The European Commission will today call on member states to scale up their ambition in the fight against the pandemic by setting a target of vaccinating at least 70% of the EU’s population by summer. According to the draft of its latest recommendations that we’ve seen, the bloc’s executive will also endorse Greece’s proposal for a “vaccination certificate” that’ll allow those who get the jab to travel. For the rest of us, all non-essential journeys should remain off limits for the foreseeable future, the Commission will say. Beyond that, the “communication” is filled with vague pledges to help boost vaccine production capacity and asks member states to do more genome sequencing to track potentially dangerous mutations. Useful as such pledges and targets may be, they can’t overcome government inefficiency in administering vaccines. And on that front, the EU’s performance so far leaves much to be desired. - Nikos Chrysoloras and Viktoria Dendrinou

What’s Happening

Euro Boost | The Commission will today outline how the EU could strengthen its economic resilience including bolstering the international role of the euro. The timing, a day before Joe Biden’s inauguration, may be somewhat awkward. But the push reflects growing calls to adopt tools that will allow the EU to pursue its foreign-policy goals with less recourse to unpredictable allies.

Travel Woes | Travel companies have for months been looking toward a rush of Covid vaccine introductions in early 2021 to rescue their battered industry. But European airlines counting on a bumper summer season to restore revenue and rebuild balance sheets are becoming fearful that a recovery will arrive too late.

Virus Update | The WHO said the world is on the brink of a “catastrophic moral failure” by allowing younger, healthier adults in rich countries to become vaccinated before health workers and old people in poorer ones. German Chancellor Angela Merkel and state leaders appear likely to extend and tighten lockdown measures, while the U.K. may begin to relax restrictions in the first half of March. Here’s the latest.

Conte's Vote | Italian Prime Minister Giuseppe Conte last night won a crucial confidence vote, after lawmakers backed his governing program amid a deepening rift within his coalition following the defection of a party headed by ex-premier Matteo Renzi. While the favorable result was widely expected, Conte is set to face a similar vote in the Senate today, where his majority is razor-thin and the outcome more uncertain. 

Bond Overload | After a blockbuster start to the year for euro-area bond sales, a barrage of EU debt risks cannibalizing future demand for its member countries. The bloc is due to launch its first bonds of the year this week, after its initial social debt sales in 2020 drew record bidding. 

In Case You Missed It 

Norway Deaths | Health authorities in Norway say there’s no evidence of a direct link between the recent string of deaths among elderly people inoculated against Covid-19 and the vaccine they received. The clarification came after initial reports made international headlines as the world looks for early signs of potential side effects from the shots. 

Troubled Talks | The EU has threatened to hit Turkey with real sanctions over its Mediterranean maritime claims, but it hopes to avoid such an uncomfortable situation if talks starting next week between Ankara and Athens go reasonably well. Trouble is, Greece and Turkey can’t even agree on what exactly they should talk about, our dispatch shows.

Funding Gap | The EU needs to find new ways to recapitalize businesses so that the hole on corporate balance sheets doesn’t derail the recovery, according to a financial-industry group. Companies face an equity shortfall of as much as 600 billion euros, the Association for Financial Markets in Europe said.

Permit Prices | Sixteen years ago, Europe introduced a new market based by issuing companies credits to pollute up to a certain level and allowing them to buy or sell them as needed. When the global economy went into a funk in 2008, emissions plummeted, sending permit prices into a tailspin. Now, after reforms that reduced the number of available permits, Europe’s Emissions Trading System is back on track. Here’s why.

Russia Tensions | A Russian court ordered opposition leader Alexey Navalny jailed for 30 days, defying U.S. and European calls to free him. The activist faces as much as 3.5 years in prison. His detention came after many EU leaders called on Moscow to immediately release him and ensure his safety, and risks a new round of tensions with the West.

Chart of the Day

Romania unexpectedly lowered borrowing costs to provide further support to its coronavirus-stricken economy, giving the world its first rate cut of 2021. The central bank reduced the benchmark to a record low of 1.25% at an unscheduled meeting on Friday, the fourth reduction since the pandemic took hold. That still leaves Romania’s rate higher than any other in the EU.

Today’s Agenda (All times CET)

• 8:30 a.m. EU Health Commissioner Stella Kyriakides and Portuguese Secretary of State for European Affairs Ana Maria Zacarias make statement at European Parliament plenary on vaccinations strategy
• 10 a.m. Video conference of EU’s economy and finance ministers to discuss proposed action plan for non-performing loans and the implementation of the recovery fund
• 2 p.m. German Chancellor Angela Merkel meets with state premiers to discuss virus response
• Commission to present latest pandemic response recommendations including on vaccinations
• Commission to present communication on fostering economic and financial resilience, including boosting role of the euro