Merz and Macron plan EU economic weapon: "Equal footing" against China and the US

TVS News AI, editorially supervised, presents Merz and Macron plan EU economic weapon: "Equal footing" against China and the US.

Trade conflicts between the EU, China and the US are escalating – and Europe is searching for a powerful response. German Chancellor Friedrich Merz and French President Emmanuel Macron have drafted a joint letter outlining a powerful economic weapon for the European Union. Their goal: "equal footing" (Waffengleichheit) vis-à-vis China and the US.

What is known so far about the initiative – and why the idea is reminiscent of a Cold War principle.

What exactly are Merz and Macron planning?

According to the Handelsblatt, the Chancellor and his French counterpart want to equip the EU with a powerful economic weapon. In a joint letter, the two have outlined their plan. At its core, the goal is for Europe to be able to act as an equal partner in international trade with the two great powers – the term "Waffengleichheit" captures this succinctly.

What does "Waffengleichheit" mean in a trade context?

The term originally comes from military terminology and describes a balance of means between conflicting parties. Transferred to global trade, this means: the EU should act so strongly and united economically that neither Beijing nor Washington can employ unilateral leverage – or must at least expect Europe to respond in kind. The aim is to deter Chinese and American measures before they hit European businesses and markets.

Why does this recall the Cold War?

The logic behind the initiative, according to the Handelsblatt, comes from the Cold War. At the time, two blocs faced each other with their respective arsenals – the mutual deterrence potential secured peace for decades. Applied to trade, the principle works similarly: those who act united and forcefully on the economic front are more likely to deter the other side from employing unilateral leverage. This unity appears to be driving Merz and Macron's plan.

What the letter specifically envisages in terms of content – such as which concrete instruments the EU should receive and how coordination with the remaining member states might look – has not been made public.