Brussels Edition: Cleaning up

Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union

The EU plans to step up its efforts to cut pollution from sectors like manufacturing and agriculture as part of its biggest economic overhaul to date. According to a draft roadmap the Commission plans to unveil tomorrow, the overarching goal is to eliminate all harmful contamination by 2050, reducing pollution to levels that can no longer damage health or natural ecosystems. The bloc plans to use its landmark recovery program to help steer the economy toward cleaner goods and services, reducing the release of pollutants that can cause diseases like cancer and strokes, threaten biodiversity and contribute to the mass-extinction of species. Here’s a peek at some of the steps the EU is planning to clean up economic activity over the coming decade. In an encouraging sign for the effort, U.S. climate envoy John Kerry says he’s ready to coordinate with the bloc on green diplomacy. - Viktoria Dendrinou and Ewa Krukowska

What’s Happening

Vaccine Passports | European Affairs ministers will today discuss progress in introducing digital green certificates, which will ease travel for those inoculated or recovered from the virus. A deal is needed by the end of this month for the passes to be operational in time for the summer season, but Portugal, which represents governments in negotiations with the EU Parliament, is optimistic.

Debt Blues | French voters are becoming increasingly preoccupied by an unexpected issue: a massive pile of public debt. France’s spending splurge to prevent the economy from crashing during the pandemic catapulted debt to 116% of GDP. Authorities say it’s the best time to borrow because interest rates are at zero, but concerns over indebtedness could become a major problem for Emmanuel Macron ahead of next April’s election.

Populist Worries | The far-right Sweden Democrat party may be heading for a significant breakthrough, with potentially enough votes to help the conservative opposition secure a majority after next year’s elections. While European populists have suffered recent setbacks — discouraged by Donald Trump’s departure from the White House — Sweden’s case may portend changes elsewhere in Europe, where populists could score wins in the coming years.

British Freedoms | Boris Johnson’s administration plans to push through new government procurement rules by the end of the year, replacing what it sees as excessively “complex” procedures from when it was in the EU. Bills on procurement and state aid will be included in the Queen’s Speech today in Parliament, as the government seeks more freedom to decide how it supports the economy post-Brexit and reduces red tape.

In Case You Missed It

More Stimulus | France would require investment partnerships with European countries if it increases its economic recovery program in September, Finance Minister Bruno Le Maire said. Even before the first disbursements from the bloc’s recovery fund, the country is calling for talks on how to help the EU rebound faster, amid concerns about emerging from the crisis much weaker than the U.S. and China.

Eastern Defense | Nine NATO member states in eastern Europe urged the military alliance to boost its presence in the region to address increased security threats stemming from Russia. After an online meeting with U.S. President Joe Biden and NATO Secretary General Jens Stoltenberg, the countries agreed to maintain a joint stance during the alliance’s summit next month to highlight the region’s importance.

Accession Woes | The EU may change tack in its plan to expand in the western Balkans and start entry talks only with Albania, as North Macedonia’s efforts remain blocked by Bulgaria. Should only Albania now be propelled forward, that would complicate matters for North Macedonia’s ruling coalition, which has staked its credibility on EU accession.

Tax Rulings | Fiat Chrysler told the EU’s top court that a 30 million-euro tax bill from regulators was “absurd” and sowed confusion between national authorities. The final decision in the case could affect the pace of other Commission probes, which have already gotten bogged down by critical rulings from EU judges.

Chart of the Day

Reopening across the U.S. and Europe is set to drive growth of 1.4% for the world economy. That’s the latest signal from Bloomberg Economics nowcasts, which bring together close to 200 data series across 18 countries to provide a high-frequency read on the recovery.

Today’s Agenda (All times CET.)

  • 9 a.m. EU’s European Affairs ministers to discuss enlargement to the Balkans, EU-Switzerland relations, Covid and Europe’s future as well as prepare this month’s special summit
  • 11 a.m. Emily O’Reilly, European Ombudsman, will present her findings in revolving-door inquiries into EU institutions’ response to Covid-19
  • 12:30 p.m. Commission Executive Vice-President Valdis Dombrovskis will outline the EU’s post-pandemic trade policy at an IIEA event
  • EU climate chief Frans Timmermans participates speaks on the European Green Deal at the Delphi Economic Forum