Header Ads

Brussels Edition: Taking stock a year on

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

When Ursula von der Leyen delivers her state of the union on Wednesday, expect the Commission president to champion the EU's record in dealing with the pandemic. She's also due to chart a course for how to manage the economic recovery and ensure respect for the rule of law. During a closed-door meeting with European lawmakers, von der Leyen said the speech is an opportunity to show the Commission's actions were right and pointed to what the EU has achieved on recovery plans, vaccinations and the digital Covid-19 pass, according to officials present. Looking ahead, she wants to boost the economy, digitalization and social programs, through measures such as fair taxation and the Social Climate Fund. In an interview with Germany's Sueddeutsche Zeitung, von der Leyen responded to criticisms leveled at the start of her presidency, namely that she was relying on a circle of confidants that was too small and communicating too little. The College of Commissioners has "grown together strongly" during the pandemic, she said.

— John Follain and Kevin Whitelaw

What's Happening

Green Market | The European green bond market is heating up at just the right time for the U.K., which makes its inaugural sale later this month, and the EU, which starts its 240-billion-euro issuance program in October. Last week, Spain easily sold 5 billion euros in its debut green bond deal and the Isle of Man raised 400 million pounds. 

Climate Test | Today's election in Norway is a key political trial for Europe ahead of climate talks set to start Oct. 31. Norwegians are trying to reconcile their embrace of electric cars and environmental awareness with the need to wean their oil-rich economy off its key source of wealth. Here are the likeliest coalition scenarios.

Legacy Task | In her waning days in office, Angela Merkel said she would work to resolve the conflict between Poland and the EU over rule-of-law questions. The German chancellor made the remark in what was probably her last official visit to Warsaw.

Teflon Candidate | Two weeks before Germany goes to the polls, Olaf Scholz fended off attacks over his track record as finance minister to consolidate his position as Merkel's most likely successor. Conservative Armin Laschet tried to use the second of three televised debates yesterday to get back in the race, but a snap poll showed he fell short. 

Steel Fight | The U.S. submitted an initial offer to the EU to resolve a three-year dispute over steel imported from the bloc, which could pave the way for a solution by a year-end deadline. The proposal involves a tariff-rate-quota system, we've been told. Intensive talks are ongoing. 

In Case You Missed It

Brexit Blame | The EU's chief negotiator on a post-Brexit trade relationship with the U.K. said any blame for the damage caused by the split lies with London and reiterated a refusal to renegotiate the Northern Ireland Protocol. Such a change would mean "instability, uncertainty and unpredictability for people in Northern Ireland — the exact opposite of our approach," Maros Sefcovic told reporters in Belfast.

Gas Crunch | Surging power prices are a worrying signal of what's to come in Europe as the energy crunch shows little signs of easing. The cost of electricity is continuing to rise even as Russia said it finished building a controversial natural gas pipeline. The U.S. said that Europe isn't doing enough to prepare for shortages. And Poland wants electricity invoices to specify additional coasts households face because of EU climate policies.

Eying Afghanistan | Germany and France have proposed that the EU take the lead in setting up a deal with Afghanistan's neighbors to increase their resilience against emerging risks in the region, according to a document we've seen.

Crypto Lag | Central banks need to press ahead with developing their own e-currencies or risk being overtaken by a world going digital, the Bank for International Settlements says. New payment-services providers could crowd out commercial banks, said Benoit Coeure, a former European Central Bank rate setter who now runs the BIS's Innovation Hub.

Chart of the Day

The OECD said the EU should ditch rules that could force countries to slash budgets even before their economies have fully recovered from the pandemic. The bloc suspended fiscal limits in 2020 to fund emergency health spending and job-protection programs but a day of reckoning is approaching for a decision on when and in what form they should be reinstated.

Today's Agenda

All times CET.

  • 6:30 p.m. Germany's Merkel holds a news conference with Serbian President Aleksandar Vucic after talks in Belgrade
  • European Parliament opens four-day plenary session
  • Internal market commissioner Thierry Breton in France to meet Finance Minister Bruno Le Maire

Like the Brussels Edition?

Don't keep it to yourself. Colleagues and friends can sign up here.

For even more: Subscribe to Bloomberg.com for unlimited access to trusted, data-driven journalism and gain expert analysis from exclusive subscriber-only newsletters.

How are we doing? We want to hear what you think about this newsletter. Let our Brussels bureau chief know.

No comments