
- Measurement of all these through verifiable statistics
- Goal: In place in 12 months
It is an ambitious program, fraught with potential for opposition and failure.
- Sanctions to keep states in line
- Agreement on targets
- Domestic problems for Merkel and Sarkozy
There is no guarantee this plan will come to pass, but it seems likely to be affirmed, albeit in a weakened form this Friday.