Saturday, October 26, 2024

Brussels Edition: A puzzle master

Antonio Costa will need all the patience he has cultivated as a lover of puzzles in his next role, as head of the European Council.

Welcome to the weekend issue of Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. Join us on Saturdays for deeper dives from our bureaus across Europe.

LISBON — On a daytime TV show in May, Antonio Costa was given a present: a 2,000 piece puzzle showing various landmarks, including the Eiffel Tower.

Doing puzzles "is one of the most relaxing things that exists," the former Portuguese prime minister said, adding that he once did one with 23,000 pieces.

Costa will need that kind of patience in his next role, as head of the European Council, where he will need to broker compromises between the 27 member states. 

Outgoing council head Charles Michel acknowledged this talent earlier this year, noting Costa took part in 74 EU summits. "We will miss your good humor and problem-solving skills," he wrote as Costa was about to step down as premier.

Donald Tusk, Poland's prime minister, left, and Costa, during the EU summit on March 22, 2024.  Photographer: Simon Wohlfahrt/Bloomberg

Ahead of formally succeeding Michel in December, Costa is touring almost all 27 European capitals to renew his relationships. 

He's taking over as Europe finds itself stretched across different challenges, including an aggressive Russia, a German economy that's struggling to grow, political instability in France, questions about European competitiveness and promises of EU enlargement.

At an event in Lisbon in June, sitting next to former European Council President Herman Van Rompuy, Costa said the world has grown and Europe has shrunk.

"We have two great allies: the UK, the US. But we need to multiply our friendships in the world," he said, adding that Europe has to look at New Zealand, Australia, Japan and Korea, as well as Africa, Latin America and Canada.

And then there's the risk of a second Donald Trump presidency. Looking at the programs of Kamala Harris and Trump, who raves about tariffs, Costa said in July that Harris is "clearly" someone who would reinforce transatlantic relations, according to the Lusa news agency.

Costa, 63, will assume the council presidency only a year after unexpectedly resigning as prime minister amid a probe into alleged influence peddling related to projects including a planned data center. He denies wrongdoing and hasn't been named a person of interest as part of that investigation.

Emmanuel Macron, France's president, Andrzej Duda, Poland's president, Olaf Scholz, Germany's chancellor, and Costa, left to right, at the NATO summit in Vilnius on July 11, 2023.  Photographer: Andrey Rudakov/Bloomberg

He is known as an experienced political player: After placing second in an election in 2015, he ousted a center-right minority government by negotiating an unprecedented alliance in parliament with the Communists and a far-left party.

While many doubted that Costa's minority Socialist administration would survive as it promised to reverse austerity while narrowing the budget deficit, that government completed its four-year term. In subsequent terms he faced new challenges, including anger over housing and a pay controversy at state-owned airline TAP.

The quick turn of events in Portugal a year ago has now set up the former Lisbon mayor to test his skills in Brussels, on a larger board with bigger moving pieces.

Joao Lima, Lisbon bureau chief

Weekend Reads

How Europe's Biggest Buyout Deal Descended Into a Bruising Brawl

After a year-long takeover battle for the owner of France's best-selling painkiller, Sanofi's decision to sell its over-the-counter business to a US buyout firm descended into mudslinging, public rebukes and political discord. The rare public feud between suitors offers a glimpse into the often opaque world of dealmaking.

The Secretive World of Russian Oil Tanker Insurance Revealed

One of the energy market's open questions since Russia's invasion of Ukraine has been who's insuring the tankers moving Moscow's petroleum against the risk of a catastrophic oil spill. The answer is that while some are still covered by the western businesses they've always used, owners are increasingly turning to Russian providers backstopped by a heavily sanctioned, state-backed reinsurer.

Billionaire Eyes Power Comeback in Prague With Call to Spend

Andrej Babis in Prague, on Oct. 21. Photographer: Milan Jaros/Bloomberg

Billionaire Andrej Babis is promising to boost public spending as he tries to chart a political comeback. The former prime minister has demonstrated a resilient popularity among many Czechs, who have embraced his straight talk — often verbal attacks — and anti-immigration stance. But he's also come under fire for accusations of conflicts of interest as a business owner who receives public subsides.

Four-Day Workweek Trial in Germany Converted Some True Believers

 Germany's brief experiment with a four-day workweek is over, but for many of the businesses that participated, there's no going back. The results showed that shorter workweeks tended to improve employees' physical health and mental well-being — and some companies reported stable revenues. But not every business made it through the trial. 

Derided German City Uses Its Past to Tackle a Turbulent Present

Chemnitz has some surprising juxtapositions of prewar Kaiser-era, postwar Soviet-era and contemporary architecture. Photographer: Iona Dutz/Bloomberg

Ignored or mocked in Germany as a byword for everything that's gone wrong in the former GDR, Chemnitz is a bold choice as European Capital of Culture 2025. If it succeeds in the uphill challenge of selling itself to the world, though, it might just offer a recipe for how to address today's deepening societal divisions.

This Week in Europe

  • Sunday: Bulgarian elections, Lithuanian parliamentary elections, clocks move back one hour across EU
  • Monday-Tuesday: EU-Western Balkan Ministerial Forum in Budva, Montenegro
  • Wednesday: Eurozone GDP data
  • Thursday: Ukraine, Bulgaria rate decisions; Eurozone inflation and unemployment dats
  • Friday: All Saints Day holiday across much of Europe

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