Opinion: Double Standards

European rules have always been somewhat flexible, but they are supposed to apply to all countries. By treating big countries gently and small countries harshly, the EU strains its credibility, writes DW's Barbara Wesel.

In Europe there are two kinds of rules: those you have to comply with, and those you don't. But perhaps we should rephrase this sentence: There are two types of EU member states - big ones and small ones. And the rules apply to them differently.



Because this is so, France has been given yet another two years to get its budget deficit under control. Paris was able to adhere to the 3 percent limit of the Stability Pact only in 2006 and 2007, and since then it has consistently violated it.



So now the European Commission has decided the French government must put forward an ambitious reform program by April, or face the threat of billions of euros in penalties. But since Brussels has said this on numerous other occasions, no one takes this threat seriously.



Losing patience



There are several things wrong with this. First, the timing is simply abysmal. It comes just after all means were applied to pressure bankrupt Greece into meeting the Brussels reform requirements. A financial cutoff threatened. The message from the Eurogroup was that rules must be adhered to!



But, Brussels seemed to say, highly indebted Greece - on financial life support, with its dysfunctional management and often irresponsible policies - cannot be compared with France.



For too many years, Paris was able to accumulate new debts, which in itself is not disastrous. But it broke European rules. This was effectively tolerated by the European Commission, and that left something of a bitter aftertaste.



It also doesn't help that the current economic and monetary affairs commissioner in Brussels is French. From the beginning, Pierre Moscovici has promoted growth-oriented policies in Europe, "spending more and saving less." Now he has to put his money where his mouth is.



Juncker wants new policies



Moscovici has his boss's backing. European Commission President Jean-Claude Juncker has said that the great capital cities do not like to receive advice from Brussels. And while there is some truth to this, it's also a realistic political assessment.



Europe is run on the principle that large and small have the same rights and obligations - and this is non-negotiable. For once, Juncker would have to pluck up his courage and have a serious word with Paris. But this would never occur to him, because he thinks the EU's prevailing economic and monetary policy is wrong.



Juncker wants to spend his way out of the European economic downturn, and is therefore at loggerheads with Angela Merkel in Berlin. In his failed attempt at mediation in the Greece dispute Juncker had already shown that he was politically on a completely different track. His decision in the case of France is also a challenge to the German government.



Economists in the EU are firmly divided into two camps. There are those who want to stay the course of saving and reforming to keep national budgets under control and ensure the stability of the euro. The others call for more public investment so that countries can grow their way out of their debts.



Regardless of which school of thought is right, the restrictive rules of the Stability Pact still apply in the EU. They could be changed if the Eurogroup had the political will to do so. But to ignore or bypass them just because the sinner is a large member state is a mistake - and a blatant injustice.



Last chance for France



As for France, our neighbors seem shockingly resistant to reform - and that can be seen across the political spectrum.



Sarkozy's and Hollande's rationalizations and apologies read from the same script: "Growth is weak, we cannot stifle it, we need more time for reform...." And then nothing happens.



Nicolas Sarkozy's conservatives capitulated to popular anger as they tried to curtail the rampant welfare state and to make the labor market a little more flexible. And left-wingers in Hollande's party were in near-rebellion when he put forward a series of minor reforms - even though the "Macron law" takes only baby steps toward overcoming rigid structures and breaking the chokehold of special interests.



France is collapsing under a burden of red tape and ideological battles that make reasonable compromises across party lines impossible. A large majority of the French people want reform. Voter frustration is driving many into the arms of Marine Le Pen's right-wing nationalists.



Francois Hollande has only one chance: He must actually submit the required EU reform to parliament and use all his political skill to force it through. This will be the ultimate test of his presidency and the course of Europe.