We have some good news today for a change: after stumbling out of the gate, it appears that Europe is now shifting into a higher gear in deploying Covid-19 vaccines and is on pace to immunize its population faster than anticipated, thanks to new supply pacts and increased production. The EU may in fact vaccinate 75% of adult citizens by the end of August, more than a month earlier than previously forecast, according to the latest research. But this assumes everything goes according to plan, and with supplies due to double and then double again in the months ahead, it'll take an unprecedented effort by member states to administer the shots and convince skeptical members of the public they're safe and effective. The upside for the economy (and our sanity) from speedy vaccination is enormous, but the onus is now on governments to deliver. 

What’s Happening
Third Wave | Chancellor Angela Merkel warned that Germany is in the midst of a third wave of coronavirus infections and that moves to reopen schools and businesses should be weighed with caution as the country debates how to exit its lockdown and relieve its ailing economy. Federal and state officials have proposed a variety of plans for lifting restrictions, leading to some confusion over management of the pandemic.

Gig Workers | The European Commission is seeking to improve conditions for ride-hailing drivers, pizza couriers and other gig workers as courts rule they should be treated as employees. Later today, the EU will start hearing from unions and employers, and could propose new regulations later this year.

Greening Europe | The EU is going greener, but the consequences of climate change will not disappear even if it cuts emissions to zero. To minimize the damaging impacts of global warming, the European Commission today is updating its climate strategy with a more ambitious plan that, among others things, aims to improve the use of data in assessing climate risks.

French Experiment | Emmanuel Macron’s government is digging deep into its policy toolbox to find ways to transition back to normal and fulfill the president’s pledge to support businesses and workers “whatever the cost.” The latest plan, due to be unveiled in early March, will see the state guaranteeing up to 20 billion euros of partial-equity loans that are designed to bolster small companies without counting toward their debt.

In Case You Missed It
Czech Disaster | The Czech medical system is nearing “total exhaustion” as coronavirus patients overwhelm intensive-care units, forcing hospitals to curb other care and consider seeking help from neighboring countries. The nation has turned from one of the continent’s most successful in containing the pandemic last spring into one of the worst-hit in terms of cases and deaths per capita. There are lessons to be learned. 

Scottish Independence | A bitter and messy row between the two grandees of Scotland’s independence movement is blowing up just weeks before the country votes in an election that could be critical to the future of the U.K. The question is whether the unfolding saga moves the political needle just as British Prime Minister Boris Johnson faces pressure to agree to another referendum.

Delayed Ratification | The U.K. government agreed to allow the EU to delay ratification of their post-Brexit trade deal by a month, injecting more uncertainty into the already fragile start to the new relationship. While the parliamentary vote would normally be a formality, the EU’s concerns over what the U.K. might do to tackle problems surrounding trade with Northern Ireland mean that lawmakers could threaten to withhold their approval.

Chart of the Day

The European Central Bank appears to have moved away from relying on its tiering system to reduce the cost to banks of excess reserves and is depending more on the interest rate of its targeted longer-term refinancing operations. That change will significantly reduce the pain to bank profits, according to Bloomberg Economics.

Today’s Agenda
All times CET.

• 9:30 a.m. The EU’s top court gives non-binding opinion in a challenge by the European Commission to Hungary’s asylum policies
• 1:45 p.m. The European Parliament's Civil Liberties and Women’s Rights committees will debate the threat to abortion rights and rule of law in Poland with EU Equality Commissioner Helena Dalli
• EU Commission unveils proposals on improving working conditions for gig workers, adapting to climate change and reviewing roaming regulation