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Brussels Edition: Pulling the plug

May 27, 2021

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

Switzerland risks progressively losing access to the market of its biggest trading partner following a decision to ditch a comprehensive partnership accord with the EU that was to replace a patchwork of sectoral deals. While the Swiss side wants to "keep talking," it's doubtful the EU feels the same way after years of negotiations were thrown in the dustbin. The ramifications of the decision may not become immediately obvious, but forgoing the chance of improved access to the bloc's single market eventually is going to hurt. If in doubt, ask British businesses.

 —Nikos Chrysoloras and Catherine Bosley

What's Happening

Gymnich Meeting | EU foreign ministers gather in Lisbon for an informal in-person meeting today. While the main topic on the agenda is EU-Africa relations, expect the first exchanges to focus on Belarus, following the bloc's decision to hit it with sweeping sanctions. We're told the more stringent measures could target potash —  the country's major export and its only abundant mineral resource.

EU-Japan Summit | European Commission President Ursula von der Leyen and European Council President Charles Michel are holding their first summit with Japan's Prime Minister Yoshihide Suga. There may be a certain awkwardness in the (virtual) room. Leaks of massive EU vaccine exports to Japan, confirmed by the Commission, triggered a backlash against the government in Tokyo, where a snail's paced rollout and flare up in infections has cast doubt over the Olympics. 

Post-Brexit HQ | The European Central Bank is stepping up scrutiny of global investment banks' risk management within the region to ensure they're not relying on London units even after Brexit. The ECB and national regulators are looking at where banks have key staff and book trades in order to ensure that risks related to EU clients are accounted for in the bloc and don't slip past their oversight. 

Tax Talks | Discussions on a global agreement on corporate tax rates are entering the home stretch and a deal could be reached within weeks. That's according to the French and German finance chiefs, who spoke ahead of tomorrow's G-7 finance ministers' meeting, where the world's wealthiest nations hope to close in on an deal that could include both a minimum corporate tax rate and encompass digital giants.

In Case You Missed It

Shell Shock | Shell was ordered by a Dutch court to slash its emissions harder and faster than planned, in a blow to the oil giant that could have far-reaching consequences for the global fossil fuel industry. While only legally binding in the Netherlands, the ruling may be scrutinized in other countries amid a new era of litigation related to climate change.

Travel Blues | France unveiled extra restrictions for passengers coming from the U.K. to fend off the coronavirus variant first identified in India. Under the new rules, travelers must show a negative Covid test and commit to self-isolate for a week, even if they've been vaccinated.

Comrade Manu | French President Emmanuel Macron has begun working to rally the left to his side as he gears up for a tough fight to keep his job in April 2022. The latest moves are an acknowledgment that his tack to the right has alienated the progressives he needs to rally round him to beat Marine Le Pen, the far-right leader likely to be his main rival. 

… And Comrade Xi | First came billions of dollars of investment, then millions of doses of vaccines. Now there's a campaign for Serbia to thank China in a way that harks back to a bygone era: by building a statue to "Comrade Xi." While the government hasn't said if it backs the idea, there's little doubt that Serbia has gravitated more toward the east than west during the coronavirus pandemic, Misha Savic reports from Belgrade.

Court Fight | The EU attacked AstraZeneca's vaccine supply "failure" and demanded an urgent order for millions more doses or pay a hefty fine for each dose which has been delayed. Aoife White has the latest from the court fight.

Chart of the Day

Annika Saarikko is Finland's new finance minister — the third time the Nordic nation has handed the keys to the country's coffers to a woman. In the EU, however, Saarikko is still in a minority: Only six of the 27 members have a female finance chief and among euro countries, only four of the 19 are women.

Today's Agenda

All times CET.

  • 9 a.m. EU foreign ministers meet in Portugal
  • 9:40 a.m. EU ministers for internal market and industry meet in Brussels
  • 11 a.m. Financial Stability Commissioner Mairead McGuinness speaks at event on corporate reporting in the EU after Wirecard
  • 11:15 a.m. Michel and von der Leyen press conference following EU-Japan Summit via video conference
  • EU agriculture ministers continue meeting in Brussels to discuss reform of bloc's farm subsidies policy
  • ECB board member Isabel Schnabel, German Finance Minister Olaf Scholz and EU Trade Commissioner Valdis Dombrovskis speak at Global Solutions Summit

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