There is a deep paradox in Franco-German fiscal politics: Germany is fiscally hawkish but nation-state dovish (willing to give up sovereignty toward political union, given its post-1945 DNA and need for a taxation power), while France is fiscally dovish but nation-state hawkish (unwilling to sign the political-union 'marriage contract'); a genuine French crisis requiring euro-zone fiscal support could push toward deeper integration.

causalpending

Speaker

Moritz Schularick

Evidence Quote

Germany is basically fiscally hawkish but if you will nation state doubbish... France is fiscally dovish and nation state hawkish.

Source

The changing dollar regime: An updatePeterson Institute for International Economics
Created: 6/18/2026, 1:57:48 PM

My Notes

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