Brussels Edition: All eyes on the euro

Euro area finance ministers meet today in Brussels with the role of the euro high 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. After Russia's full-scale invasion of Ukraine, Sweden parted with decades of foreign policy and joined NATO. Now it's starting to consider another historic shift: adopting the euro.  While the debate is in its early stages, a subtle adjustment is taking place as geopolitical concerns have underscored how smaller economies are exposed in an era of great-power rivalries, Charlie Duxbury reports from Stockholm. Signs of a change in stance towards the single currency are in tune with a new confidence about the role of the euro. Finance ministers meeting this afternoon in Brussels will discuss the issue, amid a growing focus in Frankfurt and Brussels on how to boost the single currency. On Saturday, the European Central Bank announced changes to its repo system, opening it up to nearly all foreign countries, making it easier for buyers to access the currency. European Central Bank President Christine Lagarde Photographer: Alex Kraus/Bloomberg Speaking at the Munich Security Conference, ECB President Christine Lagarde said the move "reinforces the role of the euro," and will boost "confidence to invest, borrow and trade in euros, knowing that access will be there during market disruptions." While the euro's recent rally against the dollar has created a headwind for exporters, the geopolitical turbulence in the US has spurred the belief that this could be the euro's time to shine. Discussions are also gathering pace over a long-promised "digital euro." In an important milestone, EU governments agreed on a common position on the digital euro in December, while there are signs that EU lawmakers, who must ultimately approve the policy, are warming to the idea after they approved a key amendment last week. Meanwhile, governments may fast-track finding a candidate for one of the most important jobs Europe: head of the ECB. Lagarde's term ends in October 2027, so a decision would typically be taken next summer. But the possibility of a victory by Marine Le Pen or her protege, Jordan Bardella, in the French election in April 2027 could push leaders to bring forward that decision amid fears about the National Rally's stance towards the ECB. The Latest The EU's top diplomat, Kaja Kallas, rejected the picture of the bloc's decline painted by the Trump administration and urged member states to accelerate Ukraine's membership bid as a sign of the EU's power. US President Donald Trump would provide assistance if Hungary ever ran into financial trouble under Prime Minister Viktor Orban, Secretary of State Marco Rubio said earlier today, giving an extraordinary endorsement to the long-time leader ahead of an election in April. French authorities opened new probes into possible sexual and financial crimes linked to Jeffrey Epstein and are revisiting the file on modeling agent Jean-Luc Brunel, who died in a French prison in 2022. Italy will likely participate in Trump's "Board of Peace" as an observer, Prime Minister Giorgia Meloni said over the weekend. Hungary and Slovakia requested that Croatia allow the shipment of Russian crude via the Adriatic pipeline while a key route through Ukraine remains blocked, Hungary's foreign minister Peter Szijjarto said. Seen and Heard on Bloomberg Europe is in a better position after receiving the message from the US to take responsibility for its security, according to Alice Rufo, a deputy defense minister in France and close ally of President Emmanuel Macron. "We made a lot of progress in Europe, so we've been criticized but we delivered," she told Bloomberg TV on the sidelines of the Munich Security Conference. She also said that the government is ready to throw its weight behind the Franco-German fighter jet project known as FCAS, despite multiple reports highlighting Berlin's skepticism. Chart of the Day Switzerland's economy rebounded at the end of last year, partially shaking off the impact of outsized tariffs inflicted by US President Donald Trump. GDP adjusted for large sport events rose 0.2% in the fourth quarter from the previous three months, when it dropped by 0.5%. The result is just below the 0.3% median prediction of economists in a Bloomberg survey. Coming up Press conference after the Eurozone finance ministers meeting this evening French President Emmanuel Macron starts his three-day visit to India tonight. EU finance ministers meeting in tomorrow Final Thought Russian President Vladimir Putin and his Chinese counterpart Xi Jinping Photographer: Evgenia Novozhenina/AFP China increased its support for Russia's war in Ukraine in 2025 and is likely to deepen cooperation with Moscow further this year, Western officials said, casting doubt on efforts by European leaders to improve relations with Beijing. Russia wouldn't be able to continue its offensive without ongoing Chinese support, particularly the export of dual-use components and critical minerals used in Russian drone production, the officials said, describing Beijing as the key facilitator. Like the Brussels Edition? Don't keep it to yourself. Colleagues and friends can sign up here. 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