• Between a pro-European government in France and early discussions of a Große Koalition in Germany, there is political momentum on both sides of the Rhine for a stronger Europe. Building on the principle of subsidiarity, and focusing on cost-effective institutional breakthroughs, France and Germany could drive the European project further with ten initiatives in five reform areas:
• Building adequate stabilization mechanisms for the European Monetary Union (EMU): (1) Creating a credible crisis resolution mechanism in the form of a European Monetary Fund (EMF); and (2) Financing a rainy day fund to address local shocks that endanger the viability of EMU over time.
• Towards a Capital Markets Union: (3) Removing economic and legal barriers for better pan European risk sharing and capital allocation; and (4) Expanding the scope and scale of the Juncker Plan for infrastructure investment.
• An industrial policy focused on trade and digital innovation: (5) Increasing the coherence and legitimacy of European trade policy; and (6) Promoting an integrated and innovative digital single market.
• Working together for more inclusive growth: (7) Improving the state of low wage earners and promoting work incentives; and (8) Guaranteeing the transportability of rights across Europe.
• Preparing the workforce of tomorrow, today: (9) Tackling youth unemployment today by adopting EU wide standards for apprenticeships; and (10) Ensuring lifelong training to deal with the technological disruption of tomorrow.
