Crypto News: Brussels Edition: The Hungary problem

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

With two days to go until EU leaders gather in Brussels, time is running out to bring Viktor Orban on board and avoid Hungary once again vetoing a €50 billion Ukraine aid package. We're told the bloc is discussing various mechanisms including an annual review at the leaders' level or ways to raise concerns over how aid is used — without allowing Orban to veto funding each year. EU officials insist they still aim to reach a unanimous deal with Hungary on aid, but some are beginning to discuss ways to punish Budapest. Suspending voting rights would be one drastic — albeit unlikely — option, while cutting off all EU funds isn't on the table.

— Max Ramsay

Deal Dropped | Amazon abandoned its planned $1.4 billion acquisition of Roomba maker iRobot after clashing with EU regulators. The move comes with a $94 million termination fee to be paid to iRobot. It follows a similar decision by Adobe to walk away from a $20 billion acquisition of startup Figma.

Tech Meeting | Economic security will be the top issue at the next round of Trade and Technology Council talks between the US and the EU, which kick off today. Trade facilitation, artificial intelligence and 6G are also on the agenda. Get the full briefing in our Supply Lines newsletter here.

ESG Requirement | Financial firms in the EU look set to be hit by a new ESG requirement they lobbied hard to avoid. Parliament and the Council are moving toward an agreement that wouldn't exclude the financial sector from a rule to ensure their value chains are free from environmental or human rights violations, according to a document we've seen.

Paris 'Siege' | The French government plans to unveil new measures today to address farmer unrest over rising costs and European regulations. The protests are having broader implications with Emmanuel Macron stepping up his opposition to a trade deal with the South American Mercosur bloc over agriculture policy.

Bolstering Defense | Internal Markets Commissioner Thierry Breton used a speech in Washington last night to call for a stronger European defense policy to provide security for the continent. "Because whatever the US government in place, the truth is: a stronger Europe in NATO means a stronger NATO," Breton told the Atlantic Council.

Greek Turnaround | Athens is pushing ahead with plans to sell Greece's first new sovereign bond since winning back investment-grade status, opening the door to a multitrillion-dollar investment pool. Greece's 10-year bonds yield around 3.3%, compared to levels of more than 13% less than 10 years ago.

Africa Ties | Giorgia Meloni unveiled an investment plan worth more than €5.5 billion to strengthen Italian relations with Africa, in an attempt to boost energy ties and curb migration flows. Seeking to forge an influential role for Rome in relations with the continent, the Italian prime minister hosted a meeting of about 25 African leaders yesterday.

Migration Deal | Albania's Constitutional Court approved an agreement with Italy to send migrants picked up by Italian vessels to centers on Albanian soil, waving off a challenge to the deal by opposition parties. The deal was struck between the countries' leaders in November and is scheduled to take effect by March.

Boycott Resolved | The Democratic Unionist Party agreed to end its Brexit-related boycott of Northern Ireland's power-sharing assembly, ending two years of political paralysis. The decision is contingent on the British government implementing promises, including legislation seen as strengthening the region's place in the UK.

Russia is considering an indefinite extension of wartime capital controls introduced to ease pressure on the ruble, we're told. The government believes the measure is needed to help stem inflation and bolster the currency, despite objections from the central bank. The order forces certain companies, including the country's main oil producers, to repatriate 80% of earnings from abroad to ensure a steady supply of foreign currency on the domestic market.

All times CET

EU defense ministers meet in Brussels
EU-US Trade and Technology Council starts in Washington with participation from EU competition chief Margrethe Vestager, Trade Commissioner Valdis Dombrovskis and Internal Markets Commissioner Thierry Breton
2:05 p.m. keynote address by EU chief diplomat Josep Borrell at the EDA High-level Symposium on Military Mobility 2024
Vestager participates in fireside chat with US Commerce Secretary Gina Raimondo at the Atlantic Council at 9 p.m. and holds a press conference at 10:30 p.m.