Merkel, Macron agree on euro zone budget

German Chancellor Angela Merkel and newly-elected French President Emmanuel Macron attend a press conference at the Chancellery on May 15, 2017 in Berlin, Germany.
Axel Schmidt | Getty Images

Chancellor Angela Merkel said she and French President Emmanuel Macron agreed on Tuesday to create a euro zone budget charged with boosting investment in the currency bloc and promoting economic convergence between its 19 member states.

"We are opening a new chapter," Merkel said after talks with Macron on European reform ahead of a June 28-29 EU summit. She said euro zone reform was the toughest issue in their talks.

"We are working to make sure that the euro zone budget will be used to strengthen investment, also with the aim of strengthening convergence within the euro zone," she added.