Crypto News: Brussels Edition: Another far-right win

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

A far-right party pledging to deport asylum seekers and stop aid to Ukraine pulled off its first-ever federal election victory in Austria yesterday. It follows strong results from anti-migrant parties in the Netherlands, Belgium and a few German states. But Freedom Party chief Herbert Kickl will likely be frozen out of government, with conservative Chancellor Karl Nehammer having vowed not to hand him his job. It may take weeks, or even months, to form a new coalition. Even so, Kickl's victory shows how far-right politicians are continuing to build support across Europe, and beyond, as they embrace controversial ideas such as "remigration," a term used to refer to plans to deport migrants. Read about how a white nationalist threat spread from Austria to the US.

— Kevin Whitelaw

Mideast Escalation | The EU is watching with growing trepidation after Israeli strikes killed Hezbollah chief Hassan Nasrallah and several senior commanders. Israelis are triumphant over the damage inflicted on the militant group even as they're bracing for Iranian retaliation. Josep Borrell, the bloc's top diplomat, warned the region "is seriously risking a full blown war."

EV Showdown | The EU has set Oct. 4 for a vote on definitive tariffs on imported electric vehicles made in China, we're told. The ballot was slightly delayed amid last-minute negotiations with Beijing, but member states have now received a draft of the regulation. Meanwhile, data published today showed that Chinese manufacturers sold the fewest electric cars in 18 months to customers across Europe, with registrations falling by nearly half in August from a year earlier.

China Barriers | The EU will take steps to exclude Chinese-manufactured hydrogen electrolyzers from an auction aimed at spurring production of the fuel during the bloc's green transition. The process will include new "resilience requirements" to help stave off Chinese competition in the nascent energy sector.

Baerbock Speaks | German Foreign Minister Annalena Baerbock criticized Donald Trump for spreading "fake news" about her country while promising a "trustful relationship" with a second Trump administration if he wins the November elections. Watch her interview on Bloomberg Television.

Turbulent Meeting | Volodymyr Zelenskiy finally got his meeting with Trump. But it came at the end of a long week that saw the Ukrainian president caught up in the maelstrom of the US presidential campaign. The long-sought session laid bare the risks facing his quest for more American support in Ukraine's fight against Russia's invasion.

Enlargement Shift | Russian President Vladimir Putin unwittingly became the largest catalyst for EU expansion after his assault on Ukraine pushed more countries toward the bloc, according to Croatia's prime minister. "Over the past two and a half years, we have seen a strategic shift in the European capitals being more open toward the enlargement," Andrej Plenkovic told Bloomberg TV.

Car Crash | Volkswagen cut its guidance for a second time this year, citing waning demand. All three major German carmakers — including Mercedes-Benz and BMW — have now warned about their profit as they struggle with slower sales in China. One big factor: EV sales are stumbling.

Czech Coalition | Czech Prime Minister Petr Fiala said he wants clarity on the future makeup of his ruling coalition within days and an updated cabinet within two weeks. As he revamps his government, Fiala said he'll inform the public on the coalition makeup on Wednesday as he shapes his strategy ahead of a general elections next year.

Star Power | French football star Kylian Mbappe has acquired a stake in German electronics firm Loewe, known for high-end television sets, as the company mulls an initial public offering. The 25-year-old Real Madrid player took a minority holding of more than 10% through his investment firm Coalition Capital.

The EU's goal to end dependence on Russian fossil fuels by 2027 will be hard to achieve. Pipeline imports of crude oil and land deliveries of some unsanctioned petroleum products have continued, though in far smaller volumes. There's still no ban on oil products made at refineries outside Europe using Russian oil, such as in Turkey. Sales from those refineries into the EU brought Russia an estimated €1.1 billion in tax revenue in 2023.

All times CET

12:30 p.m. Former European Central Bank President Mario Draghi speaks on competitiveness at the Bruegel think tank
3 p.m. ECB President Christine Lagarde speaks to an EU Parliament committee
3:30 p.m. Commission Vice President Valdis Dombrovskis speaks to an EU Parliament committee
National Rally leader Marine Le Pen to stand trial in a scandal over the alleged diversion of millions of euros in EU funds to build up a platform in France

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