By Andreas Rinke and Belén Carreño

MADRID/BERLIN – Monday’s talks in Madrid will see the Spanish Prime Minister Pedro Sanchez and Olaf Scholz, German Chancellor of Germany, seek agreement on more left-leaning European policies on issues ranging from migration to fiscal policy.

Sanchez has high expectations for Scholz’s visit, having taken over as conservative chancellor Angela Merkel last week. Sources say that he views the trip to Madrid-Berlin as an important step towards rebuilding the axis.

We got along with Merkel’s government well, but Scholz is part of our social democratic family. “There is more ideological match,” a high-ranking Spanish official said to Reuters.

Achim Post was the General Secretary of the European Parliament’s Socialist Bloc and an important member of Scholz’s Social Democrats Germany. He noted that the left-wing parties now lead Spain, Portugal and Germany.

He expressed hope that Scholz, Sanchez and others, who will hold a press conference at 1500 GMT on Tuesday, would capitalize on the chance to promote policies for a better distribution of refugees across the European Union.

Post said that “the fact that both the Spanish and German governments are led now by Social Democrats opens new opportunities for cohesion, progress and cooperation in Europe.”

The PSOE in Spain, which is made up of Socialists from Spain, followed Scholz’s November negotiations to form a coalition government. They were trepidatious, afraid that they would make too many concessions for the Liberals.

However, the “traffic light” coalition that was formed with Greens and Liberal Free Democrats reassured Europe’s social democratic family. A Social Democrat MEP said to Reuters.

He said that although the positions of Scholz, Sanchez and others will differ, they would not be identical.

SPENDTHRIFTS VS FRUGALS: What’s the difference?

Germany’s role in the Spanish debt crisis was to be seen as the leader of “frugals”, a group that enforced financial restraints and looked down on its southern neighbor, the “spendthrift”.

According to a Spanish official, Scholz’s visit is seen by the Sanchez government as an initiative in dismantling these two blocs.

He said that “We won’t abandon our agreements avec Paris and Rome who remain key partners”, adding however, that Spain might be able to convince Germany to adopt a similar ideological position.

Today’s meeting of European Finance Ministers is to determine when the stability pact that was suspended in the wake of the pandemic will be reinstated.

Madrid is hoping to persuade Berlin to accept a looser set of eurozone fiscal regulations, which are also supported by France & Italy. These rules would lower the GDP-to-debt ratio and help slow down the deficit reduction drive.

Recent data show that the eurozone average has close to 100% debt GDP. It ranges from Greece, which is at 227 percent, to Estonia, where it’s 19%. Germany stands at close to 70%, while Spain is 122%.

“We require a reliable rule. The Spanish source stated that 60% of big euro nations cannot achieve the target.