European Commission President Ursula von der Leyen has called on the European Union to reduce its economic overdependence and strengthen its global competitiveness through a wider network of free trade agreements. Speaking in Brussels ahead of the European Council summit, she emphasized the strategic importance of finalizing the proposed trade deal with South America’s Mercosur bloc, describing it as a gateway to a market of 700 million consumers.

However, the Mercosur agreement has sharply divided EU member states. France and Italy, led by Emmanuel Macron and Giorgia Meloni, oppose the deal over concerns about environmental standards, agricultural safeguards, and regulatory clarity. Germany and Spain, in contrast, argue the pact would boost exports and diversify trade ties at a time of weak growth. Farmers’ unions across Europe have also voiced strong resistance, fearing cheap imports could undermine domestic producers.

Thousands of farmers were expected to protest in Brussels as leaders met, underscoring the political sensitivity surrounding the deal. The outcome of the summit may determine whether the EU can balance trade expansion with internal protectionist pressures.