Crypto News: Brussels Edition: Subsidy race

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

The EU will start fine-tuning its response to Joe Biden's $500 billion clean-tech law this week. Ministers will have a first look at the Commission's green industrial package tomorrow in Stockholm before leaders try to narrow their differences over proposed state-aid changes and funding needs later this week at their Brussels summit. The renewed subsidy race with the US risks dealing a critical blow to the global trade system. To avoid further damage, the Commission will submit a proposal to the World Trade Organization to allow for some green subsidies to mitigate climate change, we're told. But the next WTO ministerial meeting isn't until next year and any changes would require consensus among its 164 members.

— Jorge Valero

Transatlantic Talks | French Finance Minister Bruno Le Maire and German Economy Minister Robert Habeck will team up tomorrow in Washington, seeking more transparency from the Biden administration on its green industry subsidies. France has been one of the most vocal critics of the landmark US law.

Leaky Ban | The EU's ban on Russian diesel and other petrol products kicked in yesterday. The biggest winners will very likely be traders and shipping companies as the fuel appears set to keep flowing, just via more complex, roundabout routes. The bloc, in agreement with G-7 governments, also introduced a price cap of $100 a barrel on Russian diesel for other jurisdictions.

Energy Impact | Germany has seen a surge of optimism that the worst of the energy crisis has passed. But companies including BASF and Lanxess are poised to cut thousands of jobs and shift investment out of the country because they don't expect the government in Berlin to provide the energy they need at prices close to those they once paid for Russian pipeline gas.

Merger Moment | Microsoft's $69 billion Activision Blizzard takeover faces a key decision in Britain as the nation's merger watchdog marks its arrival as a global regulator. The Competition and Markets Authority is expected in the coming days to issue its provisional findings, signaling whether it aims to block the deal or clear it with specific remedies.

Carve-Out | Emmanuel Macron's government may offer another concession on plans to raise France's retirement age from 62 to 64, seeking to secure a parliamentary majority amid a massive public backlash. Debates on the proposal start today and the concession would add to other provisions designed to allow people who began working at a young age to retire earlier.

Open Door | German Chancellor Olaf Scholz toured Latin America last week with one message to corporate Germany and the wider world: Berlin is open for business. Meanwhile, industry is struggling to find new technologies and trade partners to help underpin the green transformation.

Ukraine Defense | Ukraine's government expects Russia's new offensive to start this month, according to Defense Minister Oleksii Reznikov. Reznikov may be removed soon amid probes into food procurement for the military, local media reported. He told reporters his ministry's anti-corruption department will have to be "rebooted."

Closer Ties | China's strategic partnership with the Kremlin has strong momentum and will continue to grow, the government said at the weekend. Vice Foreign Minister Ma Zhaoxu visited Russia for two days this week and met with Russian Foreign Minister Sergei Lavrov.

The dollar reigns supreme in the debt market. But so far this year, it's been unseated by the euro as the most popular currency for corporate fundraising. That's the first time it's happened for any January on record, as companies raised €98 billion ($107 billion), compared with $101 billion of dollar-denominated debt sales, according to data we compiled. Debt sales in Europe broke through €240 billion in January, beating a previous record for the month set in 2020.

All times CET

3 p.m. Commissioners Ylva Johansson and Didier Reynders speak to European Parliament panel on enforcing EU law
3:30 p.m. European Parliament President Roberta Metsola and Moldovan Prime Minister Natalia Gavrilita speak to reporters
7 p.m. Meeting of European Council President Charles Michel, European Commission President Ursula von der Leyen, ECB President Christine Lagarde, Eurogroup President Paschal Donohoe and EIB President Werner Hoyer
Competition chief Margrethe Vestager holds video call with US Treasury Secretary Janet Yellen
Economy Commissioner Paolo Gentiloni speaks to European Parliament committees

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