Defense, enterprise and education head the list for joint measures after the Franco-German Ministerial Council meeting in Paris. The two countries' leaders are developing closer cooperation as they look to EU reforms.
"I believe that we have shown shortly after the new government here was installed that we are ready to activate Franco-German relations with a new impetus," Merkel said in Paris during a joint news conference with French President Emmanuel Macron.
The governments are also working on developing a common line on European Commission proposals for bringing tax regimes into alignment across the bloc. Macron said that they had also agreed on a "project of fiscal convergence for enterprises."
Merkel acknowledged tax convergence was "not a simple subject, it is even a thorny one," but it would "permit the common market to develop."
Revamp required
The spring edition of the twice yearly cabinet meeting had been postponed to July due to elections in France.
Ahead of the 19th holding of the joint cabinet meeting in Paris, Macron had renewed his call for reforms of the EU and specifically the eurozone, saying "the European Treaties will have to be changed some time, as this Europe is incomplete. The question is not whether we change, but when and how."
Afterwards, the two leaders said concrete details of their proposals on eurozone governance would be "developed later." But they "already recognize that the current architecture of the eurozone presents
persistent faults, and they share a desire to envisage new initiatives to reinforce it."
The French president has also proposed creating a finance minister, parliament and a common budget for the eurozone, which would require changes to EU treaties.
No single debt pool
Responding to fears that German taxpayers may have to shoulder the burden of shared debts, Macron said he was not in favor of turning national debts into a single pool of eurozone debt.
Macron pledges to transform France
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Macron, who beat far-right presidential candidate Marine Le Pen in May, conceded that the French economy needed urgent reforms, but added that it was up to Germany to correct the "dysfunctions" in the eurozone and give it "the fate it deserves."
"Germany ... has a strong economy, but it has demographic weaknesses, economic and trade imbalances with its neighbours and shared responsibilities to give the euro area the future it deserves," he said ahead of the meeting. "Germany must concern itself with the reinvigoration of public and private investment in Europe," Macron had said ahead of the meeting.
Merkel has broadly welcomed his reforms, but most analysts doubt there will be any major changes until after Germany's federal election on September 24, where Merkel will seek a fourth term.
Defense cooperation
The two countries are to work together on a series of defense projects. They include a long-term replacement for their current fleets of fighter planes, a joint indirect fire artillery system and a new "major ground combat system."
"The aim of this joint fighter jet project is to do research and development together... to use it together... and to coordinate on exports," Macron said as he described it as "a profound revolution."
Europe's two fighter jets are the Rafale made by Dassault and the Eurofighter, a joint project between Germany, Britain, Italy and Spain.
Some of the projects would be opened up to other European countries once they are "sufficiently developed," they said.
Speaking later in the day in a defense policy speech, Macron said French military spending would be increased from next year in order to reach a target of two percent of economic output by 2025. "It's a considerable effort, considering the current context of budgetary constraints," Macron said. Defense spending would reach 34.2 billion euros ($38.98 billion) in 2018, including 650 million euros for external operations, Macron said.
Bilingual school programs
Macron confirmed that bilingual French-German school programs would be reinstated. They had been abolished under his socialist predecessor Francois Hollande.
A record 540,000 middle school students would benefit from German language teaching Macron said.
Welcoming the announcement Merkel said "Of course, one understands the culture of another country better when one speaks its language."
Vive la France!
On the occasion of the April 24 election runoff between French President Emmanuel Macron and his rival Marine Le Pen, we travel to the "Grande Nation."
Image: Lionel Bonaventure/AFP/Getty Images
Paris
Stroll along the banks of the Seine, admire the "Mona Lisa" in the Louvre, look at the Arc de Triomphe, or, as here, enjoy the view of the French capital from the Eiffel Tower: Paris offers infinite opportunities for visitors. After you finish sightseeing, you can go to a cafe in the fashionable Saint-Germain-des-Pres quarter or a bar in trendy Belleville.
Image: picture-alliance/abaca/R. Julien
Provence
Fragrant lavender fields, medieval mountain villages, shimmering heat and that very special light. Provence in the summer is a celebration of the senses. Famous artists like Picasso, Chagall or Van Gogh were so taken by this special place that they chose to stay here. With some 30 million visitors every year, the south of France is the country's most popular holiday destination.
Image: picture-alliance/prisma/K. Kreder
Cote d'Azur
The longing for sun traditionally leads to the Mediterranean in France. The Cote d'Azur stands for luxury and glamour; in the 19th century, holidays here were a privilege of the European aristocracy. Later came prominent artists and the international jet set. Today, everyone finds their favorite place between Marseille and Menton.
The French part of the Alps is located in the southeast. The mountain range Mont Blanc massif attracts mountaineers from around the world. The Mont Blanc itself, at 4,810 meters (15,777 feet), is the highest peak of the Alps. The first recorded ascent to its summit in 1786 marked the birth of modern mountaineering. Today there are over 100 routes leading to the roof of France.
Image: picture alliance/blickwinkel/P. Royer
Pyrenees
In the southwest of France, the Pyrenees form the border to Spain. The oversize racing bikes on the Col d'Aubisque (1,709 meters/5,607 feet) pay homage to the fact that since 1951 this steep mountain pass has been part of the Tour de France cycle race. Those who manage to bike up here are really fit. Hikers can enjoy this mountain range from the Mediterranean to the Atlantic on the GR10 trail.
Image: picture alliance/T. Muncke
Loire Valley
The Loire is the longest river in France. It winds its way over 1,020 kilometers (634 miles), from the Massif Central to the Atlantic. Nowhere else in Europe will you find so many castles in such a small area: 400 chateaux line the shores of Europe's last large wild river. One of the most famous is Chateau de Chambord (picture). The Loire Valley has been a UNESCO World Heritage Site since 2000.
Image: picture alliance/blickwinkel/K. Thomas
Bretagne
Holidays on the Atlantic are all about the elements. The Breton coast in the far west of France has a rugged beauty, wild and windswept. The ever-changing weather is part of what makes this landscape so fascinating. After the Cote d'Azur, the Bretagne area is the second-most visited region in France.
Image: picture alliance/L. Avers
Normandy
Normandy experiences the strongest tides in Europe — measuring a difference of up to 14 meters (46 feet) between high and low water marks! Only a few times every year is this island completely surrounded by water. Mont-Saint-Michel with its Benedictine monastery is one of the most visited attractions in France. It has been a UNESCO World Heritage Site since 1979.
Image: picture-alliance/dpa/J. Yves
Cote d'Argent
The name means "silver coast" and it refers to the Atlantic coast west of Bordeaux. Some 100 kilometers (60 miles) of fine, white sand — which shimmers silver in the sunlight — promise dream holidays. Located in the center of the coastline is Europe's tallest walkable dune, the Dune du Pilat. Its height varies from 100 to 117 meters (380 feet). It is 500 meters wide and 3 kilometers long.
Image: picture alliance/prisma/H. Michael
Vineyards between Bordeaux, Alsace
France makes hedonists happy. The quality of French wines sets the global benchmark. There are 14 winemaking regions, each with its own characteristics, promising a pleasurable wine tasting trip from chateau to chateau. Many premium wines come from the area around Bordeaux.
There are 600 restaurants in France with at least one Michelin star. Alsace is a region which attracts many food lovers with its rich regional cuisine. To go out for a good meal here doesn't have to cost a fortune. The food traditionally is rich and the portions large. Everyone from the picky gourmet to the hungry traveler will find something to their taste here.