Berlin and Paris propose 'second-strike' tool to cut off EU market access
German Chancellor Friedrich Merz and French President Emmanuel Macron have jointly proposed a new EU trade instrument that could immediately cut off access to the single market in response to economic coercion. The move marks a significant shift for Berlin toward protectionism, aiming to counter Chinese restrictions on critical supplies like rare earths and magnets. The proposal seeks to bypass standard qualified majority voting rules, allowing a minority of member states to trigger the measure. This initiative is designed to prepare for upcoming EU Council meetings and address the bloc's growing trade deficit with China, which now exceeds its deficit with the United States.
