Crypto News: Brussels Edition: Conditional blessing for Ukraine

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

The European Commission will recommend opening accession talks with Ukraine today, once the country completes reforms on minorities, anti-corruption as well as "de-oligarchisation" and lobbying, according to documents we've seen. The EU's executive arm has been preparing for such a decision since last September. Geopolitics is playing a key role in reinvigorating the EU's enlargement process — "a driving force for long-term stability" — according to the draft communication. But before Kyiv embarks on years of accession negotiations, the country needs to get a blessing from EU leaders next month, with Hungary's Viktor Orban remaining a question mark. His approval for launching talks, and for EU's €50 billion aid package for Ukraine, may depend on Budapest's access to some of the EU funds that have been blocked over rule of law and fundamental rights concerns, an issue which remains unresolved.

— Jorge Valero and Alberto Nardelli

Lisbon Trembles | Portugal's Antonio Costa resigned after his chief of staff was detained as part of an investigation into possible crimes of corruption involving lithium and hydrogen projects. The sudden exit of the prime minister, who has been in office since 2015, will likely lead to an early election. His Socialist party was leading recent polls in spite of surging living costs, teachers' protests and other controversies.

Fed Up | Romanian Prime Minister Marcel Ciolacu called the country's failure to join Schengen a "profound injustice." He added that his government will request a meeting next month with member states to revisit its bid to join the visa-free zone and is also considering legal action against Austria's "unjustified veto" at the European Court of Justice.

Mediation Efforts | The commission urged Ukraine to drop a case at the WTO against Hungary, Poland and Slovakia for restricting imports of its grain, we're told. The goal is to de-escalate tensions between Kyiv and these countries, in particular Poland. The EU executive's arm also asked Ukraine to end an internal investigation that could lead to unilateral trade measures against exports of the member states.

Bad Chemistry | Lab-made chemicals PFAS can be found in thousands of industrial and consumer goods. But they are also suspected to be the cause of cancers and other health problems, creating billions of dollars worth of liabilities for companies. EU regulators are considering tougher restrictions, pushing US officials also to take a closer look. Read all you need to know about the so-called "forever chemicals" here.

Migration Deal | Italy has agreed with Albania to build two centers to manage the arrival of migrants who landed in Italy and to process asylum applications and the possible repatriation of immigrants. Both centers could process 3,000 border procedures and police from the two countries will work together, Italian Prime Minister Giorgia Meloni said.

Blacklisting Oil | France will only let funds use the national ESG label if they blacklist fossil-fuel companies that are expanding production, Finance Minister Bruno Le Maire said yesterday. Paris follows Belgium, where authorities said early this year that companies held in ESG funds can't be involved in exploration or development of new fields.

Cannabis Business | The Netherlands is taking the first step to legalize cannabis. The country only tolerates the sale of small amounts of marijuana in "coffeeshops," but starting in December, a group of three officially approved companies will be allowed to domestically grow and supply marijuana to these venues for the first time.

Dangerous Business | In the second year after Russia's invasion, companies in Ukraine must contend with power cuts and air raids. In the western region of Lviv, Nestle's factory is forced to crush and recycle candy bars once employees come back to work after the sirens have sounded. We visited the company's sites to see how the firm has adapted to the ongoing war.

German industrial output fell by 1.4% for a fourth month in September led by the auto, electronics and pharmaceutical sectors, the statistics office said yesterday. Manufacturers — which Germany relies on more than many peers for growth — are reeling from costly energy, higher global interest rates and a slowdown in China. Against this backdrop, analysts predict GDP to fall around 0.1% in the final quarter of the year, producing a shallow recession in the country.

All times CET

Commission President Ursula von der Leyen and commissioner Oliver Varhelyi hold news conference on enlargement package
3:45 p.m. Council and Commission statements in EU Parliament on last leaders summit
5 p.m. Commission State of the Energy Union statement in EU Parliament
5:30 p.m. Press conference following meeting of NATO Secretary General Jens Stoltenberg and Hungarian President Katalin Novak
Eurogroup finance ministers, ECB President Christine Lagarde meet in Brussels

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