Crypto News: Brussels Edition: Ammunition talks

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

Ukraine is still in dire need of ammunition, but at the same time EU member states need to turn their attention to their own depleted stocks. Defense ministers meeting in Sweden today are expected to give their blessing to a plan to send more rounds to Kyiv. Additionally they will need to discuss details and financing for any possible joint procurement. After all, while the European Commission has called for aggregating orders to European industry and pledged to propose measures to cut back on red-tape or other bottlenecks hindering the industry from ramping up output, the EU's proposal hasn't yet clarified how this would be funded. That raises questions over whether its leaders will be in a position to sign off on a concrete plan when they meet in Brussels on March 23-24.

Katharina Rosskopf

Gender Pressure | Banks that don't have gender diversity policies in place face potential sanctions as a fresh report on laggards triggers tighter oversight by European regulators. About 27% of financial institutions in Europe have failed to put in place policies that encourage diversity, according to a review by the European Bank Authority. "We will make sure that there's a higher level of compliance," senior policy expert Bernd Rummel told us.

Homemade Targets | The EU will aim to produce at least 40% of its annual consumption of strategic raw materials by 2030 as the bloc seeks to secure sustainable access to critical supplies. The bloc will also seek to extract the ores, minerals and concentrates needed to produce at least 10% of its yearly consumption of raw materials in that time frame, according to a draft we saw.

Stable Power | The EU plans to encourage governments and companies to use more stable, long-term power market contracts to avoid massive price swings. The bloc's executive wants to keep the marginal pricing model and avoid drastic changes to the market design in a bid to ensure predictability and keep electricity flowing freely across the region. The proposal is expected to be unveiled on March 16.

Debt Control | EU member states will have to start looking out for their money. Governments will be instructed to withdraw support and consolidate national budgets when the commission adopts its fiscal guidance for 2024 today, we're told. The shift from unlimited spending during the pandemic and targeted aid in the aftermath of Russia's invasion of Ukraine comes as the bloc reviews its rules on public spending.

Rising Stakes | Ukraine has been fighting to keep control of the besieged eastern city of Bakhmut for months as Russian troops level the area. Bakhmut, especially in its current ruined state, has limited strategic importance, according to military analysts. But a Russian victory there would be a symbolic triumph, marking the first major urban center to fall to Moscow's forces since a string of defeats began in the summer.

Stench of Collusion | EU competition regulators raided firms in the fragrance industry in several member nations amid concerns they may have colluded over supplies of scents and ingredients. The commission "has concerns that companies and an association in the fragrance industry worldwide may have violated EU antitrust rules that prohibit cartels and restrictive business practices," the bloc's executive said yesterday.

Brexit Thaw | The UK's deal to solve the dispute with the EU over Northern Ireland trade has sparked hope in London that the two sides could revive a pledge to work together on rules for banks and financial markets. Delayed for two years, the so-called memorandum of understanding on financial rules is expected to get fresh momentum if the "Windsor Framework" gets passed by parliament.

Spain Disappointed | Germany may set a dangerous precedent by challenging an EU agreement to phase out new combustion-engine cars starting in 2035, a Spanish deputy prime minister said. Modifying the proposal so late in the debate could disrupt the way the bloc crafts key policies in the future and send confusing signals to investors and industries planning for the shift to clean energy, Teresa Ribera told us.

Easing Pressure | Consumer expectations for euro-area inflation receded "significantly," according to the ECB, bolstering calls for the pace of interest-rate increases to be slowed. Expectations for three years ahead plunged to 2.5% in January from 3% in December. The pullback comes just over a week before policymakers are due to set borrowing costs, with a half-point hike in the deposit rate to 3% all but guaranteed.

Erotic Ban | Europe's drug regulator has warned that some proposed locations for a new erotic center in Amsterdam are near its headquarters and could jeopardize the safety of its staff and visitors. The planned new center is envisaged to have about 100 workplaces for sex workers. EMA said it plans to intervene at the "highest appropriate political and diplomatic level".

Surprise Exit | Slovakia's caretaker prime minister, Eduard Heger, quit his party to lead another, hoping to consolidate the center-right ahead of early elections planned for September. Heger said that his main goal is to keep the country of 5.4 million on a democratic and pro-European path.

Broad Strike | Greek civil servants, teachers, ferry crews, and train and bus drivers are among the workers walking off their jobs today following the country's worst-ever train crash last week that killed 57 people. Adedy, the umbrella organization for public sector labor unions, said it demands that "the policy of privatizations be put to an end and that the real reasons for the murderous crime of Tempe be found."

Estonian Prime Minister Kaja Kallas said she'll seek a new ruling coalition with two social liberal parties two days after a strong election victory. Kallas's center-right Reform Party will seek to forge an alliance with Estonia 200, a liberal political newcomer, and the Estonian Social Democrats, a center-left party that's in her current government. The three-way formation would control 60 seats in Estonia's 101-seat parliament. Kallas is expected to start talks today.

All times CET

11 a.m. Euro Area GDP figures publication
11:30 a.m. EU commissioners Valdis Dombrovskis, Paolo Gentiloni hold news conference on fiscal guidance
2.45 p.m. Press conference at EU defense ministers meeting in Stockholm
EU Commission Vice President Maros Sefcovic holds a call via videoconference with international gas suppliers on the EU Energy Platform and the joint purchasing of gas
Internal Markets Commissioner Thierry Breton discusses US climate law, war in Ukraine at BDI business lobby event
EU's top court gives opinion in a challenge against UEFA rules

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