Franco-German Finance and Economic Council

The Franco-German Finance and Economic Council (DFFWR) is a bilateral body that was created as a result of the Élysée Treaty .

The foundation stone of the council was laid in an additional protocol from 1988, which was drawn up under the Kohl government and the Mitterrand government .

The additional protocol is used to establish and agree on fundamental economic and financial issues with the involvement of the respective central bank chairman. The two additional protocols from 1988 created this institution as a blueprint and bundling of common interests from the perspective of the European Union .

preamble

The Council is based on the following treaty:

Conscious of the solidarity that unites the two peoples with one another with regard to their economic development, as emphasized in the joint declaration of January 22, 1963 on the treaty of the same date on Franco-German cooperation, convinced that a strengthening of cooperation between the two states contributes to the realization of the European economic and monetary union, have agreed to this end as follows [...].

Working method

The agreements regulated in the protocol relate to establishing the greatest possible harmonization between the countries in economic and financial matters; Articles 1, 3 and 4 are decisive for this. What is meant by economy is not specified in more detail , so that probably all areas are meant, from construction to small business sectors.

The aim of the contract is the coordination of the respective governments and harmonization in the above-mentioned fields.

Recent developments

Together with the declarations of intent for tax harmonization at EU level, this agreement is understood here to mean increased cooperation on tax issues. The following regulations have been added across the EU:

1. To withdraw applicable tax measures that are classified as harmful tax competition
2. No more such measures to be taken in future (“standstill obligation”).

At the jubilee event for the 25th anniversary of the Council, it was agreed to expand the EU Savings Directive as quickly as possible.

At the 48th meeting in Paris in February 2016, the following priorities were agreed: taking action against the financing channels of terrorism, implementing a comprehensive approach to tackling the migration challenge, mobilizing private and public investment in Europe, promoting trade, industrial cooperation and the digital economy, Combating tax fraud and tax evasion, deepening EMU and the banking union.

References and comments

1. ↑ BMI: Protocol to the contract of January 22, 1963 between the Federal Republic of Germany and the French Republic on Franco-German cooperation (January 22, 1988) ( Memento of the original of October 22, 2013 in the Internet Archive ) Info: The archive link became automatic used and not yet tested. Please check the original and archive link according to the instructions and then remove this notice. 
2. ↑ Diplo Germany: Protocol on the establishment of the additional agreement
3. ^ "Harmful tax competition" , ec Europe.
4. ↑ BMI: 25 years of the Franco-German Finance and Economic Council