RIGHT SHIFT IN EUROPE
The member states of the European Union are all together the biggest foreign investor in Brazil and South America. Last weekend, over 400 million Europeans went to the polls, and in a decisive shift, the Right secured control of the European Parliament for the next five years. This outcome signifies a significant change in European politics, marking a change in power compared to the 2019 elections, where the center-right and center-left nearly equally divided the parliament.
Conservative parties now hold a majority presence in the European Parliament. Among them, the CDU in Germany (Center-Right), FPO in Austria (Right), and RN in France (Right) stand out.
The European Union plays a crucial role in setting macroeconomic guidelines and decisions, including economic targets, environmental protection rules, technology regulations, and notably, trade agreements with other nations. One of the most important agreements currently on the table is the trade agreement between the European Union and Mercosul. This agreement has the potential to create one of the largest trade blocs in the world, facilitating the exchange of goods and services, promoting economic growth, and generating jobs in both regions.
However, with the Right taking control of the European Parliament, there are uncertainties about the future of this agreement. Many right-wing parties adopt a more protectionist stance and may choose to review or even renegotiate the terms of the agreement to protect their national markets. This possible shift in approach could delay the implementation of the agreement or significantly alter its conditions, impacting the economies of the involved countries. The success of this agreement is vital not only to strengthen trade relations between Europe and Latin America but also to demonstrate the European Union's ability to engage in strategic trade partnerships in an increasingly competitive global landscape.
Beyond the economic impact, the Right's victory in the European Parliament reflects a broader change in the politics of several member countries. In France, for example, after his party's defeat in the elections, the leader decided to dissolve the National Assembly and call for new elections, scheduled for the 30th of this month. This scenario of political instability can influence important decisions and affect how the European Union positions itself on global issues in the coming years.
In summary, the recent victory of the Right in the European Parliament represents a significant change in the European political landscape. As a German doing business in Brazil, I will closely monitor this issue and share any developments on this platform. We will remain vigilant!
#politics #EUelections #economy #Mercosul
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