BRUSSELS – The European Commission proposed on Tuesday to secure 45 billion euros in advance starting from 2028 for the agricultural policy as part of the next seven-year budget to reassure farmers and gain support for a trade deal with the South American trade bloc Mercosur.
In a letter addressed to the Cypriot Presidency and European Parliament President Roberta Metsola, Commission President Ursula von der Leyen suggested that member states be granted access to these funds to support the agricultural sector. This amount represents an advance that could be tapped into later during the mid-term budget review. Last July, the Commission introduced a proposal for the Multiannual Financial Framework (MFF), which consolidated funds for agriculture and cohesion policy, allowing usage through national and regional partnership plans similar to the Recovery and Resilience Facility. Moreover, funding for agriculture and cohesion has significantly decreased in comparison to previous seven-year budgets, with less than half of the budget now allocated as opposed to the two-thirds in the past.
“To ensure the availability of additional funds from 2028 for the needs of farmers and rural communities, I propose that member states be able to access up to two-thirds of the funds available by mid-budget period when submitting their initial plans. This amounts to approximately 45 billion euros that can be mobilized immediately to assist farmers,” von der Leyen’s letter stated. The letter was dispatched just before an extraordinary meeting of agriculture ministers from the member states, aiming to secure backing from countries hesitant about the Mercosur agreement, which includes Argentina, Brazil, Uruguay, and Paraguay.
France, Italy, and Poland have voiced the strongest opposition to the agreement due to concerns over competition from South American imports. A qualified majority of member states is necessary for the agreement to be finalized, with discussions and a vote anticipated on Friday. Von der Leyen intends to travel to Paraguay on January 12 to sign the agreement if adequate support is garnered from member states.
Negotiations regarding the trade agreement with Mercosur have spanned over 25 years. The deal would enable the EU to increase exports of cars, machinery, wine, and spirits to Argentina, Brazil, Paraguay, and Uruguay, while easing imports of South American meat, sugar, rice, honey, and soy into Europe, raising alarm among local farmers. (6 January 2026)
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