Crypto News: Brussels Edition: Soul-searching time

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

The EU is getting ready for some soul-searching. Leaders want to address Europe's place in the world and that means a reassessment of the bloc's relationship with its closest ally: the US. They will do so over lunch at a summit in Brussels on Dec. 19, we're told, the first to be led by incoming Council President Antonio Costa. The conversation will also touch on how to reinvigorate relations with the UK. Following Donald Trump's election victory, Europeans know they might have to fight alone: in terms of their own defense and their backing for Ukraine, but also on trade. And although the EU has pledged to keep helping the government in Kyiv, it also made a last-ditch appeal to President Joe Biden to boost American support before the handover in January. — Andrea Palasciano

Court Showdown | Far-right leader Marine Le Pen said French prosecutors, who accuse her of embezzling EU funds and recommend she be banned immediately from public office for five years, are interfering with the democratic process. If confirmed, the ban would rule her out of the 2027 presidential race, which she would enter as one of the favorites. Even Le Pen's opponents have criticized the prosecutors' move.

More Sanctions | The EU is working on a new package of sanctions aimed at targeting the shadow fleet of tankers Russia is using to get oil to market. The package, which the bloc aims to approve before the end of year, is also expected to include penalties against individuals involved in the trade. But first, it needs unanimous approval by the 27 member states, which has become difficult due to Hungary's frequent vetoes.

Gas Halt | Supplies of Russian natural gas may be at risk, Austria's OMV warned, as it intends to stop paying for imports from Gazprom to recoup damages won in arbitration. European gas futures surged to the highest in a year. Austria is preparing for Moscow to turn off the taps that kept the fuel flowing for six decades.

Defense Euros | The EU handed out €300 million in funding for common defense procurement on five cross-border projects relating to air and missile defense, armored vehicles and ammunition. While the European Commission said the investment will leverage procurement of more than €11 billion worth of defense products, it's still a far cry from the hundreds of billions the EU says it needs to be able to defend itself.

Meta Fine | Regulators slapped Meta with a €798 million fine, the US tech giant's first-ever penalty for EU antitrust violations. Meta was ordered to stop tying its classified-ads service to Facebook's sprawling social-media platform, and refrain from imposing unfair trading conditions on rival second-hand goods platforms.

Transition Delayed | Germany's government implosion means some crucial legislation regulating the energy transition is stuck in limbo until a new administration takes power after the Feb. 23 snap election, with the possibility they may not be enacted at all. The bills are meant to help Europe's biggest economy cut carbon emissions by two-thirds this decade.

Wine Woes | Europe's wine harvest declined for another year as poor weather damaged vineyards at top producers. Unpredictable weather, combined with water shortages following recent droughts, led to inconsistent harvests across the region. The wine industry is also faced with dwindling demand, with the drink having fallen out of fashion with younger people.

Banking Renaissance | A potential new force in Italian banking has begun to take shape, after regional lender Banco BPM took a major stake in rival Banca Monte dei Paschi di Siena. The move happens against the backdrop of the Italian government's maneuvers to successfully pull off returning Italy's oldest bank to private ownership while keeping it Italian. Italy's banks are having a rosy moment, their profitability having surged on higher interest rates.

France needs help getting its numbers straight. The government is enlisting external economists to improve fiscal forecasting. French efforts to rein in the nation's budget deficit were undermined by overly optimistic projections for tax revenue. The experts France is now getting on board will look at how to adapt predictions to an increasingly volatile backdrop.

All times CET

9:30 a.m. Economic and Financial Affairs Council in Brussels on the EU's 2025 budget
9:30 a.m. European Court of Justice hears case brought against the commission by the New York Times over Ursula von der Leyen's Pfizer texts
10:30 a.m. Economy Commissioner Paolo Gentiloni holds news conference on commission's autumn economic forecast

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