26 January 2026 – Nickel futures traded on the SHFE and LME opened the week largely unchanged and stable. Last week, the EU submitted a reform proposal to the WTO in Geneva. And is the European Commission still democratically legitimate?
Nickel Prices Stable at the Start of the Week
Nickel futures prices on the SHFE and LME remained largely unchanged and stable at the start of the week. Asian nickel prices moved sideways at Friday’s levels, while LME nickel edged higher at the start of European trading. Most recently, LME nickel was trading at around USD 18,700 per tonne. Chinese spot market prices for nickel rose by up to 3.6% today.
European Union Submits WTO Reform Proposal
Hardly had EU Trade Commissioner Maroš Šefčovič published his opinion piece in the Financial Times last week calling for reforms to the rules of the World Trade Organization (WTO), when the EU formally submitted its reform proposal to Geneva.
US WTO Reform Proposal in December 2025
In doing so, the EU is following a proposal submitted by the United States in December 2025. However, it overlooks the fact that the Union is in a fundamentally different starting position and is far more dependent on open markets – not only for imports, but even more so for exports.
EU Seeks to Enter a Reciprocal Tariff Game
While the EU is increasingly relying on trade defence measures and intends to use tariffs as a reciprocal tool to enforce desired behaviour, this approach simultaneously drives up production costs for its own economy and reduces its global competitiveness. At the same time, new WTO rules would restrict market access and thereby undermine the EU’s own economic success.
Unlike the United States, the EU does not have a homogeneous internal market – one that is already burdened by significant internal trade barriers – nor does it have balanced income levels across its Member States. A large share of raw materials and semi-finished products must be imported. In addition, key energy sources such as natural gas and crude oil are lacking and must be purchased from abroad, for example from the United States.
As a result, tariffs have a far more pronounced impact on citizens and companies in the EU than in other parts of the world.
Against this backdrop, neither EU Trade Commissioner Maroš Šefčovič nor Commission President Ursula von der Leyen, nor the EU Member States, have done themselves any favours. Instead, they have opened another front that – much like the Mercosur agreement or the free trade agreement with India – rests on shaky foundations.
Thorsten Gerber, CEO of the Gerber Group, commented today: “This purely ideology-driven policy of the European Commission must finally come to an end and end up where it belongs: in the bin.” He added: “Brussels would do well to at least conclude a single trade agreement before attempting something that clearly exceeds the Commission’s current capabilities and capacity.”
Is the Commission Still Democratically Legitimate?
As became known last week, the largest political group in the European Parliament, the European People’s Party (EPP), significantly tightened its internal voting rules shortly before another motion of censure against the von der Leyen II Commission.
According to multiple media reports, members who deviate from the group line now face the withdrawal of key parliamentary rights for up to six months if they fail to vote as instructed by the group leadership.
EPP Sanctions Its Own Members Over Voting Behaviour
Several Members of the European Parliament affiliated with the EPP reportedly received corresponding emails from the group leadership following Thursday’s vote on the motion of censure. Under these measures, sanctioned MEPs will lose, for the next six months, the right to lead the group’s work on new legislative and non-legislative initiatives and to speak on behalf of the group in plenary. Their existing legislative roles, however, are to remain unaffected.
Members of Parliament Are Not Bound by Instructions
This development casts a long shadow over democratic processes within the European Parliament and raises a legitimate question as to whether the European Commission and its President Ursula von der Leyen can still be considered democratically legitimate if approval can only be secured through internal repression within a political group.
At the very least, the permissibility of such rules at group level is questionable. Under Title I, Chapter 1, Rule 2 of the Parliament’s Rules of Procedure, Members of the European Parliament are not bound by instructions or mandates. There is therefore no formal party whip.
One thing is clear: tensions within Parliament are rising, and majorities can no longer be taken for granted. In the medium to long term, the leadership of the European People’s Party has done itself no favours with this repressive enforcement of voting discipline.
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