Welcome to the Brussels Edition. I’m Suzanne Lynch, Bloomberg’s Brussels bureau chief, bringing you the latest from the EU each weekday. Make sure you’re signed up.

Today was supposed to be the day European Union countries signed off on ambitious climate targets to cut emissions by 2040. Instead, representatives from the bloc’s 27 member states are mired in disagreement at a meeting of environment ministers underway in Brussels. 

The trouble started with a French-led initiative to push today’s scheduled discussion to leaders’ level at an EU summit in October, as our Bloomberg team first reported. Germany and others soon followed suit.

This means the EU will miss this month’s deadline to present the bloc’s official pledge to slash greenhouse-gas emissions to the United Nations ahead of the COP climate summit in Brazil this November. Instead, ministers are at the moment trying to hammer out a “statement of intent,” pledging to come forward with a commitment to cut emissions between 66.3% and 72.5% by 2035.

The delay also threatens to open up a Pandora’s box at the leaders’ summit in late October, when EU heads of state and government will discuss the climate targets, potentially bringing a laundry list of national concerns and issues to the table.

There was plenty of finger-pointing as environment ministers arrived at today’s meeting.

German State Secretary for Climate Jochen Flasbarth insisted that his government still supports the essential elements of the European Commission’s proposal, which was unveiled this summer, including the target. But he criticized the EU’s executive arm for delaying its announcement. “If the commission would have provided the dossier earlier then we would be in a different situation.” he told reporters.

He also said it was natural that leaders would want to discuss the issue, given that the landmark proposal will “frame the environmental and industrial policy for Europe for the next 15 years.”

Sweden’s Climate and Environment Minister Romina Pourmokhtari Photographer: Ludovic Marin/AFP

Sweden’s Climate Minister Romina Pourmokhtari, however, criticized the postponement of the decision until next month, warning that hesitancy “is a luxury we cannot afford” and arguing that the proposal won’t become a better product by prolonging things.

Europe’s divisions over these targets risk undermining the region’s credentials as a leader in the fight against climate change, especially at a time when the US has pulled out of the Paris agreement.

The Latest

• The commission will present member states with its proposed next sanctions package on Russia as early as tomorrow, Alberto Nardelli reports. Commission Chief Ursula von der Leyen has spoken to US President Donald Trump and Indian Prime Minister Narendra Modi in recent days.
• Exxon Mobil is shelving €100 million in investments in chemical recycling in Antwerp and Rotterdam due to overly restrictive rules on plastics, the energy giant’s Senior Vice President Jack Williams told Bloomberg in an interview.
• Too many of Europe’s leaders just can’t get stuff done anymore, write Craig Stirling and Alessandra Migliaccio, as much of the continent is plagued by strained budgets, glacial administration, and energized opposition from political extremes.
• Top tech and finance executives including Apple boss Tim Cook, Citi’s Jane Fraser and Nvidia’s CEO Jensen Huang joined Trump and King Charles at a lavish state banquet in Windsor Castle last night. 
• NATO’s investment fund NIF picked a Spanish startup for its first investment in satellite technology, a new step in Europe’s push to develop that industry in the continent.
• A shift in the jet stream positioned over the Atlantic is forecast to drive a rapid swing from warm to cool temperatures across western Europe toward the end of this week.

Seen and Heard on Bloomberg

There are no plans to introduce an EU-wide digital services tax, EU Justice Chief Michael McGrath, told Bloomberg TV in an interview. McGrath, who is currently visiting South Korea and Japan and whose full portfolio as EU commissioner includes democracy, justice, the rule of law and consumer protection said that the global corporate tax landscape is best addressed through multilateralism. He also said that he hopes talks on the OECD tax agreement could resume by the end of the year.

Chart of the Day

Germany will borrow an additional €15 billion in the fourth quarter — about a fifth more than planned — to help fund a surge in government spending on infrastructure and the armed forces. Since taking office in early May, Chancellor Friedrich Merz’s ruling coalition has abandoned years of fiscal prudence to finance a massive increase in funds allocated to the nation’s long-neglected military and an upgrade of decaying roads and bridges. 

Coming up

• Environment ministers meet in Brussels today
• Germany’s Merz and Spanish Prime Minister Pedro Sanchez hold a press conference in Madrid this evening 
• EU finance ministers and central bank governors meet in Copenhagen tomorrow

Final Thought

Protests in Paris in September. Photographer: Geoffroy Van Der Hasselt/Getty Images

French unions are leading widespread anti-austerity protests today, raising the pressure on newly appointed Prime Minister Sebastien Lecornu as he struggles to find allies to piece together a budget. A member of previous Prime Minister François Bayrou’s government, Lecornu has so far given little indication of concessions he is willing to make. He’ll need to strike deals with some opposition lawmakers to avoid being ousted, but his consultations with rival groups have so far made little progress. 

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