Soldiering on

Follow Us Get the newsletter Brexiters in the U.K., nationalists in Poland and Hungary, skeptics from Athens to Amsterdam — the European Union's detractors have long warned it's at risk of shattering, but it lumbers on. The bloc's bureaucratic systems are so slow and fights so bitter as to seem to mark its impending implosion. But the reality of a union of 27 countries means grinding immensely complicated problems down into solutions. It happened again yesterday, with Budapest and Warsaw now looking set to abandon their veto of a record $2.2 billion stimulus package. Clinched just before a summit in Brussels today, where leaders also face the thorny issues of a post-divorce deal with the U.K. and climate change, the deal was classic EU. Poland and Hungary had objected to the cash being tied to upholding the EU's democratic standards. But they faced up to the reality they'd be cut out of tens of billions of euros in funding. So the EU got its way to police wayward members and penalize corrupt and authoritarian behavior, while Hungary and Poland won a concession on implementation they can sell at home as a victory. They'll continue reaping the advantages of a single market of almost half a billion people — a benefit the U.K. may soon rue it gave up. The EU faces a host of challenges. But it has shown repeatedly that doubters of the European project may be wiser to pause before forecasting collapse. — Michael Winfrey EU flags outside the headquarters of the European Commission on Dec. 4. Photographer: Geert Vanden Wijngaert/Bloomberg Tell us how we're doing or what we're missing at balancepower@bloomberg.net. Global Headlines Brexit Sunday | U.K. Prime Minister Boris Johnson and European Commission President Ursula von der Leyen agreed that talks on a post-Brexit trade deal should continue until Sunday, when a firm decision will be made on the future of the negotiations. Over dinner in Brussels, they failed to bridge major differences as the Dec. 31 deadline nears. "We understand each other's positions," von der Leyen tweeted later. "They remain far apart." Black cloud | President-elect Joe Biden is set to take office next month with his son under federal criminal investigation, creating immediate practical, political and ethical challenges for his administration. The probe of Hunter Biden's foreign business dealings has been underway since 2018, and involves the Justice Department and the Internal Revenue Service, Chris Strohm and Laura Davison report. States versus states | Texas is trying to take the Supreme Court where it's never gone before with a lawsuit that seeks to secure a second term for President Donald Trump by overturning the election results in four other states carried by Biden. Trump's campaign asked to join the lawsuit, as 17 other states filed in support of a case that has been called a publicity stunt. Existential threat | Facebook stands to lose much of its long-term value if the U.S. Federal Trade Commission's antitrust lawsuit forces it to sell Instagram and WhatsApp, Kurt Wagner and Sarah Frier report. The case alleges that Mark Zuckerberg's social media empire bought the two platforms to "squelch" competitive threats. Zuckerberg during a House Financial Services Committee hearing in Washington on Oct. 23. Photographer: Andrew Harrer/Bloomberg Tit-for-tat | China said it will sanction more U.S. officials and place new travel curbs on diplomats in retaliation for measures taken by the Trump administration over Hong Kong. The Foreign Ministry didn't provide names but said they included people in the executive and legislative branches and their immediate families, plus non-government organizations. China will start collecting extra duties on Australian wine, a blow to an industry hit by tariffs last month. Read how China's "Wolf Warrior" diplomats are sparring with foreign leaders and media like cinematic action heroes. What to Watch Deaths in the U.S. from Covid-19 surpassed 3,000 a day for the first time, according to Johns Hopkins University data, ahead of a public meeting today that could pave the way to FDA approval of a vaccine. Senate Majority Leader Mitch McConnell and House Speaker Nancy Pelosi have given no sign they'll directly engage over competing pandemic relief proposals — a step many lawmakers say will be necessary to complete a deal this month. Trump's top North Korea envoy urged Kim Jong Un to resume talks, expressing disappointment that negotiations since the two leaders first met haven't achieved more. Ghanaian President Nana Akufo-Addo vowed to work to reverse the impact of the pandemic on the economy of Africa's biggest gold producer after he won re-election. And finally … China's rich kids have become synonymous with obscene displays of wealth over the years. But with Beijing targeting billionaires, the children of the ultra-wealthy have started to understand it's better not to attract attention, even if they do still hoard luxury goods and order $500 bottles of champagne. With the pandemic intensifying inequality, President Xi Jinping is stepping up efforts to ensure wealth is more evenly distributed. "Everyone is playing the low-profile card now," says one young businessman. People at the One Third night club in Beijing on Oct. 24. Photographer: Yan Cong/Bloomberg     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