Germany and France on Monday urged the European Union to adopt rapid trade defense measures against unfair practices, with a joint letter to European Commission President Ursula von der Leyen proposing new legal tools to counter market distortions. The proposal, sent by French President Emmanuel Macron and German Chancellor Friedrich Merz, calls for the Commission to gain powers to exclude countries from the EU single market in exceptional circumstances, such as trade wars or supply chain disruptions, without requiring approval from all 27 member states .
The leaders did not name China explicitly, but the letter’s timing—days before EU Trade Commissioner Maros Sefcovic’s visit to Beijing—underscores concerns over the bloc’s trade deficit with China and dependence on critical raw materials. The proposed measures include a "second-strike capability" to retaliate swiftly against countries that retaliate over EU trade actions, according to a German government source .
Macron and Merz argued that existing EU tools are insufficient, citing "systemic market-distorting practices" and geoeconomic risks. Their non-paper, an informal discussion document, will be presented at next week’s EU leaders’ summit in Brussels .
The Commission has welcomed the proposal, according to EU officials, as it aligns with broader efforts to address trade imbalances and protect key European industries .
