France and Germany want the European Union to intervene faster and more decisively in trade conflicts. President Emmanuel Macron and Chancellor Friedrich Merz believe Brussels needs new powers to do so.
According to both leaders, the existing European trade tools are inadequate. They want the European Commission to be able to respond more quickly and decisively to serious trade disruptions and economic threats. Long procedures that delay European action must be avoided.
In Beijing
The timing coincides with important talks between Brussels and Beijing about their trade relationship. EU Trade Commissioner Maroš Šefčovič is in Beijing for new discussions later this week.
Promotion
China is not named explicitly in the joint letter by Macron and Merz. However, their proposals are clearly framed against the backdrop of trade problems with Beijing and growing European concerns about the economic relationship with China.
Trade Surplus
The proposals align with a tougher European trade stance against China. Especially in France and Germany, the willingness to take a firmer stand against Chinese trade practices has grown recently. Concerns about the impact of Chinese production and exports on European companies and industries play an important role.
Paris and Berlin want the European Commission to receive new legal means to respond independently to serious disruptions. This includes the possibility to restrict or even completely stop imports from countries causing serious and persistent problems to the European internal market.
Earlier and Faster
A key reason is Chinese overcapacity and its effect on European industries. The large trade deficit between the EU and China also plays a part. Additionally, European countries want to reduce their vulnerability when heavily dependent on foreign suppliers and international supply chains.
For France and Germany, the speed of European action is especially important. Existing procedures can take months or even longer. Their proposal aims to ensure that measures can take effect more quickly and that individual EU countries find it harder to block European intervention.
The existing European anti-coercion instrument already offers Brussels wide possibilities to restrict imports when there is economic pressure. Activating it, however, requires investigation and political support from EU governments. The new Franco-German instrument could adjust or replace this regulation and give Brussels more room to act faster.