Spain, France align on welcoming UK back to EU, strengthening China trade defences

Spain and France Back UK Returning to EU, Push for Stronger China Trade Defences

European Leaders Support UK Rejoining and Call for Trade Protection

MADRID, Sept 30 (Reuters) - Spain's Prime Minister Pedro Sanchez and France's President Emmanuel Macron expressed enthusiasm on Wednesday for Britain rejoining the EU, and agreed Europe must strengthen its trade defences against China.

UK's Prospective Return to the EU

British Prime Minister Andy Burnham floated the prospect of Britain rejoining the EU in an interview earlier on Wednesday, which Macron described as "excellent news" and a "good decision".

"We would open our arms [to Britain]," Sanchez said.

Political Climate in Spain and France

Speaking after Macron's first state visit to Spain, Sanchez described the neighbouring countries as leaders of Europe's "resistance to enemies of our continent and the European model", as both nations gear up for elections next year in which the far right is expected to make significant gains.

EU Budget and Resource Allocation

The two leaders also called for greater flexibility in finding additional resources for the bloc ahead of EU budget negotiations in October, with Sanchez appealing for "a little more empathy" from Brussels for governments "on the frontlines trying to respond to citizens' concerns".

Concerns Over Budget Cuts

Spain and France are among a group of countries concerned that the pressure from major net contributors to the EU budget such as Germany and the Netherlands to cut available funds by several hundred billion euros would worsen inequality and reduce funds for farmers, a key election issue.

Strengthening Trade Defences Against China

Asked about the EU's ongoing negotiations over protecting industry from Chinese competition, the two leaders underscored the importance of securing commitments from Chinese investors on technology transfer in key industries like autos, where Spain's efforts to attract Chinese investors have prompted concern from some stakeholders about a lack of safeguards.

Protecting European Industries

Need for Unity

"On both sides of the Pyrenees we have actors who need to be protected when they suffer unfair competition...if we are not united as Europeans, we have no possibility of success," Macron said.

(Reporting by Victoria Waldersee, additional reporting by Mireia Merino; Writing by David Latona; Editing by Aislinn Laing and Charlie Devereux, Kirsten Donovan)