On the Origins of the Franco-German EMU Controversies

EMU represented an important change in the economic constitution of the European Union. It is, to a large extent, a culmination of a process of Franco-German reconciliation and understanding. However, in the postwar period, there were significant differences in thought and economic policy-making in Germany and France. France was dominated by the tradition républicaine, giving a central role to the state in economic life. In Germany, the federal structure of the state went together with the social market economy. In this paper an analysis is presented of these differences in thought and economic policy-making, how they evolved through time, and how they contributed to shaping the nature and economic constitution of the European Union. The focus of the paper is on the Rome Treaties, the Werner Report and the Maastricht Treaty process.