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Brussels Edition: More Questions Than Answers

Brussels Edition: More Questions Than Answers

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

Arguments over how to fund economic recovery in European countries hit hardest by the coronavirus have become well rehearsed over the past month or so. Amid stiff resistance from Northern hawks, even Italy now appears to be giving up on its demands for joint debt issuance. Still, the preparatory documents ahead of tomorrow’s e-summit leave too many other questions open about the funds that will be needed. Without details about the size, scope, resources, form, time frame and conditions attached to the money, there’s little chance that leaders will come up with too many firm answers when they speak tomorrow.

What’s Happening

Virus Latest | Italian Prime Minister Giuseppe Conte pledged a new economic stimulus package, as he signaled readiness to soften Italy’s red lines. Dutch Prime Minister Mark Rutte announced his first cautious moves to ease lockdown measures, and France reported the number of patients in intensive care fell to the lowest in three weeks.

Devilish Dilemma | A widening range of governments are laying out plans for a gradual return to normality. But with more than 100,000 fatalities in the region, Europe’s leaders are seeking to strike a balance between saving lives and securing jobs. It’s a devilish dilemma, Wout Vergauwen explains.

Vaccine Trials | The U.K. will begin human trials of a coronavirus vaccine on Thursday. Meanwhile, the government has come under heavy criticism over shortages of protective medical equipment and today will face its first political test in Parliament.

China Rift | With a series of high-level summits culminating in a visit to Germany in the fall by President Xi Jinping, this was supposed to be the year of Europe-China diplomacy. Instead, Europeans are warning of a damaging rift. Here’s how Beijing’s handling of the crisis has eroded trust.

Green Recovery | A climate-friendly recovery from the virus crisis in the EU needs an agreement on how to use state aid so that it doesn’t trigger competition concerns, according to the bloc’s climate chief Frans Timmermans. 

In Case You Missed It

Business Support | Spain is considering pledging additional funds to help companies pay their suppliers on time, a move that aims to stave off the collapse of businesses. The government has already vowed to guarantee as much as 100 billion euros in bank loans to help tackle cash-flow problems, but the program may not be enough. 

Drink Up | Because of contagion concerns, Munich’s Oktoberfest folk and beer festival has been canceled for the first time since World War II. “We agreed the risk is simply too great,” Bavarian Premier Markus Soeder said. The annual event brings in around 1.2 billion euros for local businesses, especially hotels, restaurants and taxi drivers.

Language Damages | In a #metoo milestone in France, a dentist was ordered by the country’s top court to pay damages for sexually abusing a woman assistant, after the man was cleared of related criminal charges. The judges said the dental assistant was entitled to unfair-dismissal damages after complaining about her boss’s inappropriate language.

Cash Crisis | Rinat Akhmetov, Ukraine’s richest man, survived the murder of a business partner, war and attempts by a former comedian-turned-president to curb his monopoly; but his fortune, once worth $22.4 billion, has tumbled 80% over the past seven years. It’s one of the largest declines tracked by the Bloomberg Billionaires Index.

Chart of the Day

Brussels Edition: More Questions Than Answers

Airlines have cut international capacity to just half a million seats a week from an average of 5.9 million before the coronavirus shut borders and decimated travel demand, according to OAG Aviation Worldwide. “There isn’t much more international capacity that can be dropped around the globe,” OAG senior analyst John Grant said.

Today’s Agenda

All times CET.

  • 9:30 a.m. Video conference of European affairs ministers
  • 10.30 a.m. EU-U.K negotiations on their future relationship continue via video conference
  • 11 a.m. Eurostat to release data on 2019 general government deficit and debt
  • 1 p.m. U.K. Prime Minister’s Question Time takes place for first time since lockdown, mainly by video conference
  • 3:30 p.m. Video conference of foreign affairs ministers
     

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