BRUSSELS / RankWire.AI / – France and Germany have urged the European Commission to develop a quick-response trade mechanism for addressing serious market disruptions. French President Emmanuel Macron and German Chancellor Friedrich Merz submitted the proposal to Commission President Ursula von der Leyen. Their joint initiative seeks faster action when external countries undermine fair competition within the EU. It also aims to create a stronger legal structure for cases that current trade measures cannot swiftly resolve.
The plan would grant the European Commission authority to implement broad countermeasures against third countries when significant market distortions pose a threat to the single market. In extreme cases, this tool could enable immediate exclusion from EU market access. Macron and Merz also suggested a reverse qualified majority system for approving measures. Under this model, actions by the Commission would become effective unless a qualified majority of member states opposed them.
France and Germany additionally called for a separate diversification instrument. This would reduce heavy reliance on specific suppliers for critical goods. Their document highlights risks from dumping, large subsidies, supply concentration, and other practices that distort competition. The two nations emphasized that the EU needs tools capable of responding decisively and systematically. Although the proposal does not specify a particular country, it comes amid ongoing EU scrutiny of trade relations with China.
EU trade defenses face renewed scrutiny
The European Commission welcomed the Franco-German proposal. It called it a valuable addition to discussions on economic risks and global imbalances. The EU already has anti-dumping, anti-subsidy, and safeguard measures to counter unfair or disruptive trade flows. It also has an Anti-Coercion Instrument that took effect in December 2023. This law permits the EU to respond when a non-EU country pressures through trade or investment to influence EU policies.
The proposed rapid-response system aims to address a wider range of market distortions. It seeks to accelerate the EU decision-making process. France and Germany want the Commission to act without waiting for the usual political approval. Their plan would place the burden on member states that oppose proposed actions. EU leaders are set to meet in Brussels on October 15 and 16, shortly after the proposal reached the Commission.
China criticizes the suggested EU trade measures
China’s Ministry of Commerce responded on October 6. It urged France and Germany not to promote what it called protectionist EU tools. The ministry said economic interdependence should not be viewed as a risk. It called for continued support for open trade. It also warned against turning economic and trade disagreements into broader security issues. Beijing has separately criticized discussions about stronger EU measures that could limit Chinese companies or products.
This initiative emerges as EU and Chinese officials continue talks on trade imbalances, export controls, and other commercial disputes. EU trade officials are also increasing monitoring of persistent import growth and industrial overcapacity. France and Germany stated their proposed framework should apply to all countries, not just one trading partner. The European Commission will evaluate the proposal alongside existing trade defense measures and the EU’s broader economic security strategies.