Crypto News: Brussels Edition: Von der Leyen 2.0

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

Now that European Commission President Ursula von der Leyen has laid out her ambitious restructuring of the EU executive arm, she must overcome the challenge of parliamentary hearings in the coming weeks. One that might give her trouble is Italian Raffaele Fitto of Giorgia Meloni's right-wing Brothers of Italy party, whom she's nominated for one of six executive vice president roles. That sparked anger from the leaders of the green and socialist parliamentary groups and raises the prospect of a potentially bruising confirmation to come. Another key role went to Finland's Henna Virkkunen. Read more about the EU's new digital chief, and why she's set to be a marked contrast to her flamboyant predecessor, Thierry Breton, who staged a public resignation this week.

— Max Ramsay

Antitrust Action | Google faces a verdict from the EU General Court in Luxembourg this morning, with judges set to rule on whether the commission was right to fine it €1.49 billion in 2019 for abusing its dominance with its AdSense product. Just last week, the EU won a €2.4 billion court case against Google for search abuses.

Kyiv's Path | Some of Ukraine's allies are gaming out how a negotiated end to the war could take shape, we're told, raising concerns in several Western capitals that the efforts could push Kyiv into a premature cease-fire. The allies insist no one is pressuring Ukraine to enter talks.

Raising Cash | Andrius Kubilius, who was nominated to be the EU's first-ever defense commissioner, said it's worth exploring the option of issuing jointly issued bonds in order to raise the additional €500 billion needed to bring the EU's industry up to speed. Kubilius, a former Lithuanian prime minister, also said he's consider tapping the bloc's bailout fund or using unspent money from its EU's pandemic-era recovery fund.

Trade Conflict | German Economy Minister Robert Habeck urged the EU and China to find a political solution in a dispute over Chinese-made electric vehicles, saying a trade conflict should be avoided "at all costs." The EU is aiming to hold a vote on the tariffs on EVs imported from China next week.

Conversion Ban | The EU has committed for the first time to seek a ban on conversion therapy in von der Leyen's next term. She tasked her proposed equality commissioner, Belgium's Hadja Lahbib, with including the measure in a new LGBTQ equality strategy due next year.

Chancellor Race | German CDU Chairman Friedrich Merz secured the conservative candidacy to challenge Olaf Scholz for the chancellorship in next year's general election. The German Finance Ministry, meanwhile, is sticking to a plan to sell off its entire stake in Commerzbank despite UniCredit's move to buy all the shares offered last week, we're told.

Chip Fail | Intel's decision to postpone its planned factory in Germany marks a setback for the EU's semiconductor ambitions and will reignite controversy in Berlin over where to allocate €10 billion in earmarked subsidies. The facility was on track to be the biggest plant supported under the EU's Chips Act that was passed last year.

Hungary's Gambit | Viktor Orban has bet more on the transition to EVs than any other European leader, attracting about $20 billion in investments related to the technology since 2017. Now, a sharp slowdown in the sales of pricier European EVs and a brewing trade war with China are making Hungary vulnerable.

Meloni's Budget | Prime Minister Giorgia Meloni's coalition pledged to get Italy's budget deficit back under the EU's 3% limit by 2026. The full details will be unveiled next week after the publication of revisions to 2021 economic output, which are likely to create a windfall of as much as €3 billion.

Another Bailout | The Netherlands will lend state-owned grid operator Tennet another €19 billion to meet increasing demand for electricity from households and companies. It comes on top of a €25 billion loan provided in January, and following the failure of talks with Berlin over a sale of the company's German network.

Deadly floods have unleashed destruction across central Europe, with torrential rain from Storm Boris causing elevated water levels across the region. The heat waves that seared the Mediterranean this summer — raising sea temperatures to record levels — are helping to turbo charge storms across Europe. Meanwhile, Greece and Portugal are still battling wildfires.

All times CET

Parliament plenary continues in Strasbourg, including discussions of the flooding in Central and Eastern Europe at 9 a.m., the EU response to mpox at 4 p.m. and human-rights breaches at 5 p.m.
After 9:30 a.m. the EU General Court rules on the commission's €1.49 billion Google AdSense fine
10 a.m. EPC event with EU sanctions envoy David O'Sullivan
4 p.m. Von der Leyen greets the new commissioners-designate at the commission's Brussels headquarters

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