EU Proposes €45 Billion Agriculture Fund to Secure Mercosur Deal

EU Commission President Ursula von der Leyen has proposed granting early access to €45 billion in agriculture funds to secure support for the Mercosur trade deal. The proposal precedes a critical meeting of agriculture ministers aimed at addressing member state concerns.

Insights:
In a strategic move to garner support for the contentious Mercosur trade deal, EU Commission President Ursula von der Leyen ursula von der leyenhas proposed granting member states early access to approximately €45 billion in agriculture funds from the 2028-2034 EU budget. The proposal, announced on Tuesday, January 6, allows member states to access up to two-thirds of the funds typically reserved for midterm review, marking a significant fiscal intervention by the European Union EUEU.
FILE PHOTO: European Commission President Ursula von der Leyen holds a press conference during a European Union summit in Brussels, Belgium, on December 19, 2025. REUTERS/Stephanie Lecocq/File Photo
FILE PHOTO: European Commission President Ursula von der Leyen holds a press conference during a European Union summit in Brussels, Belgium, on December 19, 2025. REUTERS/Stephanie Lecocq/File Photo
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