Joe Biden's election win, a welcome result for most EU leaders, isn't likely to stop trade ministers from imposing tariffs on $4 billion of U.S. goods as payback for illegal aid to Boeing. Still, Germany will push to delay the strike, arguing the timing is inauspicious. Either way, the EU hopes the new U.S leadership will agree to a deal on aircraft subsidies, resolving a major issue on transatlantic ties after the Trump administration claimed damages over unlawful support for Airbus by imposing duties on $7.5 billion of European products.

Tit-for-tat levies would give the EU more leverage and may make it easier for Biden to call a truce that has been elusive with Trump, who is still in office until Jan. 20. The hope is short-term economic pain for both sides may lead to longer-term political gain.

What’s Happening
Warm Welcome | European leaders including Commission President Ursula von der Leyen congratulated Biden on his election victory as they look forward to resetting ties with the U.S. following four tumultuous years. Here's our look at what America's allies will expect from the new administration in Washington. 

Islamist Crackdown | EU governments are mulling a coordinated crackdown on Islamist radicalization, following a wave of terrorist attacks in France and Austria. But the wording in the draft of an assertive joint communique, which we have seen, could risk further fanning tensions between the bloc and Muslim countries.

Money Talks | Negotiators representing EU governments and the European Parliament resume talks today over the bloc's 1.8 billion-euro budget and recovery fund. A deal last week on the key rule of law issue has given negotiations fresh impetus and the fast deteriorating economic outlook is likely to push both sides to compromise sooner.

ECB Grilling | Frank Elderson might have some convincing to do during his first public appearance as a prospective European Central Bank official today. The Dutch supervision official will appear before EU Parliament members who have long lobbied for a greater choice of nominees offering more gender balance than the sole male option they have before them.

German Mettle | That Germany's economy has come through the pandemic in relatively decent shape is partly down to the business model — based on solid finances — practiced by thousands of small and mid-sized, family-owned enterprises, according to a new study. A company that traces its roots back to the beginning of the 16th century and is considered the nation's oldest family-owned firm is one of them.

In Case You Missed It
Brexit Efforts | U.K. Prime Minister Boris Johnson and Ursula von der Leyen used a phone call on Saturday to plot the way forward toward a Brexit deal, but said that large differences still need to be bridged. Negotiators from the two sides resume talks in London this week in what a U.K. spokesman described as a redoubling of efforts. 

Italian Aid | The government in Rome approved an extra pandemic relief package on Saturday for businesses hit by the country’s second lockdown. Italy is expected to add 2.5 billion euros in spending with the new program, which extends support to more companies compared to an earlier 5 billion-euro aid decree. 

Turkish Meltdown |  Berat Albayrak, the son-in-law of Turkish President Recep Tayyip Erdogan, unexpectedly resigned as the country’s economy czar a day after the central bank governor was fired, igniting fresh turmoil in a nation already facing a currency meltdown. The weekend moves could pave the way for a dramatic shift in economic policy, as well as a political realignment in the ruling party.

Deteriorating Outlook | The French government is preparing to cut its forecast for a 8% rebound in economic output next year, Finance Minister Bruno Le Maire said. The severity of the revision to the outlook may depend on whether authorities decide to loosen or tighten restrictions that they are due for review on Thursday.

Empty Slopes | Lift companies, hotels, bars and instructors that make up the Alpine ski business are bracing for a potentially disastrous winter. Resorts are trying to attract more locals this season, but that won’t make up for the loss of international visitors due to quarantines and lockdowns. 

Chart of the Day

Rich countries risk missing their goal to provide $100 billion a year by 2020 to help poorer nations combat climate change, after funding slowed in the year since Trump vowed to pull the U.S. out of the global Paris deal. Climate financing from developed countries reached $78.9 billion in 2018, far short of the target agreed in 2015 by 197 countries as part of the Paris Accord, according to an OECD study.

Today’s Agenda
All times CET.

• 1 p.m. Video conference of EU trade ministers to debate trade relations with China and the United States, WTO reform

• 3:30 p.m. NATO Secretary General Jens Stoltenberg hosts the organization's youth summit

• 4:45 p.m. EU Parliament holds hearing with Frank Elderson, candidate for the ECB Executive Board

• Negotiators continue talks on the bloc's long-term budget and jointly-financed recovery package

• EU Parliament's Economic and Monetary Affairs and Budget Committees vote on grants and loans to member states to support reforms and investments

• Brexit talks continue in London. U.K House of Lords votes on Boris Johnson's controversial Internal Market Bill