Merz Pushes for Regulatory Simplification Beyond EU's Omnibus Packages - Debt "An Exceptional Case" - Merz's Brussels Debut
The push goes beyond EU's planned deregulation
Advocates for the repeal of the European Union's supply chain legislation
The fresh federal government is onboard with the Brussels plans to rollback business regulations – the Omnibus bundle. However, Chancellor Friedrich Merz believes the proposed measures don't suffice. He's all for curbing European bureaucracy, and an upgrade is on the cards. Stalling some files is just the kickoff, complete abolition is imminent. Citing the CSDDD (EU Supply Chain Act) as an example, Merz hinted at Germany annulling its domestic law, nudging the EU to follow suit and scrap this directive during his maiden voyage to Brussels.
At a joint presser with EU Commission President Ursula von der Leyen, Merz declared, "This is just one example in a sea of changes needed to modernize our framework."
A Commitment to Europe
A veteran EU parliamentarian for 35 years, Merz genuinely supports European integration, the EU, and the internal market, but believes it's far from perfect. The new coalition intends to play an important role in Europe – one it has been criticized for missing out on in the past. The previous administration was frequently labeled the "German Vote," as it often delayed voting in EU decisions.
Trade Disputes with the USA
When grilled about the trade spar with the USA, von der Leyen and Merz confirmed they've had fruitful chats with President Trump. Von der Leyen clarified all options remain open while the EU continues to pursue negotiations for a peaceful settlement. She remained tight-lipped about the progress in the talks and won't visit the White House until a mutually agreeable proposal is on the table. Merz expressed his wholehearted backing for the EU's stance. "There's no option for a bilateral German, French, or Polish negotiation. We're all EU partners!" he insisted. Reciprocal acknowledgment of US technological standards could open vast market opportunities, according to Merz.
EU Bonds and Public Debt
When posed about the possibility of joint EU debt financing, Merz shared views similar to his predecessors: the EU should keep debt levels as an exceptional scenario – "It's not the new normal."
Finance Minister Klingbeil's Paris Voyage
Meanwhile, Finance Minister Lars Klingbeil jetted off to Paris to rendezvous with his French counterpart, Eric Lombard. Topics under discussion include capital markets union, competitiveness, defense, and deregulation. Klingbeil assures Germany will considerably boost its defense budget, while advocating for more efficient processes at the EU level. Lombard vowed to rein in public finances to get back on track towards an acceptable deficit. Despite significant differences in initial financial positions, there's now convergence as Germany has decided to ramp up its debt.
a) Chancellor Friedrich Merz, during his Brussels debut, expressed his intention to go beyond the EU's planned deregulation, pushing for a complete abolition of certain files and hinting at Germany annulling its domestic law related to the CSDDD (EU Supply Chain Act), hoping the EU will follow suit.
b) In a joint press conference with EU Commission President Ursula von der Leyen, Merz emphasized a commitment to Europe, acknowledging his support for European integration, the EU, and the internal market, yet expressing his belief that significant changes are needed to modernize the framework.
