The German presidency of the European Union begins in the midst of the Covid-19 epidemic and when the economic crisis has only just begun. Angela Merkel spoke on Monday, alongside Emmanuel Macron at Meseberg Castle, of "economic challenges that we have never known in decades." The European Commission forecasts a 7.75% deficit in 2020 for the European Union. The European Central Bank is even counting on 8.7% decline in growth this year for the euro zone.

Obviously this will translate into millions of job losses in Europe. In a report, released on Tuesday, the International Labor Organization finds that the damage is already worse than expected, with the equivalent of 45 million jobs lost. If this figure has to be put into perspective, because it does not take into account the partial unemployment schemes put in place in a large number of European countries, including France, Germany and Italy, the reduction plans the workforce is increasing in large groups. Renault, Sanofi, Lufthansa have already announced theirs. Air France is preparing to detail its own on Friday. It could affect up to 8,000 jobs. Airbus has just announced the loss of 15,000 jobs worldwide, including 5,000 in France, 5,100 in Germany and 900 in Spain. 

Faced with this situation, the German presidency will first have to ensure a good recovery of the European economy. It will be his first challenge. It will go through the implementation of the ambitious plan of 750 billion euros, which includes in particular a pooling of debts. But some so-called "frugal" countries - the Netherlands, Luxembourg, Denmark and Sweden - remain reluctant. Angela Merkel will have to convince them to endorse this plan at the next summit of heads of state on July 17 and 18. 

More generally, Germany will owe the multi-annual budget for the period 2021-2027. Member countries had failed to reach agreement in February. The problem is that with the exit of the European Union from the United Kingdom, there is a hole of 10 billion euros per year that must be filled while implementing ambitious new policies, which this either in the field of innovation, defense and then of course the environment, with the famous "green deal", this green pact which the Commission wants to make the cornerstone of its mandate.

If we add the negotiations on the future free trade agreement with the United Kingdom to seal the Brexit which must be completed before December 31 or even trade relations with the United States and especially China, we understand that this German presidency will not be not easy, on the contrary, and that Angela Merkel will have to use her talents as a fine negotiator so that these six months will be tinged with success. 

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