Europe’s troubles

Follow Us Get the newsletter When it comes to Brexit, the focus often is on what it means for the country walking away, including the economic risks to the U.K. of exiting the European Union. But it also matters for the other side. While the EU still has 27 states (and more clamoring for entry), the loss of the U.K. is significant both in terms of the bloc's functioning and its influence. The chaos of the Brexit process is especially problematic for EU states as London and Brussels are yet to agree on their future trading arrangements, with just weeks to go in the transition period. There's still a chance the U.K. careens out of the EU single market and customs union with no trade deal. That would mean confusion for European companies supplying British businesses with components, for example. Brexit aside, EU leaders need to nurture their economies through the pandemic, with lockdowns still in place in some countries. Hungary and Poland, which have eroded democratic freedoms in recent years, have threatened to veto the EU's jointly-funded stimulus unless Brussels stops tying the money to members adhering to the rule of law. A meeting of EU leaders later this week could prove tense. On top of that, as Arne Delfs writes, the clock is ticking on Angela Merkel's leadership in Germany ahead of next year's elections. The chancellor has been at the tiller through numerous European crises over the years. She probably hoped her last months would be easier, especially with a more friendly administration taking office in the U.S. in January. Once Merkel departs, the EU will truly be in uncharted waters. — Rosalind Mathieson Unloading freshly caught fish at the Port of Ostend in Belgium on Oct. 20. Access to British fishing waters has been a longstanding stumbling block in Brexit talks. Photographer: John Thys/AFP Tell us how we're doing or what we're missing at balancepower@bloomberg.net. Global Headlines Covid shots | The U.K.'s National Health Service today launched what it says is the biggest immunization campaign in its history, the first western nation to begin its Covid-19 inoculation program. People over 80 are at the front of the line for the Pfizer and BioNTech shot, with tens of thousands expected to get vaccinated in the coming days. More than 1.7 million people have been infected in Britain, and more than 61,000 have died. Margaret Keenan, 90, becomes the first patient in the U.K. to receive the Covid-19 vaccine at University Hospital in Coventry. Photographer: Jacob King/PA Wire Unfamiliar territory | President-elect Joe Biden's pick of California Attorney General Xavier Becerra to lead the Health and Human Services department gives him a fierce defender of Democratic causes but one without hands-on experience leading a massive federal agency during an unprecedented public health crisis. Biden also plans to tap retired Army General Lloyd Austin for defense secretary, making him the first African American to lead the Pentagon. Biden will be one formal step closer to the White House after today's deadline for states to certify their representatives to the Electoral College, locking in the people who will officially vote to make him the president. More turmoil | HSBC has been dragged into Hong Kong's turbulent politics again after it was accused of freezing accounts belonging to a pro-democracy lawmaker who fled the city, and a church that raised funds for protesters. It's the latest controversy for the London-headquartered bank, and has drawn in the former British colony's leader, who defended the city's financial institutions. Hong Kong has imposed some of its tightest social distancing restrictions since the pandemic began as infections rise again. Family ties | A new political dynasty could be in the making in the world's third-largest democracy, as family members of Indonesian President Joko Widodo stand tomorrow in local elections. The president's eldest son is running for mayor in Solo city, the post that kicked off his father's political career in 2005, while his son-in-law is a mayoral candidate in Medan. An unofficial count is expected after polls close, with final results by Dec. 15. Veto powers | Australia's parliament passed a law today giving Prime Minister Scott Morrison new powers to veto or scrap agreements that state governments reach with foreign powers, a move that could stymie China's Belt and Road Initiative in Australia and further inflame trade tensions. Ties have been in free fall since April, when Morrison called for a probe into the origins of Covid-19. What to Watch Almost a week after Democratic congressional leaders climbed down from their demand for a multi-trillion dollar stimulus package, Senate Majority Leader Mitch McConnell continues to tout his own plan, endangering prospects for a compromise. Florida police seized devices from a former state employee who built the health department's Covid-19 portal before being fired due to what she says is her refusal to manipulate data. And finally ... In the slow march toward equality over who wields global economic power, 2020 has seen progress for women. Group of 20 finance chief meetings counted just four female top-level participants earlier this year. That number is set to rise in 2021 with Janet Yellen poised to become the first woman to serve as U.S. treasury secretary and Canada having appointed its first female finance minister, Chrystia Freeland. Still, Zoe Schneeweiss reports, economic leadership affecting most of humanity remains firmly in the hands of men.     Like Balance of Power? Get unlimited access to Bloomberg.com, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters.   You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022