Crypto News: Brussels Edition: Dispute with DC

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

Trade tensions between the US and the EU are intensifying. A high-level meeting next week meant to address thorny issues is losing relevance by the day. Internal Market Commissioner Thierry Breton pulled out of the Trade and Technology Council last night, in part because the controversial US tax and climate law has been downgraded from a key agenda item to a point of conversation over a 45-minute lunch. The text of the TTC draft statement hit snags too as France and Germany demanded changes to sections including quantum computing and references to China. While the issues are minor, they are technically difficult, we're told, and will likely require concessions from Washington. Joe Biden, standing next to his French counterpart Emmanuel Macron yesterday, told reporters he won't apologize for his key energy bill, so the dispute may drag on.

— Lyubov Pronina and Jillian Deutsch

Eye on China | The EU and the US are trying to hammer out a more unified approach on China but it's proving a challenge. Senior EU and US officials meet for a second day in Washington to discuss ties with Beijing, just as Council President Charles Michel returns from his one-day trip for talks with Xi Jinping, where he expressed some mild criticism of China's treatment of protesters.

Talks Prolonged | The EU is closing in on a deal to cap the price of Russian crude oil at $60 a barrel, but Poland continues to push to harden the sanctions package before signing off on the price cap. Talks will continue today. Warsaw wants new sanctions linked to the plan, as diplomats aim for a deal before a Monday deadline.

Encouraging Contacts | Talks between the UK and EU over the Northern Ireland Protocol are marked by a new, more pragmatic spirit and a workable solution "is within reach," Commission President Ursula von der Leyen said. "My contacts with Prime Minister Sunak are encouraging and I trust we can find the way," she told Ireland's parliament.

Reserves Caution | The ECB will push lenders to ensure they're maintaining sufficient financial reserves after finding that some banks expect only minor hits from the shock to energy markets and a potential recession. The central bank is calling for banks to prepare for the risk of losses on loans after Russia's invasion of Ukraine caused a spike in energy prices and made it harder for consumers and companies to service debt.

Gas Push | Seven EU member states are pushing for a more effective cap
on gas prices, arguing that the one on the table is unlikely to help consumers. With less than two weeks to go before energy ministers aim to reach an agreement, countries including Italy, Belgium and Greece are pushing for a tighter mechanism that moves with rates set at key international hubs.

Streaming Fight | Six countries have asked the commission for a debate before it moves ahead with plans for rules to make streamers like Netflix and YouTube pay telecom operators for traffic over their networks. Austria, Estonia, Finland, Germany, Ireland and the Netherlands also want a firmer timeline for the proposed rules, according to a letter we saw.

Helping Putin | Elon Musk risks helping Vladimir Putin if Twitter's recent staff cuts prevent the platform from rooting out propaganda about the war in Ukraine, Commission Vice President Vera Jourova told us. Failing to remove propaganda or disinformation is akin to actively supporting the war, she said.

French Tour | Macron, during his US visit, said he plans to talk with Putin "in the coming days" about the war in Ukraine. He separately criticized Musk's decision to relax Twitter's content moderation policies around subjects like coronavirus disinformation and said speech on the platform requires more regulation.

Android Appeal | Google will take its appeal of a record €4.3 billion EU antitrust fine over its dominance in the Android mobile market to the bloc's top court. The penalty hits at the heart of the US tech giant's power over the Android mobile-phone ecosystem, and is one of a trio of decisions that have been the centerpiece of a bid by the bloc's antitrust chief, Margrethe Vestager, to rein in the growing dominance of Silicon Valley.

Inflation Target | European Central Bank President Christine Lagarde said inflation expectations need to remain anchored and that the public needs to know price gains will be brought back to target. "Given this exceptional uncertainty, what we central bankers have to do is actually deliver monetary policy that anchors expectations so those expectations remain moored to target," she said in Bangkok earlier today.

No Confidence | Slovakia's minority government moved closer to collapse yesterday after a former member of the ruling coalition submitted a motion to hold a vote of no confidence that could trigger snap elections. The SaS party said it's seeking to hold the ballot on Eduard Heger's minority government — whose fate may now depend on several independent lawmakers — because of what it calls chaotic decision-making.

Russian Billions | About 100 Russians and businesses reported nearly $50 billion in Swiss deposits, the government said, in its most detailed disclosure yet of Russian wealth held in the country's banks. Its decision to embrace EU sanctions after Russia's invasion of Ukraine has been strongly criticized by the right-wing Swiss People's Party for sacrificing the country's historic neutrality.

Temperatures across Europe likely will plummet this month after a relatively mild November, and the heightened pressure on gas supplies will test the region's fragile energy networks. Autumn in Europe has been unseasonably warm, helping keep gas in storage facilities, which are now about 94% full across the continent, and the first prolonged cold spell will stress that storage. Benchmark European gas contracts are four times higher than normal for this time of year.

Commission President Ursula von der Leyen, European Parliament President Roberta Metsola and Czech Prime Minister Petr Fiala speak at Conference of the Future of Europe feedback event
EU foreign policy chief Josep Borrell visits military base in Poland
European Commission Executive Vice President Valdis Dombrovskis in Canada
Commission Vice President Vera Jourova in Czech Republic

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