The European Commission will develop new tools to counter macroeconomic imbalances, most notably the growing and "unsustainable" trade deficit with China, including a diversification instrument, European Commission President Ursula von der Leyen told reporters on Friday.
"Europe has already built an extensive toolbox in recent years. Now we must use it more proactively and more strategically to defend our European interests," she said at a press conference closing this week's European Council summit.
According to von der Leyen, EU leaders showed unity and clear support for a European response to the current situation, while also stressing that dialogue with China remains crucial.
At the same press conference, European Council President António Costa emphasised that the status quo cannot continue.
"Our strategy is clear: de-risking, not decoupling, while we engage in dialogue," he said. "But we need to address the challenges we are facing. €1 billion in trade deficit per day is simply unsustainable. We cannot continue to raise these issues without any concrete results."
