Brussels Edition: Austrian Dating Game, French Budget, Brexit Talks

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

Austria’s snap elections on Sunday have descended into the political equivalent of a TV dating gameshow, with a string of contestants fighting to partner with Sebastian Kurz in his comeback as chancellor. The far-right Freedom Party, Kurz’s erstwhile partner, has made the most blatant play, running ads with a Kurz lookalike in couples therapy. The Social Democrats, the Greens and the liberal Neos would also team up with him to block the hard right. The dilemma for the 33-year-old conservative Wunderkind is that each option has more downside than upside

What’s Happening

Crisis Skills | Call it muscle flexing or simply due diligence, but the new European Commission is in for a bumpy ride at confirmation hearings next week. EU lawmakers have already suspended the process for two commissioner-designates over findings in their financial statements. As became clear last summer, Ursula von der Leyen’s crisis-management skills will be tested before she even takes over as Commission president.

Not Much Optimism | EU chief negotiator Michel Barnier hosts U.K. Brexit Secretary Stephen Barclay in Brussels again today, but talks are making no progress toward a deal. The fiery exchanges in the House of Commons make EU officials even warier of making concessions to Prime Minister Boris Johnson because they doubt he can get a deal approved by Parliament. 

French Budget | President Emmanuel Macron will present France’s 2020 budget today with tax cuts to appease the Yellow Vest protests. The stimulus is a fortuitous boost for the euro area’s second-largest economy, but may raise eyebrows in Brussels as Paris has penciled in zero reduction in its structural budget deficit. 

Venezuela Sanctions | The EU today will add seven more Venezuelan officials to its sanctions list and reiterate its offer to Nicolas Maduro for a negotiated transition. The move echoes similar measures taken by the U.S. this week, which — like previous efforts to oust Maduro — have failed. 

In Case You Missed It

ECB Reshuffle | German hawks lost another toehold in the European Central Bank this week. But Angela Merkel didn’t seem too bothered. Here’s why.

Disappointed Iran | Iran is getting only “empty words and promises” from the EU, its Supreme Leader reckons. Ayatollah Ali Khamenei said Tehran should give up any hope that European powers want to rescue the 2015 nuclear deal from a U.S. assault. Ironically, when it comes to assessing EU foreign-policy effectiveness, Iran is on the same page as the U.S.

Chirac’s Passing | Jacques Chirac, the French president who led his country into Europe’s common currency and spearheaded international opposition to the U.S. invasion of Iraq, died yesterday. Like his mentor, Charles de Gaulle, Chirac forged a reputation for defiance, first toward his own bosses and later toward “Anglo-Saxon dominance.”

French Shopping | French unions hate extended hours, but rules intended to protect workers threaten to hasten the disappearance of jobs for checkout clerks. Two retail chains have already come up with a way around tough labor regulations: opening without employees.

Flight Shame | Companies across Europe are reconsidering travel policies, and individuals are asking whether jetting off to sunny spots for holidays is worth the environmental cost. The Swedes even have a name for it: flygskam, or flight shame, and it’s a growing threat to airlines.

Chart of the Day

Sabine Lautenschlaeger may have become the third German member of the ECB’s Executive Board to leave her post early, but the euro remains very popular in her home country. More than 80% of respondents in the latest Eurobarometer survey were in favor of the economic and monetary union. That’s higher than the average across the 19 member countries, and up from 75% in 2014 when she took office.

Today’s Agenda

All times CET.

• 9 a.m. Commission President Jean-Claude Juncker and Japanese Prime Minister Shinzo Abe deliver speeches at the Europa Connectivity Forum and meet for a working lunch
• EU’s chief negotiator Barnier meets U.K’s Brexit Secretary Barclay as negotiations continue at the technical level
• EU to announce new round of targeted measures against Venezuela’s regime
• Crisis Management Commissioner Christos Stylianides delivers speech at Harvard University in Boston about Europe’s role in tackling global challenges

--With assistance from Ian Wishart, Zoe Schneeweiss and William Horobin.

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

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