The economic strategy of the EU Commission titled “Europe 2020” aims at strengthening the coordination and governance of the EU over the member states in economic questions. Commission President Barroso suggested raising national research and development budgets to three percent of the GDP. Furthermore, the commission proposes to confer great supervisory functions to the EU over national budgets in order to avoid severe financial problems like the ones Greece is facing at the moment.

Germany reacted reluctantly to the programme. Chancellor Merkel opposed binding targets for member states, fearing that this might lessen the focus on long term stability and fiscal discipline in favour of boosting growth.

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