European Commission President Ursula von der Leyen pledged early access to €45 billion [1] for EU farmers to help secure the EU-Mercosur trade deal.
The move aims to neutralize intense farmer protests over agricultural subsidies while the European Union attempts to finalize a massive free-trade agreement with the Mercosur bloc. Because the deal could increase competition from South American imports, the Commission is using financial incentives to maintain domestic support.
Von der Leyen made the pledge during a Mercosur summit in Montevideo, Uruguay, in 2026 [3]. The funds are part of the 2028 Common Agricultural Policy budget [2]. By promising early access to these resources, the Commission intends to mitigate the perceived impact of subsidy cuts and the economic pressure resulting from the trade pact.
However, the strategy has faced internal criticism within the European Union. Some members of the European Parliament said von der Leyen sidestepped them during the negotiations for the Mercosur deal. These lawmakers suggest the funding pledge may be a political maneuver rather than a genuine commitment to the agricultural sector.
The tension highlights a divide between the Commission's push for global trade expansion and the European Parliament's role in oversight. While the €45 billion [1] figure is intended to stabilize the rural economy, critics argue that the lack of transparency in the deal's progression undermines the trust of the very farmers the funds are meant to support.
The deal involves the EU and the Mercosur countries, which include Brazil, Argentina, Paraguay, and Uruguay. The Commission has positioned the agreement as a strategic necessity for diversifying trade and reducing reliance on other global powers, despite the domestic friction it causes in the farming community.
“Ursula von der Leyen pledged early access to €45 billion for EU farmers”
This financial pledge represents a tactical attempt to bridge the gap between the EU's macroeconomic goals and the protectionist demands of its agricultural base. By accelerating access to the 2028 budget, the Commission is attempting to buy the political capital necessary to pass a trade deal that would otherwise be politically toxic due to rural unrest.
