French President Emmanuel Macron and German Chancellor Friedrich Merz sent a joint letter to European Commission President Ursula von der Leyen on October 5, 2026, advocating for tougher EU mechanisms to address unfair trade practices by other countries. They argue that existing EU instruments are insufficient to tackle these issues.
While the letter does not specify any countries, it appears to be directed at trade policies from China and the United States, particularly in light of the EU's significant trade deficit with China and its reliance on key raw materials from both nations. The appeal comes ahead of a visit by EU trade commissioner Maros Sefcovic to Beijing.
The leaders proposed two new measures: one aimed at ensuring diversification to prevent over-reliance on individual suppliers, and another allowing for expedited exclusion of a country from the European single market under exceptional circumstances. They emphasized that these measures would address situations where countries undermine fair market conditions through political or economic means, leading to significant distortions in the EU's single market.
Macron and Merz expressed concerns about the EU's global competitiveness and dependencies on certain suppliers, which they described as 'geoeconomic risks.' They stated that the current trading system is compromised by trade instrumentalization and market-distorting practices, which threaten the competitive landscape for EU companies and the bloc's capacity for innovation.
The letter is categorized as a 'non-paper,' which is an informal document used within EU diplomatic circles to propose ideas without formal commitments. It suggests that the Commission should have the authority to exclude a country from single market access in extreme situations, reversing the current process that requires member state approval. Under the proposed changes, the Commission could act independently, allowing member states to block the decision with a qualified majority vote.
The EU's trade deficit with China is projected to reach approximately €360 billion (around $400 billion) by 2025, while Chinese statistics estimate it at $292 billion. The EU's reliance on China for raw materials, particularly rare earths, and high-tech imports is also noted. Sefcovic's upcoming visit to China is expected to address these trade issues ahead of an EU leaders' summit on October 15-16. Beijing has indicated potential retaliatory measures in response to the EU's plans if deemed necessary.