BRUSSELS / RankWire.AI / – France and Germany have called on the European Commission to establish a swift-response mechanism for addressing serious market distortions. French President Emmanuel Macron and German Chancellor Friedrich Merz submitted their proposal to Commission President Ursula von der Leyen. Their collaborative effort advocates for quicker measures when external nations undermine fair competition within the European Union, while also aiming to reinforce the legal framework for cases that current trade measures cannot promptly resolve.
The suggested policy would empower the European Commission to implement extensive countermeasures against third countries when significant distortions threaten the integrity of the single market. In the most critical situations, this tool could enable immediate exclusion from EU market access. Macron and Merz also put forward a proposal for a reverse qualified majority voting system for approving such actions, where measures would automatically be enacted unless a qualified majority of member states opposed them.
Additionally, France and Germany emphasized the importance of creating a dedicated diversification mechanism aimed at reducing excessive reliance on a limited number of suppliers for essential goods. Their document highlights risks associated with dumping, large subsidies, supply concentration, and other practices that distort fair competition. Both governments stressed that the EU requires tools capable of a decisive and systematic response, with the proposal not explicitly targeting any particular nation, but amid ongoing EU examination of trade relations with China.
Renewed focus on EU trade defense strategies
The European Commission expressed support for the Franco-German initiative, describing it as a valuable addition to ongoing discussions about economic vulnerabilities and global imbalances. The EU currently possesses anti-dumping, anti-subsidy, and safeguard measures to counteract unfair or disruptive trade practices, and it also implemented an Anti-Coercion Instrument, which became effective in December 2023, allowing the bloc to respond when a non-EU country uses trade or investment pressure to influence EU decisions.
The proposed rapid-response mechanism aims to cover a broader spectrum of market disruptions and accelerate the decision-making process within the EU. France and Germany advocate for the Commission to act promptly without waiting for the usual political approval stages, thereby shifting the responsibility to member states that oppose particular measures. EU leaders are scheduled to convene in Brussels on October 15 and 16, shortly after the proposal from France and Germany was presented to the Commission.
China rebukes EU’s proposed trade measures
On October 6, China’s Ministry of Commerce responded by urging France and Germany to refrain from promoting what it described as protectionist tools within the EU. It emphasized that economic interdependence should not be viewed as a threat and called for continued support for open trade. The ministry also cautioned against turning trade and economic disputes into broader security concerns, noting that Beijing has separately criticized discussions about new EU instruments that could restrict Chinese companies or products.
This initiative arrives amid ongoing negotiations between the EU and China regarding trade imbalances, export controls, and other commercial disagreements. EU trade authorities have also increased their monitoring of sustained import growth and industrial overcapacity. 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 review the proposal alongside existing trade defense policies and the overall strategic economic security framework of the bloc.