Von der Leyen Takes the Stage: Brussels Edition

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

From leading Europe’s transition to zero emissions to building a “genuine defense union,” Ursula von der Leyen’s plans as incoming Commission president are ambitious, and she will tell the European Parliament today that she has the team to deliver as it faces a confirmation vote. That’s the easy part. Diplomats in Brussels worry that von der Leyen has promised too much to too many. And with the EU’s focus turning to geopolitics from regulation, member-country governments may seek to set the agenda and sideline the first-ever Commission led by a woman. In short, she has her work cut out for her.

What’s Happening

Grand Plan | Emmanuel Macron’s plan to take control of Europe is moving on to phase two. Here's a look behind the scenes.

Green Cop | The market for sustainable financial products has gone largely unregulated despite a bonanza that saw assets in that category balloon to more than $30 trillion. That’s about to change, as policy makers in Brussels advance some of the world’s most ambitious ideas on how to set global standards about what’s green and what’s not. 

Bailout Hearing | Italian Finance Minister Roberto Gualtieri will answer questions before lawmakers today over a planned reform of the euro area’s bailout fund. Concerns voiced by populist opposition leader Matteo Salvini that Rome would cede sovereignty under the agreed changes triggered a major domestic debate, threatening to derail the plans.

Election Stakes | The result of the Dec. 12 U.K. election will determine not just the next government, but the fate of Brexit. From crashing out without a deal to holding another referendum and remaining in the EU, the range of outcomes is still wide open. Here’s a guide to how it could all play out.

Facial Recognition | Europe’s not really ready for facial-recognition technology. That’s the verdict of the European Union Agency for Fundamental Rights, which says the region needs stronger rules governing the use of such technology. The body put out its report as law-enforcement authorities multiply tests in Berlin, Nice and London and at airports in Amsterdam, Dublin and Paris.

In Case You Missed It

Levying Trade | The EU threatened to widen tariffs on corrosion-resistant steel from China, saying that manufacturers there may have dodged duties by “slightly modifying” the product. The Trump administration, meanwhile, offered a deal that allows the WTO to continue operating, but could hamstring the panel settling disputes affecting billions of dollars in commerce each year.

Chinese Espionage | The Czech Republic’s top intelligence agency warned that China increased its efforts to recruit agents and destabilize state institutions last year. Its findings come as the country has become a hotbed of intelligence activity, with Russia and China using it as a prospective foothold to boost their influence in Europe.

Spending Call | The European Investment Bank flagged gaps across the EU that are holding back growth. It warned that an increasing number of companies are preparing to cut spending, echoing calls by ECB President Christine Lagarde for more government investment to nurture competitiveness and shore up economic expansion.

Berlin Rents | The German capital’s largest landlord said that the city’s plan to freeze rents is already diverting investment, even if the courts strike down the legislation. These are the reforms Berlin is planning to rein in spiraling housing costs.

New Leaf | After a string of bank closures and a high-level bribery scandal put it at the heart of Europe’s dirty-money storm last year, Latvia declared efforts to clean up its act a success. Here’s the latest from the money-laundering trouble spot.

Chart of the Day

The escalation of U.S.-China tensions this year continued to leave a mark on international trade during the third quarter. While volumes in the CPB World Trade Monitor increased in August, when both countries announced new tariffs, three-month underlying momentum showed further weakness. 

Today’s Agenda

All times CET.

• 9 a.m. Commission President-elect von der Leyen presents new executive team, delivers keynote policy speech to European Parliament
• 9:45 a.m. ESM Managing Director Klaus Regling speaks at European Investment Bank conference in Luxembourg
• EU lawmakers to confirm incoming European Commission
• German Chancellor Angela Merkel speaks at business lobby
• Italian Finance Minister Roberto Gualtieri speaks in parliamentary hearing on ESM reform

--With assistance from Natalia Drozdiak, Alexander Weber and Nikos Chrysoloras.

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net, Chris Reiter

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