European Commission President Ursula von der Leyen told reporters on Friday that the European Commission will create new instruments, such as a diversification tool, to combat macroeconomic imbalances, particularly the expanding and “unsustainable” trade deficit with China.
In recent years, Europe has already accumulated a sizable toolkit. At a news conference that concluded this week’s European Council session, she stated, “Now we must use it more proactively and more strategically to defend our European interests.”
Von der Leyen claims that EU leaders shown solidarity and unambiguous support for a European response to the current situation while emphasizing the continued importance of communication with China.
António Costa, the president of the European Council, emphasized during the same press conference that the current situation cannot continue.”De-risking, not decoupling, while we engage in dialogue is our clear strategy,” he stated. However, we must deal with the difficulties we are encountering. A daily trade deficit of €1 billion is just not sustainable. Without any tangible outcomes, we cannot keep bringing up these concerns.”
Von der Leyen stated that since supply chain diversification has been too sluggish thus far, the diversification tool would be nation-neutral and concentrate on assisting European businesses in particular industries in de-risking more quickly.
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