Brussels Edition: The Art of Dealing With Donald Trump

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

With Donald Trump’s America obstructing the World Trade Organization, global commerce as we’ve known it may be heading for an effective collapse. That’s horrible news for the European Union — an export powerhouse of mostly trade-loving people that’s already feeling the pinch of Trump’s protectionist leanings. Whenever the bloc has tried to bypass the U.S. president’s tactics — be it the Iran nuclear deal or a plan to keep the WTO’s dispute settlement mechanism alive — it has only exposed itself as a toothless tiger. As EU trade ministers gather in Brussels today to discuss world trade in the Trump era, the big question is whether a realistic plan B actually exists.

What’s Happening

Green Light | The EU Parliament is expected today to give a positive evaluation of the incoming European Commission, clearing the way for Ursula von der Leyen’s team to be confirmed next week. But for EU governments, approval is trickier given the absence of a British representative. They’re unlikely to give their green light until tomorrow, the deadline for the U.K. to respond to a lawsuit threat from Brussels.

Lagarde’s Crusade | The ECB’s new president hasn’t shied away from asking governments to spend more. Now Christine Lagarde is facing calls to change tack and press instead for looser fiscal policy via a common euro-area budget. Amid all the talk of QE limits and helicopter money, that might prove to be the easiest way to get what she wants.

EU Bailout | Italy’s turbulent government may try and delay a plan to overhaul Europe’s bailout fund, a key part of efforts to shore-up the region’s economy. Prime Minister Giuseppe Conte is under pressure from his Five Star Movement allies to postpone a final sign-off until December’s summit. Meanwhile, ousted Deputy Premier Matteo Salvini is slinging mud from the sidelines.

German Rebuke | Emmanuel Macron’s efforts to exert greater influence on EU policy are being slapped down by Germany. Chancellor Angela Merkel said yesterday that she will pressure France so two western Balkan nations can begin talks to join the EU, countering the French leader’s move to restrict new memberships.

Eat the Rich | Labour leader Jeremy Corbyn will today urge voters in the U.K. election to take down bankers and billionaires who “profit from a rigged system.” Corbyn, who has repeatedly refused to say how he would campaign in a second Brexit referendum, will unveil an election manifesto promising radical change across the economy.

In Case You Missed It

Kafka-esque | Property prices are soaring in Prague and it’s largely because of bureaucratic red-tape that would even overwhelm local native Franz Kafka. Developers in the city, where prices jumped 22% last year, are being held back from boosting housing supply. Even a planning permit needs about 40 stamps from different authorities.

Knuckles Rapped | In an assessment of governments’ spending plans, the EU’s executive arm said eight countries are “at risk of non-compliance” with its rules. They include France, Italy and Spain — the three largest economies after Germany. The bloc’s warning qualified the message from the ECB that the euro area needs a bigger fiscal boost.

VaVa Voom | Paris Mayor Anne Hidalgo is waging a war on the cars clogging up the streets in her city — a policy that’ll  be tested at the ballot box in March, should the 60-year-old decide to run again. Polls find a majority of Parisians support her policy, but cab drivers aren’t impressed and satirical shows have taken aim. Here’s how Europe’s cities compare.

Good Samaritaine | Bernard Arnault, Europe’s wealthiest man, is plowing more than $1 billion into a department store in Paris at a time when Amazon is luring customers online. After 15 years, La Samaritaine is set to reopen, showing off its restored Belle Epoque glamor, including ornate frescoes, mosaics and wrought-iron staircases. Check out how it looks here.

Parting Words | Outgoing European Council President Donald Tusk slammed “populists, manipulators and autocrats” in a veiled attack on Hungarian Prime Minister Viktor Orban, calling on mainstream leaders to take the fight to nationalist politicians.

Chart of the Day
 

France won a nationality ranking for the eighth consecutive year, ahead of the Netherlands and Germany. The Kälin and Kochenov’s Quality of Nationality Index examines a number of factors including the freedom to travel and settle, peace and stability, economic strength and human development. EU countries dominate the top slots in the index, “largely due to the liberal degree of settlement freedom permitted between member states, as well as the stand-out quality of many of the nationalities in and of themselves,” according to publisher Henley & Partners.

Today’s Agenda

All times CET.

• 10 a.m. EU trade ministers meet in Brussels
• 10:40 a.m. ECB Vice President de Guindos speaks in Brussels, and again at 8:00pm in Madrid
• 10:50 a.m. EU antitrust chief Vestager speaks at the IAPP Data Protection Congress in Brussels
• 11 a.m. OECD publishes economic outlook
• 1:30 p.m. ECB publishes account of October meeting
• The Finnish Presidency reports to the European Parliament on the disciplinary procedure against Hungary
• Eurostat to publish data on wine production and trade in the EU

--With assistance from Viktoria Dendrinou, Zoe Schneeweiss and Craig Stirling.

To contact the editor responsible for this story: Vidya N Root at vroot@bloomberg.net, Iain Rogers

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