Brussels Edition: A crucial summit for the EU

The EU summit tomorrow is crucial, with Russia's frozen assets and the Mercosur deal on the agenda.

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Welcome to the Brussels Edition. I'm Suzanne Lynch, Bloomberg's Brussels bureau chief, bringing you the latest from the EU each weekday. Make sure you're signed up. EU leaders gather this evening in Brussels ahead of their summit tomorrow that could be one of the most consequential European Council meetings in recent history. Top of the agenda is the European Commission's proposal to tap Russia's immobilized assets to help Ukraine, but Belgium, where most of the assets are located, is still opposed. Brussels cleared a major procedural hurdle last Friday, when the bloc's countries agreed to move forward by invoking Article 122 of the EU treaty which allows them to advance with the support of a qualified majority of countries, rather than unanimously. But several countries were unhappy with the move, fearful of setting a precedent where contentious issues are railroaded through the EU process over the heads of dissenting countries. As talks on the assets plan go down to the wire, Belgium is looking for other countries to share the risk should Russia put a claim on the assets. It is focusing on the role of bilateral investment treaties with Russia, as well as calling on the reparations loan plan to apply to other repositories of Russian assets, including French commercial banks. Leaders are also bracing for a possible showdown on the Mercosur trade agreement with South American countries. Giorgia Meloni. Photographer: Alessia Pierdomenico/Bloomberg Italian Prime Minister Giorgia Meloni said this lunchtime that it's premature to sign the Mercosur deal, adding her voice to that of France, which has been pushing to delay a vote. But the European Commission and states like Germany are keen to wrap up the agreement, which has been decades in the making, with Commission President Ursula von der Leyen on standby to travel to South America over the weekend to sign a deal. Speaking in the European Parliament this morning, von der Leyen summed up the position of the EU as leaders gather in Brussels, noting that the summit is taking place at a time when the world has "become dangerous and transactional." "Europe must be responsible for its own security. This is no longer an option, it is a must," she said. She also hit out at the recent National Security Strategy published by the White House. "We cannot afford to let the worldviews of others define us," she said. The US document omitted key facts, she said. Citing a passage that said that Europe's share of global GDP had dropped from 25% in 1990 to 14% today, she said the same trend was true of the US. Her comments come just hours after the Trump administration again threatened retaliation against Europe in response to efforts to tax American tech companies, singling out firms like Accenture, Siemens and Spotify Technology as possible targets for new restrictions or fees. The Latest The US is preparing a fresh round of sanctions on Russia's energy sector to increase the pressure on Moscow should President Vladimir Putin reject a peace agreement with Ukraine, Bloomberg reports. Chancellor Friedrich Merz said that German troops could participate in a coalition to secure a demilitarized zone in Ukraine after a possible peace agreement under rules that would permit them to "retaliate against corresponding Russian incursions and attacks." German business confidence dipped in December, underscoring the challenges for Europe's largest economy to overcome years of economic weakness. British students will be able to study at European universities as part of the Erasmus exchange program following a deal between London and Brussels. KNDS's board decided to pursue an initial public offering and may seek a valuation of around €20 billion for the Franco-German tank maker amid surging demand for defense stocks and potential interest from rival Rheinmetall. TotalEnergies CEO Patrick Pouyanne said in an interview with Bloomberg TV that rising demand for oil will help to underpin prices, despite their slump this week on growing concerns about a global surplus. Seen and Heard on Bloomberg Kosovo President Vjosa Osmani praised her US counterpart Donald Trump for supporting peace in the Western Balkans and the wider region of Europe. Speaking in an interview with Bloomberg TV ahead of tonight's EU-Western Balkans summit in Brussels, she said the presence of US troops in Kosovo was "the biggest deterrent and prevention to an escalation in the region." She also said that, while she welcomed Europe's support for Ukraine, it is important that Western Balkans countries aren't forgotten. Chart of the Day Funds and other speculators are the most bearish on European gas in almost six years, signaling a view that prices have further to fall. Net-long positions in benchmark Dutch gas futures dropped for five straight weeks through Dec.12, Intercontinental Exchange Inc. data show. That marks the lowest level since March 2020. The deepening short bets underscore confidence in Europe's supply cushion, helped by strong imports and a mild start to winter. Coming up Press conference at the EU-Western Balkans summit in Brussels this evening German defense ministry statement expected on procurement contracts later today EU Summit in Brussels tomorrow Final Thought Mrs L yacht. Photographer: Giancolna Coinaghi/MarineTraffic A superyacht owned by Murtaza Lakhani departed from the French Riviera late last week, just days before the Pakistani trading tycoon was sanctioned by the EU, according to people familiar with the matter and ship tracking data compiled by Bloomberg. Mrs L, as the 51 meter (167 feet) luxury craft is known, had been moored in Cannes for a number of weeks but left for the Tunisian coastal city of Bizerte on Dec. 11, tracking data show. Four days later, the EU added Lakhani to the bloc's sanctions list for his alleged role in the Russian oil trade, freezing his assets within the EU. Lakhani declined to comment. Like the Brussels Edition? Don't keep it to yourself. Colleagues and friends can sign up here. How are we doing? We want to hear what you think about this newsletter. Let our Brussels bureau chief know. We're improving your newsletter experience and we'd love your feedback. If something looks off, help us fine-tune your experience by reporting it here. Follow us You received this message because you are subscribed to Bloomberg's Brussels Edition newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue New York, NY 10022 |