Brussels Edition: A Trillion-Euro Pile of Green Cash

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

As the EU grapples with the limits of its foreign policy clout, it’s shifting focus to where it can legitimately claim to be a world leader. Next week, the Commission will unveil an investment plan designed to mobilize at least 1 trillion euros over the next decade for an unprecedented shift to a climate-neutral economy. Here’s what you need to know about the Sustainable Europe Investment Plan, based on a draft we got hold of. But is the pot big enough to fund such a monumental overhaul, not to mention convincing skeptics like Poland to jump on the bandwagon?

What’s Happening

Foreign Talks | EU foreign ministers meeting in Brussels today will reiterate their support for the moribund Iran nuclear deal and their calls for de-escalation in the Middle East, while pledging further support to Libya. The EU wants to make its itself useful (and therefore relevant) as a mediator in the conflicts raging in its own backyard, with little to show for its efforts so far.

Pension Strife | The French government plans to meet with unions again today as it seeks a way to balance the cost of its pension system. The meeting comes after unions kept up pressure on Emmanuel Macron to abandon his reforms with a fourth day of demonstrations across the country yesterday, even though the government said a compromise may be in sight.

Budget Vote | Portuguese Prime Minister Antonio Costa’s 2020 budget is set to pass in an initial vote in parliament today thanks to the planned abstentions of lawmakers from several parties. The spending plan is Costa’s first budget after winning a second term and the premier wants to post the country’s first surplus in four decades of democracy, helped by higher tax revenue.

Climate Push | Germany’s long and lengthening catalog of outstanding climate goals, among the top priorities on the government’s agenda this year, threatens to tarnish Chancellor Angela Merkel’s legacy if left unfulfilled. Here’s the to-do list facing Germany’s so-called “Climate Chancellor” in 2020.

In Case You Missed It

Brexit Deal | Boris Johnson’s Brexit legislation cleared its final hurdle in the House of Commons, putting an end to the parliamentary gridlock that cost his predecessor Theresa May her job. With the U.K.’s split from the bloc this month now virtually a formality, attention is already turning toward negotiations on the future relationship.

Looking Up | German industrial production rebounded in November, a cautious sign that Europe’s largest economy may be near the bottom of its manufacturing slump. The data, which follows numbers that showed factory orders tumbling, will be keenly studied by the ECB, which has ramped up stimulus to combat a slowdown in the euro region.

Orban Plan | Hungarian Prime Minister Viktor Orban said he’s ready to start a new political platform in Europe if his Fidesz party is forced out of the European People’s Party. The continent’s biggest political group has played a key role in protecting Orban over the past decade, as he centralized power at home while drawing EU probes over the erosion of the rule of law.

Head Scratcher | Sweden’s Riksbank is facing criticism from economists for not doing enough to explain last month’s historic decision to end five years of negative interest rates. The confusion follows an increasingly tense debate around the merits of negative rates while the central bank has defended what it saw as the only way to fight years of disinflation.

New Hires | Europe’s top market watchdog is adding more than 100 extra staff as it plans a major expansion of oversight over the next couple of years. The Paris-based European Securities and Markets Authority said its priorities will include bolstering EU capital markets and responding to Brexit, which will strip the regulator of its biggest financial hub.

Irish Prize | Apple CEO Tim Cook will receive an award in Dublin on Jan. 20 in recognition of the iPhone maker’s 40 years of investment in Ireland — a decision that may raise some eyebrows. Although it’s one of the nation’s major employers, Apple is still reeling from being hit with a record 13 billion-euro Irish tax bill in one of the biggest state aid cases on record.

Chart of the Day

More than 7% of the EU population said they couldn’t afford to heat their home sufficiently in 2018, according to an EU-wide survey — an improvement from a peak recorded six years previously. The results vary significantly across the region. One in three Bulgarians, in the bloc’s southeastern corner, suffer chilly abodes. That number was less than 2% in Finland — the EU’s northernmost member — and Austria.

Today’s Agenda

All times CET.

• 3 p.m. Extraordinary meeting of EU foreign affairs ministers to discuss recent events in Iraq, focusing on ways to de-escalate tensions in the region
• Commission President von der Leyen, together with College of Commissioners, holds official meetings in the framework of the Croatian Presidency, including with Prime Minister Plenković

--With assistance from Nikos Chrysoloras, Joao Lima and Zoe Schneeweiss.

To contact the editor responsible for this story: David Merritt at dmerritt1@bloomberg.net, Iain Rogers

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