“No red lines.” Spain reveals “Super-Group of 6” plan to challenge the US and China

The new “E6” group is an exclusive club of the EU’s six largest economies: France, Germany, Italy, the Netherlands, Spain and Poland. Smaller countries, such as Portugal and Ireland, fear that the club will marginalize dissenting voices in the name of a two-speed Europe.

By threatening to annex Greenland, the US president, Donald Trumptriggered the “moment of revelation” which will have led the six largest economies in the European Union to join forces and accelerate the reform of financial markets, revealed to the Spanish Economy Minister, Carlos Body.

According to the Berlin-based newspaper, the new group, surname of “E6” in Brussels, is an exclusive club of the EU’s six largest economies: France, Germany, Italy, the Netherlands, Spain and Poland

The group was designed to unblock political impasses that have been hindering, over the last decade, efforts to create a financial market similar to the North American, says Politico.

Without concrete measures, the six countries fear that the European economy will not be able to keep pace with the US and Chinaand that it is even more pressured in a geopolitical world that has become increasingly transactional.

The club’s objective is to put “politically difficult discussions on the table, so that unlock dossiers which until now have remained closed,” said Cuerpo, who has long advocated greater political decision-making capacity on the part of European institutions. “Build these bridges It could be a good first step towards a global solution.”

The club will also serve the six countries coordinate positions before G7 meetings with Canada, Japan and the USA on strategic issues, such as ensuring access to critical and rare raw materials, following China’s threat to restrict its exports.

The E6 club met only twiceand already has the ambition to present concrete proposals to European leaders at the next European Council summit in March.

The creation of this “super-group” awakened criticism from smaller countrieslike Portugal and Irelandwho fear that the club could in practice lead to a Two-speed Europein which larger nations will marginalize smaller countries that disagree with the E6 agenda — especially with regard to creation of a supervisory authority of the largest financial operators in the block.

The President of the European Commission, Ursula von der Leyensuggested that EU countries should form more restricted groups and move forward with financial integration through “enhanced cooperation“, in case the so-called Union of Savings and Investments does not register progress until June.

A super group is born

The spark that triggered the emergence of the E6 appeared at breakfast Ecofin ministerial meeting, in Brussels, on a cold January morning, between coffees and croissants, when the Cuerpo’s frustration with European inaction reached the limit.

Trump had launched the confusion in NATO with its renewed demands for “own” Greenlandshortly after removing Venezuelan leader Nicolás Maduro from power.

None of these topics were on Ecofin’s monthly agenda, which provoked a reaction from Cuerpo, who regretted the lack of political debate about Europe’s relationship with the USA, notes Politico.

Your reaction It couldn’t have come at a better time for the French and German Finance Ministers. Both, Roland Lescure and Lars Klingbeilhad met just 24 hours earlier to discuss how best to relaunch the EU’s economic initiatives, which had fallen into stagnation. Invitations for a virtual meeting between E6 countries have arrived within a week.

“Lars e Roland pushed for all six of us to get togetherand that’s how it all started”, says Cuerpo. The first meeting focused on strengthening the raw material supply chains critical and rare and how to move quickly in deepening the bloc’s financial markets — including reduction of bureaucracy and the introduction of the so-called “28th regime”.

The next E6 meeting, on March 9, will focus on promoting investment in defense and how to value the euro on an international level.

Split reactions

Reactions from those outside the club have been heterogeneous.

There are those who believe that the E6 can lead to significant changes; others fear that their voices are muffled in the name of rapid progress. There is also a third group that considers that the six countries will have difficulty finding points of convergence.

At the last Eurogroup meeting, the German finance minister informed his counterparts of the discussions within the E6, a gesture of transparency which was not enough to appease all the skeptical ministers and their advisors.

The Minister of Finance of Portugal, Joaquim Miranda Sarmentoappealed to the 6 countries that created the super-group that respect the EU Treaties.

“EU oversight was the elephant in the room“, said a diplomat who was present at the Eurogroup, quoted by Politico. “I’m surprised that more people didn’t speak out.”

To dispel concerns surrounding the E6Cuerpo is encouraging outside countries to participate in other discussion forums, such as “Competitiveness Lab“, an open format launched a year ago, to develop common initiatives between governments that intend to deepen their capital markets.

Meanwhile, Cuerpo appeals to skeptical countries that place your trust into something new, that can go beyond the stuck legislative machine in Brussels. “There are no red lines in discussions within this group,” said Cuerpo. “I believe this should be for the benefit of everyone.”