whatsapp

Italy emerges as key player as Mercosur trade deal hangs in the balance

  • 0
  • 544
/media/TEM_4.webp © Image Copyrights Title

Italy has emerged as a pivotal player in the fate of the long-delayed EU–Mercosur trade agreement, as divisions among member states leave Rome’s position potentially decisive ahead of an expected signature later this month.

European Commission President Ursula von der Leyen is due to travel to Brazil on December 20 to finalise the agreement with Mercosur countries, Argentina, Brazil, Paraguay and Uruguay, which would create a free-trade area covering nearly 700 million people. However, opposition from several EU countries has raised doubts over whether the deal can secure the backing required for ratification.

France, under pressure from farmers concerned about competition from Latin American agricultural imports, is leading resistance to the agreement and has called for a postponement of the member states’ vote scheduled for this week. Hungary, Poland and Austria have also expressed opposition. Belgium has indicated it will abstain, while Ireland and the Netherlands have yet to formally state their position.

Under EU rules, the deal requires a qualified majority, while a blocking minority of at least four countries representing 35 per cent of the EU population could prevent its approval. With France already opposed, Italy’s stance has taken on outsized importance.

Diplomatic sources say Rome’s prolonged silence has placed it firmly in the spotlight. One diplomat told Euronews that Italy’s position leaves it exposed, but potentially well placed to seek concessions if it chooses to play a mediating role.

Italy remains internally divided. The country’s largest farmers’ association, Coldiretti, continues to oppose the agreement, warning that safeguards proposed by the European Commission would be too slow to protect EU markets in the event of a surge in Mercosur imports.

The Commission has proposed a monitoring mechanism designed to respond to market disruptions, a measure that will be put to a vote by EU lawmakers at a plenary session in Strasbourg on Tuesday.

At the same time, Italy is the EU’s second-largest exporter to Mercosur countries, placing Prime Minister Giorgia Meloni under pressure from industrial groups, including Confindustria, which see the agreement as an opportunity to expand exports amid slowing global trade.

Agriculture Minister Francesco Lollobrigida acknowledged the trade-offs during a recent visit to Brussels, saying that several industrial sectors and parts of Italian agriculture, including wine and cheese producers, would benefit from the deal, while other sectors could face losses.

Italy’s government has so far refrained from taking a definitive position. Lollobrigida said Rome has sought since 2024 to balance competing interests while maintaining strategic ambiguity over its stance.

Supporters of the agreement see Italy as a potential kingmaker, particularly as the EU seeks to secure new trade partnerships amid rising protectionism in the United States and China. A senior EU diplomat from a pro-deal country said efforts are underway to ensure the conditions are in place for von der Leyen’s planned visit to Brazil.

However, uncertainty remains high. Diplomats say there is reluctance to schedule a vote that could fail, and Italy’s continued silence is unsettling supporters of the deal. One diplomat familiar with the negotiations said the situation remains difficult, with no clear outcome in sight.

Related Posts
© EU Faces Growing Dependence on China Across Key Industrial Sectors

EU Faces Growing Dependence on China Across Key Industrial Sectors

The European Union is becoming increasingly dependent on China across several strategic industries, raising fresh concerns among policymakers and industry leaders over Europe’s long-term industrial so...

  • 438
© Portugal’s Meo Demands €82 Million Compensation Over Huawei 5G Exclusion

Portugal’s Meo Demands €82 Million Compensation Over Huawei 5G Exclusion

Portugal’s telecommunications sector is facing renewed controversy after telecom operator Meo filed a lawsuit against the Portuguese state, seeking €81.7 million in compensation over restrictions plac...

  • 387
© Oil Prices Drop Sharply as Trump Signals Progress in Iran Negotiations

Oil Prices Drop Sharply as Trump Signals Progress in Iran Negotiations

Global oil prices declined sharply after US President Donald Trump stated that ongoing negotiations with Iran were moving forward in a “constructive manner,” raising hopes that tensions surrounding th...

  • 412
© Eurozone Economy Faces Growing Recession Risks Amid Iran War and Energy Shock

Eurozone Economy Faces Growing Recession Risks Amid Iran War and Energy Shock

Economic activity across the eurozone weakened sharply in May as rising energy prices and geopolitical tensions linked to the Iran conflict pushed the region closer toward recession risks....

  • 730
© Trump-IRS Settlement Sparks Debate After Filing Blocks Existing Tax Audits

Trump-IRS Settlement Sparks Debate After Filing Blocks Existing Tax Audits

A newly released court filing connected to the settlement between US President Donald Trump and the Internal Revenue Service (IRS) has triggered widespread political and legal debate after revealing t...

  • 407
© U.S. Treasury Yields Enter ‘Danger Zone’ as Bond Market Selloff Intensifies

U.S. Treasury Yields Enter ‘Danger Zone’ as Bond Market Selloff Intensifies

Rising U.S. Treasury yields are beginning to trigger broader concerns across global financial markets, with strategists warning that government bonds have entered what many are calling a “danger zone”...

  • 1431
© Ryanair Profit Surges 40% to €2.26 Billion Despite Boeing Delays and Fuel Market Volatility

Ryanair Profit Surges 40% to €2.26 Billion Despite Boeing Delays and Fuel Market Volatility

Ryanair reported a record annual profit of €2.26 billion for the financial year ending March 2026, marking a 40% increase compared to the previous year as strong travel demand and higher ticket fares ...

  • 609
© Von der Leyen Hails ‘Dynamic New Era’ in EU-India Relations During Modi’s Sweden Visit

Von der Leyen Hails ‘Dynamic New Era’ in EU-India Relations During Modi’s Sweden Visit

European Commission President Ursula von der Leyen praised a “dynamic new era” in relations between the European Union and India as Indian Prime Minister Narendra Modi visited Sweden during the second...

  • 474
© Greece Records Strong €5 Billion Budget Surplus in Early 2026

Greece Records Strong €5 Billion Budget Surplus in Early 2026

Greece recorded a significantly stronger-than-expected fiscal performance during the first quarter of 2026, posting a primary budget surplus of €5.175 billion, according to figures released by the cou...

  • 613
© Xi Jinping Pledges Wider Market Access to US Firms During Trump Visit

Xi Jinping Pledges Wider Market Access to US Firms During Trump Visit

During US President Donald Trump’s state visit to Beijing, Chinese President Xi Jinping reassured American business leaders that China is committed to further opening its economy to foreign investment...

  • 559
© Europe’s Dependence on US LNG Set to Rise Sharply in 2026, Report Warns

Europe’s Dependence on US LNG Set to Rise Sharply in 2026, Report Warns

Europe is expected to source nearly two-thirds of its liquefied natural gas imports from the United States in 2026, according to a new report released by the Institute for Energy Economics and Financi...

  • 768
© Lufthansa to Acquire Majority Stake in ITA Airways in €325 Million Deal

Lufthansa to Acquire Majority Stake in ITA Airways in €325 Million Deal

Lufthansa has announced plans to expand its ownership in ITA Airways to 90% through a €325 million agreement, marking a significant development in the ongoing consolidation of Europe’s airline industr...

  • 517
© Soaring Energy Profits Reignite Calls for Windfall Tax Across Europe

Soaring Energy Profits Reignite Calls for Windfall Tax Across Europe

European energy companies are once again facing mounting political pressure after reporting massive first-quarter profits fueled by soaring oil prices linked to ongoing instability in the Middle East....

  • 728
© Spain’s Bizum Expands Into Retail Payments to Challenge Visa and Mastercard

Spain’s Bizum Expands Into Retail Payments to Challenge Visa and Mastercard

Spain’s homegrown digital payment platform Bizum is preparing to make its biggest expansion yet by entering physical retail payments, a move that could significantly challenge the dominance of global ...

  • 1521
© Europe’s Battery Storage Race Accelerates as Turkey Emerges as Expansion Leader

Europe’s Battery Storage Race Accelerates as Turkey Emerges as Expansion Leader

European countries are rapidly expanding battery storage capacity as governments accelerate the transition toward renewable energy and reduce dependence on fossil fuels. New industry data shows that w...

  • 766
© Maersk Profit Drops Sharply Amid Middle East Shipping Disruptions and Hormuz Uncertainty

Maersk Profit Drops Sharply Amid Middle East Shipping Disruptions and Hormuz Uncertainty

Global shipping leader Maersk has reported a significant decline in first-quarter earnings as ongoing geopolitical tensions in the Middle East and disruptions around the Strait of Hormuz continue to c...

  • 573
© European Markets Rally While Oil Prices Slide on Optimism Over US-Iran Talks

European Markets Rally While Oil Prices Slide on Optimism Over US-Iran Talks

European stock markets recorded strong gains on Wednesday as growing optimism surrounding a possible diplomatic agreement between the United States and Iran boosted investor confidence across global f...

  • 821
© European Banks Show Mixed Performance as HSBC Profits Dip and UniCredit Surges

European Banks Show Mixed Performance as HSBC Profits Dip and UniCredit Surges

European banking giants have reported mixed financial results in the latest earnings season, with HSBC posting a decline in profits while UniCredit exceeded market expectations, reflecting a sector na...

  • 810
© HSBC Q1 Profit Misses Estimates on Higher Credit Losses

HSBC Q1 Profit Misses Estimates on Higher Credit Losses

HSBC reported first-quarter pre-tax profit of $9.4 billion, slightly below analyst expectations of $9.59 billion, as higher credit losses weighed on earnings....

  • 816
© Spirit Airlines Ceases Operations After Bailout Talks Collapse

Spirit Airlines Ceases Operations After Bailout Talks Collapse

Spirit Airlines has shut down operations after failing to secure a last-minute bailout deal, ending the run of one of the United States’ most well-known low-cost carriers. The airline halted all fl...

  • 797
Commnets 0
Leave A Comment