The EU on Tuesday, January 6th, offered a carrot to farmers angered over a trade deal with South American bloc Mercosur, promising to unlock funds for the sector as it seeks to get the accord over the line.
The European Commission said it plans to tweak its budget proposal for 2028-2034, which has come under fire from agricultural groups, to allow farmers early access to around €45 billion.
The move comes amid a push to ease the qualms of some countries over the Mercosur deal, which Brussels hopes to ink next week.
More than 25 years in the making, the accord would create the world’s biggest free-trade area, boosting trade between the 27-nation EU and the bloc comprising Brazil, Paraguay, Argentina, and Uruguay.
But it has alarmed many European farmers who fear they will be undercut by a flow of cheaper goods from agricultural giant Brazil and its neighbours.
Thousands protested in Brussels last month, venting their anger also at EU plans to overhaul its system of farm subsidies, which critics say would result in farmers receiving less money.
In a Tuesday letter, EU chief Ursula von der Leyen unveiled budget changes she said would “provide the farmers and rural communities with an unprecedented level of support.”
The letter was released as EU agriculture ministers are due to gather in Brussels on Wednesday for an extraordinary meeting to get the Mercosur deal over the line.
Plans to seal the accord in December ran into a late roadblock as heavyweights Italy and France demanded a postponement over concerns for the farming sector.
Germany and Spain are strongly in favour of the agreement, believing it will provide a welcome boost to their industries, hampered by Chinese competition and tariffs in the United States.
