Business & Economics

EU Offers €45 Billion in Early CAP Funds to Sway Italy Ahead of Mercosur Vote

Between 6–7 January 2026, Ursula von der Leyen pledged to unlock €45 billion of the 2028-34 farm budget to placate EU agriculture ministers and secure Italy’s decisive vote at the 9 January qualified-majority ballot on the 25-year-old EU-Mercosur trade pact.

By Tomás Rydell

Focusing Facts

  1. The Commission plan front-loads two-thirds of the CAP mid-term reserve—€45 billion—and complements it with a €6.3 billion market-crisis fund for farmers.
  2. With France, Poland and Hungary opposed, Italy’s 60 million-strong population makes it the swing state whose stance will determine whether the deal attains the 65 % population threshold required under EU qualified-majority voting.
  3. Von der Leyen has scheduled a 12 January signing trip to Paraguay if ambassadors approve the agreement, which would remove duties on 90 % of EU exports and create a 700 million-person free-trade area.

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Perspectives in this article

  • Pro-deal, EU-commission-aligned outlets
  • Irish farmer-oriented national media and officials
  • Brussels policy-insider publications
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