X Close

How von der Leyen sold out the farmers Cars are more important than food

Fighting the farmers. Sathiri Kelpa/Anadolu via Getty Images.

Fighting the farmers. Sathiri Kelpa/Anadolu via Getty Images.


December 12, 2024   6 mins

This is a story which exemplifies the vicious, anti-democratic cycle that underpins the EU’s political dynamics. It is about decision-making processes which alienate voters and lead to weakened and discredited governments. It is about Ursula von der Leyen finally managing to ram through one of her favourite projects, while alienating one of her staunchest supporters.

The EU has been trying to finalise a free-trade deal with the Mercosur bloc — which includes Argentina, Brazil, Paraguay and Uruguay — for the past 25 years. But it has been met by intense political resistance. The bloc’s leading agricultural producers, most notably France, have long argued that the agreement would destroy their industry, paving the way for substantial imports sold at more competitive prices and produced under less stringent environmental and health standards than those mandated in Europe, where the EU is imposing ever-stricter regulations on farmers to curb greenhouse-gas emissions.

Macron is widely blamed for von der Leyen’s failure to finalise an agreement during her first term. Following the farmers’ protests that swept Europe, the French government further dug in its heels — also, no doubt, out of concern that the deal would exacerbate anti-EU sentiment in the country, boosting support for Marine Le Pen. In January, it was reported that the European Commission had stopped negotiating with the South American countries at France’s request; indeed, up until a few months ago, many regarded the deal to be dead in the water. Yet, last week, in a surprising turn of events, von der Leyen announced that the agreement had finally been clinched. So what changed?

For one thing, von der Leyen is in a much stronger position today than she was a year ago. Back then, she already had her eyes set on a second term at the helm of the Commission, and couldn’t afford to alienate one of the bloc’s most powerful leaders, whose support she needed to get re-elected. But that problem is now behind her; von der Leyen no longer needs to be quite so concerned about appeasing member states.

Moreover, the new von der Leyen Commission is a rather different beast from its previous incarnation: this time round she has loyalists in strategic roles and has established a complicated web of dependencies — in other words, she has secured complete control over the EU’s executive body. That she feels strong enough to dismiss the opposition of one of the bloc’s most powerful states indicates what the next five years are likely to bring.

Indeed, the symbolism of von der Leyen landing in Latin America to finalise the Mercosur agreement, while Macron was dealing with the aftermath of the government’s collapse, didn’t go unnoticed in France. “Ursula von der Leyen could not have chosen a worse moment than this. It’s a big mistake to do this now. It really gives the impression of taking advantage of the crisis in France to try and get ahead on her own,” said Christophe Grudler, an MEP from Macron’s party.

While this assessment is difficult to dispute, it is strikingly ironic coming from a representative of one of the bloc’s most staunchly pro-EU parties. Von der Leyen has a long history of exploiting crises to assume more authority, so this latest episode is part of an all-too-familiar trend of creeping supranationalisation of the bloc’s politics — one that Macron directly contributed to by supporting her re-election.

All is not lost for the farmers though. The agreement still needs the approval of the European Council. This means that France, potentially, still has a chance to block the deal. Macron maintains that the accord remained unacceptable in its current form. “We will continue to defend our agricultural sovereignty,” the Élysée said. Though other countries opposed to the deal include Poland, Austria, Ireland and the Netherlands, that still leaves Macron short of the 35% of the EU population needed to halt the agreement. Note that Germany is strongly in favour of the deal.

The only country, then, that could tip the scales is Italy. Sources at Giorgia Meloni’s office have said that Italy will not sign the Mercosur trade deal unless there are stronger safeguards for European farmers; however, it remains to be seen whether the Italian government, which is strongly divided on the issue, will really follow through. Given Italy’s precarious fiscal situation, Meloni is all too aware that she can’t afford to alienate von der Leyen’s support. Thus, the most likely outcome is that the Commission will pay lip service to Italy’s concerns, possibly with an addendum to the treaty containing certain recommendations aimed at minimising the deal’s impact on the bloc’s agricultural sector — thereby allowing Meloni to sign off on the deal while saving face.

“Given Italy’s precarious fiscal situation, Meloni is all too aware that she can’t afford to alienate von der Leyen’s support.”

But why is von der Leyen so eager to push the deal forward? Trade is, in many respects, embedded in the very DNA of the European Union. It’s why the bloc today boasts the largest free-trade regime in the world. In recent years, though, the EU’s commitment to free trade has come under challenge, as the bloc has increasingly aligned itself with the logic of geopolitical competition adopted by the US — a policy that Trump has promised to double down on. In this context, the EU’s trade policy has become increasingly politicised and subordinated to the “democracy versus authoritarianism” paradigm, aimed at decoupling from the West’s official adversaries and competitors. That means Russia, of course, but increasingly China as well. In this context, strengthening trade ties with “values-aligned” nations represents an attempt by the EU to reconcile the focus on trade liberalisation with its adoption of the US-driven New Cold War logic.

As von der Leyen said of the agreement: “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 left out how it also serves as a means for her to solidify her position as the principal architect of the EU’s geopolitical strategy, particularly in countering member states who might be inclined to pursue independent paths. Trump’s election, and expectations of a more protectionist US policy, doubtless gave von der Leyen, as well as the Mercosur countries, further impetus to conclude the deal.

The change of guard in Argentina — with radical free-marketeer Javier Milei replacing his Left-wing, more protectionist predecessor, who had rejected the trade agreement — did the rest. Unlike most leaders in Latin America, Milei is a firm believer in free trade. Following the announcement of the EU-Mercosur agreement, Milei stated: “While neighbours like Chile and Peru opened up to the world and entered into trade agreements with the protagonists of global trade, we locked ourselves in our own fish bowl, taking more than 20 years to close an agreement that we celebrate today.” It’s hard to imagine two stranger bedfellows than von der Leyen and Milei, but as the old Roman saying goes, pecunia non olet — money doesn’t stink.

There’s one final factor to take into account. From the European Commission’s perspective, the fact that the Mercosur deal will harm European agricultural producers by increasing cheaper imports is an acceptable trade-off in view of the fact that it will boost European industrial exports, such as cars. This is also why Germany is among the main supporters of the deal. In other words, agricultural production is being treated as a bargaining chip — a sector worth forfeiting in exchange for gaining access to new markets.

But there is a fundamental problem with this logic. Agriculture may not be “worth” much, but it does provide the most important product in any society: food, the building block of life. It makes little sense to sacrifice Europe’s long-term food security and sovereignty for short-term economic gains. Indeed, the whole “reshoring” debate stems precisely from a heightened awareness of the need to avoid dangerous dependencies for critical goods and materials. But if this applies to microchips, surely it applies — even more so — to food? This Mercosur deal is, ultimately, another reminder that entrusting critical decisions to unaccountable supranational institutions prone to capture by powerful vested interests isn’t just bad for democracy — but also for the long-term sovereignty of Europe as a whole.

It also reflects how von der Leyen often leverages divisions among member states to consolidate her own authority. The Mercosur agreement can be interpreted as a concession to Germany, following the Commission’s decision to impose tariffs on Chinese electric vehicles — a move supported by Paris but opposed by Berlin. Germany found itself on the losing side of that vote, while France celebrated a significant victory.

This demonstrates how the Commission, by aligning its policies with the interests of certain member states while alienating others, is able to shift the balance of power among nations and solidify its position as the EU’s primary arbiter and power broker. However, by exacerbating divisions among member states — and further antagonising European farmers — von der Leyen is taking a considerable risk, potentially fuelling social and political unrest across the continent. And her second term has only just begun.


Thomas Fazi is an UnHerd columnist and translator. His latest book is The Covid Consensus, co-authored with Toby Green.

battleforeurope

Join the discussion


Join like minded readers that support our journalism by becoming a paid subscriber


To join the discussion in the comments, become a paid subscriber.

Join like minded readers that support our journalism, read unlimited articles and enjoy other subscriber-only benefits.

Subscribe
Subscribe
Notify of
guest

37 Comments
Most Voted
Newest Oldest
Inline Feedbacks
View all comments
Christopher Barclay
Christopher Barclay
1 month ago

No mention of von der Leyen’s democratic mandate? Or lack of one.

Barry Stokes
Barry Stokes
1 month ago

Precisely. The EU Commission is far removed from being democratic.

Hugh Bryant
Hugh Bryant
1 month ago
Reply to  Barry Stokes

Her greatest crime is the constant appeal to democratic values to justify her anti-democratic policies.

Ian Barton
Ian Barton
1 month ago

Ursula’s 4th Reich is coming along nicely ..

Norfolk Sceptic
Norfolk Sceptic
1 month ago
Reply to  Ian Barton

EU-success breeds EU-success, aka failure! 🙂

Peter B
Peter B
1 month ago

Wrong.
Von der Leyen and the EU are screwing up the European auto industry far more – and much faster – than they’ll ever damage agriculture.
The article sloppily accepts the false premise that agricultural reform and competition will “damage farmers”. It will only damage uncompetitive farmers. As it should do. Can anyone doubt that the EU is awash with uncompetitive farmers after 62 years of the CAP ? New Zealand scrapped all farming subsidies in 1984 and the agricultural sector there is globally competitive. There is absolutely no reason European agriculture cannot be competitive.

Malcolm Webb
Malcolm Webb
1 month ago
Reply to  Peter B

Whilst I agree with Peter B’s comment on farming subsidies I also agree with the fundamental criticism of von der Leyen and the EU Commission . Thank God we are out from under this mess.

Gorka Sillero
Gorka Sillero
1 month ago
Reply to  Malcolm Webb

Not like being out of the EU mess has helped British farmers much

Nell Clover
Nell Clover
1 month ago
Reply to  Gorka Sillero

The UK may be out of the EU but the EU is not out of the hearts and minds of our civil servants. Freed from the need to apply EU regulations, Britain’s civil servants immediately decided to maintain broad alignment with EU regulations *and* add even more complex ESG (environment, social, and governance) targets and formulas.

Charles Hedges
Charles Hedges
1 month ago
Reply to  Nell Clover

Alexander drew his sword and cut the Gordian Knot . The Tories set up a committee staffed by civil servants to cut red tape.
There is a reason why Alexander was more successful than modern day politicians.

Malcolm Webb
Malcolm Webb
1 month ago
Reply to  Gorka Sillero

But then our useless political “ elites” have failed in almost every respect to garner any of the benefits of the EU exit.

Norfolk Sceptic
Norfolk Sceptic
1 month ago
Reply to  Gorka Sillero

Unfortunately, ,’we’ doesn’t include Westminster, Whitehall, or Northern Ireland.

Mrs R
Mrs R
1 month ago
Reply to  Malcolm Webb

If only we truly were out from under the EU mess.

Ethniciodo Rodenydo
Ethniciodo Rodenydo
1 month ago
Reply to  Peter B

But you fail to take into account the additional environmental/welfare costs that are imposed in Europe.
It is no different than forcing industry to move to the Far-East by imposing high energy costs and boasting about reduced carbon emissions while the reality is we are buying in goods manufacture at much higher carbon emissions and environmental cost

B Joseph Smith
B Joseph Smith
1 month ago

Interesting point as I wondered if energy, specifically diesel costs in the EU might add to the farmers costs there

Peter B
Peter B
1 month ago

Thanks. I totally agree.
These are all voluntary bad choices by the EU and UK and should be reversed/reduced/scrapped as appropriate. The sooner the better.

Michael Askew
Michael Askew
1 month ago
Reply to  Peter B

A medium size chicken costs £4.10 from Tesco. It is inconceivable that a farmer could raise an animal from egg to adulthood, and get it to the supermarket without making a loss if that is the retail price. “Uncompetitive” farmers might simply be dealing with overheads, bureacracy and other matters beyond their control. The competition from overseas might have to endure a much lighter regulatory burden thjan DEFRA, and they may cut corners in animal welfare.

Alex Lekas
Alex Lekas
1 month ago
Reply to  Peter B

in an allegedly market-based system, why is the role of govt to damage any enterprise? Markets do that without outside intervention.
There is absolutely no reason European agriculture cannot be competitive. —- Then you oppose all the climate change mandates, right? Because they are a rather big reason for hindering competitiveness.

Peter B
Peter B
1 month ago
Reply to  Alex Lekas

In general, yes. My view is that we should encourage greater fuel economy and not waste fuel or other resources. But making energy needlessly expensive is just stupid.

Evan Heneghan
Evan Heneghan
1 month ago

Giving up long term food security for short term financial gain is the kind of stupidity one would expect from the EU. Absolutely bananas. And when, in twenty years, we have decimated our own food production and the South Americans decide to withdraw from the agreement for a more favourable one with China, where will we be then?

Andrew Thompson
Andrew Thompson
1 month ago
Reply to  Evan Heneghan

So long as Von der Leyen has her bloated obese pension and resides in a fabulous mansion whilst waited on hand and foot who the heck is she to give a fig?

Peter B
Peter B
1 month ago
Reply to  Evan Heneghan

Why would this reduce EU food security ?
This would encourage more efficient, lower cost production within the EU. Which is well capable of producing food below the cost of imports from Latin America. The EU has some of the best, most productive farmland in the world – and often in lower cost areas (Hungary, Romania).
But hey, let’s go on complaining about food price inflation in Europe, rather than doing things within our power to actually reduce food prices (which will in turn make everything else more competitive).
The absolutely bananas EU policies are ones like the CAP which force consumers to pay way too much for food and prop up inefficient practices.

Terry M
Terry M
1 month ago
Reply to  Peter B

The EU cannot match Latin America’s food production costs because labor costs AND the costs of dealing with regulations are higher in the EU.
where the EU is imposing ever-stricter regulations on farmers to curb greenhouse-gas emissions
The Latin American nations could cut off sales to the EU, using food as a weapon to get agreement for other items.
This deal makes Europe weaker and beholden to other nations for an essential resource – food.

Peter B
Peter B
1 month ago
Reply to  Terry M

Sorry, I simply don’t accept that.
There’s plenty of fairly cheap labour in Eastern Europe still and excellent soils. And a lot of very underused farmland – Romania for one is producing way less than it could. Almost certainly being held back by EU subsidies to richer EU countries like France. EU production could easily be both higher and cheaper.
It is entirely within the power of the EU to scrap/reverse/limit the ridiculous and harmful (I agree with you) environmental legislation and inflated energy costs that will make farming uncompetitive. Those are choices. They are not embedded cost advantages for Latin America that we can do nothing about.
The EU is only uncompetitive *by choice*. And very bad choice.
If it takes a free trade agreement with Latin America to get EU farming to be competitive, so be it.
Do also explain how New Zealand farming is thriving without subsidies. They’re just as close to Latin America as we are.

Evan Heneghan
Evan Heneghan
1 month ago
Reply to  Peter B

Peter, while I agree with your point on principle, that this *could* lead to greater competition and lower costs for consumers, the reality is that the EU has absolutely no plans whatsoever to lower their demands for climate change action and ridiculous demands for reductions in use of fertilizer etc. The simple reality is that this leads to unfair competition for european farmers and will drive many farms out of business, thus reducing or food independence. I don’t know how you can argue that the EU hamstringing our own farmers while at the same time allowing cheaper imports that don’t have the same stringent limits placed on them is a good move for our economy long term.

Rocky Martiano
Rocky Martiano
1 month ago
Reply to  Evan Heneghan

“Giving up long term food security for short term financial gain is the kind of stupidity one would expect from the EU”….and Rachel Reeves.

Gordon Hughes
Gordon Hughes
1 month ago

The whole issue poses an awkward dilemma for President Macron. The author doesn’t mention the option that France has to declare the issue a matter of fundamental national interest and apply a veto if they can’t mobilise a blocking minority. That would blow up EU decision-making for a period.
Still, the French might do that if they thought that the reaction to approval of the Mercosur deal in France will be to guarantee a majority for RN and le Pen in the next parliamentary and presidential elections. On the other hand, they might believe that the rural vote is lost anyway, so the cost of a veto would not be worth the potential benefits.
Mrs. von der Leyen is playing a dangerous game which could seriously backfire. It is possible that both Germany and France may want to put the whole thing off for a while, trying to segment different audiences without actually doing very much. The Polish government might support France applying a veto because offending the rural vote could be fatal for the current government’s very narrow lead over PIS. There will also be plenty of waverers for whom the trade-off of cars for agriculture is far from clear cut.

Alex Lekas
Alex Lekas
1 month ago

That she feels strong enough to dismiss the opposition of one of the bloc’s most powerful states indicates what the next five years are likely to bring.
it’s going to bring more of the true conflict at hand, the of nationalists vs. globalists. Van der Leyen can blithely talk of how “democracies can rely on each other” while behaving in an authoritarian fashion.

Stephen Barnard
Stephen Barnard
1 month ago

No mention of the consequences when / if Ukrainne’s agricultural sector comes to play in the EU…

UnHerd Reader
UnHerd Reader
1 month ago

“It really gives the impression of taking advantage of the crisis in France to try and get ahead on her own,”
That’s not an impression. That’s exactly what it is!

Charles Hedges
Charles Hedges
1 month ago

There is another aspect. The EEC was based upon the French jockey on the German horse. This meant contributions from efficient German industry went to the EEC which went to France. Reparations by the back door. De Gaulle said Europe is France and Germany the rest are the trimmings.
It will be 85 years since the end of WW2. Germany is fed up paying for the sins of the Grandfather and Grandmother. The present trade policy of the EU benefits Germany. The Euro keeps German currency 30% below what it would be if Deutschmarks existed; The Euro overvalues Italian goods and stops Italy devaluing the Lira which benefits their car industry; The EU provides a vast pool of cheap labour and markets for German goods German control of specifications which are drafted to the benefit their industry and the detriment of others,
The cost of EU bureaucracy benefits German industry as it smothers small companies, slowing down growth. The size of the top 7 computer related companies in the USA have a size equal to 20 times that of the top 7 European companies over small fast growing companies .
Mercosur bloc will undermine French, Italian, Spanish, Portuguese and Greek agriculture increasing political strife in these countries and provide cheaper food for those working in Germany. Cheaper food means lower wages for German industry and hence larger profits.
Up to now France has dominated the military and diplomatic aspects of the EU. Weakening France will reduce its ability to be dominant in Defence and Diplomacy while increasing German economic power. The result is that Germany becomes the dominant country in the EU which becomes a German Tariff Zone.
What is the difference between the present EU and the German economic plan for Europe in the Septemberprogramm ?
Septemberprogramm – Wikipedia
Additionally, a commercial treaty would make the French economy dependent on Germany and exclude trade between France and the British Empire
 The Netherlands should be brought into a closer relationship to Germany while avoiding any appearance of coercion.
 Belgium should become a vassal state and cede eastern parts and possibly Antwerp to Germany and give Germany military and naval bases.
Luxembourg should become a member state of the German Empire.

Pedro Livreiro
Pedro Livreiro
1 month ago
Reply to  Charles Hedges

Interesting – I often state that it took Germany two world wars, but they succeeded in their original aim of bringing down the British Empire. Now if the German von der Leyen can effectively muzzle French agriculture and weaken the CAP, Germany will be on its way as the chief economy in Europe.
Some contributors here refer to “us” and “we” – I suppose that they are Irish. The arrangements made by the EU should not affect GB. If the Mercosur Agreement is so good for EU, why has GB not pipped them at the post?

Charles Hedges
Charles Hedges
1 month ago
Reply to  Pedro Livreiro

Simple . Pre WW2 there were many organisations apart from Foreign Office who had overseas experience; from companies, armed forces, the Indian Civil Service, Colonial Office. Post WW2 this was greatly reduced and by the early 1960s there was little overseas experience apart from the FCO. The FO took over the ICS, Colonial Office , Consular Service. The FO had a nervous breakdown over Suez and the Europhiles took over supported by Heath who were desperate to enter the EEC at any price. The Min of Agriculture , Food and Fisheries did not negotiate foreign treaties, the FCO did and they lacked adequate trade expertise. Hence the disasters.

Jake Raven
Jake Raven
1 month ago

Curious that those in Britain wanting closer ties to the EU will argue against a trade deal with America because of cheap food imports and poorer welfare standards.
Yet the EU are doing just that to get cheaper food from South America, do the Mercosur deal countries have higher food standards than America?
Money may not stink but hypocrisy does.

Michael Clarke
Michael Clarke
1 month ago

Excellent piece. The fact that the EU’s “leaders” have failed to clip UVDL’s wings demonstrates how weak they are. I know their mindset. VDL does a Member State a favour and then calls it in. The heads of government need to wake up to what she is up to and retake control of the initiative. Leaders of calibre would have done so by now.

Charles Hedges
Charles Hedges
1 month ago
Reply to  Michael Clarke

Thank you. Perhaps the Prussians have learnt subtlety which makes them dangerous.

Bret Larson
Bret Larson
1 month ago

Hard to believe they care about global warming if they sign free trade agreements with jurisdictions with less controls on co2.

This sort of decision is based on metro vs rural. Clearly the votes she is looking for are in metro jurisdictions.