BRUSSELS — European Commission President Ursula von der Leyen’s plan to shake up
how the EU spends its almost €2 trillion budget is rapidly being diluted.
Von der Leyen’s big idea is to steer hundreds of billions in funds away from
farmer subsidies and regional payouts — traditionally the bread and butter of
the EU budget — toward defense spending and industrial competitiveness.
But those modernizing changes — demanded by richer Northern European countries
that pay more into the budget than they receive back from it — are difficult to
push through in the face of stern opposition from Southern and Central European
countries, which get generous payments for farmers and their poorer regions.
A coalition of EU governments, lawmakers and farmers is now joining forces to
undo key elements of the new-look budget running from 2028 to 2034, less than
six months after the European Commission proposed to focus on those new
priorities.
Von der Leyen’s offer last week to allow countries to spend up to an extra €45
billion on farmer subsidies is her latest concession to powerful forces that
want to keep the budget as close as possible to the status quo.
Northern European countries are growing increasingly frustrated by moves by
other national capitals and stakeholders to turn back the clock on the EU
budget, according to three European diplomats.
They were particularly irritated by a successful Franco-Italian push last week
to exact more concessions for farmers as part of diplomatic maneuvers to get the
long-delayed Mercosur trade deal with Latin America over the line.
“Some delegations showed up with speaking points that they have taken out of the
drawer from 2004,” said an EU diplomat who, like others quoted in this story,
was granted anonymity to speak freely.
The EU’s Common Agricultural Policy was worth 46 percent of the bloc’s total
budget in 2004. The Commission’s proposal for 2028-2034 has reserved a minimum
of roughly 25 percent of the total cash pot for farmers, although governments
can spend significantly more than that.
The Commission had no immediate comment when asked whether the anti-reform camp
was successfully chipping away at von der Leyen’s proposal.
THE ANTI-REFORM ALLIANCE
The Commission’s July proposal to modernize the budget triggered shockwaves in
Brussels and beyond. The transition away from sacred cows consolidated a
ramshackle coalition of angry farmers, regional leaders and lawmakers who feared
they would lose money and influence in the years to come.
“This was the most radical budget [ever proposed] and there was resistance from
many interested parties,” said Zsolt Darvas, a senior fellow at the Bruegel
think tank.
A protest by disgruntled farmers in Brussels during a summit of EU leaders on
Dec. 18 was only the latest flashpoint of discontent. | Bastien Ohier/Hans
Lucas/AFP via Getty Images
The scale of the Commission’s task became apparent weeks before the proposal was
even published, as outspoken MEPs, ministers and farmers’ unions threatened to
dismantle the budget in the following years of negotiations.
That’s exactly what is happening now.
“The Commission’s proposal was quite radical so no one thought it could go ahead
this way,” said a second EU diplomat.
“We knew that this would be controversial,” echoed a Commission official working
on the file.
A protest by disgruntled farmers in Brussels during a summit of EU leaders on
Dec. 18 was only the latest flashpoint of discontent.
The terrible optics of the EU’s signing off on Mercosur as farmers took to the
streets on tractors was not lost on national leaders and EU officials.
Commission experts spent their Christmas break crafting a clever workaround that
allows countries to raise agricultural subsidies by a further €45 billion
without increasing the overall size of the budget.
The extra money for farmers isn’t new — it’s been brought forward from an
existing rainy-day fund that was designed to make the EU budget better suited to
handling unexpected crises.
By handing farmers a significant share of that financial buffer, however, the
Commission is undermining its capacity to mobilize funding for emergencies or
other policy areas.
“You are curtailing the logic of having a more flexible budget for crises in the
future,” said Eulalia Rubio, a senior fellow at the Jacques Delors Institute
think tank.
At the time, reactions to the budget compromise from frugal countries such as
Germany and Netherlands were muted because it were seen as a bargaining chip to
win Italy’s backing for the Mercosur deal championed by Berlin. The trouble was
instead postponed, as it reduces budget flexibility.
Darvas also argued that the Commission has not had to backtrack “too much” on
the fundamentals of its proposal as countries retained the option of whether to
spend the extra cash on agriculture.
In a further concession, the Commission proposed additional guarantees to reduce
the risk of national governments cutting payments to more developed regions. |
Nicolas Tucat/AFP via Getty Images
ANOTHER MONTH, ANOTHER CONCESSION
This wasn’t the first time von der Leyen has tinkered with the budget proposal
to extract herself from a political quagmire.
The Commission president had already suggested changes to the budget in November
to stem a budding revolt by her own European People’s Party (EPP), which was
feeling the heat from farmers’ unions and regional leaders.
At the time, the EU executive promised more money for farmers by introducing a
“rural spending” target worth 10 percent of a country’s total EU funds.
In a further concession, the Commission proposed additional guarantees to reduce
the risk of national governments cutting payments to more developed regions — a
sensitive issue for decentralized countries like Germany and Spain.
“The general pattern that we don’t like is that the Commission is continuing to
offer tiny tweaks here and there” to appease different constituencies, an EU
official said.
The Commission official retorted that national capitals would eventually have
made those changes themselves as the “trend of the negotiations [in the Council]
was going in that direction.”
However, budget veterans who are used to painstaking negotiations were surprised
by the speed at which Commission offered concessions so early in the process.
“Everyone is scared of the [2027] French elections [fearing a victory by the
far-right National Rally] and wants to get a deal by the end of the year, so the
Commission is keen to expedite,” said the second EU diplomat.
Nicholas Vinocur contributed to this report.
Tag - Mercosur
BRUSSELS — Even after most member countries backed the EU’s landmark trade
accord with Latin America, opponents of the deal in France, Poland and the
European Parliament are still determined to derail or delay it.
As a result, even after European Commission President Ursula von der Leyen flies
to Paraguay this Saturday to sign the accord with the Mercosur bloc after over
25 years of talks, it could still take months before we finally find out when,
or even whether, it will finally take effect.
The culprit is the EU’s tortuous decision-making process: After the curtain came
down on Friday on deliberations in the Council, the intergovernmental branch of
the bloc, a new act will now play out in the European Parliament. Ratification
by lawmakers later this year is the most likely outcome — but there will be high
drama along the way.
“It has become irrational,” said an EU diplomat, speaking on condition of
anonymity. “If the European Parliament refuses, we will have a European crisis.”
Proponents argue that the deal with Mercosur — which groups Argentina, Brazil,
Paraguay and Uruguay — is the bloc’s best shot at rallying friends across the
world as the EU tries to counter Donald Trump’s aggressive moves (the latest
being the U.S. president’s threats to annex Greenland).
But more than 140 lawmakers are already questioning the legal basis of the
agreement, concerned that it breaches the EU treaties. They want it sent to the
Court of Justice of the EU for a legal review, which could delay it for as long
as two years.
Political group leaders agreed before the Christmas break to submit this
referral to a vote as soon as governments signed off on the deal. That vote is
now expected at next week’s plenary, a official with the Parliament said.
Yet while the rebel MEPs have enough votes to call a floor debate, they likely
lack the majority needed in the 720-seat Parliament to pass the resolution
itself.
“I don’t think that the substance of the legal challenge is going anywhere. This
is fabricated, it’s a lot of hot air — both in terms of environmental [and]
health provisions, in terms of national parliaments. All of this has been tried
and tested,” said David Kleimann, a senior trade expert at the ODI Europe think
tank in Brussels.
LEGAL ROADBLOCKS
The challenge in the Parliament is only one front. The deal’s biggest opponents,
Poland and France, are also fighting back.
Polish Agriculture Minister Stefan Krajewski said Friday he would push for the
government to also submit a complaint to the Court of Justice.
“We will not let the deal go any further,” he said, adding that Poland would ask
the court to assess whether the Mercosur pact is legally sound. On the same day,
protesting farmers spilled manure in front of his house.
“We will not let the deal go any further,” said Polish Agriculture Minister
Stefan Krajewski. | Olivier Matthys/EPA
Polish MEP Krzysztof Hetman, a member of the center-right European People’s
Party and a political ally of Krajewski, said the referrals of the Parliament
and of member states would play out separately with the same aim in mind.
“If one succeeds, the other might not be necessary,” he said, adding that while
the court considers the complaint, the deal would effectively be on ice.
French President Emmanuel Macron, meanwhile, is under huge pressure from his
political opponents to do more to stall the deal. France, Poland, Austria,
Ireland and Hungary voted against the deal last week while Belgium abstained.
That left the anti-Mercosur camp shy of the blocking minority needed to kill the
deal.
On Wednesday, the National Assembly will vote on two separate no-confidence
motions submitted by the far-right National Rally and the far-left France
Unbowed.
Even if opposition to the Mercosur deal remains unanimous, the two motions have
little to no chance of toppling the French government: The left is unlikely to
back the National Rally text, while the center-left Socialists are withholding
support for the France Unbowed motion. But nothing can be ruled out in France’s
fragmented parliament.
REALITY CHECK
Even some of the rebel MEPs admit their challenge is unlikely to succeed — and
that the Parliament might still back the overall deal in a vote later this
year.
“It will be very difficult now that the Council has approved it,” said Hetman,
the Polish MEP. “The supporters of the agreement know this, which is why they
sabotaged the vote on the referral in November and December.”
Others opponents still see a chance to topple it, and are optimistic that the
legal challenge can gather enough support.
“We want to delay the Mercosur adoption process as long as possible,” Manon
Aubry, co-chair of The Left group, told POLITICO before the Christmas break. She
also saw signs that a majority of MEPs could come out against the deal: “I bet
there are even more MEPs willing to make sure that the agreement is fully in
line with the treaties.”
If the judicial review is rejected, the Parliament would hold a yes-no vote to
ratify the trade agreement, without being able to modify its terms.
Such a vote could be scheduled in the May plenary at the earliest, Bernd Lange,
the chair of the chamber’s trade committee, told POLITICO. Lange, a German
Social Democrat, said he was confident of a “sufficient” majority to pass the
deal.
Pedro López de Pablo, a spokesperson for the EPP — von der Leyen’s own political
family and the EU’s largest party — vowed there was a majority for the agreement
in the EPP and dismissed the legal maneuvering.
“It is clear that such a move is politically motivated to delay the
implementation of the deal rather than the product of a legal analysis,” he
said.
Giorgio Leali contributed to this report.
Officially, the EU’s Mercosur trade deal is a defeat for Europe’s farmers. In
reality, farm lobbies just can’t stop winning.
EU countries endorsed the bloc’s long-delayed agreement with South American
nations on Friday, clearing the way for European Commission President Ursula von
der Leyen to fly to Paraguay later this week and close a deal that has haunted
Brussels for more than two decades.
The agreement is going through despite tractor protests, border blockades and
fierce opposition from farm groups and capitals including Paris and Warsaw.
But the price of getting Mercosur over the line was steep.
In the run-up to the endorsement, Brussels quietly stacked the deck in farmers’
favor. Import safeguards were hardened. Controls tightened. And last week, the
Commission unveiled a €45 billion budget maneuver allowing governments to shift
more money to farmers under the EU’s next long-term budget.
Taken together, the concessions mean Mercosur will enter into force wrapped in
protections and paired with a farm budget settlement that leaves the sector
stronger than before.
“Other sectors complain,” said one Commission official involved in agricultural
policy. “Farmers block roads.” The official, like others in this story, was
granted anonymity to speak freely.
The blunt assessment captures a familiar reality inside the EU institutions.
Farmers may represent a shrinking share of Europe’s economy, but they remain one
of its most powerful political constituencies, capable of reshaping trade deals,
budgets and reform agendas even when they fail to block them outright.
Ultimately, to get Mercosur over the line, Brussels had to back away from plans
to loosen farmers’ grip on the EU budget and shift money to other priorities.
PRESSURE THAT WORKS
The leverage farm leaders wield rests on more than theatrics.
Few officials in Brussels dispute that large parts of the sector are under real
strain. Farm incomes are volatile. Costs for fuel, fertilizer and feed have
surged. Weather has become harder to predict. Working days are long and
isolation is common in hollowing rural communities.
“I understand the anger,” Agriculture Commissioner Christophe Hansen told
POLITICO in an interview last month, as Brussels prepared for tractors to roll
into the EU quarter.
Christophe Hansen said the Commission had “heard the concerns of farmers” and
responded with “strong and unprecedented support measures.” | Photo by Omar
Havana/Getty Images
Sympathy for farmers runs high across much of Europe, tied not just to economics
but to culture, place and identity. That has always made farm subsidies one of
the most politically sensitive lines in the EU budget — and one the Commission
knew would be hardest to touch.
That sensitivity was on display again last week, when agriculture ministers
traveled to Brussels for a hastily convened meeting outside the formal calendar,
called in response to farmer protests only weeks earlier.
Inside, the language was ritualistic. Praise for farmers. Assurances they were
being listened to. Repeated references to unprecedented safeguards and financial
backing.
Hansen summed it up afterward, saying the Commission had “heard the concerns of
farmers” and responded with “strong and unprecedented support measures.”
REFORM MEETS REALITY
This outcome marks a sharp reversal of earlier ambitions inside the Commission.
It’s also a reminder of just how high the stakes are when farm subsidies are in
play.
The Common Agricultural Policy remains the single largest line in the EU budget,
absorbing roughly a third of total spending and anchoring a political contract
that dates back to the bloc’s postwar foundations. Public money, in exchange for
food security and rural stability, has long been one of Europe’s core bargains.
That bargain has survived decades of reform. The CAP has been trimmed, greened
and made more market-oriented. But its central promise — that farming would be
protected — has never disappeared.
After von der Leyen’s re-election in 2024, officials quietly explored loosening
how tightly farm spending is locked into the EU budget. Draft ideas for the
post-2027 budget would have made farm funds more flexible and easier to redirect
to priorities such as defense, climate transition or industrial policy.
It was a technocrat’s answer to a crowded budget.
It did not survive contact with politics.
The proposal landed as farm incomes came under pressure from rising costs,
climate volatility and disease outbreaks. Tractors returned to Europe’s streets.
Agriculture ministers closed ranks, warning of political fallout in rural
heartlands. Farm lobbies mobilized in force.
Hansen spent much of his first year in office traveling to farms and meeting
unions, describing agriculture as a strategic asset and warning of a
“convergence of pressures” hitting the sector. Behind closed doors, he fought to
keep large chunks of farm funding protected.
Tractors park in front of the Arc de Triomphe during a demonstration of the
French agricultural union Coordination Rurale (CR) in Paris, France, on January
8, 2026. | Jerome Gilles/NurPhoto via Getty Images
Those efforts didn’t calm farmers’ anger. Instead, pressure became constant,
feeding into a series of concessions that steadily narrowed the scope for
reform.
First came assurances that most farm spending would remain ring-fenced in the
post-2027 budget. Then came a new rural spending target, designed to funnel more
money back into countryside projects. Last week, to get the Mercosur deal over
the line, the Commission went further, proposing that farmers get early access
to up to €45 billion from a broader cash pot the EU would have been saving for a
rainy day.
In effect, much of the post-2027 EU farm budget is on track to be sealed at
levels approaching today’s, before negotiations have even begun in earnest.
LOSING THE TRADE FIGHT, WINNING THE POLITICS
The €45 billion now being front-loaded was originally conceived as crisis
insurance.
After the Covid-19 pandemic and Russia’s invasion of Ukraine, Brussels concluded
that future EU budgets needed more flexibility to respond quickly to shocks.
Money reserved for incremental spending reviews was meant to be the first line
of defense in the next crisis.
If national capitals embrace the Commission’s proposal, much of that money would
be locked in for farmers before the cycle even starts, leaving less for other
priority areas.
Mercosur became the perfect vehicle for that pressure. Long championed by
industrial exporters, the deal turned into shorthand for everything farmers fear
about global competition and loss of control.
The reality is more uneven. Some EU farmers, particularly in high-end food, wine
and dairy, stand to gain from better access to Mercosur markets. Others,
especially in beef and poultry, face tougher competition. Yet even there, trade
analysts have long dismissed fears of South American goods flooding the EU as
exaggerated.
But nuance rarely survives a protest banner, and even the unprecedented
concessions haven’t stopped farmers from protesting.
The EU’s largest farm lobby, Copa-Cogeca, said Friday that the process of
getting the Mercosur deal across the line “erodes trust in European governance,
democratic processes and parliamentary scrutiny at a time when institutional
credibility is already under strain.”
The group said it would continue mobilizing farmers.
Privately, Commission officials express frustration about the farm lobbies’
hardening demands.
One said that even though Brussels bends over backwards to meet farmers’
demands, every concession still falls short for farm leaders. Another pointed to
Commissioner Hansen’s efforts to engage in direct dialogue with farmers across
the EU. “And still, they talk as if we had done nothing,” the official said,
referring directly to Copa-Cogeca.
For now, farm leaders are winning.
Von der Leyen might be boarding that plane to South America.
But when she returns to Brussels, they will already be gearing up for the next
fight, confident they can lose the trade battle and still bend Europe’s policy
in their favor.
BRUSSELS — The EU and Mercosur will sign their long-awaited trade agreement on
Saturday, with European Commission President Ursula von der Leyen traveling to
Paraguay on Jan. 17 for the signing ceremony.
Commission spokesperson Thomas Regnier confirmed von der Leyen’s travel plans to
POLITICO. She will be joined by European Council President António Costa, his
cabinet confirmed.
The trip comes after a majority of EU member countries on Friday voted in favor
of signing the deal.
The EU-Mercosur deal is set to create the world’s largest free-trade area,
covering some 700 million people. From Brussels’ perspective, the agreement is a
major geopolitical win in light of China’s rising share in trade and influence
in Latin America and U.S. President Donald Trump’s tariff policies.
Aside from Paraguay, the Mercosur bloc consists of Argentina, Brazil and
Uruguay.
Europe’s biggest ever trade deal finally got the nod Friday after 25 years of
negotiating.
It took blood, sweat, tears and tortured discussions to get there, but EU
countries at last backed the deal with the Mercosur bloc — paving the way to
create a free trade area that covers more than 700 million people across Europe
and Latin America.
The agreement, which awaits approval from the European Parliament, will
eliminate more than 90 percent of tariffs on EU exports. European shoppers will
be able to dine on grass-fed beef from the Argentinian pampas. Brazilian drivers
will see import duties on German motors come down.
As for the accord’s economic impact, well, that pales in comparison with the
epic battles over it: The European Commission estimates it will add €77.6
billion (or 0.05 percent) to the EU economy by 2040.
Like in any deal, there are winners and losers. POLITICO takes you through who
is uncorking their Malbec, and who, on the other hand, is crying into the
Bordeaux.
WINNERS
Giorgia Meloni
Italy’s prime minister has done it again. Giorgia Meloni saw which way the
political winds were blowing and skillfully extracted last-minute concessions
for Italian farmers after threatening to throw her weight behind French
opposition to the deal.
The end result? In exchange for its support, Rome was able to secure farm market
safeguards and promises of fresh agriculture funding from the European
Commission — wins that the government can trumpet in front of voters back home.
It also means that Meloni has picked the winning side once more, coming off as
the team player despite the last-minute holdup. All in all, yet another laurel
in Rome’s crown.
The German car industry
Das Auto hasn’t had much reason to cheer of late, but Mercosur finally gives
reason to celebrate. Germany’s famed automotive sector will have easier access
to consumers in LatAm. Lower tariffs mean, all things being equal, more sales
and a boost to the bottom line for companies like Volkswagen and BMW.
There are a few catches. Tariffs, now at 35 percent, aren’t coming down all at
once. At the behest of Brazil, which hosts an auto industry of its own, the
removal of trade barriers will be staggered. Electric vehicles will be given
preferential treatment, an area that Europe’s been lagging behind on.
Ursula von der Leyen
Mercosur is a bittersweet triumph for European Commission President Ursula von
der Leyen. Since shaking hands on the deal with Mercosur leaders more than a
year ago, her team has bent over backwards to accommodate the demands of the
skeptics and build the all-important qualified majority that finally
materialized Friday. Expect a victory lap next week, when the Berlaymont boss
travels to Paraguay to sign the agreement.
Giorgia Meloni saw which way the political winds were blowing and skillfully
extracted last-minute concessions for Italian farmers after threatening to throw
her weight behind French opposition to the deal. | Ettore Ferrari/EPA
On the international stage, it also helps burnish Brussels’ standing at a time
when the bloc looks like a lumbering dinosaur, consistently outmaneuvered by the
U.S. and China. A large-scale trade deal shows that the rules-based
international order that the EU so cherishes is still alive, even as the U.S.
whisked away a South American leader in chains.
But the deal came at a very high cost. Von der Leyen had to promise EU farmers
€45 billion in subsidies to win them over, backtracking on efforts to rein in
agricultural support in the EU budget and invest more in innovation and
growth.
Europe’s farmers
Speaking of farmers, going by the headlines you could be forgiven for thinking
that Mercosur is an unmitigated disaster. Surely innumerable tons of South
American produce sold at rock-bottom prices are about to drive the hard-working
French or Polish plowman off his land, right?
The reality is a little bit more complicated. The deal comes with strict quotas
for categories ranging from beef to poultry. In effect, Latin American farmers
will be limited to exporting a couple of chicken breasts per European person per
year. Meanwhile, the deal recognizes special protections for European producers
for specialty products like Italian parmesan or French wine, who stand to
benefit from the expanded market. So much for the agri-pocalpyse now.
Mercosur is a bittersweet triumph for European Commission President Ursula von
der Leyen. | Olivier Matthys/EPA
Then there’s the matter of the €45 billion of subsidies going into farmers’
pockets, and it’s hard not to conclude that — despite all the tractor protests
and manure fights in downtown Brussels — the deal doesn’t smell too bad after
all.
LOSERS
Emmanuel Macron
There’s been no one high-ranking politician more steadfast in their opposition
to the trade agreement than France’s President Emmanuel Macron who, under
enormous domestic political pressure, has consistently opposed the deal. It’s no
surprise then that France joined Poland, Austria, Ireland and Hungary to
unsuccessfully vote against Mercosur.
The former investment banker might be a free-trading capitalist at heart, but he
knows well that, domestically, the deal is seen as a knife in the back of
long-suffering Gallic growers. Macron, who is burning through prime ministers at
rates previously reserved for political basket cases like Italy, has had
precious few wins recently. Torpedoing the free trade agreement, or at least
delaying it further, would have been proof that the lame-duck French president
still had some sway on the European stage.
Surely innumerable tons of South American produce sold at rock-bottom prices are
about to drive the hard-working French or Polish plowman off his land, right? |
Darek Delmanowicz/EPA
Macron made a valiant attempt to rally the troops for a last-minute
counterattack, and at one point it looked like he had a good chance to throw a
wrench in the works after wooing Italy’s Meloni. That’s all come to nought.
After this latest defeat, expect more lambasting of the French president in the
national media, as Macron continues his slow-motion tumble down from the
Olympian heights of the Élysée Palace.
Donald Trump
Coming within days of the U.S. mission to snatch Venezuelan strongman Nicolás
Maduro and put him on trial in New York, the Mercosur deal finally shows that
Europe has no shortage of soft power to work constructively with like-minded
partners — if it actually has the wit to make use of it smartly.
Any trade deal should be seen as a win-win proposition for both sides, and that
is just not the way U.S. President Donald Trump and his art of the geopolitical
shakedown works.
It also has the incidental benefit of strengthening his adversaries — including
Brazilian President and Mercosur head honcho Luiz Inácio Lula da Silva — who
showed extraordinary patience as he waited on the EU to get their act together
(and nurtured a public bromance with Macron even as the trade talks were
deadlocked).
China
China has been expanding exports to Latin America, particularly Brazil, during
the decades when the EU was negotiating the Mercosur trade deal. The EU-Mercosur
deal is an opportunity for Europe to claw back some market share, especially in
competitive sectors like automotive, machines and aviation.
The deal also strengthens the EU’s hand on staying on top when it comes to
direct investments, an area where European companies are still outshining their
Chinese competitors.
Emmanuel Macron made a valiant attempt to rally the troops for a last-minute
counterattack, and at one point it looked like he had a good chance to throw a
wrench in the works after wooing Italy’s Meloni. | Pool photo by Ludovic
Marin/EPA
More politically, China has somewhat succeeded in drawing countries like Brazil
away from Western points of view, for instance via the BRICS grouping,
consisting of Brazil, Russia, India, China and South Africa, and other
developing economies. Because the deal is not only about trade but also creates
deeper political cooperation, Lula and his Mercosur counterparts become more
closely linked to Europe.
The Amazon rainforest
Unfortunately, for the world’s ecosystem, Mercosur means one thing: burn, baby,
burn.
The pastures that feed Brazil’s herds come at the expense of the nation’s
once-sprawling, now-shrinking tropical rainforest. Put simply, more beef for
Europe means less trees for the world. It’s not all bad news for the climate.
The trade deal does include both mandatory safeguards against illegal
deforestation, as well as a commitment to the Paris Climate Agreement for its
signatories.
European Commission President Ursula von der Leyen is likely to face a motion of
censure over the Mercosur trade deal in the coming weeks, according to the
far-right Patriots for Europe group.
The chair of the Patriots, French heavyweight Jordan Bardella, announced the
motion of censure plan on Thursday evening on X. His party, the National Rally,
opposes the trade agreement between the EU and the South American Mercosur bloc,
which has been championed by von der Leyen. A qualified majority of EU member
countries on Friday approved the long-awaited trade deal, which France opposed.
“Hope we file it [the censure motion] for a vote this January session,” a senior
Patriots official told POLITICO.
Once filed, the Parliament’s legal team will check the motion, and if approved,
Parliament President Roberta Metsola will contact all MEPs with the details.
If the choreography of previous censure motions is followed, a debate is likely
to be held on Monday, Jan. 19, with a vote on Thursday, Jan. 22.
Scheduling a motion of censure requires the backing of 72 lawmakers. As the
Patriots have 82 MEPs, they do not need the support of other political groups.
The motion — which, if successful, would see von der Leyen and all 26 of her
commissioners dismissed — is almost certain to fail, as it would require a
two-thirds majority of votes cast.
There have been three previous attempts to bring down von der Leyen through
votes of no-confidence — two brought by the far right and one by the far left.
All have failed.
Bardella also accused French President Emmanuel Macron of being a hypocrite by
pretending to oppose the Mercosur deal and “betraying French farmers” by not
doing enough to stop it.
Bardella said the National Rally would submit a motion of no confidence against
the French government.
PARIS — France’s inability to block the EU-Mercosur trade deal on Friday allows
opposition parties to twist their knives into an already weakened Emmanuel
Macron for the rest of his presidency.
Hostility to the landmark agreement — largely over the vulnerability of farmers
to exports from South America — unites French politicians across the spectrum,
and they now need someone to blame.
France’s Europhile president failing to stop the accord is a humbling reflection
of the fading power of Paris in the EU, where it was long notorious for its
exceptionalism and veto power.
Jordan Bardella, head of the far-right National Rally and front-runner for the
presidency in 2027, accused Macron of being a hypocrite by pretending to oppose
the deal and “betraying French farmers” by not doing enough to stop it.
Bardella said the National Rally would submit a motion of no confidence against
the government. The far-left France Unbowed submitted its own motion Friday
morning after France was “humiliated” in Brussels, party heavyweight Mathilde
Panot said.
While those efforts are unlikely to succeed, parliamentary debates on the trade
deal will again remind the French public that Macron could not to stand up to
Brussels. The more center-leaning political forces are calling on French
authorities do to more in the coming days to stop the deal, rather than take
down the government.
Leaders from the conservative Les Républicains and the Socialist Party,
ideological opponents, both urged Macron’s government to take the fight against
the trade deal to the Court of Justice of the European Union.
“We have abdicated, abandoned our food sovereignty,” Les Républicains leader
Bruno Retailleau, another likely presidential hopeful in 2027, said Thursday.
French farmers who descended Thursday on Paris to vent their fury parked
tractors outside the Arc de Triomphe and the National Assembly, where they
confronted both National Assembly President Yaël Braun-Pivet and Agriculture
Minister Annie Genevard. One held a poster saying that European Commission
President Ursula von der Leyen “really takes us for idiots.”
Frédéric-Pierre Vos, a National Rally lawmaker who represents a rural district
in northern France, stood alongside them and slammed the Mercosur deal as “a
sacrifice of French agriculture to save the German car industry.”
With the deep unpopularity of the agreement at home, Macron has been left in the
uncomfortable position of having to oppose the deal, while trying to defend the
concessions he obtained.
Writing on X, Macron said Thursday he was fighting for “farming sovereignty” and
hailed pledges from the European Commission to increase the budget for the
Common Agricultural Policy in the next EU budget.
An Elysée official on Thursday also told reporters that “a number of advances”
had been made on the trade deal, including clauses that would protect European
farmers and consumers from sudden floods of goods from Latin America.
The French president also tried to strike a defiant tone, insisting “the
signature of the agreement is not the end of the story” in his statement
online.
But for Macron, the sting of this loss is likely to last.
His political opponents — especially the National Rally — are sure to seize on
the vote as a public humiliation for France ahead of local elections in March
and next year’s presidential race.
Victor Goury-Laffont contributed to this report.
BRUSSELS — A qualified majority of EU member states has approved the bloc’s
trade deal with the Mercosur countries for signature, four EU diplomats said.
France, Poland, Austria, Ireland and Hungary expressed their opposition while
Belgium abstained. EU capitals now have until 5 p.m. on Friday to lodge any
objections.
Additional farm market safeguards that would kick in if there is a surge in
imports from Brazil, Argentina, Paraguay and Uruguay surge too much also won the
approval of EU ambassadors, the diplomats said, on condition of anonymity.
European Commission President Ursula von der Leyen is set to travel to Paraguay
next week to sign the agreement.
PARIS — France will reject the trade deal between the EU and South American
countries of the Mercosur bloc at a key vote on Friday in Brussels.
“France has decided to vote against the signing of the agreement between the
European Union and the Mercosur countries,” French President Emmanuel Macron
wrote in a social media post on X on Thursday.
“The signing of the agreement is not the end of the story. I will continue to
fight for the full and concrete implementation of the commitments obtained from
the European Commission and to protect our farmers,” Macron wrote. “The economic
benefits of the EU-Mercosur agreement will be limited for French and European
growth.”
The announcement comes hours before a key vote by member countries on the deal.
Alongside Poland, France has been the fiercest opponent of the deal — but it
lacks the numbers to stall it on Friday, especially if Italy backs it.
If the deal is approved, Commission President Ursula von der Leyen will fly to
Paraguay to sign the accord as next week. The Mercosur bloc’s other members are
Brazil, Argentina and Uruguay.
This story has been updated.
The Italian government is satisfied with new funding promised by Brussels to
European farmers and is signaling that it may cast its decisive vote in favor of
the EU’s huge trade deal with the Latin American Mercosur bloc.
Ahead of Friday’s vote by EU member countries, Foreign Minister Antonio Tajani
said Rome was happy with the European Commission’s efforts to make the deal more
palatable. Agriculture Minister Francesco Lollobrigida also said the accord
represented an opportunity — especially for food exporters.
“Italy has never changed its position: We have always supported the conclusion
of the agreement,” Tajani said on Wednesday evening.
Yet they stopped short of saying outright that Italy would vote in favor of the
deal. Instead, within sight of the finish line, Rome is pressing to tighten
additional safeguards to shield the EU farm market from being destabilized by
any potential influx of South American produce.
Rome’s endorsement of the accord, which has been a quarter century in the making
and would create a free-trade zone spanning more than 700 million people, is
crucial. A qualified majority of 15 of the EU’s 27 countries representing 65
percent of the bloc’s population is needed. Italy, with its large population,
effectively holds the casting vote.
France and Poland are still holding out against a pro-Mercosur majority led by
Germany — but they lack the numbers to stall the deal. If it goes through,
Commission President Ursula von der Leyen could fly to Paraguay to sign the
accord as soon as next week. The bloc’s other members are Brazil, Argentina and
Uruguay.
‘AN EXCELLENT OPPORTUNITY’
Italy praised a raft of additional measures proposed by the Commission —
including farm market safeguards and fresh budget promises on agriculture
funding — as “the most comprehensive system of protections ever included in a
free trade agreement signed by the EU.”
Tajani, who as deputy prime minister oversees trade policy, has long taken a
pro-Mercosur position. He said the deal would help the EU diversify its trade
relationships and boost “the strategic autonomy and economic sovereignty of
Italy and our continent.”
Even Lollobrigida, who has sympathized in the past with farmers’ concerns on the
deal, is striking a more positive tone.
At a meeting hosted by the Commission in Brussels on Wednesday, Lollobrigida
described Mercosur as “an excellent opportunity.” The minister, who is close to
Prime Minister Giorgia Meloni and is from her Brothers of Italy party, also said
its provisions on so-called geographical indications would help Italy promote
its world-famous delicacies in South America.
It would mean no more ‘Parmesão,’” he said, referring to Italian-sounding
knockoffs of the famed hard cheese.
ONE MORE THING …
Lollobrigida said Italy could back the deal if the farm market safeguards are
tightened.
The EU institutions agreed in December to require the Commission to investigate
surges in imports of beef or poultry from Mercosur if volumes rise by 8 percent
from the average, or if those imports undercut comparable EU products by a
similar margin.
Even Francesco Lollobrigida, who has sympathized in the past with farmers’
concerns on the deal, is striking a more positive tone. | Fabio Cimaglia/EPA
“We want to go from 8 percent to 5 percent. And we believe that the conditions
are there to also reach this goal,” Lollobrigida told Italian daily IlSole24Ore
in an interview on Thursday.
Meloni pulled the emergency brake at a pre-Christmas EU summit, forcing the
Commission to delay the final vote on the deal while it worked on ways to
address her concerns around EU farm funding. In response Von der Leyen proposed
this week to offer earlier access to up to €45 billion in agricultural funding
under the bloc’s next long-term budget.
Giorgio Leali reported from Paris and Gerardo Fortuna from Brussels.