France and Germany propose faster EU trade response powers

France and Germany have proposed giving the European Commission faster powers to respond to trade distortions and reduce the European Union’s reliance on concentrated supply sources, but the plan is not yet law and its scope remains to be settled. In a letter to Commission President Ursula von der Leyen, French President Emmanuel Macron and German Chancellor Friedrich Merz called for a new instrument that could restrict a country’s access to the EU single market when political or economic actions undermine fair market conditions. Under the proposed procedure, a Commission measure would take effect unless a qualified majority of EU member states opposed it. The leaders say the tool should be country-agnostic, rather than aimed at a specific trading partner. The proposal comes amid EU concerns about trade with China, including market distortions and Europe’s dependence on Chinese supplies of critical raw materials. France and Germany have said the proposed measures are not designed to target one country, while describing the need to address a range of distortions, from subsidies to restrictions on supplies.