Eurozone members agreed to a common, albeit timid, budget on December 14 with the size of the budget to be determined after the European elections in May 2019.

It remains unclear if the new budget will be able to stabilise the Eurozone in the event of a crisis similar to what was seen in 2008 as similar previous plans have been fiercely resisted by a number of Eurozone members who want to reduce the so-called “budget” into a fund that is devoted to long-term economic convergence in the Eurozone and focus on investments in infrastructure as well as the fight against unemployment.

French President Emmanuel Macron made the case that the Eurozone should be prepared for counter-cyclical measures if, and when, the next economic downturn comes about. Paris has long argued for an ambitious budget funded by Euro-wide taxation.

The French proposal has, however, consistently come under attack by major net contributors to the EU budget, such as the Netherlands, Luxembourg, and Germany.