Most Europeans breathed a sigh of relief when Joe Biden won the U.S. election in November. The 46th president nevertheless faces a tough audience on this side of the Atlantic as he prepares for today’s inauguration. After four years of Donald Trump antagonizing the bloc, sentiment among its citizens has shifted away from America: a majority see China as the world’s most powerful nation within a decade, and would rather stay on the sidelines if there was a conflict between the two superpowers, according to a new poll by the European Council on Foreign Relations. Most think the U.S. political system is broken, and doubts remain over whether the country will be able to mend internal divisions and help solve global issues like climate change. Is America “back,” as Biden promised? Europe remains to be convinced.

What’s Happening
Conte Survives | Prime Minister Giuseppe Conte scraped through a confidence vote in the Italian upper house last night, giving him a chance to consolidate his hold on power in the days ahead. Senators backed the premier with 156 votes in favor and 140 against. He’ll need 161 votes in future for the outright majority required to pass certain key legislation.

Vaccine Pressure | The EU’s 27 government heads must “send out a strong signal to the European Medicines Agency on Thursday to ensure the approval procedure for vaccine candidates is as efficient as possible,” a group of leaders said in a letter ahead of tomorrow’s video summit. The tone signals growing frustration about what some governments see as delays in the authorization of coronavirus shots.

Targeting Google | The search engine is back in the EU’s crosshairs, just two years after antitrust regulators wrapped up nearly a decade of probes with $9 billion in fines. This time around, the Commission is looking into Google’s practices in the “advertising technology value chain,” according to a questionnaire sent to publishers and ad firms seen by Bloomberg.

Capping Yields | The European Central Bank is emulating its Asia-Pacific peers by controlling government borrowing costs, just in a uniquely European way. The ECB is buying bonds explicitly to limit the differences between yields for the strongest and weakest nations in the euro zone, officials told us, with one saying that the central bank has specific ideas on what spreads are appropriate.

Sovereign Aviation | Britain’s aviation regulator must decide whether to back the Boeing Co. 737 Max’s return to flying in coming weeks, highlighting both its new powers after Brexit and the challenge of asserting its independence. The European authority is poised to clear the jet for a return to service in the region.

In Case You Missed It
Longer Lockdown | Chancellor Angela Merkel and regional leaders agreed to extend and tighten Germany’s coronavirus restrictions, stepping up efforts to check the stubborn spread of the disease amid concern about faster-spreading variants. Lockdown rules, including closing restaurants, bars and non-essential stores, will be extended until mid-February and Merkel warned that Germany might impose border controls without coordinated efforts to guard against risks posed by new strains. Get the latest on the virus here.

German Aid | The German government shouldn’t be afraid to bolster fiscal stimulus if the pandemic drags out the economic recovery, the IMF said. The fund urged the government in Berlin to consider additional aid for illiquid or insolvent-yet-viable businesses and maintain support for the country’s labor market to avoid more permanent scars.

Pandemic Support | The Commission proposed extending until the end of the year a temporary state-aid framework for nations subsidizing companies and citizens hit by the pandemic. Antitrust chief Margrethe Vestager said businesses need further support and the proposals will “increase the aid amounts available to companies under certain measures to ensure that effective support remains available.”

Brexit Moves | The shift of jobs and assets to Paris after Brexit will accelerate this year, providing Europe with an opportunity to strengthen its financial infrastructure, according to Bank of France Governor Francois Villeroy de Galhau. The Commission said it’s taking a fresh aim at London’s dominance in derivatives clearing with the aim of moving more of the business inside the bloc.

Spanish Homes | Spain’s love affair with home ownership may fade even more as young workers’ ability to get on the housing ladder is further dented by the pandemic. As they grow increasingly unable to save enough to make down-payments on homes, a trend toward rentals may accelerate, according to one of the country’s largest property developers.

Chart of the Day

As France lived through its worst economic slump since World War II, business failures paradoxically slid to the lowest in 33 years. The number of bankruptcies and firms seeking protection from creditors or entering receivership fell 38% in 2020, as government aid kept French companies afloat, according to figures gathered by enterprise-data firm Altares. But that may foreshadow a wave of defaults in 2021 and 2022.

Today’s Agenda
All times CET.

• 8:30 a.m. EU lawmakers will debate Biden's inauguration and the future of EU-U.S. relations with EU Commission President von der Leyen and EU Council President Michel
• 9 a.m. Portuguese Prime Minister Costa, von der Leyen address lawmakers in Brussels
• 10:30 a.m. European Investment Bank President Hoyer gives annual press conference
• 11 a.m. EU lower court rules in a dispute between Cypriot cheese makers fighting for the exclusive right to the “Halloumi” name against a Bulgarian company that's seeking a trademark for the word “BBQLOUMI”
• 11 a.m. Eurostat to publish December inflation final reading and excess mortality report
• MEPs will outline their proposals on how to govern the use of Artificial Intelligence in military and public domains
• EU top court rules in a case sent its way while the UK was still in the bloc in a dispute between a Somali national and the Minister of the Interior over the latter's decisions to revoke the applicant's refugee status, exclude him from subsidiary protection and deport him to his country of origin