PARIS: A Franco-German deal to strengthen the euro zone has ended months of bickering between Paris and Berlin and raised the onus on French President Francois Hollande to embark on potentially explosive social and economic reforms.
German Chancellor Angela Merkel, Europe's most powerful politician, made a string of symbolic concessions to France in joint proposals for closer economic policy coordination outlined last week, in return for a clear commitment to reform.
She did so because bolstering the stagnant French economy has become a top German priority.
"If France weakens further, it endangers the foundations of the euro," a senior German official said.
Departing from past positions, Merkel accepted a full-time president of the Eurogroup of euro area finance ministers, more frequent summits of euro zone leaders, greater coordination of social and tax policy, a slowdown in the pace of deficit reduction and a commitment to reciprocity in EU external trade.
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