EU Nears Mercosur Deal as Italy Signals Support, Brussels Offers €45 Billion Farm Aid

Overview

• Italy is expected to vote in favor at the EU ambassadors' meeting on January 9, according to an EU source, boosting chances of reaching a qualified majority.
• Ursula von der Leyen proposed early access to roughly €45 billion from the 2028–2034 agricultural budget to address farmers' concerns tied to the pact.
• France remains a holdout, with President Emmanuel Macron demanding stronger safeguards and Paris announcing bans on foods with EU‑prohibited pesticides and a suspension of some fruit imports.
• EU agriculture ministers were called to Brussels to consider additional safeguards, including a proposed €6.3 billion crisis fund and tighter import‑control reviews.
• A signing could follow soon — reports have mentioned January 12 — but the EU has not confirmed a date and final authorization still requires a qualified majority of 15 countries representing 65% of the bloc’s population.