Full Breakdown
Macron and Merz Push EU for Tougher Trade Defenses
By Drooid · · How we work
Joint Appeal Calls for Stronger EU Trade Measures
German Chancellor Friedrich Merz and French President Emmanuel Macron sent a joint letter to European Commission President Ursula von der Leyen, urging the bloc to adopt new tools against “unfair trade practices” by third countries. The appeal, issued on a Monday, argues that existing EU instruments are insufficient to protect the single market from systematic distortions. It proposes two main actions: a diversification requirement to reduce reliance on single suppliers, and an expedited mechanism to exclude a country from single-market access when “exceptional circumstances” arise.
Context: Growing Trade Imbalance and Dependency
The letter arrives amid a widening EU trade deficit with China. The EU estimates the deficit at roughly €360 billion (about $400 billion) for 2025, while Chinese statisticians report a smaller figure of $292 billion. The bloc also depends heavily on China for rare-earth minerals and on both China and the United States for high-tech imports, including computing and artificial-intelligence components. These dependencies, the authors contend, create “geoeconomic risks” that threaten the EU’s industrial sovereignty.
Proposed Measures and Mechanisms
The appeal suggests that the Commission be authorized to remove a country from the single market in extreme cases, a step that currently requires a lengthy, member-state-driven process. It recommends reversing this procedure so the Commission can act first, with member states retaining a qualified-majority veto (minimum 55 % of states representing at least 65 % of the EU population). The proposal also calls for a formal diversification strategy to prevent over-reliance on any single supplier.
Official Reactions and Institutional Outlook
Macron and Merz framed the initiative as a response to “instrumentalisation of trade” and “systemic market-distorting practices” that undermine a level playing field. They emphasized the need to safeguard the EU’s capacity for innovation and its role as a sovereign industrial core. EU trade commissioner Maros Sefcovic, who earlier this year expressed hope for “tangible results” on China-related trade issues, has not yet publicly responded to the specific proposals.
Upcoming Developments
Sefcovic is scheduled to travel to China in the week leading up to the EU leaders’ summit on October 15-16, where the proposals are expected to be discussed. Beijing has warned that it could retaliate with its own measures if it perceives the EU’s plans as hostile, adding uncertainty to the forthcoming negotiations.