France and Germany have proposed new legal instruments for the European Commission to restrict market access and address trade imbalances, specifically citing concerns regarding China.
Key facts
- •France and Germany sent a joint policy paper and letter to Commission President Ursula von der Leyen on Monday.
- •The EU's trade deficit with China was estimated at €1 billion per day in 2025.
- •The proposed tools would allow the Commission to restrict single market access and respond to currency manipulation or subsidies.
- •The leaders proposed that new measures be activated unless a qualified majority of member states opposes them.
- •The initiative aims to protect key European sectors, including aerospace, automotive, and pharmaceuticals.
French President Emmanuel Macron and German Chancellor Friedrich Merz have called for new European Union trade powers to counter market distortions and economic imbalances. In a joint letter sent to European Commission President Ursula von der Leyen on Monday, the leaders argued that existing trade defense measures are no longer sufficient to protect the bloc's industrial sectors. The proposal aims to provide the Commission with tools to restrict access to the European single market and address systemic trade threats.
Proposed Trade Instruments
The proposal outlines a comprehensive framework designed to be country-agnostic, targeting market distortions ranging from single products to entire sectors. The suggested instruments would address issues including subsidies, currency manipulation, and non-tariff barriers. The leaders emphasized that these tools should be implemented in a lean, non-bureaucratic manner to allow for swift, tailor-made solutions. One proposed mechanism would focus on reducing European dependencies and supply-chain concentration risks. A second instrument would allow the Commission to take decisive action against third countries that undermine fair market conditions, potentially including tariffs or an immediate cut-off from the internal market.
Strategic Objectives and Implementation
Macron and Merz stated that the EU is facing an industrial shock affecting sectors such as pharmaceuticals, aerospace, automotive, chemicals, and industrial machinery. They noted that the EU’s trade deficit with China reached an estimated €1 billion per day in 2025. The leaders are pushing for decisions to be made through a comitology procedure, where measures would be activated unless a qualified majority of member states opposes them. The proposal is scheduled for discussion at the upcoming European Council summit. The goal is to restore a level playing field for European companies and demonstrate the bloc's credibility in responding to the weaponization of trade.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Euronews My Europe, Anadolu Agency Europe.
