Crypto News: Brussels Edition: France in flux

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

France's new prime minister Michel Barnier dangled the prospect of tax increases on wealthy individuals and large corporations as he described the nation's fiscal situation as "very grave." The comments promise to test his already fragile grip on power only two weeks after being asked to lead the country's fractious parliament. The parties backing his government have said that one of their conditions for support is that he doesn't embark on tax increases. Even before Barnier's comments yesterday, the new administration solicited an angry response from across the French political spectrum. Amid calls for a no-confidence vote, Marine Le Pen's National Rally, the largest party in the parliament, warned Barnier's cabinet has "no future."

—Lyubov Pronina

Hanging On | Olaf Scholz's Social Democrats held off a strong challenge from the far-right Alternative for Germany to keep power in the eastern region of Brandenburg, sparing the chancellor and his party another embarrassing setback. The SPD, which has ruled the former communist region surrounding Berlin since reunification in 1990, narrowly came first yesterday with 31%, according to preliminary results.

Danish Frustration | Denmark's Mette Frederiksen is frustrated with Ukraine's allies for dithering over where Kyiv can use the long-range weapons it receives. The prime minister told Bloomberg that the EU's drawn-out public discussions about letting Ukraine strike inside Russia are "giving the Russians too good a card in their hands.'' Click here for her views on immigration and the role of Novo Nordisk in Denmark.

Google Fine | The US giant may face a fine of up to 10% of global revenue and an order to change its business model unless it gives more prominence to rivals across its search. The EU is preparing to act under its Digital Markets Act, targeting how the company displays rival product results across its services, such as Google Flights and Google Hotels.

Hydrogen Plea | Germany has urged the EU to delay for seven years some rules on renewable hydrogen that boost costs for producers and hinder a sector crucial to meeting its climate neutrality goal. While the measures previously had German support, "reality has shown that these requirements were still too high,'' German Economy Minister Robert Habeck wrote in a letter to EU Energy Commissioner Kadri Simson.

Seeking NATO | Volodymyr Zelenskiy will push US President Joe Biden to offer an official invitation to join NATO and commit to a sustained supply of advanced weapons during their meeting in Washington this week, we've been told. Amid his criticism of European partners' flagging support, the European Commission said it would loan Ukraine up to €35 billion backed by the profits from immobilized Russian central bank assets.

Orcel's Obstacle | UniCredit CEO Andrea Orcel's audacious move to buy a 9% stake in Commerzbank caught many in Germany unaware. But now the government has struck back, effectively blocking a full-blown takeover attempt by saying it won't sell any more shares in Germany's second-largest publicly traded lender.

Russian Links | While Hungary's government, which holds the EU's rotating presidency, says it observes sanctions against Russia, it still develops ties in sectors not affected by the restrictions. Budapest hosted almost 80 Russian and Hungarian companies last week, with Foreign Minister Peter Szijjarto pledging to give all the ''support you need to do business with Russia.''

Billionaire Vote | The populist opposition party of billionaire and former Prime Minister Andrej Babis dominated Czech regional elections held over the weekend in a warning for the current center-right government a year before a parliamentary ballot. While regional governors primarily take care of roads, schools and hospitals, the vote was a popularity test for Premier Petr Fiala's administration.

Alpine Attraction | The world's largest ski resort operator, Vail Resorts, wants to snap up more Alpine stations in Europe, as it seeks to hedge against climate change. It has acquired two Swiss resorts — Andermatt Sedrun and Crans-Montana — and wants to replicate the company's strategy in North America.

Euro-area countries will struggle to meet the EU's revised fiscal framework, according to research from Bloomberg Economics. After years of spending to stem crises including the pandemic and the fallout from Russia's invasion of Ukraine, the bloc has reintroduced fiscal limits that aim to be tough enough to spur discipline but not so tough as to be unachievable.

All times CET

2 p.m. European Commission President Ursula von der Leyen speaks at a meeting of the Association of Small Islands States in New York
Agriculture ministers meet in Brussels
EU antitrust chief Margrethe Vestager meets with US Federal Trade Commissioner Rebecca Slaughter in Washington
EU foreign affairs chief Josep Borrell participates in the G-7+ foreign ministers' meeting on Ukraine in New York
EU Economy Commissioner Paolo Gentiloni speaks on European competitiveness and meets Polish Finance Minister Andrzej Domanski in Warsaw

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