Brussels Edition: Overcoming Insecurity
Brussels Edition: Overcoming Insecurity
(Bloomberg) -- Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.
With the end of a landmark arms-control pact between the U.S. and Russia looming, NATO defense ministers will explore ways to enhance Europe’s security. The 1987 Intermediate-Range Nuclear Forces Treaty, which bans missiles with ranges of between 500 and 5,500 kilometers, is due to expire Aug. 2 after Russia allegedly violated the terms. The ministers meeting in Brussels today will appeal to Moscow to return to compliance. It’s another foreign-policy headache for Europe, especially with escalating tensions between the U.S. and Iran.
What’s Happening
Climate Setback | The failed push at last week’s EU summit to agree to end greenhouse gas emissions by 2050 is a setback that environment ministers meeting in Luxembourg today will have to grapple with. Germany endorsed faster climate action, but Poland, Hungary and the Czech Republic blocked the deal over concern that aggressive fossil-fuel limits will hurt their economies.
Italian Compliance | Even if data today show Italy is making progress toward meeting this year’s budget targets, the real battle will be to convince Brussels its 2020 outlook is also improving. Those are the main figures the European Commission will be keeping an eye on to determine whether to open disciplinary proceedings next week.
Trade Partners | A trade deal between the EU and the Mercosur countries is getting closer to becoming reality. Trade chief Cecilia Malmstrom will meet her counterparts from the four South American nations to assess progress on talks that began in Brussels last week. A deal could expand on the 85 billion euros a year of trade in goods that already happens.
Ethical Robots | A group of artificial intelligence experts in the EU will make recommendations today on how the technology can be developed in an ethical way. Their report could form the basis for EU legislation as the use of algorithms spreads to different areas of society.
In Case You Missed It
Johnson’s Plans | Boris Johnson spelled out three Brexit scenarios to take Britain out of the EU on Oct. 31. Problem is, his plan A and plan B have already been rejected by the bloc — and plan C is no-deal, something most MPs oppose. Members of Johnson’s Conservative party are plotting ways to stop him.
Heat Frenzy | How far would you go to cool down as forecasts surge across the continent? A 32-year-old man in rural Germany disrobed and ran through the freezer section of a supermarket to cool off. The heat is so extreme that authorities, fearful of cracks appearing in the road, have imposed speed restrictions on usually limit-free stretches of the autobahn network.
Czech Protests | Since the spring of 2019, Czechs have been protesting in the streets against billionaire Prime Minister Andrej Babis, who won power in 2017 on an anti-establishment platform. They say he is compromised by his business interests and may try to meddle in the country’s courts. Read this explainer on why Czechs are so upset.
Chart of the Day
Trade tensions and rising fuel costs may be hitting airlines everywhere, but European carriers are feeling the pinch more than their American and Asian peers. That’s because there’s more competition in Europe, regulatory costs are high and the region is most exposed to international trade.
Today’s Agenda
All times CET.
- 10 a.m. EU environment ministers meet in Luxembourg to discuss how to achieve net-zero emissions
- 11:30 a.m. BoE Governor Mark Carney to testify before Parliament’s treasury committee on May’s inflation report
- 2:30 p.m. QED workshop on financial benchmarks with EU Commission, industry officials
- NATO defense ministers meeting in Brussels
- French President Emmanuel Macron in Japan for bilateral meetings ahead of G-20
- Italian 1Q deficit figures
- Correction: Jean-Claude Juncker and Donald Tusk’s working lunch with Japan’s Shinzo Abe in Osaka is on Thursday
--With assistance from Ewa Krukowska and Alessandro Speciale.
To contact the editor responsible for this story: Daliah Merzaban at dmerzaban@bloomberg.net, Andrew Blackman
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