Von der Leyen pledges early funding to farmers in final push to secure Mercosur deal

European Commission President Ursula von der Leyen has promised EU member states and European Parliament President Roberta Metsola that EU farmers would benefit from rapid access to €45 billion from 2028 under the next Common Agricultural Policy (CAP) if the Mercosur trade deal is signed – a last-ditch effort to win member states’ support for the much-delayed deal.

This is a pivotal moment in efforts to finalize the Mercosur agreement, which has been under negotiation for more than 25 years.

Von der Leyen made his pledge in a letter on Tuesday as France and Italy continue to seek guarantees for their farmers, who fear unfair competition from Latin American imports, ahead of a crucial vote on the deal on Friday in Brussels.

In her message, von der Leyen said the €45 billion in CAP funds would “ensure that additional resources are available from 2028 to meet the needs of farmers and rural communities”.

This represents two thirds of the amount set aside until the mid-term review of the 2028-2034 EU budget, and adds to a reserve of 6.3 billion euros already planned to deal with market disruptions.

All eyes are on Italy

Von der Leyen concluded the Mercosur agreement in December 2024 with Argentina, Brazil, Paraguay and Uruguay, with the aim of creating a free trade zone across the Atlantic.

The deal exposed deep divisions within the EU. Supportive states, led by Germany and Spain, pushed hard to get the deal signed, while a group led by France sought to block it.

The future of the agreement now depends on Italy, whose support is mathematically decisive. The deal requires a qualified majority of member states, while a blocking minority of just four countries representing 35% of the EU population could derail it.

The Commission is bringing together European agriculture ministers in Brussels on Wednesday to discuss the financing of the CAP, as well as the French demand for reciprocity in production standards and stricter controls on agricultural imports.

It remains to be seen whether von der Leyen’s promise of CAP flexibility will be enough to influence Rome and Paris. France has faced a deep agricultural crisis in recent weeks, weakening its support, while Italy could see the new flexibility as enough to reassure farmers about their future income.

Hungary and Poland confirmed their opposition to the deal before Christmas, while Belgium and Austria are considering abstaining.

Ambassadors from the 27 member states will vote on the deal on Friday. If passed, von der Leyen could sign the deal in Latin America next week.