EU leaders seek unity on post-Trump trade dangers
BRUSSELS: EU leaders tackle the thorny topic of globalisation at a summit on Friday with deep divisions between proponents of free markets and others seeking more protections, most notably France.
The election of ‘America First’ President Donald Trump has sown confusion in Europe, with free trade advocates asking that the EU take leadership and sign new trade deals with Japan, Mexico and South America.
But French President Emmanuel Macron has warned leaders to prioritise protections for Europeans worried about globalisation or risk a spike in populist sentiment that helped Trump win the presidency and brought on Brexit.
“It’s not a secret that there is not one single view on how globalisation can be better controlled,” a senior EU diplomat said ahead of the summit, on condition of anonymity.
“There are quite a few nuances between those who are more free on trade and those who want to have more controls,” he added.
The most divisive issue is a proposal spearheaded by proEU Macron to hand Brussels more powers to control Chinese investments in Europe’s key industries.
“I’m in favour of fair protection... I’m in favour of free trade, not of being naive,” Macron said after a first session of talks on Thursday.
Macron, who beat far- right leader Marine Le Pen in last month’s run-off, is asking that the summit launch measures towards screening investments by China in Europe that have startled some Europeans.
But according to a draft of the summit conclusions seen by AFP, opponents of Macron’s efforts have so far succeeded in blocking the effort, in effect delaying discussion to an unspecified later date.
Instead, leaders will only ask the European Commission, the EU’s executive arm, to “examine the need” to screen investments from countries outside the EU, with China the main target, the draft said.
Macron’s idea has faced significant opposition from Sweden, Finland and the Czech Republic, as well as European Trade Commissioner Cecilia Malmstroem, all highly suspicious of French-style meddling in the open market.
“We don’t want to hurt investment,” Malmstroem told a conference organised by Politico on Monday. — AFP