European Commission President Ursula von der Leyen made the controversial decision to provisionally implement the trade part of the agreement with Mercosur countries, which occurs before the final vote in the European Parliament. This has sparked a wave of criticism, especially in France, where farmers and President Macron accuse Brussels of disregarding their interests. Simultaneously in Argentina, the parliament has finally adopted the radical labor market reform authored by President Javier Milei, introducing, among other things, a 12-hour workday.

Provisional Mercosur Implementation

The EC decides to apply the trade agreement without waiting for a vote in the European Parliament, citing geostrategic interest.

Labor Reform in Argentina

Argentina's parliament adopted Milei's legislative package: a 12-hour workday and facilitated contract terminations.

Opposition from France and Farmers

President Macron and agricultural organizations view Brussels' decision as a sign of contempt and a threat to food sovereignty.

Opportunity for Exports

Italy and Ireland foresee billion-euro profits thanks to trade facilitation for products such as wine, pharmaceuticals, and machinery.

The European Commission's decision to initiate the procedure for the provisional application of the trade agreement with the Mercosur bloc marks a breakthrough in negotiations that have been ongoing for over twenty years. Ursula von der Leyen justified this move by citing an urgent geostrategic need and the desire to strengthen the European Union's political and economic position on the international stage. This action, dubbed a "shortcut" by critics, allows key trade provisions to enter into force even before ratification by all member states and the European Parliament. Reactions to this step are sharply divided. While Italian wine producers and Irish exporters see in the deal a chance for a turnover increase exceeding 14 billion euros, in France there is an atmosphere of rebellion. President Emmanuel Macron described this decision as a "bad surprise," and farmers' trade unions announce mass protests against the influx of cheap food from South America. Criticism also comes from Poland, where MEPs accuse the Commission of acting on the edge of the law and "tyranny" towards sovereign states. The EU-Mercosur agreement has been under negotiation since 1999. Its goal is to create one of the world's largest free trade zones, encompassing over 700 million consumers. Simultaneously in Argentina, President Javier Milei has scored a key political victory. The Argentine Senate has finally adopted the controversial labor market reform. The new regulations radically increase employment flexibility: they introduce the possibility of extending the workday to 12 hours, facilitate the process of dismissing employees, and allow for the payment of part of the salary in foreign currencies or in kind. This reform, though considered by trade unions as an attack on workers' rights, is the foundation of Milei's plan to heal the crisis-stricken Argentine economy. „C'est une urgence géostratégique pour ne pas affaiblir notre position économique.” — Ursula von der Leyen The clash of these two events – the opening of the European market to South American products and the drastic lowering of labor costs in Argentina – heightens fears of unfair competition for European agriculture. Opponents of the agreement point out that European environmental and social standards will be undermined by products manufactured under a system of significantly less legal protection, which could lead to the destabilization of agricultural sectors in many EU countries.

Mentioned People

  • Ursula von der Leyen — President of the European Commission, who announced the provisional implementation of the agreement.
  • Javier Milei — President of Argentina, initiator of radical free-market reforms.
  • Emmanuel Macron — President of France, one of the main opponents of the current shape of the Mercosur agreement.
  • Anna Bryłka — Polish MEP, criticizing the Commission's method of processing the agreement.