Parents may be relieved now after the EU’s drug regulator backed the Covid vaccine for younger children from 5 to 11 years old. But the question is how quickly governments will be able to roll out the appropriate doses. Shipment of those may take a few weeks, according to German Health Minister Jens Spahn. By contrast, it took the U.S. just a few days to ship millions of kids’ doses after the go-ahead from the Food and Drug Administration in October. The long-awaited approval comes as authorities push for faster rollout of booster shots amid a fourth wave of the pandemic. Several countries are considering more Covid restrictions; Belgium may issue another round today. Still, the EU is trying to maintain travel flexibility, recommending a nine-month time limit for the validity of vaccinations without boosters for travel into and within the bloc. It also calls for countries to reopen as of Jan. 10 to those who have used vaccines approved by the World Health Organization. - Lyubov Pronina

What’s Happening

Russia Sanctions | Angela Merkel raised the prospect of the EU imposing new sanctions if tensions with Russia and Belarus don’t subside. The departing German chancellor cited the Russian military buildup near the Ukrainian border, the Kremlin’s refusal to hold talks on eastern Ukraine and Belarus’s role in a migration crisis on the border with Poland. 

Fishing Blockade | France’s leading fishermen’s union says it will block access to and from three ports as well as the Eurotunnel today to step up pressure on the U.K. over post-Brexit fishing licenses. The protest will start with a one-hour blockade of the Saint-Malo port in the morning, followed by similar actions at noon in Calais and early afternoon in Ouistreham. Access to the Eurotunnel will be blocked from 2 p.m. to 4 p.m.

New Reluctance | The EU is waiting to hear back from Poland and Hungary before deciding the next steps in the ongoing fight over rule of law, Justice Commissioner Didier Reynders said. He suggested it won’t be easy to convince the European Council to use a new budget mechanism that would set conditions that must be met before disbursing millions of euros to Warsaw. “It's important to have a robust file to convince the court, but it will be important also to have a robust file to convince the council and to reach such a qualified majority,” he added.

Rome Treaty | France’s Emmanuel Macron and Italy’s Mario Draghi are turning the page on several years of tense relations between France and Italy with a new treaty to be signed today in Rome. The accord envisages regular bilateral meetings and will aim to forge cooperation on everything from space launchers to fiscal policies, green transition and taxation.

Bond-Buying | The future of European Central Bank bond-buying is becoming clearer before December’s crunch meeting on stimulus, with officials appearing increasingly reluctant to make long-term commitments to the tool lest they entrench the euro area’s high inflation rates. While policy makers are ruling out an interest-rate increase in 2022, they want to retain flexibility on quantitative easing.

In Case You Missed It

Uber Rage | Uber has been ordered to pay a 300,000 euro penalty, adding to the challenge of a court-ordered partial shutdown imposed on its ride-hailing service in Brussels that will affect 2,000 drivers starting tonight. Authorities buckled under the pressure yesterday after Uber drivers blocked main routes in the Belgian capital, announcing plan to update its taxi rules, which might allow the ride hailing app to start operating again at some point.

Capital Union | The EU moved forward yesterday on trying to build a cross-continental financial system with four new legislative proposals — six years after it was first announced and a year after the latest relaunch. The EU’s executive arm hopes a “capital markets union” will break down barriers between 27 national financial markets and rulebooks to help companies raise money within the bloc. 

Paying More | A record cash glut is distorting European money markets, with euro-zone banks paying more to borrow overnight than for three months. As the ECB floods markets with cash, banks are scrambling to find a place for it. That’s causing a shortage of short-term German bonds that’s especially acute as balance sheets get adjusted for year-end.

Taiwan Warning| China warned Germany’s incoming coalition against meddling in its internal affairs, hinting at potential damage to relations unless Berlin acknowledges its claim on Taiwan under the so-called one China policy. The warning came after Olaf Scholz unveiled a government program urging Beijing to loosen its grip on Hong Kong and commit to back Taiwan’s participation in international organizations. 

Heat Pump | For all the hype surrounding hydrogen, the cheapest way to warm a home during the green transition will be a heat pump. That’s the finding a new study by European consumer organizations, which said the pumps — that draw heat from the surrounding air — can help cut heating bills by a quarter compared with the cost of conventional gas boilers. 

Chart of the Day

Migration from the EU to the U.K. went in reverse last year for the first time since 1991 as a net 94,000 EU nationals left the country during the pandemic. Figures published yesterday by the U.K. Office for National Statistics showed that total net migration “fell considerably” to just 34,000 from an annual average of around 250,000 across the previous decade. The drop, partly due to Brexit, helps explain why companies are struggling to recruit workers, particularly in sectors such as hospitality and retail that relied heavily on foreign staff before the pandemic struck. 

Today’s Agenda (All times CET)

• 1 p.m. Commission President Ursula von der Leyen and Council President Charles Michel hold press conference at the ASEM Summit
• EU research ministers meet in Brussels
• EU Trade Commissioner Valdis Dombrovskis participates in the European Banking Federation Board meeting via videoconference