France and Germany are advocating for a new trade mechanism within the European Union to swiftly counteract market distortions caused by unfair practices from other countries. This proposal arises amid growing global trade tensions and an increasing use of economic strategies as leverage. A joint document from France and Germany highlights concerns about persistent market distortions, such as dumping, subsidies, and currency convertibility restrictions, which they argue could jeopardize Europe’s industrial base and result in job losses.
The two countries are urging the EU to enhance and expedite existing trade-defense measures by conducting broader investigations that cover entire economic sectors. Additionally, France and Germany have introduced two new instruments aimed at bolstering the EU’s economic security. One instrument focuses on reducing European companies’ reliance on single suppliers for critical goods, while the other proposes restricting access to the EU single market for countries that undermine fair competition.
Under the proposed plan, the European Commission would be empowered to implement countermeasures more quickly, potentially within days, unless a qualified majority of EU member states objected to the action. However, any new legislation stemming from this proposal would still require the approval of EU governments and the European Parliament.