EU Funds

Regions risk 'paying' European concessions to farmers for Mercosur OK

The 45 billion in advance payments to quell farmers' protests against the EU-South American economic area agreement will be subtracted from the other items in the chapter for national and regional partnership plans, of which cohesion is the most important.

by Paolo Riva

Agricoltori spagnoli lanciano arance e limoni durante una protesta contro l'accordo UE-Mercosur e la nuova politica agricola comune nella città di Malaga, nel sud della Spagna, il 29 gennaio 2026.  EPA/JORGE ZAPATA

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

They were designed to compensate for the potential damage of the EU-Mercosur agreement, but could end up penalising cohesion policy. They are the additional funds for farmers, proposed by Ursula von der Leyen in the next Multiannual Financial Framework (MFF), the long-term EU budget.

The trade agreement between the EU and South American countries was discussed by the Europarliament. In the meantime, however, the idea of allocating more resources to the primary sector has entered the negotiations for the MFF 2028-2034, and the regions could be the ones to pay for it.

Loading...

In early January, with a letter, the President of the EU Commission Ursula von der Leyen proposed to give states the possibility to use up to two-thirds of the funds in the next MFF for the mid-term review in the middle of the seven-year budgetary cycle now. They are "about 45 billion euro," he wrote, opening up to a modification of the proposed Qfp presented by the same Commission in July. But if this proposal is translated into concrete facts, cohesion policy and the regions could be the ones to pay the price.

"It is strange," comments Euralia Rubio of the Jacques Delors Institute. 'Compensation is being offered on the basis of a proposal that is still being negotiated'. Von der Leyen's is a promise that it is not up to her to keep. Now, the ongoing negotiations on the Qfp involve the Europarliament and, at this stage above all, the EU Council. It will be up to them to decide whether to accept the proposal.

Moreover, even if they did, it would be up to the individual states to decide whether to advance funds to farmers and in what amount. Could Italy do this? The answers of Fratelli d'Italia MEP Francesco Ventola suggest that it could. The proposal goes 'in the right direction', says the vice-chairman of the European Parliament's Committee on Regional Development.

For Dario Nardella, Democratic Party MEP in the agriculture committee, however, the measure indicated by von der Leyen is 'useful but insufficient': cohesion policy is 'just as important as agriculture' and risks being penalised.

There are two reasons for this. The first is that the promised 45 billion are not additional funds, but already present in the multiannual budget. The second is that, in the MFF proposal under discussion, the resources for agriculture and those for various other budget items are combined in one instrument. They are therefore in competition with each other and will also be so in the mid-term review. Among these items, cohesion policy is the most important one and, therefore, more funds for agriculture now means less funds for cohesion in the middle of the budget cycle.

Nevertheless, Ventola is not pessimistic because, he explains, 'every decision will depend on the concrete needs and priorities that emerge in individual national contexts. True, if the proposal is approved, it will be up to the states to decide, but the deck may be short.

So far, farmers as beneficiaries of the Common Agricultural Policy (CAP) and the regions as main implementers of the cohesion policy have stood up against the Commission's MFF proposal. They demand that the two policies remain autonomous. If this were not to happen, their agendas would become very distant and, according to researcher Rubio, today the farmers' 'capacity for pressure and influence' seems 'clearly superior'.

The President of the European Committee of the Regions Kata Tüttő, however, is not worried: "the alliance with the farmers holds" because the new MFF "is a common challenge". Tüttő points out that the EU multiannual budget remains limited, since the proposal under discussion is worth almost two trillion euro, amounting to only 1.26% of the EU gross national income. "This common expenditure was conceived to make the single market work and stabilise it (with the cohesion policy) and to keep European agriculture standing and viable (with the CAP). Today it is more necessary than ever,' he argues.

In his opinion, cohesion policy also serves to deal with the consequences of the EU-Mercosur agreement, because it can support territories with "negative impacts" in a targeted way through "adaptation and diversification". For this reason, Tüttő concludes, it must remain "an autonomous, regional and European policy".

Copyright reserved ©
Loading...

Brand connect

Loading...

Newsletter

Notizie e approfondimenti sugli avvenimenti politici, economici e finanziari.

Iscriviti