Brussels Edition: WTO Danger, YouTube Dispute

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

The World Trade Organization is in serious trouble. The U.S. is sabotaging the trade bloc’s mechanism for settling disputes and has threatened to block its budget as soon as next month, a move that could bring its work to a halt. European lawmakers meeting in Strasbourg will debate the crisis today, but without a precedent for anything similar, it’s unclear what happens if the U.S. makes good on its threat. So far, proposals to alleviate U.S concerns have been rejected. In the meantime, the clock keeps ticking to Dec. 10, when the WTO will lose its ability to arbitrate commercial disputes.

What’s Happening

Sharing Battle | Google and YouTube are at the center of a dispute at the EU's top court over uploaded videos that violate copyright rules. The case follows a referral by Germany’s top court, which sought the EU judges' guidance in a lawsuit by a music producer against Google and the video-sharing platform. 

Northern Winds | The wind power expansion sweeping northern Sweden has been likened to the Texan wind boom of the past few decades, which turned the state into the biggest producer in the U.S. Here’s how Scandinavia's biggest economy wants to become a renewables superpower.

Green Plans | The EU needs to tighten its 2030 emission-reduction target next year and impose stricter pollution limits on companies in the world’s biggest carbon market, the Netherlands said in its assessment of the incoming executive’s plans to make Europe the first climate-neutral continent by 2050. The Dutch are trying to do their part, starting with pigs. 

Balkan Exodus | Depriving western Balkan countries of a clear chance to join the EU risks accelerating the already alarming pace of migration from the region, North Macedonia’s president said. The cool reception from established EU members is also raising concern that the bloc is losing clout in the region as China, Russia and Turkey push to increase their influence.

In Case You Missed It

Slow Lane | German business expectations improved in November, adding to signs the downturn in Europe’s biggest economy may be bottoming out. The readings support the growing optimism about Germany’s economy — after it dodged a recession this year — and strengthen Berlin’s case against government spending. 

Spy Drama | President Donald Trump’s ambassador to Germany said comments by government officials equating the threats of espionage by the U.S. and China were an “insult” to American troops stationed in the country. Along with trade, defense spending and Russian gas, Huawei’s role in Germany’s 5G networks has been a source of increasing tension between Berlin and Washington. 

Italian Hazards | Italy suffered its second bridge collapse in 15 months, raising major questions about the safety of the country’s aging infrastructure. Italy’s weak economy and massive debt have left little room for government spending.

German Job | Thieves made off with jewelry and artifacts worth a reported $1.1 billion after a burglary at a German museum. The stolen goods include ensembles of diamonds that are of “priceless art-historic value.” And it’s not the first time.

Chart of the Day

The first pickup in euro-area inflation in five months is on its way, with price growth forecast to have accelerated to 0.9% in November from 0.7%. But the headline rate is still well below the European Central Bank’s goal and highlights the big challenge facing President Christine Lagarde. 

Today’s Agenda

All times CET.

• 9:30 a.m. EU top court hears arguments on the responsibilities of platforms such as YouTube when copyright-infringing content is shared there 
• EU lawmakers in Strasbourg to debate crisis at the WTO appellate body
• European Data Protection Supervisor (EDPS) chooses its next leader
• European Investment Bank annual economics conference in Luxembourg
• ECB Executive Board member Benoit Coeure speaks in Brussels
• Italian Prime Minister Giuseppe Conte meets Greek leader Kyriakos Mitsotakis

--With assistance from Stephanie Bodoni.

To contact the editor responsible for this story: Emma Ross-Thomas at erossthomas@bloomberg.net, Chad Thomas

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