Brussels Edition: Money Troubles, Last Man Pending

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

As EU governments tussle over the size of the bloc’s next long-term budget and how the funds should be distributed, they have more imminent money troubles to deal with. Contentious talks over how much to spend next year resume today after a late-night meeting on Friday failed to produce a deal. At stake is much more than next year’s pocket change. If a compromise on the EU’s long-term budget isn’t found on time, whatever is agreed for 2020 will act as a reference until a final deal is struck. With that in mind, no one is willing to give any ground. 

What’s Happening

One to Go | Hungary’s nominee for the Commission, Oliver Varhelyi, has to send his written answers to the European Parliament today after his audition failed to impress. Barring any major surprises, however, it’s unlikely the assembly will hold up his confirmation any further, clearing the way for Ursula von der Leyen and her team to take office next month.

German Spillover | Tremors from Germany’s downturn are reverberating in Italy — particularly in the country’s industrial heartland. Companies in the prosperous north have been hit by declining sales as Europe’s largest economy buckles under a manufacturing slump. That’s a problem for Italy’s government, desperate to boost its own economic growth and get control of its debt load.

Lagarde Speech | Christine Lagarde will come under the microscope this week when she delivers her first major speech as ECB president. With investors on the lookout for clues to her policy initiatives and communication style, her address will come just after the ECB releases accounts of Mario Draghi’s final policy meeting, when the Governing Council was recovering from an unprecedented spat.

Discussing Deposits | Speaking of clues, a discussion between Eurogroup President Mario Centeno and lawmakers at the EU Parliament could provide insight into the latest developments regarding the controversial issue of common deposit insurance. Despite a recent German-led push to break a longstanding impasse, differences loom large as the EU hopes for consensus on the next steps in December.

In Case You Missed It

Brexit Unknowns | Boris Johnson said every Conservative candidate has promised to back his Brexit plan, a significant pledge given that the Tories’ inability to agree has been the biggest obstacle to getting deals through Parliament. As the election revs up, Johnson will try to win business leaders to his side today by offering tax cuts as an olive branch for the disruption caused by Brexit.

Flight Future | Airbus could potentially build an emission-free, 100-seat regional aircraft by the early 2030s, the head of its new-product development arm said in an interview. While the aviation industry is under intense scrutiny over its role in contributing to global warming and air travel’s carbon footprint, its ability to respond is limited by development cycles lasting a decade or longer.

Emboldened Nationalists | Sweden Democrats, a party once shunned for its ties to far-right extremism, is now riding a wave of popularity, reaching the top of polls for the first time. The party now wants significant political influence, its leader said in an interview, something that would mark a historic break in the Scandinavian nation’s balance of power.

Illiberal Plans | Concerns over the erosion of the rule of law in Hungary are resurfacing after Viktor Orban’s government sought to broaden the role of the politicized Constitutional Court in cases involving rulings over elections and corruption. The move comes less than a month after Orban backed down from a controversial plan to create a new top court and will likely raise eyebrows in Brussels.

Chart of the Day

Young shoppers can’t get enough of almond drinks, coconut yogurt and plant-based ice cream. Imitation cheese has been slower to catch on and remains just a tiny fraction of the dairy-alternatives industry. But artisan-style vegan cheesemakers are popping up across Europe and North America in an attempt to capture some of the fast growth in all things plant based.

Today’s Agenda

All times CET.

• 3 p.m. Eurogroup President Centeno will discuss recent developments in the euro area with EU Parliament
• EU finance ministry officials resume negotiations with the European Parliament on the general budget for 2020
• Agriculture and fisheries ministers meet in Brussels
• Commission Vice President Frans Timmermans meets billionaire George Soros
• Incoming EU trade chief Phil Hogan delivers an address at the Institute of International and European Affairs in Brussels 
• ECB Vice President Luis de Guindos speaks in Frankfurt
• ECB Chief Economist Philip Lane speaks in Paris
• Catalan President Joaquim Torra is in court over his ties to the recent protests

To contact the editor responsible for this story: Heather Harris at hharris5@bloomberg.net, Chris Reiter

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