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Brussels Edition: Living by your own rules

Brussels Edition
Bloomberg

Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union.

European Council President Charles Michel will give his third keynote speech on "strategic autonomy" in as many weeks today, a concept that will be identified as "key objective" of the EU when its leaders meet on Thursday. Michel's interventions highlight a concerted effort to clarify what these two Greek-derived words mean, and why they should become "the goal of our generation." Judging by the summit's draft communique, they partly describe the ambition of relative self-sufficiency in certain industries, as we explained here. In literal terms, autonomy means living by your own rules, and there's growing fear that this can't happen if the EU remains a digital laggard. "We are hopelessly behind,'' UniCredit's chief economist, Erik Nielsen, said in a note, warning that the EU is "at the mercy of U.S. and Chinese companies."

Nikos Chrysoloras

What's Happening

Now or Never | A week of crunch Brexit talks gets underway in Brussels today when EU Commission Vice President Maros Sefcovic and Britain's Cabinet Office Minister Michael Gove discuss the U.K.'s implementation of the Irish border agreement. As the two sides work on choreography for a final future-relationship deal in time for October 15's EU summit, the rest of this week will be devoted to issues such as access to Britain's fishing waters and how the U.K. can allay concerns on state aid.

Customs Checks | You won't find a big chapter on Brexit when the Commission presents its action plan to strengthen the EU's Customs Union today, but the U.K.'s departure has been taken into consideration. The aim is to cut red tape, adapt to the new realities of e-commerce and protect revenue from fraud, not least because customs duties are one of the EU's "own resources" that will be used to repay the debt of the gigantic recovery fund.

Climate Risks | NATO Secretary General Jens Stoltenberg will today debate the security implications of climate change. It's the latest attempt by the alliance to remain relevant in a world where most Europeans are more worried about droughts, wildfires, and extreme weather than an all-out war with Russia.

Lagarde's Tightrope | Ahead of Christine Lagarde's hearing at the European Parliament today, battle lines are being drawn at the heart of the European Central Bank over whether to add monetary support soon, or wait for stronger evidence that it's needed. Piotr Skolimowski reports on an especially tricky phase in the ECB's crisis response.

Huawei Wrangle | U.S. President Donald Trump's administration is maintaining pressure on Chancellor Angela Merkel to exclude Huawei from Germany's fifth-generation wireless network. However, at meetings in Berlin last week, a delegation led by U.S. Undersecretary of State Keith Krach received no guarantees that the Chinese supplier would be shut out.

In Case You Missed It

Tory Rebellion | A rebellion within Boris Johnson's Conservative Party over the U.K. government's emergency Covid-19 powers has gathered momentum. With the U.K. heading into a winter of discontent, and thousands protesting against pandemic restrictions, the Tories trail the Labour Party in an opinion poll for the first time in months

Nagorno-Karabakh | Fierce fighting involving tanks, aircraft and artillery broke out between Azerbaijan and Armenian forces Sunday in the latest flare-up of a decades-long conflict over disputed land. The EU, as it does in such cases, expressed its concern and urged a resumption of dialogue.

Shipping Crisis | Norway's Prime Minister Erna Solberg warned of a humanitarian and trade crisis if a solution isn't found for the roughly 800,000 seafarers stranded around the globe. If no effort is made to free these forgotten victims of the pandemic, "then shipping will eventually stop," Solberg said.

Swiss Vote | The Swiss voted against a "worse than Brexit" immigration curb that would have put the country on a collision course with Brussels by limiting the number of newcomers from EU countries. The government and business groups campaigned against the proposal, saying it would have forced Switzerland to renege on an economically vital agreement with the bloc.

Lebanon Crisis | President Emmanuel Macron said France won't abandon the Lebanese people after what he branded a "collective betrayal" by politicians in failing to form a new government to carry out reforms. "I'm ashamed of your leaders," Macron said as Lebanon's prime minister-designate, Mustafa Adib, stepped down on Saturday after failing to form an administration by a September 15 deadline set by Paris.

Chart of the Day

The race to clinch the European Central Bank's final vacancy on its Executive Board for half a decade has just two contenders, both of them male. The lack of a female candidate may prove contentious in the European Parliament, which has a role in ratifying the decision.

Today's Agenda

All times CET.

  • 10 a.m. Video conference of EU transport ministers to discuss drastic reduction of transport demand and services across the EU territory with economic consequences for the sector
  • 11 a.m. EU economy chief Paolo Gentiloni presents Customs Union Action Plan
  • 2:15 p.m. EU Parliament environment committee holds hearing with Frans Timmermans, Executive Vice-President of the Commission, on the proposal for stricter 2030 climate goals
  • 3:30 p.m. Charles Michel, President of the European Council, to speak about Europe's strategic autonomy at Bruegel event
  • 3:45 p.m. European Parliament hearing with ECB President Christine Lagarde
  • 4 p.m. North Atlantic Treaty Organization Secretary General Jens Stoltenberg speaks in a webstreamed event to students about the security implications of climate change
  • EU tech chief Margrethe Vestager in Copenhagen, participates in the European Cybersecurity Forum CYBERSEC CEE 2020
  • EU Commission President von der Leyen delivers a press statement with António Costa, Prime Minister of Portugal
  • Last scheduled round of Brexit negotiations begins in Brussels

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