Published by Global Banking & Finance Review®
Posted on December 29, 2025
1 min readLast updated: January 20, 2026
Add as preferred source on GoogleAustria's central bank chief urges reconsideration of the EU-Mercosur trade deal opposition, citing export benefits and updated safeguards.
Dec 29 (Reuters) - Austria should rethink its opposition to a trade deal between the EU and South America's Mercosur bloc, the country's central bank chief Martin Kocher was quoted as saying on Monday.
"As a small, export-oriented country, we simply cannot afford to forgo such an opportunity," Kocher told Austrian news agency APA in an interview.
Austrian lawmakers in 2019 passed a resolution setting the country against a Mercosur trade deal, since when the government has repeatedly said it must uphold that position.
The EU and the bloc of Argentina, Brazil, Paraguay and Uruguay reached agreement last December to create the EU's largest ever trade accord, some 25 years after negotiations were launched. However, the bloc is struggling to win support from Italy and deal critics France, Poland and Hungary.
Approval of the accord requires a qualified majority of 15 EU members representing 65% of the EU population.
Kocher said plenty had changed since Austrian lawmakers voted to oppose a deal six years ago, and that the present agreement had significant safeguards for farmers.
(Writing by Dave Graham, editing by Kirsti Knolle)
Mercosur is a South American trade bloc comprising Argentina, Brazil, Paraguay, and Uruguay, aimed at promoting free trade and economic integration among its member countries.
A central bank is a national institution that manages a country's currency, money supply, and interest rates, often overseeing the banking system and implementing monetary policy.
Trade safeguards are measures implemented to protect domestic industries from sudden surges in imports that could harm local businesses, often involving tariffs or quotas.
A qualified majority in the EU is a voting requirement where a proposal must receive support from a specified number of member states and a percentage of the EU population to be approved.
Explore more articles in the Headlines category
