FRANCE and Germany have set out their plans to strengthen and to deepen Economic and Monetary Union (EMU), underlining the importance of fiscal convergence in this process, ahead of the European Council meeting this month. In a joint declaration, France and Germany emphasized on the necessity to coordinate economic policies in the euro area, in order to increase member states' competitiveness, growth, and employment believing that policy areas are identified and targeted for further action as a matter of priority, including labor market, retirement, and general taxation policies.

Besides, France and Germany stress the particular importance of converging the tax systems, insisting that this is vital in an EMU to ensure the coherence of the euro area's economic policy thereby making it clear that they are ready to complete the negotiation for the Financial Transactions Tax and their commitment to re launching the agenda for fiscal convergence with all voluntary member states, starting with resuming the work on the common corporate tax base.

Additionally, France and Germany highlighted the pressing need for larger financial market integration, and to progress towards a more integrated financial framework for restoring normal lending, to improve competitiveness, and to bring about the necessary economic adjustments along with emphasis on the importance of effectively implementing the Single Supervisory Mechanism and of implementing the banking union within the agreed timeframe and that of promoting growth and fiscal consolidation, stressing that these are mutually reinforcing.