How the EU could help stem the flow of illegal product imports

Good morning. Upon arriving at the White House, Donald Trump signed orders to review “unfair trade practices”, but did not slap any new tariffs yet on his trade partners. Here are five takeaways from his opening salvo, and what it could mean for the EU.

Today, our trade correspondent outlines how the new EU justice commissioner wants to protect consumers from buying dangerous goods. And our Rome reporter has a dispatch on the recent train chaos in Italy that may or may not have been caused by sabotage.

Suspicious packages

Brussels should get the powers to stem the flood of dangerous goods sent to Europe in small parcels from China, EU justice commissioner Michael McGrath tells Andy Bounds.

Context: Some 10mn items are flown into the EU every day, most of them coming from China. The European Commission has previously launched investigations into Chinese retailers such as Temu over the alleged sale of illegal goods.

Speaking in an interview with the Financial Times, McGrath said the number of items that are faulty or do not meet safety standards was “an issue of major concern”.

“The overwhelming majority originates from China, and the surveys and the analysis that has been done shows a very high level of non-compliance with EU safety standards,” he said.

“It also affects European companies because it undermines the level playing field . . . and impacts on the ability of European companies to compete,” McGrath said.

The commission is preparing a paper on ecommerce for next month that will recommend tighter customs controls, among other measures. But McGrath believes member states are struggling to keep up with the rising demand, despite increased collaboration between them.

“It is an area where I believe there is a need for a centralised EU action,” said the Irish politician.

While new rules that allow national authorities to block certain websites are helping, McGrath wants to examine “centralised investigative and enforcement powers at an EU level”.

McGrath, who is also responsible for upholding democracy and EU values, also insisted that EU regulations of large online platforms were not “about censorship”.

“It is about ensuring that where there is illegal content, such as illegal hate speech, that that is removed,” he added.

McGrath defended the relatively slow pace of investigations into platforms including X and TikTok over how they handle content and potentially influence users.

“The EU can only act on the basis of evidence,” he said, and companies must have “a fair opportunity to respond, to address the concerns that have been raised”.

The commission also wanted to be confident that a fine or other punishment could survive a challenge at the European Court of Justice. “We’re very anxious to avoid the damage that could be done by adverse findings before the ECJ,” he said.

McGrath added that more legislation might be needed to protect free and fair elections, with a crucial poll in Germany next month.

Chart du jour: Let them merge

The change of guard in Brussels is helping fuel a debate on whether the EU needs to reassess its merger rules to better support industrial policy.

Derailed

Italy’s transport minister Matteo Salvini has warned about sabotage to the country’s railways as recent disruptions have paralysed the country, writes Giuliana Ricozzi.

Context: Earlier this month, a faulty power line at Milan’s central station resulted in dozens of train cancellations and hours of delays. Since then, similar malfunctions have occurred around the peninsula, igniting a debate on the railways’ conditions, and the responsibility for the disruptions.

Last week, Ferrovie dello Stato, the state company in charge of rail infrastructure, formally requested prosecutors in Rome to investigate what it described as “abnormal incidents’’ and “highly suspicious events’’, adding that the faults could be part of a deliberate sabotage campaign.

Salvini, who is in charge of transport as well as deputy prime minister, has come under fire for the disruption, with opponents calling for his resignation.

Speaking in parliament yesterday, Salvini echoed the warnings of sabotage, saying the “situation was objectively worrying’’.

“Italy does not and will never be intimidated,” Salvini said, adding that “for years the railway network has unfortunately been under attack”.

But opposition parties and unions have shown scepticism at the sabotage theory, rather pointing at frequent technical issues on the network and their mismanagement.

The countless disruptions and delays come as Italy’s old fashioned railway system is undergoing a big modernisation process with 1,200 open construction sites across the country.

What to watch today

1. German Chancellor Olaf Scholz visits French President Emmanuel Macron in Paris.

2. European Commission President Ursula von der Leyen addresses the European parliament in Strasbourg.

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