Crypto News: Brussels Edition: Agricultural unrest

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

As French President Emmanuel Macron heads to Brazil for the G-20 summit, his country's farmers are organizing protests against the proposed trade deal between the EU and the Mercosur group of Latin American countries. France has always been a holdout, but Macron's weakness at home has emboldened European negotiators. Macron's options don't look good: he either tries to stall the agreement and risks Brussels bypassing him anyway, or goes along with it and faces the wrath of the agricultural industry. French officials are pressing Brussels for more compensation for farmers, but it probably won't be enough to placate protesters who have opposed the deal from the start — almost 25 years ago.

— Saim Saeed

Ukraine Latest | The US is approaching a final decision on whether to lift some restrictions on Ukraine's use of western-made weapons to strike limited military targets in Russia, we've learned. If approved, the capability would likely be used first in the Kursk region, where Ukraine is fighting against North Korean troops as well as Moscow's forces.

Trump's Agenda | EU foreign ministers meet today for the first time since Trump's victory. At a closed-door lunch, ministers will discuss what it means for aid to Ukraine and for NATO. The ministers will also discuss the Middle East. Ahead of the meeting, the last one to be presided by Josep Borrell, the EU's top diplomat has proposed suspending political dialogue with Israel over the situation in Gaza, but that's unlikely to gain traction, we hear.

Election Pitch | German Chancellor Olaf Scholz's center-right challenger hopes to revitalize the economy by embracing a pro-business agenda. Friedrich Merz is touting lower taxes, less regulation and fewer handouts. Meanwhile, Scholz is losing backing within his own party to lead the Social Democrats into a February election.

Welcome Back | Some Eastern European leaders have expressed their joy at Trump becoming the US president again. Governments in Hungary, Serbia and Slovakia and the opposition parties in Bulgaria and Poland are buoyed by what they see as another defeat for "liberal elites" and a return to a more transactional approach to international relations.

Taiwan Visit | A delegation from Taiwan including the foreign minister, Lin Chia-lung, is visiting Lithuania, a trip likely to draw a rebuke from China. The delegation will also include representatives from 10 drone companies, we understand.

Gas Flows | Russian natural gas coming in to the EU via Ukraine flowed as normal despite a dispute between Gazprom and Austria's OMV. With OMV cut off, gas is being taken or moved by other buyers, according to people with knowledge of the situation.

Hate Speech | The war in Gaza has exacerbated instances of antisemitism and hatred towards Arabs and Muslims across Europe. The conflict has inflamed both anti-Israel rhetoric and antisemitism and blurred the boundaries between them, leaving policymakers struggling to protect vulnerable populations.

Swedish Soap | Klarna Group Plc's preparation for an IPO has been marked by plenty of colorful moments — enough for a production company to buy the rights to the company's story. Spats between co-founders, an embrace of AI that led to scores of layoffs, mudslinging over one of the company's investors, and arcane deals all preceded the decision to go public. Read all about it here.

Even as geopolitics remains a threat, the euro area's economic growth will pick up in the next two years, according to the commission. Gross domestic product will increase by 1.3% next year and by 1.6% in 2026, the EU's executive arm said in a report published Friday. That's stronger than what the International Monetary Fund predicted last month and almost double the 0.8% seen by officials for 2024.

All times CET

European Commission President Ursula von der Leyen is in Rio de Janeiro for the G-20 summit
EU foreign ministers meet in Brussels, followed by a 5:30 p.m. press conference held by EU foreign affairs chief Josep Borrell
5:45 p.m. Press conference by the Hungarian Presidency and the European Commission after the Agriculture and Fisheries Council

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