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Von der Leyen makes €45B pitch to win Meloni’s support for Mercosur trade deal

BRUSSELS — European Commission President Ursula von der Leyen is determined to travel to South America next week to sign the EU’s long-delayed trade pact with the Mercosur bloc, but she’s having to make last-minute pledges to Europe’s farmers in order to board that flight.

EU countries are set to make a pivotal decision on Friday on whether the contentious deal with Argentina, Brazil, Paraguay and Uruguay — which has been more than a quarter of a century in the making — will finally get over the line.

It’s still not certain that von der Leyen can secure the majority she needs on Friday; everything boils down to whether Italy, the key swing voter, will support the accord.

To secure Rome’s backing, von der Leyen on Tuesday rolled out some extra budget promises on farm funding. The target was clear: Italy’s Prime Minister Giorgia Meloni, whose refusal to back the Mercosur agreement forced von der Leyen to cancel her planned signing trip in December.

At its heart, the Mercosur agreement is a drive by Europe’s big manufacturers to sell more cars, machinery and chemicals in Latin America, while the agri powerhouses of the southern hemisphere will secure greater access to sell food to Europe — a prospect that terrifies EU farmers.

While Germany and Spain have long led the charge for a deal, France and Poland are dead-set against. That leaves Italy as the key member country poised to cast the deciding vote.

Von der Leyen’s letter on Tuesday was carefully choreographed political theater.

Writing to the EU Council presidency and European Parliament President Roberta Metsola, she offered earlier access to up to €45 billion in agricultural funding under the bloc’s next long-term budget, while reaffirming €293.7 billion in farm spending after 2027. POLITICO was the first to report on Monday that the declaration was in the works.

She insisted the measures in her letter would “provide the farmers and rural
communities with an unprecedented level of support, in some respects even higher than in
the current budget cycle.”

The money isn’t new — it’s being brought forward from an existing pot in the EU’s next long-term budget — but governments can now lock it in for farmers early, before it is reassigned during later budget negotiations.

Von der Leyen framed the move as offering stability and crisis readiness, giving Meloni a tangible win she can parade to her powerful farm lobby.

Will Meloni back Mercosur?

The big question is whether Italy will view von der Leyen’s promises as going far enough ahead of the crunch meeting on Friday.

Early signs suggested Rome might be softening. Meloni issued a statement saying the farm funding pledge was “a positive and significant step forward in the negotiations leading to the new EU budget,” but conspicuously avoided making a direct link to Mercosur. (French President Emmanuel Macron also welcomed von der Leyen’s letter, but there’s no prospect of Paris backing Mercosur on Friday.)

taly’s Prime Minister Giorgia Meloni, whose refusal to back the Mercosur agreement forced Ursula von der Leyen to cancel her planned signing trip in December. | Tom Nicholson/Getty Images

Nicola Procaccini, a close Meloni ally in the European Parliament, told POLITICO: “We are moving in the right direction to enable Italy to sign Mercosur.”

Right direction, but not yet at the destination? The government in Rome would not comment on whether it was about to back the deal.

Germany, the EU’s industrial kingpin, is keen to secure a Mercosur agreement to boost its exports, but is still wary as to whether sufficient support exists to finalize an accord on Friday.

A German official cautioned everything was still to play for. “A qualified majority is emerging, but it’s not a done deal yet. Until we have the result, there’s no reason to sit back and relax,” the official said.

Optimism is growing regarding Rome in the pro-Mercosur camp, however. After all, the pact is widely viewed as strongly in the interests not only of Italy’s engineering companies, but also of its high-end wine and food producers, which are big exporters to South America.

Additional curveballs are being thrown by Romania and Czechia, said one EU diplomat, who expressed concern they could turn against the deal on Friday, reducing any majority to very tight margins. The diplomat said they believed Italy would back the deal, however.

Final stretch?

The maneuvering is set to continue on Wednesday, when agriculture ministers descend on Brussels for what the Commission is billing as a “political meeting” after December’s farm protests. Officially, Mercosur isn’t on the agenda. Unofficially, however, it’s expected to be omnipresent — in the corridors, in the side meetings, and in the questions ministers choose not to answer.

Farm ministers don’t approve trade deals, but the optics matter. Von der Leyen needs momentum — and cover — ahead of Friday’s vote.

France — the country most hostile to the deal — will be vocal.

On Wednesday, French Agriculture Minister Annie Genevard is expected to open yet another offensive — this time for a lower trigger on emergency safeguards related to the deal. This would reopen a compromise already struck between EU governments, the Parliament and the Commission.

It’s a familiar tactic: Keep pushing.

“France is still not satisfied with the proposals made by the Commission,” a French agriculture ministry official told reporters on Tuesday, while acknowledging that there has been some improvement. “Paris’ strategy for this week is still to continue to look for a blocking minority.”

“Italy has its own strategy, we have ours,” added the official, who was granted anonymity in line with the rules for French government briefings.

France’s allies, notably Poland, are equally blunt. Agriculture Minister Stefan Krajewski said the priority was simply “to block this agreement.” If that failed, Warsaw would seek maximum safeguards and compensation.

That means it’s all coming down to the wire on Friday.

A second failure to dispatch von der Leyen to finalize the agreement would be deeply embarrassing, and would only stoke Berlin’s anger at other EU countries thwarting the deal.

For now, it’s still unclear whether von der Leyen will board that plane.

Bartosz Brzeziński reported from Brussels, Giorgio Leali reported from Paris, and Nette Nöstlinger reported from Berlin.

LP Staff Writers

Writers at Lord’s Press come from a range of professional backgrounds, including history, diplomacy, heraldry, and public administration. Many publish anonymously or under initials—a practice that reflects the publication’s long-standing emphasis on discretion and editorial objectivity. While they bring expertise in European nobility, protocol, and archival research, their role is not to opine, but to document. Their focus remains on accuracy, historical integrity, and the preservation of events and individuals whose significance might otherwise go unrecorded.

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