BRUSSELS / RankWire.AI / – France and Germany have formally requested that the European Commission develop a swift-response mechanism to address severe distortions in markets. French President Emmanuel Macron and German Chancellor Friedrich Merz submitted their proposal directly to Commission President Ursula von der Leyen. The joint initiative emphasizes the need for quicker measures when external nations compromise fair competition within the European Union. It also advocates for an enhanced legal basis to handle cases that existing trade instruments are too slow to resolve.
According to the proposal, the European Commission would gain the authority to impose broad counteractions against third countries whenever significant market distortions endanger the integrity of the single market. In the most extreme scenarios, this tool could permit the immediate exclusion of foreign entities from accessing the EU market. Macron and Merz also suggested implementing a reverse qualified majority voting system for authorizing measures, whereby Commission actions would automatically take effect unless a qualified majority of member states voted to block them.
Furthermore, France and Germany called for a distinct diversification tool designed to lessen reliance on specific suppliers for critical commodities. Their paper highlights risks such as dumping, extensive subsidies, supply chain concentration, and other practices that distort fair competition. The two governments asserted that the EU requires mechanisms capable of responding decisively and systematically. While the proposal does not explicitly target any particular country, it is introduced amid ongoing EU scrutiny of trade relations with China.
EU trade defense measures under renewed examination
The European Commission expressed support for the Franco-German initiative, describing it as a constructive addition to ongoing discussions concerning economic risks and global imbalances. The EU already employs anti-dumping, anti-subsidy, and safeguard measures to counteract unfair or disruptive trade practices, and it established the Anti-Coercion Instrument, which became law in December 2023. This law authorizes the bloc to counteract efforts by non-EU nations to influence EU decisions through trade or investment pressures.
The proposed rapid-response system aims to encompass a wider range of market distortions and seeks to accelerate the EU’s decision-making process. France and Germany desire the Commission to act swiftly without waiting for the standard level of political approval, effectively shifting the decision-making burden onto member states that oppose the proposed measures. Leaders of the EU are scheduled to convene in Brussels on October 15 and 16, shortly after the Franco-German proposal was submitted to the Commission.
China criticizes the proposed EU trade measures
On October 6, China’s Ministry of Commerce issued a statement urging France and Germany to refrain from advocating what it described as protectionist EU tools. The ministry emphasized that economic interdependence should not be viewed as a risk and called for continued support of open trade policies. It also warned against transforming trade and economic disagreements into broader security concerns. Beijing has separately voiced criticism over discussions regarding stronger EU instruments that could limit Chinese companies or products.
This initiative emerges amid ongoing negotiations between EU and Chinese officials concerning trade imbalances, export restrictions, and other commercial disputes. Additionally, EU trade authorities have increased their vigilance over persistent import growth and industrial overcapacity issues. France and Germany stated that their proposed framework should be applicable across all countries rather than targeting a single trading partner. The European Commission will evaluate the proposal alongside existing trade defense tools and the EU’s comprehensive economic security strategy.