French Farmers Protest EU Mercosur Trade Deal in Paris
French farmers protested in Paris on January 7, 2026, driving around 100 tractors into the city to oppose the EU's planned Mercosur trade deal with South American countries, citing concerns over its impact on their livelihoods. The French Interior Ministry reported that approximately 20 tractors reached the city center, with some parking near the Arc de Triomphe and others demonstrating in front of the Eiffel Tower. President Emmanuel Macron announced France's intention to vote against the deal, emphasizing its limited economic benefits for the country and the EU.
EU Council Rejects Initiative on Mercosur Trade Deal
The Council of the European Union rejected an initiative to prevent the provisional Mercosur trade deal from taking effect before receiving Parliament's consent. Ireland confirmed its opposition to the deal, joining France, Poland, and Austria among the dissenting EU countries, while Italy appears poised to support it. The deal, which aims to create the world's largest free-trade area, is now set to proceed to a written procedure to determine if it can secure a majority among EU nations.
Macron Calls for European Power Strategy in Annual Address
In his annual address to ambassadors, French President Emmanuel Macron called for a European "power strategy" aimed at enhancing defense and economic protection to prevent Europe from becoming a vassal state. He emphasized the need for stronger military capabilities and the protection of European digital regulations in light of U.S. pressures, while also advocating for significant investments in future technologies to bolster competitiveness. Macron's remarks come amid ongoing discussions on multilateralism and trade imbalances, particularly in the context of the G7 presidency.
Germany's Factory Orders Rise 5.6% Amid Defense Demand
Germany's factory orders rose by 5.6% month-on-month in November, marking the third consecutive monthly increase, driven by heightened demand for defense equipment amid Europe's rearmament efforts following Russia's invasion of Ukraine. This surge defied analysts' expectations of a 1.3% decline, with domestic orders increasing by 6.5% and foreign orders rising nearly 5%, particularly from the euro area, which saw an increase of over 8%. Despite this positive trend, the economy ministry cautioned that ongoing trade and geopolitical uncertainties may continue to suppress orders from some overseas markets.
Czech and Slovak Leaders Propose Five-Year ETS Freeze
Czech Prime Minister Andrej Babiš and Slovak Prime Minister Robert Fico have called for a five-year freeze on the EU's emissions trading system (ETS1), citing significant economic damage and a divergence in emissions allowance prices from projections. During a joint press conference in Bratislava, Babiš criticized the EU's Green Deal policies, while Fico warned that high energy prices could lead to industrial collapse. Both leaders expressed a desire to address these issues collaboratively, including through the Austerlitz format with Austria.
