Wednesday, March 19, 2025

Brussels Edition: Vying for influence

Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union.EU leaders will get a ch
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Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union.

EU leaders will get a chance today to discuss the latest US efforts to bring about a ceasefire between Ukraine and Russia, including the recent pledge from both nations to refrain from attacking energy infrastructure. As US President Donald Trump pushes ahead with his peace drive, there is concern in the EU that the bloc has been mostly sidelined in the negotiations. Russia has asked for sanctions relief as part of any deal on halting the fighting, but the EU wants to maintain pressure on the Kremlin and continue arming Ukraine, contrary to President Vladimir Putin's demands. Leaders gathering in Brussels will also discuss defense spending, including yesterday's commission proposal to allocate billions to bolstering defense capabilities.

Saim Saeed and Andrea Palasciano

What's Happening

Good Call | Trump described his phone call yesterday with Zelenskiy as "very good" and promised fresh support. The Ukrainian leader "asked for additional air-defense systems to protect his civilians" and "President Trump agreed to work with him to find what was available particularly in Europe," according to a statement from US Secretary of State Marco Rubio and National Security Advisor Mike Waltz.

Macron Revival | Emmanuel Macron is asserting his influence again in the EU after a disastrous snap election last year left him politically weakened. At the same time, the French president, who has taken the lead in corralling EU partners and the UK to support Ukraine, may also be on a collision course with Trump.

Defense Deals | Canada has floated doing major defense deals with Europe and improving the continent's access to its critical minerals in response to Trump's pullback from US defense commitments, according to diplomatic correspondence we've seen. A Canada-EU defense partnership could be concluded quickly, which would make the North American nation eligible for joint procurement with European countries under the ReArm plan, we're told.

Tech Warning | The European Commission warned Google and Apple to comply with its digital competition law or, in Google's case, face fines of up to 10% of their global annual revenue. The decisions may escalate tensions with the Trump administration, which has criticized the EU's rules and has threatened to retaliate.

Tariff Threat | US tariffs on Chinese goods are pricing out the Asian nation's producers and leading to job losses around the world, in what's become known as the "China Shock." It's also increased Chinese exports elsewhere, particularly to emerging economies but also to parts of Europe including Spain and Ireland.

Around Europe

Turkish Turmoil | Turkish authorities triggered a selloff in stocks and the lira after they detained President Recep Tayyip Erdogan's top political rival on corruption charges. Istanbul Mayor Ekrem Imamoglu is the most popular opposition figure and seen as a potential challenger to Erdogan's grip on the presidency.

Banking Scandal | The Hungarian central bank's foundation is on the brink of insolvency because of years of mismanagement and the covering up of snowballing losses, according to a State Audit Office report. The foundation's asset manager, which held about $1.4 billion in assets, had made risky real-estate investments.

Plastic Talks | More than a dozen countries including China and the EU participated in informal talks in Oslo to discuss how to unblock negotiations over ways to limit global plastic pollution. India, Iraq and Saudi Arabia were invited but did not attend.

Tariff Hangover | Trump's promised 200% tariff on alcohol imports from the EU would be catastrophic for the industry, resulting in billions of euros of losses. Here's how makers and drinkers of booze are preparing for it.

Defense Boom | A surge in European defense stocks has been a boon for Cyprus-based firm Theon International, which makes night-vision goggles. The company's share price has surged more than 70% this year, and has made its CEO Christian Hadjiminas a billionaire.

Chart of the Day

Small and mid-sized European manufacturers who normally supply parts to Europe's carmakers are turning to the defense industry in hopes of cashing in on the hundreds of billions of euros governments are pledging to ramping up their militaries. Germany is paving the way for more defense expenditures by loosening restrictions on government borrowing, while Sweden, the Czech Republic and the Baltic nations are increasing their military budgets.

Today's Agenda

All times CET

  • 9 a.m. ECB President Christine Lagarde speaks at the Economics and Monetary Affairs committee at the European Parliament in Brussels
  • 3:10 p.m. EU industry chief Stephane Sejourne gives a press point at a Thyssenkrupp facility in Duisberg, Germany
  • EU trade chief Maros Sefcovic speaks at the European Parliament's International Trade committee in Brussels

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