Tuesday, January 28, 2025

Brussels Edition: Pro-business pitch

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

Commission President Ursula von der Leyen will chart Europe's course through an increasingly stormy global economy as she puts forward her "competitiveness compass" today. The key themes that we reported on last week are clear: cut red tape for business, double-down on the technologies of the future and favor European companies in public procurement. Yet those hoping for the EU to throw cash at the problem will be left disappointed and frustrated -- there will be little in the way of fresh financial commitments beyond improving access to already existing pots of money. The concern among business is that von der Leyen ends up looking like the captain of a slow-turning super tanker compared to US President Donald Trump's blistering pace of deregulation. But as the bloc's financial services commissioner Maria Albuquerque told us, the EU will "not engage in a race to the bottom."

John Ainger

What's Happening

Albuquerque Interview | The EU should consider moving forward with a "coalition of the willing" on a capital markets union rather than wait for all 27 members to agree on it, Financial Services Commissioner Maria Luis Albuquerque told us in an interview. Her comments mark a significant departure from the EU's all-or-nothing approach and come after a decade-old deadlock over the issue. 

Greenland Rejection |  Greenlanders overwhelmingly oppose joining the US, despite Trump's claims to the contrary, according to a poll. Danish Prime Minister Mette Frederiksen met German Chancellor Olaf Scholz, French President Emmanuel Macron and NATO chief Mark Rutte yesterday to rally support in the face of the US president's threats of appropriating the Danish realm.

Maximum Pressure | EU foreign policy chief Kaja Kallas and US Secretary of State Marco Rubio agreed on the need to keep maximum pressure on Russia to move toward a just and sustainable peace in Ukraine, we're told. They also discussed EU-US cooperation and China during their phone conversation yesterday. We've also learned the EU is proposing a phased ban on imports of Russian aluminum as part of a broad sanctions package ahead of the third anniversary of the Kremlin's invasion.

Space Race | The EU will set up an aggregation platform for space launch services in the next two years as it tries to boost its competitiveness in space. The bloc, which had been relying on Elon Musk's SpaceX for several months to launch satellites, has only recently regained autonomous access to space.

Google Rage | Google accused EU antitrust watchdogs of blundering their way through a probe that culminated in a record €4.3 billion fine for allegedly abusing the market power of its Android mobile-phone ecosystem. Here's what they don't like.

Around Europe

Meloni Probe | Prime Minister Giorgia Meloni said she's under investigation by Italian prosecutors over the release of a Libyan police chief wanted on war crimes charges. Italian bonds fell after the announcement.

Migration Fight | Less than four weeks before Germany's election, conservative challenger Friedrich Merz is raising the stakes in a campaign dominated by the issues of immigration and domestic security. Merz's bloc is trying to win support in parliament this week for a hardline push on tackling irregular migration, even if that means the far-right Alternative for Germany will back its proposals — a strategy that has drawn angry criticism from Chancellor Olaf Scholz's Social Democrats.

Serbia Rocked | For nearly 11 years, Aleksandar Vucic has consolidated power in Serbia and engaged in a geopolitical balancing act that once made him close to Vladimir Putin and now to allies in Europe and Donald Trump. But protests and the resignation of a key ally is putting him under intense pressure.

Economic Doldrums | Germany's industry lobby reckons Europe's biggest economy will shrink for a third straight year in 2025, contracting 0.1%, while Ireland contracted in the fourth quarter. Data for the euro area is due later this week.

Veggie Steaks | An attempt by the French government to ban the use of meat labels like "ribeye steak" and "filet" for plant-based foods was overruled by the country's top administrative court. It means vegetarian steaks are back on the menu.

Chart of the Day

Your holiday may be about to get more expensive. Currency traders are positioning for the euro to weaken against the dollar in a bet that the European Central Bank will have to adopt a more aggressive approach to cutting interest rates as the risk of US tariffs and political turmoil in the region weigh on the bloc's economy. Markets are positioning for the euro to weaken — potentially to a level where it buys less than one US dollar from about $1.04 now.

Today's Agenda

All times CET

  • 1:30 p.m. Von der Leyen and industry commissioner Stephane Sejourne due to present Competitiveness Compass
  • 4 p.m. Agriculture Commissioner Christophe Hansen speaks at European Parliament on future of EU agriculture
  • 4:15 p.m. Trade Commissioner Maros Sefcovic speaks at European Parliament on topics that include EU-US trade relations
  • NATO Secretary General Mark Rutte meets European Council President Antonio Costa
  • Kallas, Defense Commissioner Andrius Kubilius, UK Science Secretary Peter Kyle speak at 17th European Space Conference
  • Von der Leyen and Parliament President Roberta Metsola meet Jordan's King Abdullah II

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