(Bloomberg) -- Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.
It’s been a tedious process of removing some words and adding others, but tomorrow the latest subplot in the post-Brexit negotiations comes to an end when European Affairs ministers sign off the bloc’s mandate. Talks then begin on Monday with the British government, which yesterday insisted political independence takes priority over securing a deal. The mandate is a typical European fudge: France won tougher language on the U.K.’s need to mirror EU rules, but the text fell short of demanding a full, dynamic alignment. We won’t really see the impact of that until well into the negotiations, but they’re off to a difficult start.
What’s Happening
Italian Risks | Italy’s economic engine has ground nearly to a halt over the coronavirus outbreak, with Milan and the productive regions of Lombardy and Veneto in virtual lockdown. Not only does the crisis pile pressure on an economy that shrank at the end of 2019, but a renewed slump could also drag on a wider euro zone struggling to shake off a prolonged slowdown.
German Turmoil | Angela Merkel’s CDU will accelerate the process of appointing a new leader to seek a way out of its current turmoil. The leadership battle is likely to determine the direction of the EU’s largest economy, as it grapples with stagnating growth, Brexit fallout and a breakdown of the global order on which Germany’s post-war prosperity is based.
Views Welcome | Now’s your chance to discuss the ECB’s monetary policy with President Christine Lagarde, who kicked off a public consultation on her strategy review with a direct video. Lagarde will chair an initial listening event with citizens and civil-society representatives next month in Brussels, days after consulting academics and financial-sector participants.
Fillon Trial | Former French Prime Minister François Fillon and his wife will defend themselves at a trial this week against accusations they got more than 1 million euros for a fake job she held as a parliamentary aide. The revelations in early 2017 derailed Fillon’s campaign to become France’s next president, and helped propel Emmanuel Macron to power.
In Case You Missed It
Virus Resistance | German business sentiment hasn’t been dramatically shaken by the coronavirus outbreak, suggesting firms see a short-term impact that won’t overly disrupt a pickup in 2019. The latest numbers come as European activity surveys proved stronger than expected in February, indicating some resilience across the corporate world, in stark contrast to Asia.
Inflation Surprise | Hungary’s Deputy Central Bank Governor, Marton Nagy, said in October that inflation was effectively dead globally and near-zero borrowing costs were here to stay. Snap forward just four months and he’s facing the fastest ramp-up in prices in the EU.
Traffic Jam | Three decades after Romanian dictator Nicolae Ceausescu’s demise, the legacy of his megalomania has been to make Bucharest the most congested capital in the EU for the past three years. Traffic and pollution have become a key part of the campaign before local elections.
Vexing Russia | Prague will rename the square that’s home to the Russian embassy after a murdered critic of President Vladimir Putin, risking a confrontation with Moscow. The move marks the latest decision by the city to put it at odds with the governments of large foreign powers, and reinforces a growing trend of liberal capital cities diverging from the policies of populist national governments.
Chart of the Day
The U.K. government is refusing to ask ports to get ready to implement new checks on goods moving between Britain and Northern Ireland, a decision that risks inflaming tensions between London and Brussels ahead of next week’s trade talks.
Today’s Agenda
All times CET.
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9 a.m. ESM Managing Director Regling speaks at Markets4Europe event in Luxembourg
- 10 a.m. European affairs ministers meet in Brussels to approve post-Brexit FTA negotiating mandate, discuss Commission’s proposal for revising methodology of accepting new members
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