Brussels Edition: Google’s Memory, Tax Rulings, Fining Banks

(Bloomberg) -- Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

The EU’s top court can’t forget about a 2014 “right to be forgotten” case. Today, the European Court of Justice rules on the limits between privacy and free speech by weighing on disputes between Google and France’s privacy regulator over how far the search engine should go to remove links to personal information on demand. Google will hear if it should remove search results globally or across Europe and whether it can refuse to remove links to some sensitive information if there is a public interest. No matter the outcome, the case illustrates how the EU has become a regulatory superpower, setting standards that industries have to follow way beyond its shores. 

What’s Happening

Twin Track | The Brexit focus will be on either side of the Atlantic today. In New York, Boris Johnson will continue his campaign for the EU to soften its stance, following up last night’s meetings with German Chancellor Angela Merkel and French President Emmanuel Macron by discussing with Irish leader Leo Varadkar and Dutch Prime Minister Mark Rutte. Potentially more explosive is the Supreme Court ruling on the legality of Johnson’s suspension of Parliament, due at 11:30 a.m. Brussels time.

Tax Challenges | Apple may get early clues today about its chances of toppling a record EU tax bill as the same panel of judges weighing its appeal will give its first decisions in two smaller, but related challenges by Starbucks and a Fiat Chrysler unit. Appeals have been piling up at the EU General Court in Luxembourg with companies and member states railing against antitrust chief Margrethe Vestager’s five-year crackdown on allegedly unfair tax deals.

Euribor Fines | Judges at the EU’s second-highest court today will also rule on HSBC’s appeal against its share of a fine totaling 485.5 million euros against three banks for rigging the Euribor benchmark rate. The trio, including JPMorgan Chase and Credit Agricole, had refused to join a settlement with four other banks. HSBC’s fine was the smallest at 33.6 million euros, but the ruling will be watched as the other two lenders’ appeals are still pending.

Polish Justice | The EU tribunal will also publish a non-binding opinion in a case about Poland’s new regime to discipline judges. Many justices were targeted after agreeing with the Commission that the government’s judicial revamps curb the independence of courts. If you are seeking proof that something is seriously wrong with Poland’s justice system, look no further than this astonishing Kafkaesque story.

Energy Plans | The EU is working to bring members states that are lagging on climate and energy targets into line, stepping up pressure for more action to reduce pollution. Energy ministers meeting in Brussels today will discuss action after an analysis showed the region may miss its goal to boost clean energy use and efficiency by almost a third by 2030.

In Case You Missed It

Climate Summit | You know that things are getting serious with climate change when even Donald Trump surprisingly shows up at a summit on how to save the planet and Big Oil pledges to go green. Meanwhile, central banks are also joining forces to promote sustainable growth, after realizing that climate change threatens output and could even sow the seeds of a financial crisis.

Draghi’s Farewell | The ECB must watch out for side effects from its unconventional monetary policy, which may need to stay loose to aid growth for quite a while, Mario Draghi said in his final address to EU lawmakers. Perhaps as a parting gift to his successor Christine Lagarde, “Super Mario” signaled the Governing Council should even examine unconventional ideas, such as handing free money “directly in the hands of public and private sector spenders” to boost inflation. 

Course Change | Iran’s key European partners distanced themselves from Tehran amid rising tension with the U.S., saying the Islamic Republic was responsible for the Sept. 14 attacks on Saudi oil facilities and calling for an expanded deal to constrain the country’s nuclear and missile programs. France, Germany and the U.K. reiterated their support for the nuclear accord, but didn’t repeat their past criticism of Trump’s decision to withdraw.

Italian Plan | Italy’s new government is targeting economic growth of up to 0.5% next year, with a deficit at around 2%–2.1% of GDP, according to an official familiar with the plans. While these figures aren’t final, Rome is confident it can exploit friendlier ties with the EU to obtain a flexible approach to its 2020 budget and avoid a repeat of previous clashes, according to a senior lawmaker. 

Demagogue’s Secret | Viktor Orban has erected barbed-wire fences to keep out refugees and withheld food from some housed in detention centers. Yet Hungary and other nearby nations with an anti-immigrant bent are quietly nudging open a back door to foreigners.

Chart of the Day

Germany’s private sector is suffering its worst downturn in almost seven years as a manufacturing slump deepens, raising pressure on the government to add fiscal stimulus. A Purchasing Managers’ Index fell to the lowest since October 2012 . 

Today’s Agenda

All times CET.

• 8 a.m. Informal meeting of EU agriculture ministers in Helsinki
• 9 a.m. EU’s energy ministers meet in Brussels to help member states revise their energy and climate plans
• 9:30 a.m. The EU’s top judges will rule on whether Google will have to apply the so-called right to be forgotten globally 
• 9:30 a.m. The EU’s second-highest court will rule in a series of challenges against Commission decisions ordering them to pay back taxes that allegedly violated state-aid rules 
• 9:30 a.m. HSBC will find out the lower EU’s court’s ruling on its appeal against its share of a rate-rigging fine
• 9:30 a.m. EU court gives a non-binding opinion in a Polish case concerning disciplinary proceedings against judges 
• 10:30 a.m. ESM Managing Director Regling and Luxembourg Finance Minister Gramegna discuss “The Inside Story of the ESM” in Luxembourg
• Working party of EU diplomats meet in Brussels to discuss state of play in Brexit negotiations
• Opening of the 74th Session of the UN General Assembly in New York
• The WTO will broadcast a public hearing over the legality of the EU’s retaliation to U.S. steel and aluminum tariffs

--With assistance from Nikos Chrysoloras, Viktoria Dendrinou, Ewa Krukowska, Wojciech Moskwa and Zoe Schneeweiss.

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net, Chris Reiter

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