The new law would give the EU the ability to impose counter-sanctions on individuals, companies and entire countries. Effectively, allowing the EU to fight back as an entity against or for one of its members if they should find themselves in a difficult position.
The highly sensitive draft law would give the EU the power to act as a foreign policy determiner. It grants Brussels the legal right to fight if one of its members feels threatened.
The move by Brussels will be being monitored very carefully by China, Russla and the USA as the three major power players will have to think twice before imposing sanctions on the EU or any of its nations.
The proposal is currently being put through the legislative process and is likely to be approved as both Germany and France have backed the idea.
Germany has said the move would be an evolution of the EU towards a European federal state. It would be the biggest gain for the EU in foreign policy powers in decades.
The plan will allow Brussels to impose economic pain on any country that seeks to economically blackmail the EU.
The EU has been planning for the so-called United States of Europe in recent weeks even holding an event to discuss the plan on Friday.
Brussels has felt continually hamstrung in recent years, particularly by America and the former US President Donald Trump who threatened a trade war with Europe - a sentiment Biden has maintained. The threats have now prompted the EU to toughen up its powers of retaliation.
The federalist EU 'superstate' has also become more of a reality since Brexit freed Brussels bureaucrats from UK blockers - but not every member state is in support.
Speaking at the How to reform the (European - PAP) Union for the future of Europe?" event on Friday, Polish Prime Minister Mateusz Morawiecki made clear his feelings towards the suggestion labelling it as a "dangerous utopia".
Mr Morawiecki said: "We say that the creation of a single European state, 'the United States of Europe' is a kind of utopia, a dangerous utopia that cannot be constructed solely on the basis of legal assumptions and the extended competences of individual institutions.
"Here our voice may be weaker or stronger, but the more we speak to common sense and show that these differences not only cannot and should not be 'equalised'."
He added this "would impoverish the European heritage" and would lead towards "a very dangerous experiment with many utopian features."
The Poland PM also took a swipe at the common currency project which was introduced by the EU.
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A number of MEPs have also vowed to take on the new German coalition Government should they choose to speed up plans for the proposed super-state.
Hungarian Prime Minister Viktor Orban, French far-right leader Marine Le Pen and Jaroslaw Kaczynski, head of Poland's ruling Law and Justice (PiS) party, all came together at a joint conference to speak about the proposal.
Ms Le Pen explained the alliance is "all the more necessary now that we are faced with a German coalition which has made federalism a priority and will definitely also increase migration pressure".
Polish Prime Minister Mateusz Morawiecki joined Ms Le Pen in unity tweeting they agree in a wish for "a Europe of nations to give back to the peoples of Europe their freedom and their sovereignty".
Hungarian Prime Minister Viktor Orban said: "We want to change the politics of Brussels."
Following the joint conference on Saturday, the alliance released a joint statement in defiance against the proposal.
They said they would not support "a Europe governed by a self-appointed elite".
The alliance added that "only the sovereign institutions of the states have full democratic legitimacy".
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