Brussels Edition: G-7 meets

G-7 ministers met today to discuss the energy crisis as Trump threatened to blow up energy plants ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

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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. As Group of Seven finance and energy ministers meet, Europe is beginning to count the cost of the energy crisis. The G-7 virtual gathering, also attended by central bankers and representatives of the International Energy Agency (IEA), took place as US President Donald Trump renewed his threats on Iranian energy assets, including "blowing up" power plants and Kharg Island, if no deal is reached to end the war. With oil trading as high as $116 a barrel today, Europe is continuing to count the cost of the turmoil in the Middle East. New figures today show that German inflation surged in March – to the highest level in more than a year – after the Iran war propelled energy costs higher. Consumer prices rose 2.8% year-on-year to March, faster than February's 2% advance. Other countries are also seeing the impact. Headline inflation hit 3.6% in March in Ireland, up from 2.5% in February according to figures out today. German Economy and Energy Minister Katherina Reiche in Houston, Texas, US, in March. Photographer: F. Carter Smith/Bloomberg/Bloomberg Photos Speaking this afternoon, German Energy Minister Katherina Reiche said it was impossible to say how long the conflict would last as she responded to the latest inflation figures. With the war in the Middle East adding to an inflationary drive in Europe's largest economy, at EU level, officials are searching for ways to address rising energy costs. Brussels intends to keep key parameters of its Market Stability Reserve when it announces a revision later this week, Ewa Krukowska reports. As Bloomberg previously reported, the EU plans to amend the mechanism that controls supply in the carbon market Wednesday, and the only change will be scrapping a provision on invalidating certain permits. This will allow more to stay in reserve and be used as an intervention tool in case of any price shocks. The Latest Finland warned that drone activity is likely to continue in the country's vicinity after two aerial vehicles entered its airspace before crashing yesterday morning. The European Commission was hit by a cyberattack on its Amazon Web Services account that may have resulted in the theft of internal data. Inflation expectations of euro-area consumers jumped in March — a warning sign for the European Central Bank as it assesses the danger of a renewed price spike due to the Iran war. Italian Prime Minister Giorgia Meloni is considering replacing senior executives at several state-owned companies after a referendum loss, according to people familiar with the matter. Spain closed its airspace to American flights involved in its military operation in Iran, expanding an effort to distance itself from the conflict. The World Trade Organization failed to extend a 28-year-old ban on e-commerce tariffs at its 14th ministerial conference, a major setback for an organization whose mission is already under threat Seen and Heard on Bloomberg Portugal is in a "very positive position" to absorb the impact of recent floods and the Iran war, though both shocks could weigh on growth and push the budget into a small deficit this year Finance Minister Joaquim Miranda Sarmento told Bloomberg TV in an interview. He also expressed confidence that Europe's three biggest airline groups will bid for a stake in TAP ahead of a deadline this week. IAG, Air France-KLM and Deutsche Lufthansa have been invited to submit non-binding offers for the state-owned airline by April 2. "I don't think this crisis will have a strong impact on the interest and the conditions for the privatization," he said. Chart of the Day The euro is heading for its worst quarter since 2024 as the war in the Middle East underscores Europe's dependency on energy imports and rattles the region's economic outlook. The common currency is down about 2% this quarter at around $1.15 and has lost 2.5% against the dollar in March, the most since July.  Coming up Press Conference by Polish foreign minister Radosław Sikorski and German Foreign Minister Johann Wadephul this afternoon Press Conference following EU agriculture ministers this evening Ukrainian President Volodymyr Zelenskiy meets Bulgarian Prime Minister Andrey Gyurov in Kyiv later today Final Thought Rheinmetall CEO Armin Papperger Bloomberg Rheinmetall expressed its "utmost respect" for Ukrainians' defense efforts against Russia after its CEO Armin Papperger disparaged its defense capabilities. Germany's biggest defense contractor is in the midst of a public relations disaster following an interview by Papperger in an article in The Atlantic. Asked about the innovative, low-cost and efficient Ukrainian weaponry, Papperger dismissed it as "the work of housewives" with "3-D printers in their kitchens," and criticized the Ukrainians for lacking real technological breakthroughs. 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 |