The two days of EU summitry starting today are more a case of the bear — rather than the elephant — in the room. Russian President Vladimir Putin looms large over several of the issues to be discussed at the Eastern Partnership meeting today and the European Council gathering tomorrow. That includes Ukraine, Belarus and the energy crisis. Expect many of these discussions to spotlight divisions among member states, according to an EU diplomat. Pushing for more dialog with Russia are Germany and France, including on the military build-up near Ukraine’s border, while eastern-flank nations are wary of anything that can be seen as a concession to Moscow.

— John Follain

What’s Happening
Omicron Divide | The omicron variant of Covid-19 is scrambling the EU’s plans to simplify travel rules. We’re told EU governments are split over a plan to shift the rules to base them on a person’s vaccination status rather than case levels in a particular country. Italy is planning to require Covid tests for all visitors, including vaccinated people, from other EU countries, starting on Wednesday.

Talk On | The EU and the U.K are set to extend their negotiations over the post-Brexit future of Northern Ireland into 2022, as both sides seek a compromise that would avert a trade war. Commission Vice President Maros Sefcovic and Britain’s Brexit Minister, David Frost, are due to speak twice virtually this week and are expected to announce their talks will continue into the new year, officials tell us.

Stoltenberg Favorite | NATO Secretary General Jens Stoltenberg has emerged as the favored candidate to become Norway’s next central bank chief in a race that’s raising questions about Norges Bank’s independence. A former prime minister, he faces no fewer than 21 competitors, including Deputy Governor Ida Wolden Bache. There’s controversy over Stoltenberg’s close affiliation with the ruling Labor Party and Prime Minister Jonas Gahr Store.

Nuclear Time | Stern warnings from U.S. and European officials suggest the window is closing on nuclear talks with Iran, with frustration boiling over after two weeks of negotiations marred by allegations of Iranian backsliding. The concern is being exacerbated by Iran’s continued acceleration of its nuclear program, as well as the restrictions placed on International Atomic Energy Agency monitors.

Orban Delays | Hungary will delay the purchase of Budapest Airport because of a ballooning budget deficit, Prime Minister Viktor Orban said. The government’s fiscal space has narrowed after the Commission stopped billions of euros in pandemic aid to Hungary over graft concerns.

In Case You Missed It
Dark Patterns | A European Parliament committee passed measures that could set major restrictions on the way giant technology companies handle content. The rules, we’re told, would curtail targeting ads to minors and completely ban so-called “dark patterns,” where platforms push people to consent to online tracking. The proposals would add restrictions to the Digital Services Act.

Rail Renaissance | The Commission laid out an action plan to increase the use of cross-border rail as part of its efforts to curb greenhouse gas emissions and keep the bloc on course for climate neutrality by the middle of the century. The proposal focuses on streamlining national regulations, cutting track-use costs and boosting the region’s night-train network.

Not Fruitful | Thierry Breton, internal markets commissioner, said the bloc’s trade and technology council with the U.S. was “not particularly fruitful at this stage” with tech regulation. He was responding to criticism from U.S. Secretary of Commerce Gina Raimondo that some of the EU’s prospective tech legislation was unfairly targeting U.S. companies. 

Belarus Verdict | Exiled Belarus opposition leader Sviatlana Tsikhanouskaya vowed to continue her campaign against authoritarian ruler Alexander Lukashenko after a court jailed her husband for 18 years. “The dictator publicly takes revenge on his strongest opponents,” Tsikhanouskaya said on Twitter, following the conviction of Siarhei Tskihanouski at a closed trial in a Belarus prison. “We won’t stop.”

Gambling Capital | Malta has emerged as the undisputed capital of Europe’s 24.5 billion-euro online gambling industry. Now the gaming business is at risk after a task force set up by the Group of Seven countries placed it on a “gray list” of jurisdictions where it can’t be confident that basic financial safeguards are in place.

Chart of the Day

The pandemic shifted living patterns across Europe, with young adults increasingly rethinking where to live. In Ireland, the share of 18-to-34 year olds residing in the family home dropped to 36% in 2020 from 54% in 2019, and Germany saw a drop to 30% from 42%. Yet in France and Portugal, the opposite happened, with the rate rising by about 6 points.

Today’s Agenda
All times CET.

• 9 a.m. Commission President Ursula Von der Leyen speaks in European Parliament on the upcoming summit and response to Covid-19
• 4 p.m. Eastern Partnership summit
• 4 p.m. Commissioners Valdis Dombrovskis and Paolo Gentiloni speak in European Parliament on Recovery and Resilience Facility