The EU is set to kick off the first step of its data strategy, which aims to boost innovation and research in areas including health, mobility and finance. The regulation on data governance to be proposed by the European Commission tomorrow will establish legal requirements to enable sharing of public and personal data with businesses and research organizations. But the planned measures are facing criticism before they’ve even been unveiled. Tech associations have pushed back against wording in a previous draft of the rules that would allow only European companies to participate in parts of the program. - Natalia Drozdiak and Nikos Chrysoloras

What’s Happening

WhatsApp Access | On the subject of data, we laid our hands on the latest draft of a joint EU communique on “security through encryption and security despite encryption.” While the revised version has a few more references to rule of law and privacy protection, the thrust is the same as in the previous draft: governments want to be able to access encrypted messages in popular services like WhatsApp, Signal and Messenger.

Melting Pots | The Commission today will recommend about 50 actions to help integrate migrants, ranging from housing funds to the exchange of best practices by EU countries. The initiative has been in the works for months but has gained added urgency in the wake of high-profile terrorist attacks in France and Austria.

‘Irresponsible’ Standoff | ECB policy maker Olli Rehn called the political standoff over the EU’s pandemic recovery plans “irresponsible.” With the 1.8 trillion-euro spending package held up by Hungary and Poland over conditions attached to the cash, concerns are mounting that the central bank will carry a bigger burden. Here’s more from our interview.

Backstop Delays | Senior euro-area officials preparing the next gathering of the bloc’s ministers will today discuss outstanding issues in reforming the European Stability Mechanism. Chief among them is whether the region’s banks have adequately reduced risks on their balance sheets to allow for the ESM to become a backstop for the eurozone’s bank resolution fund earlier than its planned introduction in 2024.

Spending Spree | There’s a shift taking place in the low-debt economies that joined the EU after the collapse of the Berlin Wall. Much of the bloc’s ex-communist contingent have jettisoned an aversion to borrowing and are now set to endure higher indebtedness for some time. Here’s why it matters.

In Case You Missed It

Brexit Hopes | Ireland’s premier said he is hopeful the outline of a post-Brexit trade deal will be clear by the end of the week. But cutting a trade deal with Boris Johnson, while standing up to Hungary’s Viktor Orban on the rule of law, calls for more than muddling through, our columnist Lionel Laurent writes. 

Le Maire's View | We interviewed French Finance Minister Bruno Le Maire. The main takeaway: the country is hoping for a quick end to the simmering transatlantic trade battle over its tax on technology giants such as Facebook, as soon as President-elect Joe Biden takes office. 
More here. 

Virus Update | The bad news is that Italy became the second European nation after the U.K. to reach 50,000 deaths from the coronavirus pandemic. The good news is that yet another vaccine seems to be working. Meanwhile, Europe is looking to keep the disease from ruining the Christmas holidays. 

Turkish Woes | As the world begins to reposition for Biden’s move into the White House, few are moving as quickly as Turkey’s President Recep Tayyip Erdogan. We explain why Ankara should be getting ready for four rocky years with the new U.S. president in office. Meanwhile, the EU’s Irini naval mission has further strained relations with Turkey. 

Sarkozy’s Trial | Nicolas Sarkozy will have to wait a few more days before telling his side of the story after a co-defendant in his corruption trial requested a delay on medical grounds. The former French president is accused of offering to pull strings after he left office to get the co-defendant — a now-retired senior court official — a prestigious job in Monaco in return for his help in a separate legal dispute

Chart of the Day

The euro area is slipping into another contraction amid new virus restrictions that are taking a massive toll on parts of the economy. IHS Markit’s composite Purchasing Managers’ Index fell to 45.1 in November from 50 in October, hinting at declining output. Here's what the reading means.

Today’s Agenda (All times CET)

• 9:30 a.m. Commission Vice President Maros Sefcovic delivers a keynote speech via videoconference at the European Conference on Batteries, where Tesla’s Elon Musk, Germany’s Peter Altmaier, France’s Le Maire will also speak
• 10 a.m. Commissioner Thierry Breton and privacy activist Max Schrems speak about data transfers, the July ECJ ruling and the data economy at a Bruegel event 
• 3:15 p.m. EU foreign policy chief Josep Borrell debates the bloc’s relations with Turkey with MEPs, following latest developments in Cyprus
• 4 p.m. ESM Managing Director Klaus Regling speaks at the 16th Cyprus Summit
• Borrell participates in the 2020 Afghanistan Conference 
• Senior finance ministry officials to prepare the next Eurogroup meeting; main focus will be finalizing ESM reforms and an early introduction of the SRF backstop