Trade issues weaken France's resistance to EU-Mercosur deal

Trade issues weaken France's resistance to EU-Mercosur deal | INFBusiness.com

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In today's news from The Capitals :

PARIS

US President Donald Trump's aggressive trade policies have made the EU-Mercosur trade deal look a little brighter to senior officials in France, long the deal's most vocal opponent. Read more.

French opposition threatens censure over €40bn budget cuts France's 2026 budget plans are already causing political upheaval. On Monday, both the far left and far right warned they could vote to censure the government if it continues to cut an additional €40bn to meet its deficit target of 4.6% of GDP.

“If the plan is to ask the French to tighten their belts again, without allowing the state to save money itself – on immigration, on public spending – then we will work to condemn it,” said Sebastien Chenu, vice president of the far-right National Rally.

The left, too. La France Insoumise (LFI) coordinator Manuel Bompard echoed this sentiment, saying his party was “ready to table a new vote of no confidence in the coming days.”

However, he made this dependent on the support of other left groups, saying he was unsure whether the rest of the left would support him.

Finance Minister Eric Lombard insists the savings will come mostly from spending cuts.

(Charles Shumsky)

WESTERN EUROPE

BERLIN

Allies hail Germany's Taurus announcement as Russia calls Merz 'Nazi' Allies have responded with praise after Germany's incoming chancellor Friedrich Merz said he would give the green light to a controversial sale of German long-range missiles to Ukraine. Read more.

Germany's Social Democrats will begin voting on a coalition agreement. A majority of the party's 358,000 members must approve the deal struck with Chancellor-designate Friedrich Merz and his Christian Democrats. Voting begins on Tuesday and runs until April 29, with the results due the following day.

Lars Klingbeil, chairman of the Social Democrats, warned that if party members rejected the deal, there would be new elections or a Christian Democratic minority government. Part of the party's youth wing criticized the final agreement for failing to address economic injustice and for its harsh immigration policy.

(Nick Alipour | Euractiv.de)

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BRUSSELS

Belgium's pharmaceutical hub remains resilient despite rising investment in the US. While Eli Lilly and Johnson & Johnson are pouring billions into pharmaceutical manufacturing in the US, US companies are also continuing to invest in Belgium to serve the European market for advanced therapeutic medicinal products (ATMPs). Read more.

NORTHERN COUNTRIES AND THE BALTIC

STOCKHOLM

Swedish left urges new opposition ally leader to clarify position. The Centre Party's nomination of Anna-Karin Hatt as the new leader could change the dynamics of the Swedish opposition, but only if she takes a clear political stance, warned opposition Left Party leader Nushi Dadgostar. Read more.

SOUTH OF EUROPE

LISBON

US suspends Portuguese wine orders, cuts farm orders, trade associations say. Paulo Amorim, president of the Portuguese Association of Wine and Spirits Traders and Exporters (ANCEVE), said on Monday that “the US has suspended orders for Portuguese wines and wines from Europe.”

“The uncertainty is terrible, and because of this uncertainty, the distribution network in the United States has stopped ordering Portuguese wines and wines from Europe, so at the moment we are faced with a terrible problem and cannot sell,” the association’s president said.

Paulo Amorim also fears that if tariffs are introduced, “most of the losses will be borne by wine producers,” which he considers “a gigantic injustice.”

He spoke to reporters after meeting with the Minister of Economy and the Minister of Agriculture and Fisheries in Lisbon, as well as 16 other industry associations, in the context of the tariffs announced by the US president.

The ANCEVE president also stated that Portuguese wine needs a “new Porter plan” that “will help promote Portuguese wine more dynamically”, given that “wine carries the name of Portugal everywhere”.

In the same vein, the head of the Portuguese National Agricultural Confederation (CNA), Vitor Rodrigues, said today that there are already “order withdrawals, especially from the United States,” following the tariffs announced by Donald Trump.

(Afonso Jesus Rodriguez | Lusa.pt)

EAST EUROPE

BUDAPEST

Hungary to oppose EU military training mission in Ukraine, minister says . Hungary will not agree to any part of the EU training mission to send military advisers to Ukraine because it risks escalating the war, Hungarian Foreign Minister Peter Szijjarto said on Monday. Read more.

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WARSAW

Poland faces crisis in EU poultry exports. The European Commission's reported decision to restrict poultry exports from Poland over bird flu fears will be a disaster for Warsaw, deputy speaker of parliament Krzysztof Bosak said in a radio interview on Monday.

Last week, Money.pl reported that the Commission may impose trade restrictions on Polish poultry following outbreaks of bird flu. Since the beginning of the year, bird flu has affected 6.5 million birds. According to media reports, the Commission is drawing up rules to expand the buffer zones, although Poland opposes their extension to entire regions (voivodeships).

The Commission confirmed the reports on Friday. Spokeswoman Ewa Hrnicová said parts of northern, central and western Poland would face “extraordinary measures” to reduce the risk of bird flu spreading. The EU executive is expected to take a final decision next week.

“The restrictions on poultry farming proposed by the European Commission are disproportionate to the real situation,” warned the signatories of the Agricultural Agreement of Poultry Associations and Organisations, noting that these measures could lead to losses of billions of euros.

Speaking to Radio Zet, far-right politician Bosak (Confederation, ESN/PfE) criticized the Commission's statement, saying it would benefit large international market players at the expense of Poland. In his view, the poultry issue is further evidence that the EU has acquired too many powers at the expense of member states. “Polish politicians cannot admit to the Polish public how little depends on them,” Bosak said.

(Aleksandra Krzysztoszek | Euractiv.pl)

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PRAGUE

Prague restricts e-scooters, closes public parking . Prague plans to exclude shared e-scooters from its new public transport regulation, effectively banning their parking in the city.

Shared bicycles and e-bikes will be allowed to park in designated areas under a new system based on agreements between micromobility operators and the Czech Capital Road Authority (TSK).

Prague Deputy Mayor Zdeněk Hřib noted that while operators could theoretically negotiate with landowners for private parking spaces, “the city does not expect this to happen.”

The new rules are a response to long-standing complaints from city centre residents about the reckless use of scooters, especially by tourists. Similar bans have already been introduced in Paris and Madrid.

(Aneta Zahova | Euractiv.cz)

NEWS FROM THE BALKANS

SOFIA

Eastern Europe has been hit hard by Russian disinformation, a report says. Russia’s vast disinformation network has focused its efforts primarily on the former Soviet republics, the Balkans, and Central Europe, according to a new report from the American University in Bulgaria’s Center for Information, Democracy, and Citizenship and technology company Sensika Technologies.

The Pravda ecosystem . The analysis examined 643,601 online articles in 45 countries over a three-month period from December 2024 to March 2025. At the center of the campaign is a cluster of more than 190 websites that the report’s authors call the “Pravda ecosystem” — a disinformation infrastructure that has been actively spreading Russian propaganda since Moscow launched a full-scale invasion of Ukraine in 2022.

Moldova was the network's top target, receiving 56 times more disinformation than Western European countries. Other countries heavily targeted included Georgia, Slovakia and Bulgaria.

The report links the campaign to broader geopolitical dynamics, noting that it coincides with the Trump administration’s decision to cut funding to Radio Free Europe/Radio Liberty, which the report describes as “a key voice countering Russian propaganda in the region.” “This is a strategic mistake that leaves a vacuum that is now being filled by the Pravda ecosystem,” the analysis says.

In Bulgaria, some of Russia's most visible disinformation campaigns have focused on the European Union, NATO, the euro adoption process, the war in Ukraine, migration and COVID-19.

(Krassen Nikolov | Euractiv.bg)

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BUCHAREST | KISHINEV

EBRD launches tender for new investor in strategic Moldova port . The European Bank for Reconstruction and Development (EBRD) announced on Monday the launch of an international tender aimed at attracting a new investor for Moldova's main seaport of Giurgiulesti. Romania has expressed interest in the strategically located port on the Danube. Read more.

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BUCHAREST

US Congressional Delegation Visits Bucharest to Discuss Romanian Elections . A bipartisan US congressional delegation of four Republicans and four Democrats arrived in Romania on Monday to meet with Bucharest officials. The talks will focus on the presidential election last November, the upcoming elections in May, and Washington's recent suspension of Romania from the visa waiver program. Read more.

AGENDAS:

  • EU : Commission President Ursula von der Leyen receives Ukrainian Deputy Prime Minister for Innovation, Education, Science and Technology Mykhailo Fedorov;
  • High Representative for Foreign Affairs and Security Policy Kaja Kallas meets with Tanzanian Minister of Foreign Affairs and East African Cooperation Mahmood Thabit Kombo, US Representative Keith Self;
  • Commission Vice-President Teresa Ribera chairs the European Industrial Round Table;
  • Fisheries and Oceans Commissioner Costas Kadis meets with the President of the European Shipowners' Association (ECSA);
  • Commissioner for Energy and Housing Dan Jorgensen receives representatives of the European Mortgage Federation and the European Covered Bond Council;
  • Commissioner for Democracy, Justice, Rule of Law and Consumer Protection Michael meets with representatives of the EU Chief Justices Network and the President of the Supreme Court of Sweden, Anders Eka;
  • Commissioner for Defence and Space Andrius Kubilius receives the Chairman of the NATO Military Committee, Admiral Giuseppe Cavo Dragone;
  • Equality Commissioner Hajja Lahbib attends the Sudan 2025 Ministerial Conference in London, UK;
  • Commissioner for Intergenerational Justice, Youth, Culture and Sport Glenn Micallef meets with the Society of Audiovisual Authors.

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[Edited by Vas Panagiotopoulos, Charles Shumsky, Daniel Ek, Sofia Mandilar]

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