France and Germany propose new EU trade defense tool

French President Emmanuel Macron and German Chancellor Friedrich Merz have formally requested that the European Commission develop a new legal framework to protect the European Union from economic coercion. In a letter addressed to Commission President Ursula von der Leyen, the two leaders argued that the bloc requires a powerful mechanism to respond rapidly to unfair trade practices, market-distorting behavior, and geopolitical pressures. While the proposal does not explicitly name a specific country, it is widely viewed as a response to growing concerns over China's influence and its use of trade as a tool of leverage, such as restricting access to critical raw materials.

The proposed measure would allow the EU to impose swift countermeasures, including the potential immediate exclusion of goods and services from the internal market for nations engaged in economic warfare. Officials from Berlin and Paris stressed that the EU must be capable of inflicting damage equivalent to that suffered by its own industries. This initiative reflects a broader push to reduce strategic dependencies and address global macroeconomic imbalances that threaten European industrial sovereignty.

The urgency of this proposal coincides with broader efforts to stabilize trade relations, including an upcoming visit by EU Trade Commissioner Maroš Šefčovič to Beijing. The European Commission is now expected to consider these suggestions as part of its ongoing strategy to strengthen the union's defense against non-market practices.