After the meeting Angela Merkel reported that "more economic-policy coordination" is needed along with "closer cooperation within the Eurogroup". In a statement, upon which the Chancellor and the French President had agreed, numerous measures are proposed, in the fields of budgetary, fiscal and labour market policies.

The Franco-German paper is "a contribution to the discussion that we will engage in with our European partners, and which we would like to consider at the Council meeting in June," explained Angela Merkel. "Swift action is needed. We will undoubtedly have to act in new ways."

Stability and growth

Some of the most important proposals are for more regular summit meetings of the euro-zone states and the appointment of a full-time president of the Eurogroup financial ministers. Both countries also agree that after the next elections to the European Parliament specific structures should be put in place for the euro zone. The aim is to ensure appropriate democratic control and the legitimacy of European decision-making processes.

France and Germany agree that stability and growth in the euro zone are crucially important for the future of both countries and for the European Union. "We affirm our conviction that budget consolidation and growth go hand in hand. They are two sides of the same coin and in no way contradict one another," stated Chancellor Angela Merkel unequivocally.

The Chancellor considers it imperative to integrate the financial markets - "banking supervision and everything this entails," as she put it. She also reported a "qualitatively new proposal" with respect to economic-policy coordination. The aim must be to ensure in good time, "that the sort of imbalances and deficit procedures we are currently seeing do not emerge in the first place".

Taking joint action

Angela Merkel and François Hollande aim to tackle the urgent problem of youth unemployment along with the EU ministers of labour and social affairs at a conference to be held in Berlin on 3 July. The Compact for Growth and Jobs adopted in July 2012 must "be swiftly operationalised," stressed the Chancellor. The European Investment Bank has a special role to play here.

"If we push ahead with economic-policy coordination, if we have solidarity-based instruments and if we all do our homework, we should have a rounded picture," the Chancellor summed up.

Impetus from the private sector

After their talks Angela Merkel and François Hollande met with the leaders of a bilateral working group that is exploring ways of boosting competitiveness and growth. Gerhard Cromme and Jean-Louis Beffa explained the results of their working paper to the Chancellor and the President.

The paper lays out proposals for key parts of the economy from energy to free trade, and budgetary and fiscal policy. The business leaders focus in particular on the need to integrate young people into the labour market. The paper also looks at the need to dismantle restrictions on the labour market that prevent new jobs from being created.

The Franco-German working group on competitiveness and growth was the result of a joint initiative of Chancellor Angela Merkel and President François Hollande in September 2012. The group that comprises business leaders is headed by Gerhard Cromme, Chairman of the Supervisory Board of Siemens, and Jean-Louis Beffa, Honorary Chairman of Compagnie de Saint Gobain. The group are drawing up proposals for more effective economic policy from the point of view of industry.

German art

Before their talks the Chancellor and the President visited the exhibition "De l’Allemagne 1800-1939" (German thought and painting from Friedrich to Beckmann) which is currently attracting huge numbers of visitors to the Louvre. It marks the fiftieth anniversary of the signing of the Elysée Treaty. The Chancellor and the French President are patrons of this Franco-German exhibition.