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

The survival prospects of the French government are looking better. Prime Minister Francois Bayrou is poised to weather two no-confidence votes after he invoked a constitutional provision that allowed him to push the contentious 2025 budget through the lower house without a vote. The same maneuver triggered the collapse of the previous government under Michel Barnier. But Bayrou is in a better position. The Socialists and the far-right National Rally — which had supported the censure motion that toppled Barnier — both look set to abstain this time. Still, even if the prime minister soldiers on, his position will be far from stable without a legislative majority to shield him from future no-confidence votes. 

— Michal Kubala

What’s Happening

Negotiating Tariffs | Donald Trump’s decisions to postpone duties on Mexico and Canada are raising hopes in the EU that the bloc will also be able to come to a trade deal with the US administration. The Commission is readying a proportionate response to threatened tariffs, we’re told.

AI Clash | Meta opposes the EU’s AI Code of Practice in its current form, according to the company’s new head of global affairs. Joel Kaplan called the rules “unworkable and infeasible” and signaled that the Facebook parent may turn to the Trump administration to help protect its interests.

Musk Rival | European aerospace firms have enlisted some of the world's top M&A advisors to help them combine efforts to create a European champion that could challenge Elon Musk's SpaceX. Airbus has hired Goldman Sachs and Italy's Leonardo hired Bank of America. Along with France's Thales, the companies are in early talks about a joint venture.

Euro Volatility | With the euro on its longest losing streak against the dollar in three years following Trump’s tariff threats, investors see a risk it could slide further to parity — or rebound if tariffs against the EU are averted. The starkly diverging outcomes are leading traders to hedge for sharp shifts in either direction for the euro. 

Around Europe

Surprise Return | Former NATO Secretary General Jens Stoltenberg was named finance minister in Norway’s new government. Known for having had a good working relationship with Trump, Stoltenberg is entering his new role as Europe braces for the possibility of a trade conflict with the US administration. 

Gas Reserves | European countries that hold the biggest gas inventories in the region are discussing softening rules on the refilling of reserves after 2025, saying high prices are making storage unprofitable. The current regulations expire after this year, which is likely to prompt discussions on how to make them more viable in the future.

Shorter Workweek | The Spanish government is proposing to cut the number of workweek hours from 40 to 37.5 . The plan, which has yet to be sent to parliament, may take effect at the start of next year. Business representatives are less enthusiastic about the idea: they walked out of negotiations with the cabinet and unions in protest.

Peaceful Place | The 18th-century Swiss villa that had been owned by iconic actress Audrey Hepburn for 30 years is for sale. Read here about why the retreat is called “La Paisible,” or “peaceful place”. 

Chart of the Day

UBS has cut more than 10,000 positions since it bought Credit Suisse in 2023. With the full integration of Credit Suisse still underway, several hundred UBS employees in Switzerland received their notice in recent weeks. The biggest job cuts, however, took place in the third quarter of 2023, just after the formal acquisition. 

Today’s Agenda

All times CET

• 1:45 p.m. Energy Commissioner Dan Jorgensen speaks at 2025 International Energy Policy Forum
• 3:40 p.m. Financial Services Commissioner Maria Luis Albuquerque speaks at ESMA conference in Paris. Other speakers include EIB President Nadia Calvino, Polish Finance Minister Andrzej Domanski
• Defense Commissioner Andrius Kubilius meets Finland's Foreign Minister Elina Valtonen, Safran CEO Olivier Andries