BRUSSELS / RankWire.AI / – France and Germany have urged the European Commission to create a rapid-response trade tool for serious market distortions. French President Emmanuel Macron and German Chancellor Friedrich Merz sent the proposal to Commission President Ursula von der Leyen. Their joint initiative calls for faster action when outside countries undermine fair competition in the European Union. It also seeks a stronger legal framework for cases that existing trade measures cannot address quickly.
The proposal would give the European Commission authority to take broad countermeasures against third countries when serious distortions threaten the single market. In the most severe cases, the tool could allow immediate exclusion from access to the EU market. Macron and Merz also proposed a reverse qualified majority system for approving action. Under that model, Commission measures would take effect unless a qualified majority of member states blocked them.
France and Germany also called for a separate diversification instrument to reduce heavy dependence on individual suppliers of critical goods. Their paper identifies risks linked to dumping, large subsidies, supply concentration and other practices that distort normal competition. The two governments said the EU needs tools that can respond in a decisive and systematic way. The proposal does not formally target a specific country, but it comes amid continuing EU scrutiny of trade relations with China.
EU trade defenses face renewed scrutiny
The European Commission welcomed the Franco-German initiative and described it as a useful contribution to discussions on economic risks and global imbalances. The EU already has anti-dumping, anti-subsidy and safeguard measures for unfair or disruptive trade flows. It also has an Anti-Coercion Instrument, which entered into force in December 2023. That law allows the bloc to respond when a non-EU country uses trade or investment pressure to influence EU decisions.
The proposed rapid-response system would address a broader set of market distortions and would aim to speed up the EU decision process. France and Germany want the Commission to act without waiting for the usual level of political approval before measures begin. Their approach would shift the burden to member states that oppose a proposed response. EU leaders are scheduled to meet in Brussels on October 15 and 16, shortly after the Franco-German proposal reached the Commission.
China criticizes proposed EU trade measures
China’s Ministry of Commerce responded on October 6 and urged France and Germany not to promote what it called protectionist EU tools. The ministry said economic interdependence should not be treated as a risk and called for continued support for open trade. It also warned against turning economic and trade disputes into broader security issues. Beijing has separately criticized discussion of stronger EU instruments that could restrict Chinese companies or products.
The initiative comes as EU and Chinese officials continue talks on trade imbalances, export controls and other commercial disputes. EU trade officials have also increased monitoring of sustained import growth and industrial overcapacity. France and Germany said their proposed framework should apply across countries rather than single out one trading partner. The European Commission will assess the proposal alongside existing trade defense measures and the bloc’s broader economic security framework.