Borz and Macron called for stricter EU actions against unfair trade. They stated that the current tools available to the EU are no longer sufficient.
Focus on Dependency on Trade with China and the US
This request did not mention a specific country, but clearly refers to China's trade policies, the EU's massive trade deficit with China, and dependency on certain key raw materials. The United States also appears to be another candidate, especially under the current circumstances and the unpredictable trade policies of President Donald Trump.
Economic Risks and Trade Inequalities
The leaders of France and Germany, both striving to balance economic growth and public spending, stated that the EU's challenges to maintain global competitiveness and dependency on specific raw material suppliers lead to geopolitical economic risks. They wrote: "The open and rules-based trading system is severely affected."
In a letter published on Monday, Borz and Macron requested the Commission to quickly allow a country to be deprived of access to the EU single market in exceptional circumstances. They also suggested that the Commission could carry out this action independently, while member states could block this decision by majority voting.
The EU's trade deficit with China is sharply increasing and is expected to reach around 360 billion euros by 2025. The Union is also heavily dependent on China for raw materials and on both the United States and China for imports and technology services.
The EU Trade Commissioner, Maros Sefcovic, will travel to China this week to discuss trade with the country. He had previously expressed hope that tangible results would be achieved by October, although it is unclear whether these results will materialize. Beijing has also warned that it may respond with actions if it feels the need for changes.
