CONTENTS

INTRODUCTION.. 3

1 POLITICAL RELATIONS BETWEEN FRANCE AND GERMANY.. 9

1.1 Strengthening day by day political relations between France and Germany after Maastricht treaty. 9

1.2 Deepening and Expansion of the European integration processes and the policy of France and Germany. 13

2 TRADE AND ECONOMIC RELATIONS BETWEEN TWO STATES. 24

2.1 Economic and tax relations. 24

2.2 European Monetary System creation and the positions of France and Germany  28

2.3 Comparison of French and German employers’ situation. 34

3 A NEW CONSTITUTION FOR UNIFIED EUROPE. 42

3.1 The states attitudes to Common Constitution for European Union. 42

 CONCLUSION.. 49

 BIBLIOGRAPHY.. 52

1.1 Strengthening day by day political relations between France and Germany after Maastricht treaty

At the end of the Second World War, Franco-German reconciliation, which appears to everyone to be the condition for peace in Europe, seems uncertain:France’s policy is intended to preventGermany’s recovery and anti-French sentiment is very strong inGermany, especially in the French zone of occupation. However, while they affect only a limited number of people, initiatives are taken in 1945 that aim to bring the two countries together and decentralized cooperation plays a key role at this time, through intercommunity twinning, for example. Several dates thereafter constitute major steps in Franco-German reconciliation and cooperation. In response to a declaration made in March 1950 by Chancellor Adenauer, inviting the two countries to come together, Robert Schuman’s declaration of 10 May 1950 introduced the concept of a “Europe attained by small steps”, leading to the creation of the European Coal and Steel Community (ECSC) in 1951. The countries reconciled and political and cultural relations have since been constantly intensifying between the two countries. The Treaties of Rome on the European Communities, signed in 1957, symbolize Franco-German reconciliation and cooperation as a condition and driving force behind European construction.

Signed on 22 January 1963 by Chancellor Adenauer and General de Gaulle, the Treaty on Franco-Germany Cooperation (known as the Elysée Treaty) has become the emblem of the intense relations between France and Germany. It meets three objectives, introduced in the brief Joint Declaration that accompanies the Treaty: symbolically establishing Franco-German reconciliation, creating a genuine friendship between the two countries and thereby promoting the “construction of a unitedEurope, which is the goal of the two peoples”. The Treaty established a restrictive calendar of regular meetings at all levels (heads of state and government, ministers, senior civil servants), intended to create a reflex of cooperation between the two countries

These provisions were later clarified and extended by the establishment of new structures of cooperation. Accordingly, in 1988-1989, on the occasion of the 25th anniversary of the Treaty, the Franco-German Defense and Security Fund (CFADS), the Franco-German Economic and Financial Council (CEFFA) and the Franco-German Environmental Council (CFAE) were created. The CFADS met twice a year in the context of summits (heads of state and government, ministers of foreign affairs and ministers of defense and armies). It was created at the same time as the Franco-German Brigade, which led to the Euro-corps (1993) and gave rise to a “joint Franco-German concept of security and defense” in 1996. Four times a year, the Economic and Financial Council brings together the ministers of the economy and finance, as well as the central bank governors, to examine national budgets and coordinate positions prior to European summits and councils. The CFAE meets at least twice a year to harmonize the two countries’ environmental policies and to launch initiatives concerning international environmental issues. [1]

From a political standpoint, the Treaty was able to play its role cementing bilateral ties by ensuring that permanent, intense relations were maintained. It acted as a catalyst for Franco-German initiatives, which have been at the origin of every major advance in European construction: the Single European Act, the Maastricht Treaty, the Euro, the Schengen area, and the construction of a European Security and Defense Policy.

France and Germany’s close institutional and political association was reinforced on the occasion of the 40th anniversary of the Elysée Treaty in2003. Inview of the challenges facing Europe today, this system enablesFranceandGermanyto be better coordinated for an enlargedUnion, while attempting to encourage contact between the two countries’ civil societies.

France and Germany are reinforcing intergovernmental cooperation structures. Setting the Franco-German relationship back into a European perspective, the declaration of the 40th anniversary of the Elysée Treaty provides several measures that strengthen bilateral cooperation procedures:

  Franco-German summits in the form of Franco-German Councils of Ministers are held twice a year, with all ministers from both governments in attendance.  ...

2.2 European Monetary System creation and the positions of France and Germany

France and Germanys economic relations always were on high level. The creation of the European Monetary System in March 1979 highlights best the cooperation between France and Germany. The EMS not only provided exchange rate stability through the setting-up of formal fluctuation bands between currencies; it also organized a monetary solidarity between countries, by providing compulsory interventions and related financing facilities.

Although the very first years of the EMS were characterized by several currency realignments, due to insufficient nominal convergence between countries, the system progressively contributed to exchange rate stability. German monetary policy, based on stability and credibility, proved to be efficient. In this context, the French authorities fully endorsed the objectives and disciplines of the EMS and embarked on monetary and exchange rate stability. The years that followed were characterized by increasing convergence between countries and less realignment. All countries, including new participants in the system, adopted similar strategies. Although satisfactory in theory, this stance was nevertheless difficult to follow for some economies still facing imbalances and in particular a lack of competitiveness. This explains partly the crises that occurred in 1992 and 1993. Franco-German cooperation was efficient during this difficult period. This concrete cooperation has also been made possible by the emergence of a conceptual convergence as regards monetary issues. Since 1987, the central rate of the French franc within the European exchange rate mechanism (ERM) has been unchanged, and a virtuous disinflation process has been taking place. This policy has allowed French short-term and long-term interest rates to decline steadily and to stand at similar levels to those reached by the best performers within the EMS. And a consensus has emerged in France that monetary policy should be shielded from short-term influences and short-terms strategies and placed in the framework of a medium and long-term strategy of credibility. ...

  3.1 The states attitudes to Common Constitution for European Union

Stabile developing of European Union causes to acquire new proficiency in a sphere of common policy and common economic policy. During 50 years European countries began to recognize that new demands appeared before them. These demands were profound reforms. The necessity of reforms means to find institutional and political balance among great and little countries, among East and South, among prospering and poor countries, among European institutions and national governments, among ability of European Unions to act deeply and respect for national interest of different members.

The problem of new Constitution for whole Europe really appeared after summits of European Union in Amsterdam and Nice. The main idea of discussions was conception of multilateral integration, which composed on active works of “avant-guard countries” with implementing unified federation with strong parliament, elected by president, unified government and with necessity of constitutional establishment European Union. European Council in Nice (10.12.2000) continued the discussion on concrete question- the Finalities of integration process in Europe. [28, 29]

So the main courses of future Europe formulated four themes:

-  sidelight of authorities on different levels of actions inside Union;

-  definition of juridical status on Charity of main rights on a way to strengthening common European worth;

-  simplifying and sidelight of agreements, in a base of development of Constitution;

-    consult the role of national parliaments.

Let's stop on the creating of Constitutional agreement. Position of constitutional rank as elements of constitution has already fixed on carried out Maastricht treaty. More important its positions about priority principles of over-nationality, about hierarchal norms of European rights, about division of authorities between Networks and member countries and strengthening of institutional system. ...