The future governance of the Economic and Monetary Union will have to wait. The subject is clearly no longer a priority for the French EU Presidency. In spite of Nicolas Sarkozy’s repeated criticisms of the European Central Bank, Paris has apparently decided – at least until 31 December – not to add fuel to the fire. Although the French president seems to be standing his ground behind the scenes, the idea of organising a special summit of eurozone heads of state has been dropped. “We cannot begin our Presidency on a totally controversial subject,” aides to the president said recently. The backdrop to the decision is Berlin’s categorical refusal to consider a debate that would even remotely address the question of the independence of the central bank. It is also a fact that the French budget situation and the Commission’s recent warning in that respect (see Europolitics3558) do not exactly give it a high level of credibility.

Paris will nevertheless likely be addressing the question of exchange rate policy, according to one diplomat. As part of the debate launched by the Commission, on 7 May, in connection with the 10th anniversary of Economic and Monetary Union, the Presidency intends to take advantage of several international meetings (in particular the EU-China summit) to “speak louder” and step up pressure on the countries whose currency is clearly undervalued. On the functioning of the eurozone, the French EU Presidency may well have to name a successor to Jean-Claude Juncker as head of the Eurogroup if Juncker is appointed to another EU post in 2009 (3558). Paris also intends to take forward the debate on the future of the Lisbon strategy after 2010. A meeting of the national coordinators is already scheduled for this autumn in Paris.