7 May 2025 | Euro

Financial and political barriers hamper Macron and Merz’s economic initiatives — Politico

Financial and political barriers hamper Macron and Merz’s economic initiatives — Politico

Friedrich Merz assumed the role of German Chancellor after winning the second round of voting. Among his first steps in office, he is set to visit French President Emmanuel Macron in Paris. This symbolic gesture underscores a mutual desire to revive the Franco-German partnership after four years of strained relations between Macron and Olaf Scholz. Both leaders advocate for strategic autonomy for Europe and the reform of the region’s competition policy, Politico reported.

Merz’s second foreign visit will be to Warsaw, where he will meet with Polish Prime Minister Donald Tusk. This visit will be equally significant, highlighting the shifting balance within the EU and acknowledging the bloc’s increasingly multipolar structure. France and Germany are no longer the sole centers of influence, the agency notes.

Despite the alignment of Macron and Merz's positions, reviving a strong Franco-German alliance faces significant challenges. The EU has become more fragmented, and political instability coupled with budgetary constraints in France are limiting Macron’s ambitions, especially with his mandate expiring in two years. Meanwhile, Merz is prepared to increase defense spending, recognizes the importance of France's nuclear power industry, and supports the EU’s course for industrial modernization, Politico concludes.

Elena Dorokhina MarketCheese
Period: 03.04.2026 Expectation: 250 pips
Investing in Brent crude with $113 in view
Today at 11:57 AM 32
Period: 07.04.2026 Expectation: 920 pips
Buying AUDUSD with 0.6945 in sight as technicals flash oversold
Today at 11:49 AM 18
Period: 30.04.2026 Expectation: 5500 pips
Selling Tesla stocks upon breaking support
Today at 10:47 AM 23
Period: 07.04.2026 Expectation: 5100 pips
Selling Bitcoin with $62,500 target on weakening buying interest from major players
Today at 08:16 AM 25
Period: 06.04.2026 Expectation: 6500 pips
Active silver sell-off gives way to accumulation phase
Yesterday at 11:52 AM 63
Period: 29.05.2026 Expectation: 3600 pips
Selling EURUSD down to 1.11500
Yesterday at 11:09 AM 35
Go to forecasts