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Brussels Edition: Jobs Jamboree

Brussels Edition: Jobs Jamboree

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

EU summit chair Donald Tusk today takes his push for a deal on filling the bloc’s top jobs to the European Parliament, a key actor because it must approve the pick for the biggest prize: European Commission chief. The game of musical chairs is so tangled this time that even the assembly’s vote on its own president in early July may end up being part of an overall accord among countries and political parties over who gets to lead which institution. Signals are getting louder that Greens co-leader Ska Keller is mounting a bid to succeed Antonio Tajani atop the bloc’s only directly elected institution.

What’s Happening

Turkish Threats | If any proof was needed that it wasn’t just Greece’s ancient sensitivities holding back North Macedonia’s European prospects, wait for today’s communique by EU governments, which will likely delay accession talks with the Balkan nation. Ministers meeting in Luxembourg will also warn Turkey over its drilling off the coast of Cyprus, a further sign of deterioration in Ankara’s ties with Europe.

Narrowing Down | Today the race to become Britain’s next prime minister gets serious, as the second round of voting among Conservative Party lawmakers could see several candidates leave the contest. There will be a brief discussion on Brexit at this week’s EU summit — probably Theresa May’s last — but don’t expect it to change her successor’s chances of getting the proposed withdrawal agreement changed.

Swiss Scramble | Traders in Swiss stocks may have to wait a bit longer to find out how they’re supposed to do business from next month. As of yesterday, talks between the EU and Switzerland hadn’t produced the desired clarity over a political accord, so the commission probably won’t decide on an extension of the regulatory recognition of Swiss exchanges when it meets today.

Car Tolls | Austria took neighboring Germany to the EU’s top court in 2017, unhappy with a decision to impose highway tolls on cars but allowing locally-registered car owners to claim tax relief. EU judges will today decide on the claim by Austria that reimbursing Germans part of the charges discriminated against other nationalities.

In Case You Missed It

Iran’s Warning | Iran warned European nations that it would breach the landmark 2015 nuclear agreement within days unless they take action to alleviate the pressure of tightening U.S. sanctions. The announcement raises pressure on the EU, which again urged Tehran to stick with the deal even after it was abandoned by the U.S., but has struggled to come up with a vehicle that would allow Iranians to keep trading.

Trade Barriers | The EU vowed to fight to keep global markets open and bolster multilateralism while warning that its companies face greater trade barriers. Curbs on commerce cost European business billions of euros a year, the Commission said yesterday, insisting that its determination to uphold the World Trade Organization system goes beyond the battle against Donald Trump’s protectionism.

Shrinking Europe | In case you hadn’t noticed, Europe is dying. The continent’s population is expected to decrease by 120 million people this century, from close to 750 million today to about 630 million by 2100, according to United Nations population data published yesterday. Italy alone is predicted to shrink by 20 million, and Germany by nine million.

Cognac No More | Cognac, as you know it, may soon disappear. Climate change threatens the harvests of the Cognac region in southwestern France, as  warmer summers and longer growing seasons mean the grapes get sweeter and less acidic on the vines, which dramatically changes the character of the liquor.

Chart of the Day

Brussels Edition: Jobs Jamboree

Lithuania’s fintech transformation won plaudits this month from Mario Draghi. But his praise came with a warning: the boom carries risks as well as rewards. With nearby Latvia and Estonia mired in a string of money-laundering scandals, Lithuania will face added scrutiny. There are already warning signs.

Today’s Agenda

All times CET.

  • 9 a.m. EU agriculture ministers meet in Luxembourg, to discuss 2020 annual catch limits for commercial fish stocks
  • 9 a.m. EU European Affairs ministers meet in Luxembourg, to discuss accession talks with Western Balkan countries, prepare summit of EU leaders. Serbian, North Macedonian, Albanian PMs at Western Balkans Forum in London
  • 11 a.m. Eurostat to publish May inflation and international trade in goods for April
  • 6 p.m. EU Council President Tusk meets the conference of Presidents of the European Parliament
  • 7 p.m. EU antitrust chief Vestager delivers keynote speech on dealing with mergers in a digital age at the ULB University in Brussels
  • EU’s Mogherini to meet U.S. Secretary of State Pompeo, senior Trump adviser Kushner in Washington
  • EU Commission President Juncker delivers the opening speech at the European Development Days. Juncker also meets Rwanda President Kagame, Cabo Verde President Fonseca and Senegal President Sall
  • EU Commission Vice President Sefcovic delivers speech at the Low-Carbon Economy Forum organised by the Centre for European Policy Studies, in Brussels
  • EU Commission Vice President Dombrovskis, EU Commissioner Moscovici participate in the Brussels Economic Forum 
  • EU Justice Commissioner Jourova in Bucharest, meets U.S. Attorney General Barr
  • EU top court rules on dispute between Austria and Germany
  • EU Commission to discuss whether to extend Swiss exchange equivalence beyond the end of this month 
  • Second Tory ballot in contest to succeed Theresa May as U.K. Prime Minister. May remains PM until contest is over, expected the week of July 22
  • Romanian Parliament holds no-confidence vote in Prime Minister Dancila’s government, which will likely survive as ruling coalition has majority
  • European Central Bank continues academic retreat in Sintra, Portugal

--With assistance from Nikos Chrysoloras, Alexander Weber, Ian Wishart and Stephanie Bodoni.

To contact the editor responsible for this story: Zoe Schneeweiss at zschneeweiss@bloomberg.net, Iain Rogers

©2019 Bloomberg L.P.