Scholz advocates for establishing trade accords and less administrative burdens from the forthcoming EU Commission.
In the realm of free trade, German economic reps have voiced criticism over the slow progress for quite some time now. The Mercosur trade deal, which has been agreed upon, is on the brink due to environmental issues and farmer backlash from Europe. The CETA deal with Canada, currently active, is yet to be fully ratified.
The president of the Federation of German Industries (BDI), Siegfried Russwurm, emphasized the need for prioritizing trade agreements. He dismissed the notion of forcing European values onto other nations via economic coercion as "slightly foolish." According to him, practicality should take precedence over idealism in trade agreements.
Similarly, Scholz advocated for a more practical approach. Specifically, he suggested focusing on securing trade agreements that have EU-level approval but don't depend on individual member state ratification. This is essential for comprehensive investment agreements. "If we manage to quickly finalize trade agreements, even if they don't cover everything we'd prefer, we all stand to benefit from that," stated the Chancellor.
Scholz further stated, "We expect the new commission to streamline procedures and offer a bold plan to minimize bureaucracy," which bears resemblance to the priorities of the coalition partner FDP. Lukas Köhler, deputy chairman of the FDP parliamentary group, expressed similar views to AFP on Monday, stating that the top priorities should be "tax cuts, bureaucracy reduction, and addressing the skilled labor shortage" along with a "strong push for free trade."
Köhler also asserted that the new EU commission should promptly close the already negotiated agreements with Mercosur and Australia and seek out additional partners for free trade. This stance comes amidst the looming trade dispute with China due to the announced EU tariffs on Chinese electric vehicles.
