Brussels Edition: Thumbs Down From Greta

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

Greta Thunberg, the teenage Swedish activist who has taken on Donald Trump over climate change, is in Brussels today for a special meeting in the European Parliament. It’s no coincidence: The EU will attempt to offer investors more certainty about its plan to eliminate emissions by 2050, proposing a draft law to make the target binding. Expect a great deal of fanfare from the European Commission, despite a big thumbs down from Greta.

What’s Happening

G-7 Action | In the wake of the G-7’s pledge to shield markets and economies from the effects of the coronavirus, EU finance ministers will hold an emergency video-conference today to discuss the latest on the outbreak. Meanwhile, after the Federal Reserve yesterday delivered its first emergency rate cut since 2008, pressure is rising on other major central banks to act — though they have less room for maneuver.

Migrant Conundrum | Home affairs ministers hold an extraordinary meeting today to offer emergency support to Greece, amid a mounting migration crisis on its border with Turkey. The elephant in the room will be the EU’s dysfunctional migration management system, which has kept the bloc hostage to Turkey’s mood swings, but is unlikely to be reformed any time soon.

Syria Talks | At least one Turkish soldier was killed in Syria ahead of President Recep Tayyip Erdogan’s visit to Moscow on Thursday, increasing tensions between the two nations. Erdogan hopes to convince President Vladimir Putin to rein in the forces of Syrian President Bashar al-Assad and agree to a Turkish-controlled safe zone. And as the refugee crisis rumbles on, here’s where Erdogan’s threat to the EU really lies.

Hydrogen Push | German ministers have been quietly lining up deals with nations including Nigeria that might produce hydrogen as the country looks to meet its goals under the Paris Agreement on climate change. Here’s why it’s such an attractive proposition for Europe’s largest economy.

In Case You Missed It

Spanish Banks | Spain’s banks avoided the worst-case scenario of massive compensation payments to customers over controversial mortgage terms after the EU’s Court of Justice sent the matter back to national judges. Stocks soared in response.

Balkan Friction | Serbia and Kosovo need to heal their rift before joining the EU, but if anything it’s growing wider. Serbia announced yesterday that Sierra Leone had withdrawn its recognition of Kosovo, making it the 18th nation to be lobbied into doing so and further complicating mediation efforts between the two sides.

Stalling Inflation | Euro-area inflation slowed to a three-month low in February, highlighting how disruption unleashed by the spreading coronavirus is hitting the bloc’s economy. A slump in oil and other commodities triggered by factory closures around the world pushed down the region’s headline rate to 1.2%. Here’s what markets expect from central banks this month.

Nationalist Rise | Slovenia extended the list of staunch nationalists heading EU member-states by confirming Janez Jansa as its new prime minister. Brussels is unlikely to relish the prospect of another firebrand leader on its eastern flank, where democratic backsliding is raising questions about the bloc’s future.

Warm Wine | In Germany’s Mosel valley, vintners hope that temperatures will drop below minus 7 degrees Celsius in order to produce the region’s famous ice wine. But factor in global warming, it’s becoming an increasingly risky business.

London Calling | Europe’s richest man, Bernard Arnault, is among a pack of potential bidders vying London’s iconic Ritz Hotel, according to the Times of London. It won’t come cheap though, with a price tag of as much as 800 million pounds.

Chart of the Day

The OECD says a longer-lasting and more intense coronavirus outbreak could slow global growth to just 1.5% and cause recessions in multiple economies. Such a development would warrant coordinated efforts by central banks and governments. In its latest global outlook, the organization said working in concert “creates positive spillover effects through trade and improved confidence, resulting in a larger overall output gain in each country than if they acted alone.”

Today’s Agenda

All times CET.

• 11 a.m. Eurostat to publish retail data for January
• 1 p.m. Greta Thunberg speaks to EU lawmakers in Brussels
• 3 p.m. Court hearings in Luxembourg’s spy scandal continue
• 5 p.m. Home affairs ministers hold extraordinary meeting on the situation at the EU’s external borders
• Finance minsters hold conference call to discuss latest coronavirus developments and coordinate responses
• Commission unveils proposal to make transition to climate neutrality a binding target for the bloc
• Trade chief Hogan speaks at BusinessEurope conference in Brussels
• Climate chief Timmermans participates in a Citizens’ Dialogue on the European Climate Pact, at the European Parliament in Brussels
• First round of post-Brexit negotiations continues in Brussels

--With assistance from Viktoria Dendrinou, Zoe Schneeweiss and Nikos Chrysoloras.

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

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