| Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. The EU's decision to impose export controls as part of its response to a sluggish vaccine rollout drew almost unanimous condemnation and dented the bloc's reputation as a champion of open markets. Will it work at least? Commission President Ursula von der Leyen took to Twitter late yesterday to trumpet the arrival of 9 million extra AstraZeneca shots — still way short of what of the EU had been promised for this quarter. Today it's Chancellor Angela Merkel's turn to try and reboot the region's stumbling vaccine efforts. She'll hold a video call with German state leaders, pharma executives and European Commission officials, though her health minister has said he doesn't expect concrete results. Criticized at home for a slow vaccine rollout and her decision to delegate responsibility to the EU looking misguided, Merkel risks tainting her legacy as Europe's crisis fighter with just under eight months to go until Germany chooses a new leader. — Viktoria Dendrinou What's HappeningFortress Europe | EU envoys in Brussels will seek agreement today on stricter curbs on travel from outside the bloc. A group of countries led by France wants to go even further than Commission recommendations amid fears that mutations will lead to another wave of the pandemic. Italian Tussle | Clarity on Italy's new coalition could come as soon as tomorrow, as Matteo Renzi pushes for a pact with the Democratic Party and the Five Star Movement that may include replacing Italy's finance minister. The question is whether Prime Minister Giuseppe Conte will cede power over the country's finances to the former premier, who wants a greater say over spending EU recovery funds. New Friends | Just a month after finally leaving the EU, the U.K. will today formally request to join an 11-member transpacific trading bloc, with negotiations expected to start later this year. By building on post-Brexit trade deals, the move could facilitate business travel, eliminate tariffs on British exports and simplify rules of origin. Virus Update | Hungarians protested in central Budapest yesterday, demanding the government reopen restaurants and other venues. Portugal's TAP airline said it will suspend more operations than previously planned next month. And France is delaying a decision on a third lockdown while its top health authority will issue its opinion on AstraZeneca's vaccine tomorrow. Here's the latest. In Case You Missed ItOne Month On | Truckloads of British pig meat waiting to be shipped to Germany and stuffed into bratwursts perished at U.K. ports this month while stuck in line for customs clearance. It's a story that barely made a ripple in the U.K., as the country's first month outside the EU was overshadowed by the pandemic. But Brexit has already seeped into all parts of the economy. Here's how. Location Limbo | Despite years of planning for Brexit, global banks and their employers face continuing uncertainty about possible staff moves, as a threadbare trade deal for financial services and the pandemic keep their world in flux. Regulators are cranking up pressure on banks to execute relocation plans that were set out before Britain left the bloc. Stronger Defenses | The EU said it's taking steps to bolster its bio-defense preparedness, citing the risk posed by Covid variants. A call between von der Leyen and CEOs of pharmaceutical companies focused on what's needed for the rapid development, manufacturing and regulatory approval of vaccines for new mutations. The bottom line from scientists: This is a fight that could go for a long time. Russia Protests | More than 4,000 people were arrested in Russian cities as a government crackdown and travel curbs failed to stop supporters of jailed opposition leader Alexey Navalny from engaging in the second wave of national protests in a week. The demonstrations came days before EU foreign-policy chief Josep Borrell heads to Moscow to express objections to the Navalny's jailing as the bloc weighs using a new sanctions tool. Crisis Funding | Germany's economy minister says tax increases are the wrong way to handle the costs of the coronavirus crisis and proposed selling state holdings instead. The comments by Peter Altmaier come as the country's economy stagnated at the end of last year, probably avoiding a double-dip recession. Chart of the Day Three of the euro area's four largest economies rounded off the pandemic year suggesting the region can avoid a deeper recession, while still facing headwinds from extended lockdowns. While the data signal businesses have found ways to cope with restrictions, the outlook remains gloomy. The spread of more infectious virus strains and a slow and chaotic vaccination rollout raise the risk of longer curbs and a greater need for stimulus. Today's AgendaAll times CET. - 11 a.m. Eurostat to publish December unemployment reading
- 2 p.m. Angela Merkel hosts German vaccine summit with regional leaders, commission officials and pharmaceutical executives
- 5:45 p.m. European Parliament holds exchange of views with João Leão, ECOFIN Chair and Minister of State for Finance of Portugal
- EU Parliament Budget Committee to discuss financing of vaccines with EU Commission Director-General for Health and Food Safety Sandra Gallina
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