The European Union is studying the request of Brazil and Argentina for aid of 12.5 billion euros

The European Union is considering allocating financial resources in the amount of at least 12.5 billion euros in the form of subsidies, loans and other financial instruments, in response to the request of both Argentina and Brazil.
The two countries jointly submitted a request to the European Union for financial assistance in the amount of 12.5 billion euros, and the submission of the request comes in the context of talks to conclude a trade agreement between the Union and the South American economic bloc “Mercosur”, which, besides Argentina, includes Brazil, Uruguay, and Paraguay.
The “infopay” news site reported that 3 diplomats from the European Union and South America said that the request has the support of the economic bloc, of which Brazil currently holds the rotating presidency.
However, a European diplomat involved in the talks clarified that the figure of 12.5 billion euros is “floating”, noting that any support that can be provided in the future “will not be close to this figure”.
Last July, Argentina and Brazil, the two largest economies in South America, criticized the EU’s “unacceptable” position on negotiations with the Mercosur bloc on a pending trade agreement, the conclusion of which was long delayed due to European environmental concerns, according to AFP.
The “Mercosur” countries, which include Argentina, Brazil, Paraguay and Uruguay, reached in 2019 a preliminary Free Trade Agreement with the 27-country European Union after difficult negotiations that lasted two decades.