EU civil war erupts as France considers ‘blocking’ major new trade deal

Ursula Von der Leyan’s new deal with South America threatens to rip the apart, as tensions mount between Paris, Brussels and Berlin.

The European Commission president penned a landmark new trade deal with Mercosur states in Montevideo, Uruguay, on Friday – but the French government is reported to be strongly opposed to the new agreement.

“Today marks a truly historic milestone,”, the EU leader said, after meeting Mercosur leaders, including Argentina’s long-haired president Javier Milei.

The deal, which is 25 years in the making and will encompass over 700 million people, is objected to by France over fears that its domestic poultry and beef markets will be undercut by cheaper South American supply.

On the other hand, Germany is reported to be thrilled with the agreement, as Berlin sees it as a means of boosting exports.

Siegfried Russwurm, the head of the Federation of German Industry (BDI), lauding the trade deal, saying: “This agreement will provide an urgently-needed growth impulse for the German and European economy.”

Under the terms of the deal, trade barriers will be reduced between the EU27 and Mercosur members, Brazil, Argentina, Uruguay, Paraguay, and new addition Bolivia.

Ms Von der Leyen told a press conference: “We are sending a clear and powerful message: 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.”

Despite the agreement being reached by the leaders, EU states still have to ratify it. France is hopeful of convincing fellow sceptical states Poland, Ireland and Austria to block the deal.

“France’s voice remains strong in Europe,” Sophie Primas, a French junior trade minister said. “No, we’re not alone in our opposition to Mercosur as it stands. We can achieve a blocking minority.”