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NATO Shoots for the Moon Amid Earthly Tensions: Brussels Edition

NATO Shoots for the Moon Amid Earthly Tensions: Brussels Edition

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

It’s not every day NATO becomes a microcosm of geopolitics, but that’ll be the case this afternoon when the alliance’s foreign ministers meet in Brussels. The agenda includes Russian threats, terrorist risks, Middle East stability, Europe’s military capabilities, arms control and even the rise of China. Hanging over the gathering will be fresh internal splits after France’s Emmanuel Macron said the alliance faced “brain death” as a result of Donald Trump’s decision to green-light a Turkish incursion into Syria without consulting European allies. Still, such divisions won’t prevent the ministers from venturing to the final frontier: outer space will be added to the alliance’s operational domains. 

What’s Happening

Budget Opinions | The European Commission will today publish its verdict on the budget plans of euro area economies, and while the usual suspects such as France and Italy are expected to get a warning, the scrutiny will have none of the fireworks last year’s tussle with Rome did. Look out for the latest report on Greece’s post-bailout progress, that’s set to unlock further debt relief funds. 

Embattled Envoy | Gordon Sondland, Donald Trump’s “point man for Europe,” is likely to take fire from all sides when he testifies to the U.S. Congress today. The ambassador to the EU is under attack for inconsistencies in statements he’s offered under oath about efforts to influence Ukraine. If he goes down, he won’t be missed by officials in Brussels.

China Block | The EU is poised to say potential 5G suppliers will be evaluated based on their home country’s laws, a stance that could exclude Chinese businesses from lucrative contracts for the advanced telecoms networks. Such a move would come after U.S. and EU officials have repeatedly flagged concerns about partnering with Chinese equipment makers such as Huawei for 5G networks. 

Conservative Crisis | The breakdown of discipline in Angela Merkel’s once-dominant party is symptomatic of a deeper crisis gripping conservatives across Europe. As the continent’s center-right leaders gather in Zagreb for their congress, here’s why things don’t seem to be going well for the movement. 

In Case You Missed It

U.K. Debate | Labour’s Jeremy Corbyn  defied his negative ratings to draw level with Prime Minister Boris Johnson in a crucial television debate ahead of the U.K.’s general election. The opposition leader, who’s been lagging behind Johnson in personal approval scores, effectively tied with the premier in a snap poll on which candidate won the clash last night.

Polish Ruling | Poland’s government suffered another blow to its sweeping judicial reforms after the EU’s highest court raised fresh concerns over the independence of judges. But that didn’t deter the country’s premier, who vowed to return “normalcy” to his nation by building an even greater patriotic welfare state and win a “culture war” to defend traditional Catholic values.

Coal Shutdown | Discussions about how to shut down Germany’s coal industry are faltering as company executives and government ministers struggle to agree over the politically charged issue of compensation. A timely agreement on winding down coal plants is a crucial link in the government’s effort to get climate policies back on track.

Green Search | As awareness increases around the impact of climate change — from floods wiping out harvests to droughts forcing water restrictions — a small German search engine tries to counteract the devastation. Here’s how you can help save the planet with the push of a button.

Spanish Deal | Catalan separatists are preparing for the possibility of a deal that would put Pedro Sanchez back in power. While support from Esquerra Republicana leaders isn’t a done deal, they’re meeting local groups to minimize potential backlash. The price for Sanchez: engage directly in talks over the future of Catalonia.

Chart of the Day

NATO Shoots for the Moon Amid Earthly Tensions: Brussels Edition

Most people in Group of Seven nations are uneasy about female leadership, a study published yesterday shows. On average, 46% of G-7 residents are “very comfortable” with a woman as head of government and 48% with a female CEO of a major national firm, according to a survey by Kantar and the Women Political Leaders group. 

Today’s Agenda

All times CET.

  • 4 p.m. NATO foreign ministers meet in Brussels
  • 7 p.m. European Council President-Elect Charles Michel meets Dutch Prime Minister Mark Rutte in the Hague; gives speech at the University of Amsterdam at 2 p.m.
  • Commission to release formal opinion on budgets of member states, Greece enhanced surveillance report
  • EU trade chief Cecilia Malmstrom participates in a panel discussion at event hosted by the Centre for European Policy Studies in Brussels
  • EU center-right leaders hold European People’s Party Congress in Zagreb

--With assistance from Zoe Schneeweiss and Nikos Chrysoloras.

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

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