05/09/2025
EU Insight 5 September 2025
Brussels, 5 September 2025
MERCOSUR AND MEXICO TRADE AGREEMENTS FINALLY PUT ON THE TABLE
After 25 years of on and off negotiations, the Commission presented the text for the EU-Mercosur Partnership Agreement, which would become the EU’s largest free trade agreement. Covering 780 million people across both regions, the deal intends to boost trade and investment, create jobs and strengthen supply chains. In order to work around the strong political resistance showed by some Member States, namely France, Italy and Poland, the Commission included some internal workaround into its proposal. In addition, the EU executive body also released the text of its modernised agreement with Mexico, aiming to strengthen its ties with the country. Both agreements will now be subject to Member States’ ratification while interim trade agreements will be established for areas under EU exclusive competence after approval by the Parliament and the Council.
COMMISSION FINALISES 2028-2034 EU BUDGET PROPOSAL WITH SECOND PACKAGE
This week, the Commission presented its second package of proposals for the 2028-2034 long-term EU budget, complementing its July propositions. The latest proposals notably cover the Single Market and Customs Programme, the Justice Programme, and the Pericles V Programme, which aims to protect the euro against counterfeiting. The package also includes three programmes relating to the nuclear sector, focusing on research, training, safety cooperation, and decommissioning nuclear plants in Lithuania. With this second package, the Commission completes its proposal for the next Multiannual Financial Framework, set at nearly €2 trillion. The draft budget will now move to the Council for negotiations, which will require unanimity among Member States, as well as consent from the European Parliament.
VON DER LEYEN CONCLUDES WHIRLWIND TOUR TO FRONTLINE MEMBER STATES
Starting last Friday, Commission President Ursula von der Leyen undertook a tour to countries sharing borders with Russia or Belarus, namely Estonia, Finland, Latvia, Lithuania and Poland, as well as Bulgaria and Romania. The move, presented as a signal of solidarity and reassurance, follows recent Russian strikes on Kyiv, notably affecting the EU delegation. During the 4 days tour, von der Leyen met with heads of States and governments of the seven Member States to reiterate the Commission’s commitment to the security of so-called frontline countries. They discussed border security, scaling up defence industry capacities, and EU-NATO cooperation among other topics.
MEMBER STATES SECURE COMMON POSITION TO SIMPLIFY THE CAP
After months of debates, Member States reached a consensus on simplifying provisions under the Common Agricultural Policy (CAP). Presented in May 2025, the Omnibus III package tables amendments to the so-called strategic plan regulation and ‘horizontal’ regulation, two legislative pieces establishing ground rules for CAP. Member States agreed on easing administrative burdens, increase payments to small farmers and reduce on-the-spot checks. However, the Council’s position departs from the Commission proposal on several topics, including flexibility for Member State to decide at national level on certain environmental standards, improve the possibility for farmers to use risk management tools and increase percentage rates for advanced direct payments. Once the Parliament reaches its own position, negotiations for a political agreement will kick-off.
DANISH PRESIDENCY PRESENTS ITS PRIORITIES IN FRONT OF THE PARLIAMENT
Over the summer, the Danish Presidency made a round of presentations to the Parliament’s committees, outlining their priorities for the upcoming months. Danish ministers took turns appearing before MEPs to present their agendas on all sectors, ranging from foreign affairs and defence to agriculture and justice. Under the motto ‘A strong Europe in a changing world’, Danish representatives reiterated their commitment to advance the work on competitiveness, strategic autonomy and simplification. Other focal areas included bolstering EU defence capabilities and strategic autonomy, fast-tracking accession talks with candidate countries, as well as progressing on environmental legislation.
COMING UP NEXT WEEK
· 7-9 September: Informal meeting of Agriculture Ministers.
· 8-11 September: Parliament Plenary session. On the agenda: State of the Union, Draghi Report, RRF, EU-US trade deal.
· 9 September: College of Commissioners. On the agenda: 2025 Strategic Foresight Report.
· 11-12 September: Informal meeting of Education Ministers.
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