Brussels Edition
Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.Europe is stepping up it
View in browser
Bloomberg

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

Europe is stepping up its efforts in the fight for influence over ending Russia’s war on Ukraine. French President Emmanuel Macron pitched the European perspective yesterday during a meeting with Donald Trump at the White House, seeking to slow Washington’s negotiations with Moscow, lock in security guarantees for Kyiv and give the EU more time to prove its commitment to ramping up military spending. Yet it increasingly looks like Europe’s voice is being ignored. Coinciding with Macron’s visit, Trump deepened the split with allies over Ukraine, withdrawing US condemnation of Russia’s 2022 invasion at the United Nations and in the Group of Seven. With Trump appearing ever more closely aligned with Vladimir Putin, European nations are struggling to be heard before Ukraine’s future is decided over their heads.

Michal Kubala

What’s Happening

Mineral Resources | Ukraine is close to signing off on a draft document outlining its handover of some of its mineral resources to the US, we’re told. Part of the deal is a US commitment to a “free, sovereign and secure” Ukraine, according to documents we’ve seen. Ukrainian Deputy Prime Minister Olha Stefanishyna confirmed yesterday Kyiv and Washington are in the final stages of negotiations.

Russian Narrative | The Trump administration is embracing Russia’s narrative on Ukraine, EU foreign policy chief Kaja Kallas said yesterday ahead of a meeting with the bloc’s foreign ministers in Brussels. On the third anniversary of the war, ministers approved a 16th sanctions package against Moscow, targeting aluminum, Russia’s shadow shipping fleet and gaming consoles.

Coalition Building | Germany’s economy needs to pick up speed, its politics are increasingly fractured and the country must brace for potential fallout from Trump’s tariffs. Those are just some of the pressing matters driving German conservative leader and election winner Friedrich Merz to vow to move quickly on forming a new coalition government with the Social Democrats of ousted Chancellor Olaf Scholz.

Defense Splurge | Merz is already talking with the SPD about quickly approving as much as €200 billion in additional defense spending, we’re told. Party officials are discussing ways to get around tight restrictions on government borrowing and considering an attempt to push a vote on the new package through the current parliament before the new legislature sits for the first time on March 24.

Polish Plan | Europe, including the UK, needs a common institution, such as a bank or joint fund, to finance its defense push, Polish Finance Minister Andrzej Domanski told us. Poland, which currently holds the EU’s rotating presidency, plans to present frameworks for financing European rearmament ambitions in the coming weeks, Domanski said.

Around Europe

Emissions Flexibility | France is proposing that the Commission allow EU carmakers a “banking-borrowing mechanism,” effectively a tool allowing companies to average out their emissions over a year or two to help them meet 2025 emissions targets, sources say. Emissions flexibility would be welcomed by the region’s automakers worried about fines amid low demand for EVs, but climate groups are less keen.

Eastern Stocks | The Warsaw stock exchange has seen its best start to the year in a quarter of a century and its eastern European counterparts in Prague and Budapest are also seeing significant rallies. The reason is bets on a resolution of the war in Ukraine. Yet as uncertainties regarding any peace or ceasefire deal pile up, the gains could be undermined.

Bribery Setback | European and US collaboration in tackling transnational bribery cases may be drawing to a close after Trump ordered a halt to the enforcement of an act that enabled US involvement in securing settlements in international corruption cases. Europe is preparing to fight corruption without US involvement.

Checking Tourism | The Belgian city of Ghent is increasingly popular with tourists. So much so that their number doubled since 2010. Now, its authorities are seeking to spread visitors throughout the city and the year to avoid congestion. Read more about the picturesque city, why it’s becoming so popular and the strategies it’s adopting to make tourism bearable.

Chart of the Day

Germany’s debt brake — a mechanism enshrined in the constitution that limits government borrowing — is set to be a key issue in the new legislature following Sunday’s election, won by Friedrich Merz’s conservatives. However, any bid to loosen fiscal policy faces a roadblock. Mainstream parties failed to secure the two-thirds majority needed to amend the debt brake. That could restrict a future government's efforts to revive Germany’s sluggish economy, ease the tax burden and, crucially, boost military spending.

Today’s Agenda

All times CET

  • 1 p.m. DG CLIMA Director General Kurt Vandenberghe speaks at Bruegel event
  • 3:30 p.m. DG Trade Deputy Director-general Maria Martin Prat, EU Chamber of Commerce in China President Jens Eskelund speak at Bruegel event on European companies operating in China
  • 6 p.m. Council President Antonio Costa meets financial services commissioner Maria Luis Albuquerque
  • EU European affairs ministers meet in Brussels
  • EU digital chief Henna Virkkunen meets Spotify CEO Daniel Ek, BusinessEurope Director General Markus Beyrer
  • Defense Commissioner Andrius Kubilius takes part in roundtable on ‘Financing the EU's defense industrial readiness

Like the Brussels Edition?


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

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

Like getting this newsletter? Subscribe to Bloomberg.com for unlimited access to trusted, data-driven journalism and subscriber-only insights.

Want to sponsor this newsletter? Get in touch here.

You received this message because you are subscribed to Bloomberg's Brussels Edition newsletter. If a friend forwarded you this message, sign up here to get it in your inbox.
Unsubscribe
Bloomberg.com
Contact Us
Bloomberg L.P.
731 Lexington Avenue,
New York, NY 10022
Ads Powered By Liveintent Ad Choices