Brussels Edition: Zelenskiy tacks to EU

Ukraine's Volodymyr Zelenskiy meets Macron at start of crucial week for Ukraine

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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. President Volodymyr Zelenskiy has arrived in Paris for talks with France's Emmanuel Macron at the start of a crunch week for war-battered Ukraine. The meeting takes place as Donald Trump's special envoy Steve Witkoff heads to Moscow and EU defense ministers gather in Brussels. Asked this morning on her way in to chair today's meeting if Europe trusted the Americans, EU foreign policy chief Kaja Kallas admitted that Europe is on the outside looking in. "Ukrainians are there alone," she said. "If they would be together with the Europeans, they would definitely be much stronger." The former Estonian premier referred to the meetings in Florida this weekend between the Ukrainians and US officials, adding that she trusts the Ukrainians to "stand up for themselves." As US-Russia talks kick off in Moscow, Zelenskiy and the Europeans are at least pursuing a parallel track of diplomacy. European Commission President Ursula von der Leyen spoke with the Ukrainian leader over the weekend. Zelenskiy heads to Ireland after France, while a meeting of NATO foreign ministers in Brussels on Wednesday is also key, particularly if Secretary of State Marco Rubio attends. Meanwhile, German Chancellor Friedrich Merz is hosting Polish President Donald Tusk for talks in Berlin today. As Witkoff prepares to sit down with Russia's Vladimir Putin tomorrow, there are doubts about Russia's commitment to any kind of deal. Putin already seems to be looking past this week's meeting with the Americans, heading to India later this week for a state visit during which India plans to pitch a defense deal with Moscow, Bloomberg reported. EU Defense Commissioner Andrius Kubilius at the Berlin Global Dialogue in Berlin in October. Photographer: Krisztian Bocsi/Bloomberg EU Defense Commissioner Andrius Kubilius in the meantime confirmed that 19 EU countries applied to join the commission's €150 billion defense fund known as SAFE ahead of yesterday's deadline, though only 15 members committed support to Ukraine. It wasn't enough to get the UK on board, however. As Bloomberg reported Friday, talks between the UK and the EU over Britain joining the fund broke down because of wide divergences in views about how much London should cough up. While Brussels originally sought payments of up to €6.75 billion from the UK, a British counter-proposal offered €82 million, plus an unspecified administration fee. Trade Commissioner Maros Sefcovic spoke with Britain's Nick Thomas-Symonds yesterday, with the two due to meet Dec. 10. Things are looking more positive when it comes to Canada. A European Commission spokesman said today that negotiations are advancing well with Canada on SAFE. Canadian Foreign Minister Anita Anand is due in Brussels this week. The Latest Banca Monte dei Paschi di Siena shares fell for a third consecutive day as investors are digesting a sweeping investigation into its takeover of Mediobanca. Ukraine is seeking some €1 billion ($1.2 billion) in additional funding from European allies and Canada by the end of the year to finance US weapons purchases, the country's ambassador to NATO told Bloomberg's Andrea Palasciano. Airbus said the vast majority of the about 6,000 A320-family aircraft impacted by a software glitch have received the necessary modification over the weekend, helping the European plane-maker sidestep a wider disruption in what has become the company's largest recall to date. Norway's government is racing to avert a full-blown government crisis after budget talks failed to secure enough backing ahead of a crucial vote due on Friday. Switzerland voted to reject a 50% inheritance tax on super-rich residents after wealthy entrepreneurs threatened to leave the country. In the ranks of the world's 20 best-performing stock markets this year, every second index is European, an achievement the region has managed only three times before. It's a testimony to revived investor confidence in Europe, where growth prospects have finally been improving. Seen and Heard on Bloomberg The next move from the ECB will be a hike, not a cut, according to BNP Paribas Markets 360 Head of Global Macro Strategy Sam Lynton-Brown. "The hike isn't going to come quickly — we think it's a 2027 story," he told Bloomberg Television. The key is "European growth next year can surprise materially on the upside," Lynton-Brown said. "The market's expecting growth of about 1%, we think it will be 1.5%". The key driver has German fiscal expectations with a more positive picture than perceived, he added. Chart of the Day Chinese carmakers lost ground in Europe in October, slipping back from the record market share they captured a month earlier across the region. New electric vehicle registrations, a core category for Chinese brands, declined to 11.8% from 12.6% across the EU, European Free Trade Association countries and the UK. Coming up Press conference by Roberta Metsola and Cypriot President Nikos Christodoulides in Nicosia this evening Germany's Friedrich Merz and Poland's Donald Tusk to brief after talks in Berlin Bulgarian opposition parties to join protests this evening in Sofia against the government's proposed budget. Zelenskiy visits Ireland tomorrow, meeting with Prime Minister Micheal Martin, Foreign Minister Helen McEntee and President Catherine Connolly Final Thought Visualizations for the Trg Republike metro station in Belgrade. Source: Studio OBE The Serbian capital Belgrade is moving forward with a €4.4 billion subway line after almost a century of failed initiatives. City officials say the project, which still faces challenges including environmental protests and technical issues, is "unstoppable now," with €1 billion in binding contracts signed with Chinese and French construction companies and bankers. The planned opening is in 2030. 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. 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