Finally, some reasons to rejoice. Preliminary data indicate that the Covid-19 vaccine being developed by Pfizer is working beyond the company's wildest expectations. The most encouraging scientific advance so far in the battle against the coronavirus comes just after U.S. voters opted to eject the most combative president in living memory, reducing the risk of a transatlantic trade war (among other things). Markets rallied to all-time highs, and there may be more good news in this week’s agenda: EU negotiators and lawmakers aim to a reach a deal today on the bloc’s long-term spending plans, moving a step closer to pushing the region’s landmark 1.8 trillion-euro budget and stimulus package over the line. An accord would mark a major step toward ensuring much-needed aid can be made available to Europe’s battered economies in the first half of 2021. And there’s always the odd chance that the ongoing negotiations for the ever-elusive post-Brexit trade accord will produce a happy outcome. 

What’s Happening
Agricultural Subsidies | An area where EU negotiators are nowhere near a deal is how to distribute 390 billion euros in agricultural subsidies over the next seven years. The first “trilogue” between the Commission, member states and lawmakers on making EU’s subsidized farming greener begins today, and our sources say that we shouldn’t expect an accord before March, at the earliest. Pessimists say June.

U.S. Tariffs | Punitive levies on $4 billion worth of U.S. goods shipped to the EU go into effect as of today (here's the list), in a tit-for-tat escalation over illegal aid to aircraft manufacturers Boeing and Airbus. Brussels hopes this is a temporary thing, and that the transatlantic trade spat will be over once Joe Biden assumes office. 

Islamist Threat | The leaders of France, Austria, Germany and EU institutions will meet virtually today to discuss the “fight against religious extremism,” according to a draft of the agenda we’ve seen. The plan is to agree on a coordinated crackdown on Islamist radicalization, and the proposed measures aren't without controversy. 

Macron’s Fight | The effort is part of Emmanuel Macron’s push to halt the import of more conservative interpretations of Islam to Europe. Top of his list is Turkey as it vies for leadership of the Sunni Muslim world with Saudi Arabia. Here’s our dispatch on Macron’s feud with Recep Tayyip Erdogan.

In Case You Missed It
Proxy War | A proxy war involving Turkey rages on, as Ankara’s Azeri allies make headway. In a sign of the risks of a regional spillover from the conflict, Azerbaijan shot down a Russian helicopter near its autonomous Naxcivan region, close to Armenia’s western border. 

Steel Aid | Thyssenkrupp is in talks with the German government over an aid package for its struggling steel unit worth at least 5 billion euros, well exceeding the group’s current market value. While a wide range of aid is still being debated, the willingness to provide financial support is there, we’ve been told.

Virus Update | Despite the good news from the vaccine front, the pandemic remains a devastating force on the continent. Germany has more severe patients than at any point since the outbreak began. Hungary is tightening its lockdown measures after Prime Minister Viktor Orban dropped his opposition to the move. Here’s the latest.

German Scandal | Suspicions of wrongdoing had swirled around Wirecard for years, yet auditors signed off quarter after quarter on books that now appear to be clearly cooked. Here’s how $2 billion went missing somewhere between parties with barbecue spreads and ample amounts of vodka.

Bloomberg News | We have exciting news to share: Bloomberg Quicktake just launched a 24/7 streaming network to reinvent news for a new world. Watch live global news and go deeper with original shows on business, technology, politics and culture. Stream now for free. 

Chart of the Day

The former Cold War frontier of eastern Europe is becoming a battleground in the $500 billion business of building nuclear power plants.​​​​​ ​Here's the plan to win business for U.S. companies in this geopolitically key market. 

Today’s Agenda
All times CET.

• 9:30 a.m. The EU’s top court rules in a challenge by the Commission against Italy over its failure to comply with clean-air rules
• 9:30 a.m. The EU’s top court gives a non-binding opinion in a case questioning the liability of package-travel organizers, in this case Kuoni, when a client suffers damage through an unforeseen act by a hotel employee 
• 1:15 p.m. NATO Conference on Weapons of Mass Destruction, Arms Control, Disarmament and Non-Proliferation
• 3 p.m. Ylva Johansson, European commissioner for home affairs, speaks at EPC event on the proposed pact on migration and asylum
• 4:30 p.m. French President Emmanuel Macron hosts video summit with Commission President Ursula von der Leyen, German Chancellor Angela Merkel, EU Council President Charles Michel and Austrian Chancellor Sebastian Kurz