Mercosur Deal: Europe’s Silent Power Play

Sep 03, 2025
Mercosur Deal: Europe’s Silent Power Play To the Point
Photo credits: EPC
Almut Möller
Director for European and Global Affairs and head of the Europe in the World Programme
SEE MORE

Almost unnoticed, in today’s cabinet meeting, the European Commission put forward a trade agreement between the EU and the Latin American trade bloc Mercosur, finally opening a market of opportunity of  more than 700 million people. After  years of negotiations, including political and interinstitutional quarrels between the EU and its member states, and a careful calibration of the agreement, this is good news.  

However, the future of the agreement continues to remain unclear, despite the Commission putting forward a text split up between its political and commercial parts, with ‘only’ a qualified majority required in the Council and a  simple majority in the European Parliament.  Nevertheless,  at this point in time now, it was indeed the right decision to show determination, even if there is still a risk of failure further down the line. 

Reason is that what is instead making the headlines right now, is an endless stream of news about a world not looking in favour of European interests in both geoeconomic and geopolitical terms: Europeans struggling to secure a seat at the table on the future of Ukraine and their very own security order; Europeans looking weak in withstanding the pressure of President Trump’s trade policy, exposing vulnerability even where it once possessed real power. 

Meanwhile, in China, this week’s high-level meeting  of the Shanghai Cooperation Organisation, including  Prime Minister Narendra  Modi of India and President Vladimir Putin of Russia,  appeared like progress in the global battle of narratives by sending  a message of the dawn of a new era in the global distribution of power.  

At home, Europeans look sheepish by comparison, but they still have the chance to step up. Today’s move on the EU-Mercosur agreement was a move in the right direction.  

 

Almut Möller is Director for European and Global Affairs and head of the Europe in the World programme at the European Policy Centre.

The support the European Policy Centre receives for its ongoing operations, or specifically for its publications, does not constitute an endorsement of their contents, which reflect the views of the authors only. Supporters and partners cannot be held responsible for any use that may be made of the information contained therein.

Related publications

By the same authors

COMPENDIUM
Jun 15, 2026
by Amanda Paul, Svitlana Taran, Juraj Majcin, Iana Maisuradze, Christian Mölling, Jamie Shea, Paul Taylor, Almut Möller, HE Tacan Ildem, Oana Lungescu, Benedetta Berti, Chris Kremidas-Courtney, Torben Schütz, Ricardo Borges de Castro, Jennifer Kavanagh, Mihai Sebastian Chihaia, Danylo Dugin
To the Point
Mar 25, 2026
by Almut Möller, Fabian Zuleeg, Janis A. Emmanouilidis
EPC ROUND-UP
Mar 13, 2026
by Alberto-Horst Neidhardt, Amanda Paul, Eric Maurice, Paul Taylor, Almut Möller, Emma Woodford, Stefan Šipka, Paweł Świeboda, Varg Folkman, Elixabete Arrieta, Mihai Sebastian Chihaia
COMPENDIUM
Feb 23, 2026
by Corina Stratulat, Amanda Paul, Svitlana Taran, Juraj Majcin, Iana Maisuradze, Elizabeth Kuiper, Almut Möller
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. More information is available in our Privacy Policy