EU Council chief sees democracy in danger: Brussels edition
Welcome to Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.
The G-7 countries should step up their defense of democratic values as they come under pressure around the world. This is Charles Michel’s message. Speaking in a joint interview with Bloomberg and other new media, the President of the European Council highlighted the storming of the United States Capitol this year, the fight to ensure that EU member states respect the rule of law and the forced landing of a Ryanair flight by Belarusian authorities. Liberal democracies are under pressure from “new risks, hybrid threats, cyber attacks, disinformation,” said Michel, who will be among the leaders of this year’s G-7 summit, which begins Friday in Cornwall, England. Respect for democratic values will be a key theme.
What is happening
Brexit reprisals | The EU speaks loudly. The block is ready to consider more retaliatory action if the UK government fails to meet post-Brexit obligations over Northern Ireland, an official said. While declining to detail the steps, the official said previous infringement and arbitration proceedings had not worked.
Currency movements | Policymakers at the European Central Bank have all the evidence they need to maintain an ultra-loose monetary stimulus when they meet on Thursday, in part thanks to their US counterparts. In the meantime, expect the ECB’s major strategy review to give a a moderate treatment of inequalities in the labor market that the Federal Reserve did not do in its exercise, according to our analysis of the speeches of the members of the board of directors of the ECB.
Financial frustration | The Swedish financial regulator has warned he might not have the tools to apply the new EU sustainability rules. The caution frustrates members of the financial industry and highlights the industry’s struggle to adapt to regulatory changes that will revolutionize the way businesses, banks and investors do business.
Safety areas | Big tech companies and other industries that have taken refuge in European tax havens are unlikely to change their bases under the proposed global minimum tax regime. While markets like Ireland are expected to increase their levies for businesses, they still offer more business advantages than wealthier neighbors.
In case you missed it
Iranian talks | While diplomats are due to meet in Vienna this week for a sixth round of talks on relaunching the Iran nuclear deal, the International Atomic Energy Agency said. the negotiations are entering a “decisive phase”. Tehran’s atomic sites watchdog said failure to reach an agreement could have perilous consequences for its work.
Google fined | Google has agreed to pay 220 million euros to settle a Frenchman antitrust investigation into its abuse of power in online advertising. With separate cases involving Google, Apple and Facebook, French antitrust regulators are starting to curb anti-competitive behavior in online advertising.
Steel purchase | ArcelorMittal wants the green light from EU regulators after making an offer to buy French steel assets from besieged tycoon Sanjeev Gupta. The steel giant plans to buy back the majority of the shares of Liberty Steel France Holding, which owns the Ascoval and Hayange factories, according to Commission documents.
Report costs | The European Banking Authority is seeking to relax some of its reporting rules for small businesses, a measure that could save them up to 288 million euros. Proposals from the EU’s main banking regulator would reduce reporting requirements for nearly 2,900 smaller and less complex businesses.
Inflation is reborn | Inflation is dead, economist Roger Bootle said a quarter of a century ago. Bootle tells David Goodman that he sees its rebirth and the world at the dawn of a new turning point. He is among the economists sounding the alarm bells with pockets of price growth emerging as the world begins to recover from the coronavirus pandemic.
Card of the day
Austrian residential property prices have risen in the fastest pace since 2012 in the first quarter as the market continued to recover from the impact of the pandemic. The cost of homes rose 12.3% in the three months to March compared to the previous year, the central bank said. This is faster than in the previous quarter when Austria had already recorded price increases above the European average.
Every hour CET.
- 10:00 a.m. EU home affairs ministers to assess progress on new pact on migration and asylum
- 11:00 Eurostat to publish GDP and main aggregates for the first quarter
- MEPs to give final approval for Covid digital certificate to facilitate travel within the EU; the results of the vote will be read on Wednesday
- EU Economics Chief Paolo Gentiloni delivers keynote speech via video conference at Euronext ESG Summit “Financing the Blue and Green Economy”
- MEPs to discuss Belarus situation with EU foreign policy chief Josep Borrell
- MEPs to discuss with Commission President Ursula von der Leyen the national stimulus packages submitted by Member States so far
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– With the help of Marton Eder and Zoe Schneeweiss