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EU Nears Mercosur Deal as Commission Puts €45 Billion Farm Boost on the Table

Front‑loading CAP support addresses farm safeguards that stalled the talks.

Overview

  • Ursula von der Leyen proposed giving member states early access to roughly €45 billion from the 2028–2034 CAP envelope, within a binding €293.7 billion allocation and a doubled crisis reserve of €6.3 billion.
  • Italy signaled readiness to approve the EUMercosur agreement, with Agriculture Minister Francesco Lollobrigida saying Rome will back it if requested guarantees for producers are formally certified.
  • EU agriculture ministers met in Brussels on 7 January to assess the package, with a Coreper vote scheduled for 9 January and a potential signature targeted for 12 January in Paraguay, pending approvals.
  • French leaders welcomed the CAP shift yet flagged tougher national import controls on produce with residues of substances banned in Europe, reflecting continued domestic safeguards.
  • The agreement would link markets covering more than 720 million consumers and could cut EU exporters’ costs by over €4 billion annually through reduced Mercosur tariffs.