Upcoming German new gov't a strong boost to EU: policy paper

BERLIN, Jan. 12 (Xinhua) -- The German Social Democrats (SPD) and the Conservative Union have pledged to strengthen European integration through close cooperation with France, according to a policy paper published after the exploratory talks for government coalition reached breakthrough on Friday.

In the 28-page document reached by Chancellor Angela Merkel's Union Party and the SPD led by Martin Schulz, the two parties say they support specific budgetary resources for economic stabilization and social convergence and support for structural reforms in the euro area, which may be the starting point for a future investment budget for the euro area.

"We want to develop the European Stability Mechanism (ESM) into a parliamentary-controlled European Monetary Fund, which should be anchored in Union law," the document stipulates.

"We are also ready for higher contributions from Germany to the EU budget," says the paper, adding that Germany is to be actively involved in the debate on the future of the European Union (EU) and strengthening European integration.

The paper came out on Friday morning after the week-long exploratory talks between the SPD, the Christian Democratic Union and its Bavarian sister Christian Social Union. Formal and detailed coalition talks will be held after the paper is officially approved by all the parties.

The two parties say as the global balance of power has changed radically in recent years, only together does the EU have a chance to assert itself in this world and to assert its common interests.

The two parties also stress Europe's role in peace and global responsibility in the document, clearly rejecting protectionism, isolationism and nationalism and calling for more international cooperation.

The common European foreign and security policy must be strengthened in the sense of a peace power Europe, says the document, calling for strengthened cooperation in security and defense policy (PESCO) and bringing it to life.

The document also stipulates that the EU must play a leading international role in climate protection and advocate an ambitious implementation of the Paris Climate Change Agreement.

The policy paper is the first response to French President Emmanuel Macron's ambition for profound changes of EU in post-Brexit area, saying that "The renewal of the EU will only succeed if Germany and France work together with all their strength. That is why we want to further strengthen and renew German-French cooperation."

"...in close partnership with France, we want to sustainably strengthen and reform the Eurozone so that the euro can better withstand global crises," the paper reads.

Since the Sept. 24 federal elections Germany has not yet formed a new government so that Merkel's caretaker government could not make major policy changes on any issues. Enditem