Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.
It’s the first day of a two-day summit dedicated to conveying the image of a more assertive Europe. EU leaders will vow to make the bloc strategically autonomous, reducing their dependence on imports from countries like China. Speaking of which, they will welcome (and give themselves credit for) Xi Jinping’s commitment to carbon neutrality. The draft communique we have echoes Donald Trump a bit, stressing “the need to rebalance the economic relationship and achieve reciprocity,” while also lambasting Beijing’s human rights record. Leaders will also seek a carrot and stick approach with Turkey. But unlike China, there’s no real consensus. The discussion could go either way, and Cyprus’s insistence that it won’t sign off on sanctions against Belarus unless the EU agrees to punitive measures against Turkey, means the summit could end up exposing the bloc’s divisions instead of highlighting its assertiveness.
Recovery Woes | Fraught negotiations over the terms attached to the EU’s jointly-financed economic recovery package continue, with no breakthrough in sight. Germany warns it’s very likely things won’t be up and running come Jan. 1, delaying the flow of much-needed cash to the continent’s battered economies. Whether all of this is theatrical tactics, remains to be seen.
Inflation Overshoot | ECB President Christine Lagarde says it’s worth examining a Federal Reserve-style strategy that allows inflation to temporarily rise above the institution’s target. Here’s how the policy looks in the U.S. and what it means for the value of the money in your pocket.
Time Bomb | Italy’s market crisis may have subsided, but the debt worries that caused it will haunt Europe for a while. That’s the bleak outlook that