German Chancellor Friedrich Merz and French President Emmanuel Macron have urged the European Commission to adopt new, expedited powers to counter unfair trade practices and market distortions.
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ManyPress Editorial
Key facts
- •The proposal is a 'non-paper,' an informal, non-binding document intended to initiate discussion among EU member states.
- •The leaders argue that current EU trade defense tools are no longer sufficient to address modern geoeconomic risks.
- •The suggested measures would allow the European Commission to restrict or cut off imports from countries causing 'severe and systematic distortions' in the single market.
- •The proposal seeks to streamline the activation of trade defenses, mirroring existing procedures used for anti-dumping cases.
- •EU Trade Commissioner Maroš Šefčovič is scheduled to travel to Beijing on Thursday for final trade talks.
German Chancellor Friedrich Merz and French President Emmanuel Macron submitted a joint non-binding proposal to the European Commission on Monday, advocating for stronger EU trade defense tools. The leaders argued that current mechanisms are insufficient to address systemic market distortions and geoeconomic risks. Their proposal seeks to empower the Commission to act more decisively against third countries that undermine fair competition, while reducing the ability of individual EU member states to block such actions.
Proposed New Trade Instruments
The joint letter to European Commission President Ursula von der Leyen outlines two primary objectives. The first aims to enhance supply chain diversification to prevent excessive reliance on individual suppliers. The second proposes a mechanism to allow the EU to exclude a country from access to the European single market on an expedited basis during exceptional circumstances. According to the leaders, these measures would be applicable when third countries use political or economic means to deliberately undermine a level playing field. Officials from France and Germany described the potential tool as a 'second-strike weapon' that would allow the Commission to act without needing to secure approval from EU capitals, a process they noted can currently take months or years.
Context of the Appeal
While the document does not explicitly name any nations, the proposal arrives as the EU navigates trade tensions with China and the United States. The appeal precedes a scheduled visit to Beijing by EU Trade Commissioner Maroš Šefčovič, who is conducting talks aimed at rebalancing the EU’s trading relationship with China. German and French officials highlighted concerns regarding China’s dominance in critical-mineral supply chains and the impact of tariff policies under U.S. President Donald Trump. The leaders emphasized that the EU must maintain its position as a sovereign industrial producer and protect its most vulnerable sectors from global macroeconomic imbalances.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Deutsche Welle, Politico Europe, Deutsche Welle Politics.
