Symbolic imageGermany and France propose EU trade tool to cut off market access
Chancellor Merz and President Macron want the EU to be able to cut a country off from the single market in cases of trade coercion. EU leaders are due to take up the proposal at a summit in mid-October.
In a letter to Commission President Ursula von der Leyen on Monday, 5 October, Merz and Macron call for a "powerful" instrument that can be activated quickly, with measures "up to an immediate cut-off from the internal market if needed" (Financial Times). The letter names no country, but the FT reads it as a response to China's rare earth export restrictions. According to FAZ and Handelsblatt, the Commission could trigger the tool itself, and member states could stop it only with a qualified majority. A second proposed instrument would keep firms from relying too heavily on single-country suppliers. A Commission spokesperson called the letter a valuable contribution that will be discussed at the summit.
Talks in Beijing
Trade Commissioner Maroš Šefčovič meets Chinese commerce minister Wang Wentao in Beijing on 9 October, as the EU seeks to reduce its trade deficit with China of €1bn a day. Šefčovič told Politico that talks have not reached their goal, and FAZ writes that the outcome will shape whether leaders choose confrontation.
Pressure within Germany's coalition
SPD-led federal ministries want a tougher line on China, according to a paper for Wednesday's coalition committee first reported by Die Zeit. It includes an EU anti-subsidy investigation into Chinese makers of plug-in hybrids. Die Zeit adds that the Union-led economy ministry and parts of the Chancellery want to use trade defence only sparingly.