Europe and the Surrender of its Food (and Energy) Sovereignty

Europe presents itself as the beacon of sustainability and the "green transition"; however, in practice, it is handing over its food and energy sovereignty on a silver platter. It isn’t selling it: it is giving it away in exchange for accelerated climate targets, cheap imports, and a critical dependency on China that, ultimately, finances Europe's own industrial suicide.

The Great Agricultural Giveaway: The EU-Mercosur Agreement (2026)

After more than 25 years of negotiations, on 9 January 2026, a qualified majority (21 to 5) gave the green light to the pact with Mercosur (Argentina, Brazil, Paraguay, and Uruguay). The official signing took place on 17 January in Paraguay, led by Ursula von der Leyen. Although countries like France and Ireland voted against it, their opposition was insufficient.

The treaty opens the floodgates to additional tonnes of beef, soy, and grain with near-zero tariffs. In exchange, Europe exports cars and machinery. Farmers denounce this as unfair dumping: products that do not meet the strict environmental and sanitary standards required within the EU.

A Symptom of the Crisis: The Unattainable "Liquid Gold"

One need only look at what has happened to olive oil. In Spain, where it was historically a basic, affordable, and local staple, prices have skyrocketed dramatically between 2024 and 2026. The combination of restrictive agricultural policies, poorly managed droughts, and the abandonment of the countryside has caused oil prices in Spain to become almost as expensive as in Mexico (where it has always been considered a luxury item). It is the world turned upside down: Europe punishes its own production until it becomes prohibitive for its own citizens.

The Vicious Cycle: Europe’s Money Killing Europe

To top it off, the Green Deal accelerates the installation of solar panels (target: 600 GW by 2030), yet between 95% and 98% of these come from China. After years of massive imports facilitated by artificially low prices, the model has collapsed the local industry.

China dominates thanks to state subsidies and dumping prices (reaching as low as €0.06/W in Europe). Every Chinese panel bought with European money—via taxes or public funds—indirectly finances the subsidies that enable that very dumping. Herein lies the paradox: every time a price rises in Europe or a factory closes, it is Europe’s own money that is annihilating Europe.

 * A Landmark Case: Meyer Burger. The Swiss-German manufacturer collapsed between 2025 and 2026 under Chinese pressure. After closing plants in Germany, the company filed for bankruptcy in June 2025, making hundreds of workers redundant. While factories close, the dependency on Beijing becomes total.

Although Brussels is investigating Chinese subsidies, it avoids imposing drastic tariffs for fear of slowing the energy transition. China, for its part, cancelled its export rebates in April 2026, which pushed prices in Europe up by 14.5%. However, the damage is already done: Europe is hooked and vulnerable.

Contrast: Smart Strategy vs. Self-Flagellation

While Europe installs solar panels on high-value agricultural land (competing with food production and driving up the price of staples like olive oil), powers such as China and Mexico act with greater pragmatism. They locate their solar farms in deserts (Gobi, Sonora) or arid regions, protecting their capacity to feed their people.

Europe, by contrast, sacrifices its farmers for the Mercosur deal and imports the technology that kills its own industry. The European citizen pays twice: first, through taxes to import what pollutes and subsidises dumping; and second, by paying luxury prices for basic foodstuffs produced on their own doorstep.

It is total green hypocrisy: a "transition" financed at the expense of food sovereignty, strategic autonomy, and, ultimately, the pockets of citizens who are financing their own decline.