Germany and France propose new trade instrument to counter economic coercion

Germany and France have jointly proposed a new 'last-resort' trade instrument, which would grant the European Union the power to immediately cut off access to its single market if faced with economic coercion. This initiative, outlined in a letter to European Commission President Ursula von der Leyen, is seen as a response to practices like China's export restrictions on critical rare earths and aims to expand the bloc's trade toolbox. The proposal signifies a shift towards a more protectionist stance for Germany and seeks to shape consensus ahead of an upcoming EU Council meeting.