Good morning! Today, we discuss the potential impact of the EU Parliament election on the bloc’s deal with Mercosur. Why a rout on the Brazilian real? And the latest inflation figures.
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EU Parliament election: a nail in the Mercosur deal’s coffin?
If the free-trade deal between the European Union and Mercosur (the trade alliance between Brazil, Argentina, Paraguay, and Uruguay) seemed elusive until last week, the results of the EU Parliament election may very well have delivered a death blow to any possibility of the agreement being ratified.
- Even though the center held (only just), the far-right made serious gains in countries such as France, Germany, and Austria.
EU earthquake. The results led French President Emmanuel Macron to call a snap legislative vote for the end of the month, and Marine Le Pen’s far-right National Rally party is leading early polls.
👉 Why it matters. France has been a roadblock to the deal’s ratification, as groups from across the political spectrum try not to disrupt the country’s strong agricultural lobby....