Germany calls for a “two-speed” Europe. Which are the countries that Berlin wants to include in the core group of the EU

Germany will insist on a “two-speed” European Union to break decision-making inertia in the 27 bloc and boost their economies, calling for a central group of member states to advance key policies to make the EU stronger and more independent, reports Reuters, quoted by Agerpres.

“Now is the time for a two-speed Europe,” said German Finance Minister Lars Klingbeil at an event hosted by Die Welt on Tuesday in Berlin.

The German and French finance ministers want to strengthen competitiveness within the EU by introducing a new format for the bloc's six main economies, according to a letter from Minister Klingbeil seen by Reuters on Tuesday.

In the letter, Klingbeil invited his counterparts from France, Poland, Spain, Italy and the Netherlands to a video conference on Wednesday to establish a concrete and ambitious agenda aimed at strengthening the sovereignty, resilience and competitiveness of the European Union.

“A kick-off”

“To survive in an increasingly unpredictable geopolitical situation, Europe must become stronger and more resilient,” Klingbeil pleaded in the letter sent to his counterparts on Monday, stressing that continuing as before cannot be an option.

The invitation states that Wednesday's videoconference meeting is seen as “a kick-off”, with a subsequent in-person meeting to take place on the sidelines of the next Eurogroup.

The letter seen by Reuters includes a four-point plan on how to promote the capital markets union, strengthen the euro, better coordinate defense investments and secure raw materials.

According to Klingbeil, the coalition of countries must accelerate the process of creating the Union of Savings and Investments in order to provide better financing conditions for European companies, especially for European start-ups and scale-ups.

The second point focuses on the international role of the euro as a safe-haven currency based on predictability and the rule of law, Klingbeil said, arguing for reducing bureaucracy and strengthening sovereignty in the sphere of payments.

Regarding defense spending, the German minister called for better cooperation between member states and the firm inclusion of defense as a priority in the next EU multiannual budget framework, “turning defense into an engine for economic growth”.

Also, the German minister stated that the efforts to strengthen the supply chain with critical minerals must be intensified, through an increased strategic engagement with international partners.