Merz calls for faster EU trade retaliation powers

German Chancellor Friedrich Merz has proposed a mechanism allowing the European Commission to respond more quickly to tariffs, sanctions and other economic measures against the EU. The German-French proposal will be discussed at an EU summit, he told the Bundestag on October 14.

Merz said he and French President Emmanuel Macron had proposed stronger trade-defence powers for the Commission. The aim is to speed up responses to actions affecting European industries and supply chains.

As described by the chancellor, the Commission would be able to take immediate measures without first referring them to the European Council. EU governments could subsequently withdraw them by a qualified majority. Merz said that approach should make responses to economic threats faster.

He identified large foreign subsidies, artificially weakened currencies, excess production capacity and aggressive pricing as concerns. Merz said he would seek discussion of the new instrument and prompt decisions at the forthcoming EU summit.