The EU will challenge the gig economy today by proposing that up to 4.1 million people working for ride-hailing and food-delivery apps like Uber be classified as “employees” rather than as self-employed. The Commission proposal aims to provide gig workers with stronger labor protections but faces hurdles from companies claiming it would lead to massive job losses and harm workers who prefer to remain self-employed. The EU’s own analysis said it could cost the industry up to 4.5 billion euros a year. Even if the Commission’s proposal does become law in a few years, it’ll likely be up to the courts to decide, with both the EU and companies gearing up for legal battles.
— Lyubov Pronina and Jillian Deutsch
What’s Happening
New Term | Emmanuel Macron will outline his priorities for when France takes over the rotating EU presidency on Jan. 1, a role he’ll have to juggle with his own country’s presidential election in April. He is expected to push for an EU-wide minimum wage, regulating tech giants and a border-tax mechanism based on the carbon emissions generated by goods.
Green Machines | EU ministers gather in Brussels today to discuss the bloc’s ambitious climate plans related to transport, particularly measures designed to decarbonize the aviation sector and boost support for environmentally friendly vehicles on the roads. Meanwhile, the bloc’s climate chief Frans Timmermans is meeting with U.S. counterpart John Kerry to talk about stepping up climate commitments.
Democracies Summit | Leaders from 110 nations will participate in today’s Summit for Democracy hosted by U.S. President Joe Biden. Commission President Ursula von der Leyen will chair one of the panels of the virtual gathering. But her participation will be slightly unofficial, with Hungary blocking the bloc’s role after Viktor Orban was excluded from the meeting even as countries like Pakistan made the cut.
Green Rulebook | The EU’s first set of standards for what counts as a green investment will start applying as of next year after passing through a regulatory scrutiny procedure that ended last night. The classification system, known as taxonomy, aims to underpin the region’s sweeping strategy to reach net-zero emissions by 2050 by attracting billions of euro in private finance.
Mink Fallout | Danish Prime Minister Mette Frederiksen is due to testify today in a parliamentary inquiry about last year’s mass culling of farmed mink in one of her biggest tests yet. Her controversial decision over Covid-19 concerns eroded the public’s trust and follows a rushed and messy process that forced a cabinet minister to resign, denting the Nordic country’s reputation.
In Case You Missed It
Energy Crunch | Europe’s energy crunch is set to last as electricity prices climbed to fresh records, fueling inflation and raising bills for millions of households and industries. Power prices for delivery next year surged over 15% in Germany and almost 14% in France by yesterday’s market close as freezing weather has forced European utilities to burn more gas, coal and oil to keep the heat on.
More Clarity | The European Central Bank may need more time to determine its next policy steps as the omicron strain of the coronavirus and new pandemic restrictions weigh on the euro area’s economic recovery, according to Governing Council member Olli Rehn. The bank meets next week to discuss the future of its stimulus programs.
Red Alert | This year will go down as among the hottest of the past 170 years, and the horrors of global warming were on full display. Greek villages burned, riverbanks burst in Germany and Brazil’s farms frosted over. Check out Bloomberg Green for a recap of the defining events of the year and the photos that captured them.
Trade Tool | The EU’s new tool to deter third countries from using coercive trade practices against member states came just as the bloc began an investigation into claims China is unfairly blocking imports from Lithuania. Trade chief Valdis Dombrovskis said the EU reached out to Chinese authorities to discuss Lithuania’s accusation, which he said could amount to economic coercion.
French Scandal | Alain Griset, France’s minister for small and medium-sized companies, resigned yesterday after being convicted for failing to properly declare his wealth before taking up his post. The Paris criminal court handed him a six-month suspended sentence, which he said he’s planning to appeal.
Chart of the Day
Switzerland has retained its top spot on the latest World Talent Ranking report, which is published annually by the IMD World Competitiveness Center. It grades 64 economies based on a range of factors including how they invest in and develop local personnel, their ability to attract and retain skilled workers and the quality of domestic talent pools. Europe dominated the rankings again this year, with the top 10 global countries all in the region.
Today’s Agenda
All times in CET
- 9 a.m. Council President Charles Michel meets with OECD Secretary General Mathias Cormann in Paris
- 12 p.m. Michel meets with French President Emmanuel Macron
- 1:45 p.m. EU foreign policy chief Josep Borrell holds a press conference with Annalena Baerbock, Germany’s new foreign minister
- 4:50 p.m. Baerbock holds news conference with NATO’s Stoltenberg
- Commission President Von der Leyen and other EU leaders participate in Biden's virtual Summit for Democracy
- Health Commissioner Stella Kyriakides delivers remarks via video link at the European Health Summit 2021
- Energy Commissioner Kadri Simson delivers speech at the European Economic Social Committee’s 565th Plenary session on the Fit for 55 package
- EU Vice President Dombrovskis meets virtually with Zhang Ming, Chinese ambassador to the EU