Brussels Edition: Finding the Off Switch

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

There’s a little something for everyone in a bouquet of measures on artificial intelligence and other digital policies — including facial recognition — to be unveiled today by the European Commission — part of an effort to compete with the U.S. and China’s technological might. That doesn’t mean everyone will be happy, though. Big tech platforms will bear the brunt of plans to explore legislation for so-called gate-keepers, new rules for AI, and a call to make data centers carbon neutral by 2030. It’s not all about curbs. The EU will also announce plans to loosen rules to allow businesses to share data, an effort it hopes could also boost innovation in the bloc.

What’s Happening

Budget Pain | Along with the usual files and spreadsheets, EU leaders traveling to Brussels this week to thrash out the bloc’s seven-year budget are being advised to bring plenty of clean shirts. Failure to nail down the trillion-euro plan is still the most likely outcome, while diplomats fear talks could drag on through the weekend.

Watch Out | Just when you thought the battle to succeed Angela Merkel couldn’t get any spicier than having a her nemesis throw his hat into the ring, another one of the chancellor’s antagonists unexpectedly announced his candidacy just as the outgoing head of her Christian Democratic Union was due to begin talks with the three front-runners.

Spanish Tractors | Spanish Prime Minister Pedro Sanchez is facing his first bout of protests after winning backing to form a coalition last month. Tens of thousands of farmers have demonstrated in recent days with a growing list of complaints, from plunging prices to the impact of Brexit. Here’s why it’s more than just a Spanish problem.

Big Spender | Portugal’s economy outpaced the broader euro area in 2019, and the government doesn’t want it to stop. After notching up six straight years of growth since an international bailout, Economy Minister Pedro Siza Vieira plans to spend 10 billion euros on infrastructure projects, he told us in an interview.

Battery Charge | The EU’s push to challenge Asia’s dominance in batteries for electric cars is starting to take shape. It’s a critical effort to defend the bloc’s auto industry, but it might be too little, too late. Here’s more.

In Case You Missed It

Trade Stats | After Brexit shattered 50 years of trade policy in Britain, Boris Johnson has to try and find a way to glue the pieces back together, especially with the EU. Here are the key numbers and charts that will dictate the U.K.’s priorities. Meanwhile, EU trade chief Phil Hogan said any damage done to the British economy will be the U.K.’s fault alone.

Bulgarian Tycoon | Bulgaria’s Justice Ministry sent an extradition request to the United Arab Emirates, where Vasil Bozhkov, one of the Balkan country’s richest men, was detained last month. On top of organized crime charges, prosecutors added new allegations that accuse the gambling tycoon of illegally holding objects of cultural value.

Climate Cutoff | Pressure is mounting on Poland to either get on board with EU plans to become carbon neutral in the next three decades or risk forfeiting billions of euros in aid. While the country supports the EU’s ambition, it’s proving to be the lone thorn in refusing to accept the mid-century deadline. Here’s why.

Corona Fear | German investor confidence plunged below even the most pessimistic estimate on concern that the coronavirus outbreak in China will disrupt trade. Europe’s largest economy is already struggling with flatlining growth and a manufacturing recession that has lasted more than a year.

Green Cities | Stockholm and Manchester are some of the cities that are leading the way in reaching their climate goals, while Oslo — with some of the most ambitious targets — has made little progress toward achieving them. It shows how urban centers, which produce about 70% of worldwide greenhouse-gas emissions, are diverging wildly in their attempts to battle climate change.

Chart of the Day

Turkey has until the end of the year to comply with EU demands on tax transparency, or risk being added to a list of countries that could face financial sanctions. The EU’s 27 finance ministers meeting in Brussels determined that Turkey currently doesn’t comply with the bloc’s requirements and gave Ankara until the end of the year to fall in line.

Today’s Agenda

All times CET.

3 p.m. Trade Commissioner Phil Hogan gives a presentation of commission’s legislative and non-legislative proposals and priorities in the field of common commercial policy Commission to announce proposals for regulating data and artificial intelligence, including facial recognition technologies EU tech and antitrust chief Margrethe Vestager delivers a speech on the digital package at an event organized by Centre of European Policy Studies in Brussels EU economy chief Paolo Gentiloni meets Deutsche Bank CEO Christian Sewing, CEO. Also meets Mark Carney, governor of the Bank of England European Parliament Committees on Internal Market and Consumer Protection and on Industry will debate on the Commission’s new initiatives in the digital sector with Internal Market Commissioner Thierry Breton

--With assistance from Joao Lima.

To contact the authors of this story: John Ainger in Brussels at jainger@bloomberg.netNatalia Drozdiak in Brussels at ndrozdiak1@bloomberg.net

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

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