Overview
- The European Commission postponed the planned signature at the Mercosur summit in Foz do Iguaçu and is now targeting 12 January in Paraguay.
- Ursula von der Leyen skipped the summit after it became clear the Council lacked a majority for approval.
- A blocking minority in the EU Council—cited as France, Poland, Hungary and Austria, with Italy initially hesitating—prevented a green light.
- Lula softened an earlier ultimatum after a call with Italy’s Giorgia Meloni, who he says indicated readiness to sign in early January.
- The Commission says the pact would remove tariffs on about 91% of traded goods and could lift EU exports to South America by up to 39%, though farmer objections and later ratification hurdles still loom.