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CURRENCY

Majority of Germans now trust in the Euro

A survey published on Tuesday shows that German public trust in the single currency has risen sharply over the last two years to hit 57 percent.

Majority of Germans now trust in the Euro
Photo: DPA

The survey, carried out by the market research firm GFK Verein, shows the level of confidence in the Euro has risen 19 percentage points since they last surveyed attitudes in 2013.

“The background reason for this result is low inflation,” Ronald Frank, Head of Studies at GFK Verein told The Local.

“The consumer reacts to the things he buys on a weekly basis. Because the oil price is low and this has a knock-on effect on the price of petrol at the pump – and the price for good such as butter, bread and even beer has not risen, people feel the low rate of inflation.”

The survey measures attitudes to public institutions in 26 different countries on a biannual basis. In Germany, the sharp rise in trust in the Euro made it the fifth most respected public institution.

It is still some way off public trust in the police which was recorded at 80 percent.

Frank told The Local that the other main influence on the Euro's rise in popularity was that the public believes it has weathered the storms that have battered it in recent years.

“In 2012 the media had a tendency to talk down the Euro, but a few years later nothing has happened.”

It has now been established in the public mind that the worst fantasies of the media will not come true and the Eurozone will indeed stay together.

The survey also identifies a rise in support for the government from 34 percent in 2013 to 40 percent today.

Frank pointed out that this could have reinforced support for the Euro since the measures taken to support on the European level to strengthen the single currency  – the European Stability Mechanism (ESM) – came “significantly from Germany.”

But he warned that public attitudes on these issues can change quickly, saying that rising inflation or a large amount of tax money transferred to Greece as part of a deal on its debt could quickly see support for the Euro begin to fall away.

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BUDGET

Paris, Berlin agree on future eurozone budget: French ministry source

France and Germany have agreed on the broad outlines of a proposed eurozone budget which they will present to EU finance ministers in Brussels on Monday, a French finance ministry source said.

Paris, Berlin agree on future eurozone budget: French ministry source
French Economy and Finance Minister Bruno Le Maire (R) and German Finance Minister and Vice-Chancellor Olaf Scholz. File photo: AFP

The common single-currency budget was one of French President Emmanuel Macron's key ideas for protecting the euro, but it caused differences between France and Germany, the region's two largest economies.

French Finance Minister Bruno Le Maire and Germany's minister, Olaf Scholz, will “jointly present a proposition on Monday… about the layout for a budget for the eurozone,” the ministry source told AFP.

“It's a major step forward,” the source said. “We will look forward to sharing with other members.”

The source said the amount of the budget has not been established as the proposal was to first set out the “architecture and main principles” of the budget.

According to a copy of the French-German proposal, the budget would be part of the EU budget structure and governed by the 19 euro members.

Macron will travel to Berlin at the weekend to meet with German Chancellor Angela Merkel where the two leaders will bolster their alliance as champions of a united Europe.

READ ALSO: France and Germany push for compromise on eurozone reform

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