Germany, the EU’s largest economy, is losing global market share not because of China but due to its own weak competitiveness, Handelsblatt reports, citing a Kiel Institute study.
The outlet said Brussels is preparing new trade instruments that would allow it to impose broad punitive tariffs on subsidised Chinese imports and even trigger a trade war in the event of a conflict.
However, according to economists, Germany is losing more global market share than could be explained solely by state-subsidised cheap imports.
Chancellor Friedrich Merz also supported efforts by the European Commission to develop tools to counter unfair competitive practices, stressing that the EU must be able to defend its economic interests when necessary.
Addressing concerns about market distortions linked to countries such as China, he proposed initiating dialogue on currency-related issues.
"In some cases, we are competing with currency areas whose currencies are undervalued by up to 30% ... relative to ours," the chancellor noted.
He further stated that the European Union’s current draft budget proposals are not financially sustainable.
Merz argued that the proposals currently being discussed are “not feasible. It's not affordable.”
At the same time, he urged that negotiations should proceed at a faster pace, adding: “I want us to reach a decision this year,” he said.
His comments underscored ongoing divisions among the 27 member states over the bloc’s seven-year financial framework.
By Bakhtiyar Abbasov
