EU Floats €45 Billion Farm Support to Unlock Mercosur Trade Deal

Overview

• In a Jan. 6 letter, Commission President Ursula von der Leyen proposed allowing countries to draw up to two-thirds of the 2028–2034 agricultural funds early to support farmers.
• The plan would make roughly €45 billion available starting in 2028 under the Common Agricultural Policy framework.
• The proposal arrived a day before EU agriculture ministers meet on Jan. 7 to rally undecided members behind the EU–Mercosur agreement.
• Italy signaled support, with Prime Minister Giorgia Meloni calling the step positive and significant, while France has remained cautious.
• The pact would reduce tariffs, expand access to procurement, and include sustainability provisions for a market of more than 700 million people, and it still requires member-state and EU institutional approvals.