BRUSSELS — European Commission President Ursula von der Leyen is planning to
travel to Australia this month to clinch a security and trade deal, according to
a person familiar with the talks.
Her trip will follow a meeting next week between European Trade Commissioner
Maroš Šefčovič and his Australian counterpart Don Farrell in Brussels, a second
person said. Both people were granted anonymity because the schedules are still
tentative.
The EU and Canberra are moving to revive trade negotiations that collapsed at
the end of 2023 amid disagreements over quotas of beef and lamb.
The quotas are still being negotiated between Canberra and Brussels, the first
person familiar with the talks said.
Von der Leyen will take the 20-hour-plus flight to Australia directly after she
attends the Munich Security Conference, which takes place in the German city on
Feb. 13-15, according to Australian digital newspaper The Nightly, which broke
the news of the Commission chief’s four-day trip.
EU countries last December allowed the Commission to negotiate a defense deal
with Australia. Sealing such a deal would come on the heels of security and
defense partnerships signed with the U.K., Canada and most recently India.
An agreement with Australia would represent a win for the EU, as it would open
access to the country’s vast reserves of strategic minerals. Australia is the
world’s largest producer of lithium and also holds the world’s second-largest
copper reserves.
Coming after the EU’s fraught Mercosur deal with South American countries —
criticized by farmers, France and skeptical lawmakers — the pact with Canberra
is expected to also trigger pushback due to its significant agricultural
component.
Tag - farmers
PARIS — French President Emmanuel Macron said on Tuesday preparatory work was
under way to restart direct discussions between Europe and Russia over the war
in Ukraine.
“It has to be prepared, so technical discussions are under way to prepare for
this,” Macron said, answering a reporter who asked the president about his call
in December to restart talks with Russian President Vladimir Putin.
“It is important that Europeans restore their own channels of communication, it
is being prepared at the technical level,” Macron added, during a visit to
farmers in the Haute-Saône department.
Macron said talks with Putin should be coordinated with Ukrainian President
Volodymyr Zelenskyy and his “main European colleagues,” insisting on the role of
the so-called “coalition of the willing,” which brings together like-minded
countries supporting Ukraine.
The president was, however, quick to note that, by continuing to bomb Ukraine,
Russia was not showing any willingness to negotiate a peace deal.
“First and foremost, today, we continue to support Ukraine, which is under
bombs, in the cold, with attacks on civilians and on Ukraine’s energy
infrastructure by the Russians, which are intolerable and don’t show a real
willingness to negotiate for peace.”
NEW DELHI — The European Union and India locked arms against U.S. President
Donald Trump’s tariff offensive and China’s flood of cheaper goods to conclude
talks on a landmark trade pact on Tuesday.
Under the deal, India will lower tariffs on European cars and wine, while the EU
signaled it would assist Indian companies with decarbonization and negotiate
duty-free quotas for Indian steel.
“Two giants who choose partnership, in a true win-win fashion. A strong message
that cooperation is the best answer to global challenges,” said European
Commission President Ursula von der Leyen, standing next to Indian Prime
Minister Narendra Modi.
The announcement rounded off a year of intensive negotiations in which the EU
sought to lock down a trade deal with the world’s most populous nation. Von der
Leyen and European Council President António Costa were guests of honor at
India’s exuberant Republic Day celebrations on Monday.
Ties between India and the U.S. reached a low point last August, when Trump
imposed a 50 percent tariff on goods from the South Asian nation over its
purchases of Russian oil.
“Both know that they need each other like never before and in this fractured
world where trusted partnerships are very, very hard to come by,” said Garima
Mohan, who leads the German Marshall Fund’s work on India.
Under the deal, India will gradually slash tariffs on European cars, reducing
tariffs from 110 to 10 percent on 250,000 cars every year.
A range of agricultural goods will also see their tariffs drop, coming as a
reassurance for the European Parliament and the EU’s farmers who have been
heavily protesting in recent months over fears that they would be undercut by
cheap farm produce.
Tariffs on wine will be reduced from to 20 and 30 percent from 150 percent now,
depending on value. European olive oil will also enter duty free into India,
instead of facing a 45 percent tariff.
STEEL DEAL
The stickiest issues related to steel and the EU’s carbon border tax: New Delhi,
a major steel exporter, wanted to make sure that its metals wouldn’t be impacted
by an upcoming 50 percent EU tariff on steel, and the carbon levy that has just
entered force.
In response to those concerns, the EU plans to give India a significant share of
the 18.3 million metric tons of steel allowed to enter the bloc duty free —
Brussels will negotiate this with its partners as is required by global trade
rules.
“There will of course be a difference in how you treat this negotiation on
application of steel measures between FTA and non-FTA partners. Therefore I
think it was strategic from both sides that we have the agreement now and that
India will be treated as an FTA partner,” EU trade chief Maroš Šefčovič told
POLITICO.
On the carbon border tax, a new levy on carbon emissions that has irked
countries such as the United States and Brazil, Brussels will “help Indian
operators to have a smooth introduction of CBAM with all the technical
assistance and all the additional advice we can provide,” Šefčovič added,
stressing that the Commission would treat all its partners equally.
For India, the deal represents an opportunity to boost its exports of
pharmaceuticals, textiles and chemicals.
This story has been updated.
BRUSSELS — Pressure is mounting on the European Commission to exempt fertilizers
from its new carbon tariff scheme, as national capitals side with farmers over
industry to unpick one of the EU’s newest climate policies.
During a discussion requested by Austria on Monday, 12 countries called for a
temporary exclusion of fertilizers from the European Union’s carbon border
adjustment mechanism (CBAM), a levy on the greenhouse gas emissions of certain
goods imported into the bloc.
They argued that CBAM, which only became fully operational on Jan. 1, is sending
already-rising fertilizer even higher, adding to economic difficulties for crop
farmers.
“European arable farmers are currently facing not just low producer prices, but
also rising production costs. The main cost drivers are fertilizer prices, which
have increased markedly since 2020,” Johannes Frankhauser, a senior official in
Austria’s agriculture ministry, told ministers gathered in Brussels. Eleven
countries backed Vienna in Monday’s meeting.
Yet critics — which include fertilizer producers, environment-focused MEPs and
several governments — warn that such an exemption would not only penalize the
EU’s domestic producers but threaten the integrity of the carbon tariff scheme.
“High prices of production inputs, including fertilizers, have a direct impact
on the economic situation of farms… However, we want an optimal solution in
order to maintain food security on one hand and on the other [avoid] possible
negative impacts on the competitiveness of EU fertilizer producers,” said Polish
Agriculture Minister Stefan Krajewski, whose country is a major fertilizer
producer.
Germany, Belgium, Finland, Sweden and the Netherlands expressed similar
sentiments.
CBAM was phased in over several years and is supposed to protect European
producers of heavily polluting goods — cement, iron, steel, aluminum,
fertilizers, electricity and hydrogen — from cheap and dirty foreign
competition. EU manufacturers of these products currently pay a carbon price on
their planet-warming emissions, while importers didn’t before the CBAM came into
force.
By introducing a levy on imports from countries without carbon pricing, the EU
wants to even out the playing field and encourage its trading partners to switch
to cleaner manufacturing practices. (Those partners aren’t too happy.) The CBAM
price is paid by the importers, which are free to pass on the cost to buyers
— in the case of fertilizers, farmers.
Fertilizers make up a substantial share of farms’ operating costs, and EU-based
companies do not produce enough to match demand.
CBAM is therefore expected to push up fertilizer costs, though estimates on by
how much vary greatly. A group of nine EU countries led by France mentioned a 25
percent increase in a recent missive, while Austria reckons it’s 10-15 percent.
The main cost drivers are fertilizer prices, which have increased markedly since
2020,” Johannes Frankhauser, a senior official in Austria’s agriculture
ministry, told ministers gathered in Brussels. | Olivier Hoslet/EPA
Carbon pricing analyst firm Sandbag, however, says it’s far lower for the next
two years — less than 1 percent, or a couple of euros per ton of ammonia, a
fertilizer component that costs several hundred euros per ton without the levy.
Responding to governments on Monday, Agriculture Commissioner Christophe Hansen
noted that the EU executive already tweaked the policy to provide relief to
farmers in December, and followed up in January with a promise to suspend some
regular tariffs on fertilizer components to offset the additional CBAM cost.
SUSPENSION SUSPENSE
The Commission in December set in motion legislative changes that could allow it
to enact such a suspension in the event of “serious and unforeseen
circumstances” harming the bloc’s internal market — in effect, an emergency
brake for CBAM. The suspension can apply retroactively, the EU executive said
earlier this month.
Yet EU governments and the European Parliament each have to approve this clause
before the Commission could make such a move, a process expected to take the
better part of this year. Environment ministers can vote on the changes in March
or June, and MEPs haven’t even chosen their lead lawmakers to work on the
Parliament’s position yet.
That’s why Austria on Monday called on the Commission to “immediately” suspend
CBAM until “the regular possibility to temporarily suspend CBAM on fertilisers
is ensured.” The legal basis for such a move is unclear, as the legislation in
force does not feature an exemption clause.
Vienna’s request for a debate came after a group of nine countries — Bulgaria,
Croatia, France, Greece, Hungary, Latvia, Luxembourg, Portugal and Romania —
wrote to the Commission requesting a suspension earlier this month. During
Monday’s discussion, Croatia and Estonia also expressed support for such a
move.
Ireland welcomed the Commission’s proposal of a suspension clause but asked for
additional details.
Spain was ambivalent: “We need to strengthen our industrial capacity to
contribute to the strategic autonomy of the European Union. But clearly, the
decarbonisation of this sector mustn’t jeopardize farmers’ livelihoods,” said
Spanish Agriculture Minister Luis Planas.
Italy, which previously signaled its support for a suspension, did not
explicitly endorse such a move — merely backing the Commission’s
already-announced tweaks to normal fertilizer tariffs in its intervention on
Monday.
Not all countries took to the floor. Czechia, for example — whose new government
is opposed to large parts of EU climate legislation, but whose prime minister
owns Europe’s second-largest nitrogen fertilizer producer — remained silent. The
Czech agriculture ministry did not respond to a request for comment.
INDUSTRY ALARMED
While exempting fertilizers may win governments kudos from farmers, European
fertilizer manufacturers would be irate. The producers’ association Fertilisers
Europe warned that such a move would be “totally unacceptable” and “undermine
the competitiveness” of EU companies.
Yara, a major Norwegian fertilizer producer, said that “CBAM was designed to
ensure a level playing field. Weakening it through tariff reductions or
retroactive suspension sends the wrong signal to companies investing in Europe’s
green transition.”
Mohammed Chahim, the vice president of the center-left Socialists and Democrats
in the European Parliament, said that EU companies “need regulatory stability.”
“European fertilizer producers have spent precious time and significant
resources, often with support from taxpayer money, to decarbonize,” said the
Dutch MEP, who drafted the Parliament’s position on the original CBAM law. “Any
exemptions for CBAM send a terrible signal — not just to our own industry, but
to the world.”
It’s not only makers of fertilizer that are up in arms. Companies in the heavy
industry sector — whose competitiveness CBAM is supposed to protect — are
warning that granting an exemption once could produce a domino effect,
encouraging buyers of all CBAM goods to lobby for relief.
German MEP Peter Liese, environment coordinator of the center-right European
People’s Party, said earlier this month that a retroactive exemption would be
“theoretically possible” but that he was “very much against it because I believe
that if we start doing that, we will end up in a cascade. | Ronald Wittek/EPA
“Once one sector gets an exemption, other sectors will want this too,” warned
the Business for CBAM coalition, a lobby group of companies and industry groups.
“We therefore call on the European Parliament and [ministers] to remove” the
exemption clause, it added.
Similarly, German MEP Peter Liese, environment coordinator of the center-right
European People’s Party, said earlier this month that a retroactive exemption
would be “theoretically possible” but that he was “very much against it because
I believe that if we start doing that, we will end up in a cascade. If we
suspend it for fertilizers, there are immediately arguments to suspend it in
other sectors as well.”
BERLIN — As Europe’s traditional Franco-German engine splutters, German
Chancellor Friedrich Merz is increasingly looking to team up with hard-right
Italian Prime Minister Giorgia Meloni as his co-pilot in steering the EU.
The two are set to meet at a summit in the opulent Villa Doria Pamphilj in Rome
on Friday to double down on their budding alliance. They are both right-wing
Atlanticists who want to cool tensions with U.S. President Donald Trump. And
they both have their frustrations with French President Emmanuel Macron.
In years past, Germany would traditionally have turned to France at decisive
moments to map out blueprints for the EU, so it’s significant that Merz is now
aligning with Meloni in his attempt to drive forward core European priorities on
trade and industry.
In part, Merz’s gravitation toward Meloni is driven by annoyance with France.
Berlin is irritated that Paris sought to undermine the landmark Mercosur trade
deal with South America, which the Germans have long wanted in order to promote
industrial exports. Germany is also considering pulling out of a €100 billion
joint fighter-jet program over disputes with the French.
Against that backdrop, the alignment with Rome has a compelling logic.
During Friday’s meeting, Merz and Meloni are expected to sign up to cooperation
on defense, according to diplomats involved in the preparations. It’s not clear
what that involves, but Germany’s Rheinmetall and Italy’s Leonardo already have
a joint venture to build tanks and other military vehicles.
Perhaps most ambitiously, Italy and Germany are also teaming up to draft a new
game plan to revive EU industry and expand exports in a joint position paper for
the Feb. 12 European Council summit. Berlin and Rome style themselves as the
“two main industrial European nations” and have condemned delays to the Mercosur
agreement.
That language will grate in Paris.
IN FOR THE LONG HAUL
For Giangiacomo Calovini, a lawmaker from Meloni’s Brothers of Italy party, who
heads the parliament’s Italian-German friendship group, the Merz-Meloni alliance
makes sense given Macron’s impending departure from the European stage after
next year’s French election.
“[Our] two countries have stable governments, especially if compared with
France’s,” he said. “It is clear that Meloni and Merz still probably have a long
path ahead of them, during which they can work together.”
Safeguarding the relationship with Trump is crucial to both leaders, and both
Merz and Meloni have sought to avoid transatlantic blow-ups. They have been
supported in their firefighting by their foreign ministers, Johann Wadephul and
Antonio Tajani.
“Giorgia Meloni and Friedrich Merz have represented the European wing most open
to dialogue with President Trump,” said Pietro Benassi, former Italian
ambassador to Berlin and the EU. “The somewhat surreal acceleration [of events]
driven by the American president is confirming a convergence in the positions of
Italy and Germany, rather than between Italy and France, or France and Germany.”
In contrast to the softly-softly approach in Rome and Berlin, Calovini accused
Macron of unhelpfully “contradictory” behavior toward Trump. “He acts as the one
who wants to challenge the United States of America but then sends texts — that
Trump has inelegantly published — in which he begs Trump to have dinner,” he
complained.
GOOD CHEMISTRY
Officials in Berlin now privately gush over the growing cooperation with Meloni,
describing the relationship with Rome as dependable.
“Italy is reliable,” said one senior German government official, granted
anonymity to speak candidly. It’s not an adjective authorities in Berlin have
often used to describe their French counterparts of late.
“France is more verbal, but Italy is much more pragmatic,” said Axel Schäfer, a
senior lawmaker in Germany’s Social Democratic Party long focused on
German-Italian relations.
An Italian official also praised the “good chemistry” between Merz and Meloni
personally. That forms a marked contrast with the notoriously strained relations
between Meloni and Macron, who have frequently clashed.
In their effort to draw closer, Merz and Meloni have at times resorted to
hyperbole.
During his inaugural visit to Rome as chancellor last year, Merz said there was
“practically complete agreement between our two countries on all European policy
issues.”
Meloni returned the sentiment.
“It is simply impossible to cast doubt on the relations between Italy and
Germany,” she said at the time.
MARRIAGE OF CONVENIENCE
That is overegging it. The two leaders, in fact, have considerable differences.
Meloni refused to support an ultimately doomed plan, pushed by Merz, to use
frozen Russian assets to finance military aid for Ukraine. Meloni also briefly
withheld support for the Mercosur trade deal in order to win concessions for
Italian farmers before ultimately backing it.
Critically, Rome and Berlin are likely to prove very awkward allies when it
comes to public finances. Italy has long pushed for looser European fiscal
policy — and been a natural ally of France on this point — while Germany has
served as the continent’s iron disciplinarian on spending.
But even here there has been some convergence, with Meloni cutting Italy’s
spending and Merz presiding over a historic expansion in debt-fueled outlays on
infrastructure and defense.
Fundamentally, much of the growing alliance between Merz and Meloni is a product
of shifts undertaken for their own domestic political survival.
Meloni has dragged her nationalist Brothers of Italy party to the center,
particularly on foreign policy matters. At the same time, the rise of the
far-right Alternative for Germany (AfD) party in Germany has forced Merz to
shift his conservative party sharply to the right on migration.
This ideological merging has allowed for a warming of relations. As Merz has
sought partners on the European level to drastically reduce the inflow of asylum
seekers coming to Europe, to reduce regulation and to push for more trade — and
provide a counterbalance to Macron — Meloni has become an increasingly important
figure for the chancellor.
Still, Stefano Stefanini, a former senior Italian diplomat and NATO
representative, said there would always be limits to the relationship.
“It’s very tactical,” he said. “There’s no coordinated strategy. There are a
number of issues on which Meloni and Merz find themselves on the same side.”
Stefanini also noted that spending commitments — particularly on military
projects — would be an area where Rome would once again find itself in a more
natural alliance with France.
“On defense spending Italy and France are closer, because Germany has the fiscal
capacity to spend by itself, while Italy and France need to get as much
financial support as they can from the EU,” he said.
Despite such differences, Meloni has seized her opening to get closer to Merz.
“Meloni has understood that, as there is some tension in the France-Germany
relationship, she could infiltrate and get closer to Germany,” said Marc Lazar,
an expert on Franco-Italian relations who teaches at the Luiss University in
Rome and at Sciences Po in Paris.
STRASBOURG — Ursula von der Leyen comfortably survived a no-confidence vote in
the European Parliament on Thursday.
A large majority of members of the European Parliament backed the center-right
European Commission president in a confidence motion brought by the far-right
Patriots for Europe group.
Of the 720 EU lawmakers, 565 showed up to vote. Only 165 backed toppling the
Commission, with 390 voting against and 10 abstaining. Von der Leyen was not in
Strasbourg for the vote.
The motion’s proponents argued that von der Leyen and her team of commissioners
should be dismissed over their handling of the EU–Mercosur trade deal, which
they claim undermines European farmers by opening up the European market to
unfair competition.
Three similar motions had already been defeated over the past seven months. The
threshold needed to trigger a motion of censure debate and vote — 72 out of 720
— has prompted repeated attempts to bring the Commission down.
Monday’s censure debate ahead of the vote took place in an almost empty chamber,
with lawmakers boycotting in protest against the repeated attempts by the far
right and far left to topple the EU executive. Even the chair of the Patriots
group, Jordan Bardella, missed the event.
“How many times do we need to vote on hopeless censure motions until the
extremists are satisfied or accept the democratic will?” asked Billy Kelleher,
representing the Renew Europe group in the debate.
STRASBOURG — Germany, the chief backer of the European Union’s Mercosur trade
deal, called on Brussels to go ahead and implement it even after lawmakers voted
on Wednesday to send the accord for judicial review, setting up a major clash
between the bloc’s institutions and its two largest economies.
The European Parliament voted by a razor-thin margin on Wednesday to pass a
motion to seek a legal opinion from the Court of Justice of the EU on whether
the Mercosur deal complies with the EU treaties. It was a blow for Commission
chief Ursula von der Leyen, who made a last-minute appeal hours earlier to MEPs
to advance the deal.
The vote widened a rift between France, which has fought an epic rearguard
action against the Latin American megadeal to protect its farmers, and a Germany
desperate to boost industrial exporters reeling from U.S. President Donald
Trump’s trade aggression.
“The European Parliament’s decision on the Mercosur Agreement is regrettable,”
German Chancellor Friedrich Merz said on X. “It misjudges the geopolitical
situation. We are convinced of the agreement’s legality. No more delays. The
agreement must now be applied provisionally.”
In Paris, Prime Minister Sébastien Lecornu welcomed what he called “an important
vote that has to be respected.” Foreign Minister Jean Noël Barrot chimed in:
“France takes responsibility for saying no when it is necessary, and history
often proves it right. The fight continues to protect our agriculture and ensure
our food sovereignty.”
Lawmakers will not vote on final consent to the deal until the Court of Justice
issues its opinion, which could take 18 to 24 months. The court can “adjust the
pace of the proceedings where institutional or political necessity makes a
timely response especially important,” its press service said in a statement.
DEMOCRACY VS REALPOLITIK
In principle, the Commission would be allowed under the EU treaties to
temporarily apply the provisions of the Mercosur deal, which would create a
free-trade area spanning 700 million people and eliminate duties on more than 90
percent of goods.
It’s a finely balanced, yet momentous, tradeoff between democratic
accountability and realpolitik as the EU executive seeks ways to stand strong
against Washington amidst the ongoing transatlantic rift over President Donald
Trump’s threats to annex Greenland.
Manfred Weber, the pro-Mercosur leader of the European People’s Party, backed
the call by his fellow countryman Merz, for provisional application.
“The European Parliament did not take a substantive position on Mercosur today;
it voted on a procedural motion instead. This is an attempt to delay a
much-needed agreement for ideological reasons,” Weber said in a statement.
“In the current geopolitical situation, Europe cannot afford a stalemate. The
agreement must now be provisionally applied so that its benefits for our economy
can take effect. The European Parliament will have the final say after review by
the Court of Justice of the EU.”
The Commission, in a strongly worded statement, said it “strongly regretted” the
decision by EU lawmakers, calling the concerns raised in the motion
“unjustified.”
It did not precommit to taking any action, however, saying it would now engage
with EU member governments and MEPs before deciding on next steps.
Olof Gill, the Commission’s top trade spokesperson, did confirm to reporters
last week that the EU treaties did allow for the possibility of provisional
implementation.
EU countries withdrew a resolution pledging not to sidestep the legislative
process when they backed the deal on Jan. 9, sparking uproar in the corridors of
the Parliament.
POWER PLAY
Lawmakers argue that the Parliament, as the EU’s only directly elected
institution, has the democratic legitimacy to be involved in decisions on trade
deals.
A new non-binding framework agreement governing relations between the Commission
and the Parliament, still to be green-lit by lawmakers, states that if the
Commission intends to pursue provisional application of the deal, it should
first seek the Parliament’s consent.
The move to bypass Parliament would also mark a departure from established
practice.
Although it’s possible to provisionally apply the trade deal before the European
Parliament’s consent, it hasn’t been the practice for over 10 years.
“Provisional application doesn’t take effect before the consent of the European
Parliament or before the European Parliament has had the chance to express its
view — and that is standard practice since the EU-South Korea agreement [in
2011],” said David Kleimann, a senior trade expert.
Even if the Commission wants to expedite implementation of the deal, it will
need to wait until the Mercosur countries ratify the agreement, Sabine Weyand
said in an email sent to trade lawmakers less than two weeks ago, seen by
POLITICO.
“On the side of the Commission we very much wish the Mercosur agreement to
become a reality as quickly as possible, given its importance for the EU’s
strategic autonomy and sovereignty,” she said.
Asking for the Parliament’s “swift consent” on the deal as a whole, she reminded
lawmakers that Mercosur countries “need to have completed their respective
ratification procedures, and then notify the other side thereof” before the
Commission can implement the deal in Europe.
Max Griera reported from Strasbourg and Camille Gijs from Brussels. Giorgio
Leali contributed to this report from Paris and Ferdinand Knapp from Brussels.
STRASBOURG — In a vote that could delay the European Union’s trade deal with
Mercosur by up to two years, the European Parliament on Wednesday sent the Latin
American accord for a judicial review.
By a majority of just 10 votes, MEPs backed a resolution to seek an opinion from
the Court of Justice of the EU on whether the texts of the EU-Mercosur agreement
comply with the EU treaties. The motion was carried — to applause and cheers
from its backers — with 334 votes in favor, 324 against, and 11 abstentions.
The Parliament won’t be able to vote on the deal itself until the court has
issued its opinion — a process that typically takes between 18 to 24 months.
The delay now raises the question of whether the EU executive will provisionally
apply the agreement while waiting for the court to rule — putting the two
institutions on a collision course over democratic accountability.
The outcome represents a major defeat for the European Commission and countries
backing the deal, which want to deepen ties with the Mercosur countries
— Argentina, Brazil, Paraguay and Uruguay — and see the accord as the perfect
opportunity to stand strong against U.S. President Donald Trump’s erratic
tariffs.
“The more trading partners we have world-wide, the more independent we are. And
that is exactly what we need now,” the European Commission President Ursula von
der Leyen said in a last-minute appeal to lawmakers earlier on Wednesday.
Bernd Lange, the chair of the Parliament’s international trade committee,
condemned the outcome of the vote.
“Absolutely irresponsible. This is an own goal,” Lange posted on X. “Those
against #EU #Mercosur should vote against in consent procedure instead of using
delaying tactics under the guise of legal review. Very harmful for our economic
interests and standing. Team Europe putting itself offside.”
This story has been updated.
Undecided lawmakers in the European Parliament will make or break a deal to
create the world’s largest free trade area, according to a POLITICO analysis of
voting intentions.
European Commission President Ursula von der Leyen and European Council
President António Costa signed a long-awaited trade deal with Argentina, Brazil,
Paraguay and Uruguay amid fanfare last weekend.
The Mercosur trade agreement, 25 years in the making, covers 700 million people,
and Brussels considers it a key strategic tool for the EU to strengthen trade
ties with Latin America as relations with both the United States and China
deteriorate.
But the mega-deal must still win the approval of the European Parliament before
it can enter into force.
POLITICO reporters reached out to party groups and individual lawmakers and
ascertained the voting intentions of 673 of the Parliament’s 719 MEPs. The
findings put the deal at risk of running aground.
At least 301 of those lawmakers are expected to oppose the Mercosur deal if and
when it lands in the Parliament, while 319 MEPs would support it.
It’s a tally that undecided and undeclared lawmakers could easily swing.
CRITICAL TEST
It’s a pivotal moment for the trade agreement.
The Parliament isn’t due to vote on the deal itself for months, potentially not
until May. But on Wednesday, lawmakers will decide whether to send the deal’s
text for legal review to the EU’s court of justice.
The process would kick the can down the road by up to two years.
This vote is effectively a dry run of where the majority would stand on final
approval. Many of the lawmakers who support the deal are expected to reject
sending it to court.
However, that is not the case for some: The 12 German Green lawmakers, for
example, are in favor of the deal but also support sending it to court to assess
its legality — making Wednesday’s vote even tighter.
In the Council of the EU, the bloc’s intergovernmental branch, the agreement won
a qualified majority despite the opposition of France, Poland, Austria, Ireland
and Hungary. Belgium abstained; Italy only backed the deal after securing
safeguards and funding commitments for its farmers.
A Parliament vote against the deal would deal a massive blow to Brussels and the
pro-deal camp led by Germany.
“We must not let this opportunity go to waste,” Foreign Minister Johann Wadephul
said last week, calling on the European Parliament to back the deal. “We need
not talk any further about European sovereignty or Europe’s ability to act if we
do not succeed in bringing such free trade agreements to a positive
conclusion.”
INTERNAL RIFTS
Opposition in Parliament comes from different corners: Lawmakers from the
far-right Patriots for Europe and Left groups are expected to vote against the
deal.
Other political groups are divided. Even within the ranks of von der Leyen’s own
European People’s Party, one-fifth of lawmakers are expected to vote against the
Mercosur text.
There are also rifts within the liberal Renew group and the Greens, while
POLITICO’s analysis shows the trade deal dividing the right-wing European
Conservatives and Reformists down the middle.
A big question mark hangs over the Spanish delegation within the EPP. With their
22 lawmakers, they were earlier seen as one of the main promoters of the deal.
But pressure from farmers opposed to Mercosur ahead of regional election races
has cast doubt over whether they will stay in the pro-deal camp. Senior EPP
officials are still counting on their support despite the last-minute wobbles.
Reporting by Hanne Cokelaere, Max Griera, Lucia Mackenzie, Camille Gijs, Bartosz
Brzeziński, Carlo Martuscelli, Koen Verhelst, Gerardo Fortuna, Nette Nöstlinger,
Pieter Haeck and Eliza Gkritski.
STRASBOURG ― European trade commissioner Maroš Šefčovič faced an almost empty
European Parliament on Monday evening to defend the European Commission’s
signing of the Mercosur trade deal.
Many backers of the motion of no-confidence in the Commission over the issue
failed to turn up, suggesting that the trend of calling them ― this was an
unprecedented fourth in seven months ― has run out of steam.
Supporters of the motion argued that the Mercosur trade deal will open the door
to unfair competition from south American countries, with European farmers
subject to higher environmental standards than their peers.
“The safeguard clauses from the Commission are simply empty promises which don’t
actually provide proper protection for European farmers“ said the Patriots first
vice president Kinga Gal, Hungarian Prime Minster Viktor Orbán’s right-hand in
the European Parliament.
She added that Commission President Ursula von der Leyen’s failure to attend the
debate “shows contempt for the thousands of farmers protesting in the streets
and several millions of voters who are represented by the Patriots.”
But it was the Patriots own far-right lawmakers and other signatories of the
motion who also didn’t turn up. Out of more than 110 lawmakers who signed the
motion, less than a quarter attended.
“Looking in this room, apparently it was not important enough to actually change
some dinner plans and to be at the debate,” said Jeroen Lenaerts, chief whip of
EPP ― von der Leyen’s center-right political family.
The no-confidence motion, backed by the Patriots for Europe group and lawmakers
from the right-wing European Conservatives and Reformists (ECR), will now be put
to a vote on Thursday, though it is widely expected to fail.
Three similar motions have already been defeated over the past seven months,
dampening lawmakers’ interest in Monday’s debate. The low threshold of 72 out
720 lawmakers required to trigger a motion of censure debate and vote has
prompted repeated attempts.
“This motion is not about accountability, it is about headlines,” said Lenaerts.
Some lawmakers are calling to change the threshold and make it more difficult to
launch a motion of censure. Others describe that as censorship.
The Parliament’s centrist and left-wing factions — including the center-right
EPP, the center-left Socialists and Democrats, and the liberal Renew group —
boycotted the debate with only 10 of their lawmakers attending the debate.
European Parliament President Roberta Metsola also skipped chairing the debate,
instead sending one of her deputies, vice president Katarina Barley.
These moves followed the Commission’s decision not to send either President
Ursula von der Leyen, nor the full college of 26 Commissioners to stand beside
her, as has been the case on previous occasions.
“How many times do we need to vote on hopeless censure motions until the
extremists are satisfied or accept the democratic will?,” asked Billy Kelleher,
representing the Renew Europe group.
Only one political group leader showed up to the debate.
It was not Jordan Bardella, Patriots for Europe chair, who first announced the
motion on X, but the von der Leyen’s party chief, EPP’s Manfred Weber.