For months, the Northern Ireland issue poisoned Brexit negotiations in 2019. The U.K. is now reigniting the feud over the British territory, which could spark a harmful tariff war amid the sudden energy crunch and growing fears about inflation. Today, the EU will offer its own proposed tweaks to the Northern Ireland protocol, aimed at addressing complaints about the pact that governs the flow of goods between Britain and its territory. But these solutions will be insufficient for London. Britain’s Brexit chief David Frost said in a big speech in Lisbon yesterday that he will offer a new version of the protocol and warned that fixing the border quagmire in Northern Ireland is a “prerequisite” to improve relations.

— Jorge Valero

What’s Happening
Steel Offer | The U.S. has submitted a new proposal to the EU to solve a Trump-era dispute on steel tariffs, offering more generous terms, we’ve been told. The updated proposal involves so-called tariff-rate quotas but provides for a bigger quantity of steel to enter the U.S. before higher duties kick in.

Energy Toolbox | The Commission today will unveil its list of measures that member states can use to help weather record-high energy prices. Expect allowances for tax cuts, state aid and even a pledge to explore joint gas procurement. But don’t bet on the EU watering down its climate-change proposal, which it sees as vital to thwarting future crises.

Gibraltar Talks | In another post-Brexit chapter, Brussels and London wrapped up the first round of talks on Gibraltar. The thorniest issue remains who will be responsible for border checks at the port and airport if the overseas territory continues to be part of the Schengen area. The U.K. rejects the EU’s idea of Spanish agents participating, with a spokesperson saying London won’t compromise on sovereignty.

Ad Ban | Germany’s Greens see support growing in the European Parliament for a ban on personalized ad tracking in the wake of revelations from a Facebook whistleblower. The party published a study arguing that online ads should be linked to the topic a person is viewing instead of their personal information. The internal market committee will vote on amendments to the digital services act next month.

Coalition Talks | Social Democrat Olaf Scholz’s bid to succeed Angela Merkel as German chancellor is reaching a critical phase as his party seeks to work through vast policy differences with the Greens and the pro-business Free Democrats. The junior partners said yesterday that they made progress in finding common ground, but have more work to do. A key round of talks is set for Friday. 

In Case You Missed It
Ukraine Ambitions | Ukrainian President Volodymyr Zelenskiy said his country needs EU support to maintain Russian gas transit through its territory once the new Nord Stream 2 pipeline is up and running. At yesterday’s EU-Ukraine summit, Commission President Ursula von der Leyen praised the leader for his efforts to reform the country, but noted there are still challenges, including the need to improve energy efficiency.

Pulp Raids | The Commission raided wood-pulp producers yesterday over concerns they’ve formed a cartel. Covid-19 restrictions have put raids on hold for most of the past two years, limiting the EU’s ability to seize evidence it needs to build cases against collusion.

Afghan Aid | The EU bolstered its support package for Afghanistan, pledging about 1 billion euros to help address humanitarian needs as the world’s wealthy economies met to address the crisis there. Vladimir Putin, Xi Jinping and a few others skipped the virtual gathering, highlighting tensions over how to deal with the country’s new Taliban rulers.

Kazimir Charged | Peter Kazimir, a member of the European Central Bank Governing Council, was charged with bribery in Slovakia, where he heads the country’s central bank. “I don’t feel guilty of any crime,” Kazimir said in a statement, adding that the claims against him, which relate to his tenure as Slovakia’s finance minister, are unsubstantiated.

Chart of the Day

The EU’s first-ever green bond issuance had a ground-breaking debut yesterday. The bloc registered more than 135 billion euros in orders for a sale of 12 billion euros of securities maturing in 2037. Both the demand and size eclipsed last month’s debut from the U.K. The bloc intends to raise 250 billion euros via green bonds by 2026 to partially finance its 800 billion-euro plan to boost the post-pandemic European recovery.

Today’s Agenda
All times CET

• 1 p.m. Commissioner Virginijus Sinkevicius presents the new Artic strategy
• 6:30 p.m. Commission Vice President Maros Sefcovic presents proposal on Northern Ireland Protocol
• Energy Commissioner Kadri Simson delivers a keynote speech at the high-level meeting of the Clean Energy Industrial Forum
• Economy Commissioner Paolo Gentiloni participates in IMF/World Bank meetings in Washington
• Council President Charles Michel is in Sweden for a forum on combating antisemitism
• Justice Commissioner Didier Reynders meets with the Biden administration in Washington