Germany, on the contrary, wanted Brussels to seize the opportunity to open new markets for its flagging exporters. The head of the Federation of German Industry (BDI), Siegfried Russwurm, immediately put out a statement hailing the deal: “This agreement will provide an urgently-needed growth impulse for the German and European economy.”
The accord, which eluded von der Leyen in her first term, marks a massive geopolitical win as she embarks on her second. It seeks to deepen ties between the EU and Mercosur — which comprises Brazil, Argentina, Uruguay, Paraguay and newcomer Bolivia — just as Donald Trump threatens to launch a global trade war when he returns as U.S. president next month.
“We are sending a clear and powerful message,” von der Leyen told a joint press conference. “In an increasingly confrontational world, we demonstrate that democracies can rely on each other. This agreement is not just an economic opportunity. It is a political necessity.”
Von der Leyen and EU trade chief Maroš Šefčovič flew in to Uruguay on Thursday to seal the deal, causing uproar in France, where the government had fallen just hours earlier.
Gloves off
Paris is expected to fight on but would need to expand an anti-Mercosur coalition that already includes Poland, Austria and Ireland to prevent the deal from being ratified.
“France’s voice remains strong in Europe,” said French Junior Trade Minister Sophie Primas. “No, we’re not alone in our opposition to Mercosur as it stands. We can achieve a blocking minority.”
